Fortress Investment Group: Leader in Investment Management for Over Two Decades

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Posted by omeditors | Posted in Financial Institution, Investment Options | Posted on 29-06-2018

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Fortress Investment Group has been a trendsetter since its founding two decades ago when it started as a private equity firm. The investment group was founded by Wes Edens (current principal), Randal Nardone (current principal), and Rob Kauffman (partner until 2012). The three founders brought with them a pool of financial expertise and experience from their previous positions at Goldman Sachs, Lehman Brothers, BlackRock Financial Management, and UBS.Their main aim was to come up with a whole new investment firm. Theirs was an “alternative-asset” strategy to raise private equity and then invest it into innovative schemes. Fortress Group flourished, and their assets under management grew at a fast rate. In its first five years, it turned $400 million to around $3.9 billion. The valuation of its assets was $32.6 billion by 2007.Among the earliest investments for Fortress Investment Group were in real estate. In this, they focused on New York and Toronto markets.

They quickly expanded their operations into hedge funds and debt securities. Fortress Investment Group’s growth came at a brusque pace. This was evident as its private equity assets grew by almost 40% from 1999 to 2006. To date, Edens and Nardone are still involved in the management affairs of Fortress Investment. Kauffman, however, decided to turn his focus on car racing which was one of his life-long interests. It’s at this stage that he bought 50% of the shares in Michael Waltrip Racing, which participates in the NASCAR circuit. Soon after, he founded RK Motors Charlotte, a firm that deals in restoring vintage “muscle cars.” Fortress Investment Group is currently under the watch of its three principles; Wes Edens and Randal Nardone, based in New York and Peter Briger who is based in San Francisco.

Fortress has evolved over the years and is now a global investment management firm that is entirely diversified. What’s more, the investment firm directs over $43 billion in assets for over 1,750 investors in private equity, hedge funds, and permanent capital vehicle. It has drawn strength from its strategy of “strong risk-adjusted returns,” mainly for investors who plan for many years ahead. With its headquarters in New York, Fortress Investment Group has now employed over 900 people. Over the two decades of its existence, Fortress Investment Group has established deep expertise in managing acquisitions and mergers. Its employees have a created a rapport with different corporate board members, corporate stakeholders and management professionals, with whom they have built stable business relationships.

 

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