Fortress Investment Group: Evolution of a Behemoth

Fortress Investment Group began operations in 1998. The company came out of the gate as a hard-charging alternative investment vehicle for institutional investors and high net worth individuals. Fortress currently holds over $43 billion in assets with 1750 clients. Their long-term investment strategy is one of “strong long-term risk-adjusted returns”

Started by a trio of talented executives, Fortress Investment Group began operations with decades of experience. Peter Briger, Wes Edens and Randall Nardone brought their own unique disciplines to the company. The founders delivered expertise gained from the bedrock firms of Wall Street. Fortress took off, quickly growing from $400 million to over $3.9 billion in the first few years of operation. Growth was tied to it’s first asset fund.

The Fortress Investment Fund I was the company’s first investment vehicle. Real Estate, debt securities, hedge funds were some of the first assets.

Fortress grew quickly. The owners began to branch out into their own personal passions. The company continued its hard-charging path, never deviating from its founding principles.

Core Investment principles:

  • Asset-based lending
  • Operations management
  • Corporate mergers and acquisitions
  • Capital markets
  • Sector-specific companies and institutions

The Initial public offering of Fortress Investment Group in 2006 was historic. It was the first time a large-scale investment firm had gone public on the New York Stock exchange. The IPO offered high risk and high rewards of hedge funds to private investors. Growth was explosive. The first Fortress fund expanded into II, III and IV. The Partners and Value funds brought online. The Drawbridge Special Opportunities and the Drawbridge Global Macro Fund created diverse offerings to high-value clients, desiring a more diversified portfolio. The Fortress Brookdale Investment Fund added to the mix.

The next few years saw a myriad of funds and investment vehicles offered to its clients. Acquisitions had been going on for nearly a decade, as the company ballooned in size. Fortress added international investments to enhance the companies worldwide portfolio.

Fortress had the golden touch. 2010, saw the acquisition of AIG’s American General Financial Services. The value of the investment skyrocketed in a short five years, gaining almost 27 times its value. Mergers and acquisitions were taking place at regular intervals. The company gained a significant foothold on the international scene. New headquarters were popping up across the globe.

Fortress assembled elite talent. Recognition by their peers was happening on a regular basis. Fortress Investment Group’s innovation to the markets was being hailed the world over as revolutionary.

Softbank purchased the behemoth investment company in 2017. Fortress continues to operate as a separate entity. The acquisition by Softbank, headquartered in Tokyo, brings a broad worldwide dynamic to the path of Fortress. The synergies created will bring about massive improvements in technology for both companies. Trends, opportunities, communication can now be acted upon in near real time.

Softbank has created worldwide goals of leadership in targeted industries that carry enormous opportunities for growth. The next stage for these dynamic companies could see a revolution in asset management. SoftBank to Buy Fortress Investment Group for $3.3 Billion