Having begun as a tiny investment management entity, Fortress Investment Group has over the past two decades demonstrated incredible growth that has not been experienced by any other investment manager globally. The firm was started by its three founders; Randal Nardone, Rob Kauffman, and Wes Edens, back in 1998. It started as a private equity fund, having only a meager $400 million in assets under management. The principal idea in the minds of the three founders was to invent a new type of firm that would consolidate funds from private equity and subsequently invest the fund in cutting-edge investment vehicles.
Immediately after its foundation, Fortress Investment Group underwent a very vigorous growth that saw its managed assets shoot to $3.9 billion within the five years of operations and further to $32 billion by 2007. This tremendous growth had come as a result of some core competencies that propels the company and keep it moving. One of the key competencies unique to Fortress group is the expertise it has in mergers in acquisitions. The company’s personnel have a very sound understanding of the market and have established professional relationships with key stakeholders of various organizations. This aspect assists Fortress to effectively manage their M&As and consequently benefit from them.
For instance, during the period between 2006 and 2007, Fortress Investment Group acquired several key organizations. These include Intrawest, a Canadian company that operated the largest ski resort in North America. Fortress also purchased Florida East Coast Industries (which owned Florida East Coast Railway), Penn National Gaming (which operated casinos and horse racing venues) and also RailAmerica.In 2010, Fortress Group went ahead to purchase AIG’s American General Financial Services, which later changed to Springleaf Financial Services. One amazing fact about this acquisition is that after the transaction, the value of the acquired property skyrocketed under Fortress’s umbrella, to $3.5 billion, what was 27 times its original value.
About Fortress Group
Fortress currently has divided its operations into three main segments; credit, permanent capital vehicles and private equity. It valued at $43.6 billion in assets under management. Originally, the headquarters of the firm were situated in New York. However, due to its expanding nature, it has established three more headquarters, one in San Francisco, in Singapore and the last one in Shanghai. It has also increased the number of its employees to 1,100 so that it can effectively manage its operations. Indisputably, Fortress Investment Group is the investment industry lion.