Fortress Investment Group’s Operational and Strategic Management of Assets

Fortress Investment group was initiated in 1998 by Wesley R.Edens, Randal Nardone and Rob Kauffman as a private equity. Dedicated to the practice of helping businesses improve their performance, and productivity by solving problems and reducing costs to make savings, the Fortress Investment Firm headquartered itself in NYC, one of the most diverse cities offering clients from various cultures and backgrounds. Around the month of June, 2016, Fortress Investment managed alternative assets worth $70.2 billion n private equity, liquid hedge funds and credit funds. Fortress Investment Group’s investments saw rapid growth with its private equity funds accumulating a new profit of 39.7% between the years 1999 and 2006.

On February 14, 2017, SoftBank Group announced its agreement to purchase Fortress Investment Group LLC for $3.3 billion. This acquisition was completed in December 2017 on the price initially agreed upon. SoftBank Group’s decision to buy the firm came as a surprising move. But it was undertaken as an effort on behalf of the Japanese technology giant to aids its transformation into the world’s largest investment firms. Japan’s SoftBank Group Corp’s acquisition of the investment firm was a cash deal declaring a publicly traded US private equity firm to be the first to be delisted. As the deal surfaced, the trading in Fortress shares was halted at $7.85 a share, which was about 58% lower than the initial public offering price per share in 2007.

SoftBank, however, established a deal to buy Fortress at an offering of $8.08 per share in February, a 19% raise from the closing price of $7.85 and a 39% percent drop from the initial stock price.The acquisition hasn’t altered the Fortress’s day-to-day operations. The firm’s investment style remains the same. According to Co-Chairman Wes Edens, the working environment hasn’t changed much other than not having to make earnings calls anymore. The Co-Chairman also expressed excitement for going private. In a statement released by SoftBank Group, it was relayed that the Fortress firm will continue to operate independently and also remain headquartered in New York. SoftBank, a Japanese company founded by Masayoshi, expressed its commitment to maintaining the following aspects of Fortress’s management:

– Business model/strategy

– Brand

– Employees/staff/admin

– Environment

– Processes

– Culture

Aside from managing and operating private equity, Fortress also manages credit business, a department led by Pete Briger under Co-Chairman designation.Fortress businesses specialize in asset-based investing. It provides experience in investing profoundly across a variety of assets. It believes in diversifying investments to facilitate a broad experience in pricing and owning assets. Fortress’s acumen encompasses pricing, financing and overseeing physical and financial assets that range from real estate to capital assets to financial assets. It seeks to secure a diversified long-term cash flow outcome.Fortress possesses deep knowledge of the industries it chooses to invest in. This practice is critical to acquiring successful deals. Fortress has also developed a team of investment professionals that offer a portfolio of investment prospects. Their sector-specific expertise, and corporate relationship with leading companies opens avenues for the company’s secure expansion.