The Progression of Fortress Investment Group After Ownership Changes

When SoftBank Group Corporation and Fortress Investment Group closed a 2017 acquisition deal, it was an exciting time for Masayoshi Son, Peter Briger, Randal Nardone, and Wesley Edens. SoftBank, also known as SBG is a large Japanese technology investment firm headquartered in Tokyo. Fortress is an alternative investment firm managing credit, private equity and permanent capital assets. For $3.3 billion, Son purchased the limited liability company’s outstanding shares of stock. In February of last year, an article on WSJ stated Fortress Class A’s stockholders received $8.08 per share, 39 percent above its closing price. Visit https://www.bloomberg.com/profiles/companies/FIG:US-fortress-investment-group-llc

Edens, Nardone and a former partner started Fortress Investment Group in 1998 with only $400 million in capital and 28 employees in the NY office. Now, the company employs over 1,000 workers and manages $70 billion in managing assets. The organization structure they build on a sturdy foundation includes three divisions; credit, private equity, and permanent capital vehicles. According to Patch (May 15th, 2018), Peter Briger oversees the credit division and manages seven global funds in income, lending, real assets, and long-term value. The credit portfolio includes assets that are distressed and low-valued.

Wesley and Randal jointly oversee the private equity division and generate cash flows through controlled investments in North America, Western Europe, and the Caribbean. Fortress Investment Group has holdings in Holiday Retirement, Brookdale Senior Living, New Fortress Energy, Florida East Coast Railway, and One Main Holdings. The permanent capital vehicles division manages public-traded permanent assets vehicles. Among the investment vehicles are New Senior Investment Group, Fortress Transportation & Infrastructure Investors, New Residential Investment, and New Media Investment. Those companies concentrate on transportation infrastructure, US senior housing, residential real estate, and Italian real estate assets.

Seven months after the acquisition closed, Fortress Investment Group was managing $36.1 billion in real estate, private equity, and credit assets. From September 2017 to June 2018, the alternative management company is managing $41.4 billion of assets. Management assets increased by $5.3 billion showing the progression of Fortress’s overall performance since SoftBank gain ownership. Fortress maintains its reputation in the United States and international as the Institutional Hedge Fund Manager of the Year since 2014.

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