Fortress Investment Group turns 20 this year. The investment firm made history in 2007 by going public. FIG was projected to offer stocks at $ 18 per share. At the time of the initial public offering, Fortress Investment Group (FIG) was valued at $ 14 billion, the shares were priced at $ 35 per share. Fortress was the first buyout company to go public on the New York Stock Exchange. FIG was founded in 1998, and at that time was worth over $ 36.1 billion. The founders of FIG are Wes Edens, Randy Nardone, and Peter Briger.Over the 20 years of doing business, Fortress Investment Group has taken several companies public as part of their diversified portfolio.
FIG has as part of their portfolio Aircastle Limited, Alea Group Holdings, Global Signal, Green Tree Services LLC, Springleaf Financial and Prime Retail. Back in 2006, Fortress Investment purchased the largest ski resort in North America, Canadian Ski Resort. Later that same year on November 15, 2006, Fortress Investment Group went on to buy up RailAmerica Inc. The RailAmerica purchase was in the form of stocks at $ 16.35 per share and was completed by February 2007. Two years later, in October 2009 FIG sold RailAmerica by an initial public offering.
In 2010 FIG was recognized as by Institutional Investor as the Credit Focused Fund of the Year and again 2011. In 2012 and in 2014 FIG was recognized again as Discretionary Macro Focused Hedge Fund of the Year and Credit Focused Fund of the Year, by Institutional Investor. By June 30th, 2016 FIG was responsible for managing $ 70.2 billion in assets.December 28th, 2017, Masayoshi Son, founder of SoftBank announced the technology investment firm had acquired Fortress for $ 3.3 billion in cash. Despite the acquisition, FIG will still operate as an independent firm from SoftBank’s headquarters office in New York City.
Fortress Investment Group
Fortress Investment Group was established in 1998. The firm was founded by three individuals who are described to be among the greatest brains in the financial industry. Randal Nardone together with Wes Edens and Robert Kauffman were behind the establishment of Fortress. The three individuals are notable in the finance industry having worked with notable firms such as BlackRock Financial Management, UBS, Goldman Sachs, and Lehman Brothers where they held prominent positions.As they were founding the firm, the trial had an ambition of creating a new type of an alternative asset investment firm. When they began operations, they had $400 million of assets under their management.
Five years after the establishment, the firm had managed to obtain $3.9 billion of assets under their management. In 2007 Initial Public Offering, Fortress Investment Group decided to go public. It became the first most prominent alternative asset investment firm to go public in the New York Stock Exchange Market. In this manner, the firm had attracted numerous firms and private investors. Thus, the firm was managing $32.9 billion of assets.In 1999, the investment group launched its first alternative asset strategy vehicle referred as Fortress Investment Fund I. By 2006; the investment vehicle had expanded and produced Fortress Investment Fund I with versions II, III, and IV. Randal Nardone and Wes Edens still play a significant role in the management of the firm while Robert Kauffman retired 15 years ago.
Fortress Investment Group is under the best management. The firm is managed by individuals who understand the firm better. For instance, Randal Nardone has been in the financial sector for more than three decades which makes him an expert in the industry. Fortress Investment is managed by three Principals. Randal Nardone currently serves as the Chief Executive Officer of the firm since 2013 and is based in New York. Wes Eden plays an active role as a managing partner. Finally, Peter Briger us a managing principal based in San Francisco.
Acquisition by Softbank
Fortress Investment Group was recently acquired by Softbank at a price of $3.3 billion. Softbank is a Japanese investment firm that manages a wide range of portfolio. Despite the acquisition, Fortress will still operate independently and will retain the three principals in the management. The employees of Fortress Investment stated that the acquisition by Softbank is an opportunity for growth.
Randal Nardone is the CEO, director and founder of Fortress Investment Group. He has a rich educational background from prestigious institutions. He joined the University of Connecticut and attained his degree in Bachelor of Arts in Biology and English.He also attended Boston University School of Law where he graduated with a Doctor of Jurisprudence. He is a renowned lawyer and a specialist in finance. He began at Thacher Proffitt and Wood law firm as a member of the executive committee.Randal Nardone has been the chief executive officer and managing director of UBS. He has also worked at BlackRock as a partner. After gaining sufficient skills and expertise in the business industry, Randal Nardone joined hands with Wes Edens and Robert Kauffman to found the Fortress Investment Group.The private equity firm was established in the year 1998 with an initial investment of $400 million in equity.
The firm was founded as an alternative asset management company.In the year 2011, he was appointed the interim chief executive officer following Daniel Mudd’s voluntary resignation.He had also been named to the board of directors of FIG, a position he has served since the year 2006. He is recognized for establishing the Fortress Investment Fund and serving as its chief operating officer.He has been critical in Fortress Investment Group’s immense growth. He has steered the firm to a global corporation that controls over $70 billion in assets with a highly skilled and talented workforce of over 1800 employees.The assets are distributed in liquid hedge funds, private equity funds, and credit funds.
In 2014, the firm won the Hedge Fund Manager of the Year under his leadership. HFMWeek has also awarded the company the Management Firm of the Year.It was recognized and credited by Institutional Investor as the Macro Hedge Fund firm of the year in 2012. Randal Nardone’s hard work and dedication makes him one of the most accomplished businessmen of this century.According to the Forbes Billionaire list, his net-worth stands at a staggering $1.8 billion. He is ranked at the 557 position in the billionaire list. He has also earned over $100,000,000 in cash dividends.In the year 2018, Randal Nardone confirmed the sale of his primary business, Fortress Investment Group. The firm was sold at $3.3 billion in cash to Japan’s SoftBank Corporation. In part of the deal, however, the firm retained its headquarters in New York City.