The Operations of Fortress Investment Group and Its Acquisition

The highly diversified global investment management firm, Fortress Investment Group, is a force to reckon with in the investment industry. As of September 2018, its value stood at $42.1 billion in terms of the assets under its management. It prides itself for gaining more than 1,750 private and institutional investors in various parts of the world. Founded in 1998, investor performance remains to be Fortress Investment Group’s cornerstone. Over the years, it has been generating strong risk-adjusted returns for its investors.

One of the Fortress Investment Group businesses in Fortress credit that was developed by one of the company Principals, Pete Briger in 2002. Currently, it has a team of more than 500 employees whose focus is to invest in the global market targeting the illiquid credit investments and the undervalued assets. Its other engagement is private equity business whose focus is to make investments in asset-based businesses and businesses that can generate cash flow. Led by Wes Edens, this business utilizes opportunistic and value-oriented investment approach.

The other business of Fortress Investment Group is in the management of permanent capital vehicles. So far, it manages public permanent capital vehicles namely, New Residential Investment Corp, New Media Investment Group, Fortress Transportation Infrastructure Investors and lastly, the Eurocastle Investment Limited. In all the three businesses, the company has teams of professional and skilled individuals that are working to improve its position.

2017 was a big year for Fortress Investment Group when the company was sold to a Japanese conglomerate, SoftBank Group Corp. The mutually benefiting deal, saw SoftBank pay $3.3 billion in cash to take over the ownership of the investment firm. The Japanese giant has established businesses in various sectors, and this was an opportunity that it could not pass up of entering into the investment world.

Fortress Investment Group will also benefit from SoftBank’s popularity and relationships in various markets. They agreed that the investment firm shall not relinquish its mandate of managing assets to SoftBank and it shall retain its main office in New York. The investment firm also retains the independence in running its operations. The terms were unique and unlike other acquisitions that have taken place involving huge organizations.

For details: