How Fortress Investment Group Developed Into A Major Investment Firm

Fortress Investment Group, LLC, is an investment firm headquartered in New York City. The invest in a globally diversified portfolio of alternative assets. Their main investments are in the credit space, private equity, and real estate. This company was founded in 1998 and it now has close to 1,800 clients made up of institutional entities as well as private investors. This firm was founded by three entrepreneurs; Wesley R. Edens, Randal A. Nardone, and Rob Kauffman. When they were first established private equity was the focus of Fortress Management Group. Before long they expanded into real estate, debt securities, and putting money in hedge funds. By 2006 this company had grown by almost 40% and in February 2007 they held an initial public offering on the New York Stock Exchange (NYSE).

It was announced on December 27, 2017, that Tokyo, Japan’s SoftBank Group Corporation had bought the remainder of Fortress Investment Group that they didn’t already own. They announced that this purchase as $3.3 billion, all in cash. With this purchase they now own all shares of Fortress Investment Group. Shareholders in Fortress had agreed to this transaction in a vote that was held on July 12, 2017, and the purchase cleared regulatory approvals.As part of this purchase, each Class A share of Fortress Investment Group was converted into $8.08 cash-value. All of Fortress’ common shares had already stopped trading prior to the completion of the sale and this company as delisted from the NYSE. SoftBank announced that they would keep Fortress Investment Group based in New York City as an independent subsidiary. The executive team remained in place after this sale and it consists of Randy Nardone, Peter Briger, and Wes Edens.

Over the past 20 years, Fortress Investment Group has acquired a number of privately held companies. One of these acquisitions was in 2006 when Fortress bought Intrawest. Intrawest is an owner of Canadian ski resorts and is the largest operator of ski resorts in North America. In that same year Fortress also bought RailAmerica, Inc. This firm operated both regional and short-line railroads in both America and Canada.Some private equity companies bought by Fortress Investment Group have been taken public over the years. Among these companies is RailAmerica which went public in October 2009. Some of the other Fortress-owned companies that have held initial public offerings are GAGFAH, Aircastle, Ltd. and Brookdale Senior Living, Inc.Fortress Investment Group also took part in the 2010 Winter Olympics which were held in Vancouver, BC. During these Olympics, Fortress controlled the biggest venue of these games which is Whistler Blackcomb. This was the main skiing site and was regularly featured on tv. They were also the main financier of the athlete’s village which was built in downtown Vancouver. This project cost $1 billion and housed almost all of the athletes that competed during these Olympics.

Leave a Reply

Your email address will not be published. Required fields are marked *