Fortress Investment Management Group, the Billion-Dollar Hedge Fund

Fortress Investment Management Group, the Billion-Dollar Hedge Fund

SoftBank, the Japanese company worth billions of dollars recently completed their acquisition process for Fortress Investment Group. Reports emerged that the board of Fortress Investment Group was thinking about a proposition form Softbank to sell the company back in February 2017, shortly after, the two confirmed the rumors and by the month of December 2017, it was announced that the company had been sold for 3.3 billion dollars. The company, whose stocks were trading at the stock market for 5.8 dollars per share, sold all their shares to SoftBank for 8.83 dollars each. The stocks were then struck form the stock market and each shareholder compensated for the shares they owned, making the company a private equity firm once again. In addition, SoftBank agreed to maintain the headquarters of the company in United States’ New York State and retain all the principals of the company in the positions that they held.

The background and establishment of Fortress Investment Group

Fortress Investment Group was founded two decades ago through a collaboration of three savvy businessmen. The three, Randal Nardone, Wesley Edens, and Rob Kaufman came together with their different expertise and years-worth of experience to establish the company which would end up managing assets worth close to 70 billion dollars. The company did not take long to expand to a hedge fund as well as an investor in the sector of real estate investment and debt securities as well. After a few years, the three increased their leadership panel by hiring Peter Briger and Michela Novogratz who were former partners at the prestigious Goldman Sachs firm. By the year 2006, Fortress had already grown beyond what its partners expected it would and they made a decision to make it public. Fortress is known as the first ever asset Management Company in the United States to be traded publicly and make the transition from a private equity firm in its sector of existence. By the year 2009, the company had gained international recognition serving both corporate and individual clients in different parts of the world. It was featured by Vanity Fair and Forbes.

Sources of article:https://www.inc.com/profile/fortress-investment-group