Since its formation in 1998, Fortress Investment Group has been the leading investment manager internationally. This investment management firm was formed as a private equity firm by its founders; Wes Edens (still a principal), Rob Kauffman (retired in 2012) and Randal Nardone (principal to date).By then, Fortress was a small firm, with only 28 employees and $400 million in managed assets. However, with extensive combined experience from its founders, the company experienced rapid growth with the assets under management increasing to $3.9 billion in the first five years of its existence. This further grew to $32 billion by 2007.What brought Fortress Investment Group into the limelight of investment industry is declaring an initial public offer for its equity fund in 2007. It was the first alternative asset firm of its large magnitude do invite the public into an IPO. This move brought Fortress into the good books of the public and gained popularity.No sooner had Fortress Investment Group set the pace than all the other firms followed with the same move.
The first one was Blackstone Group, which went public four months after Fortress. Then others that followed included KKR & Co., Oaktree Capital Group, Management, Ares Management, Och-Ziff Capital Management Group, and the Apollo Global Management.The success of Fortress Investment Group has not just been achieved by luck. It’s a combination of the firm’s core competencies that have acted as pillars for its significant growth. For instance, the firm has specialized in asset-based investments. Beside credit funds and private equity, Fortress has diversified the classes of assets that it manages for its clients to include capital, real estate and other permanent investment vehicles that can generate long-term cash flow. The firm has professionals and specialists who possess extensive expertise in financing, owning, managing and pricing both financial and physical assets.
About Fortress Group
Being a world leading investment company, Fortress has diversified its classes of assets that it manages for its customers. It has also increased its employees to over 1,100 to be able to serve the expanding client base. Due to its huge nature, the group’s operations have been currently segmented into three categories; permanent investment vehicles, credit, and private equity. Recently, the firm was acquired by the SoftBank group. However, Fortress continues to operate independently under the management of its three principals though still under SoftBank. The acquisition was “all cash” based where SoftBank paid $3.3 billion in cash.