Fortress Investment Group Core Competencies

Fortress Investment Group started as a pure private equity firm in the year 1998. However, the company extended its services to a wide range of activities including credit, real estate, and permanent capital investment policies. Wesley Edens, Randal and Rob Kauffman are the co-founders of this company. In the recent past, the company’s performance is commendable, and it is as a result of good leadership attributed by Wesley Edens and other principals. The company’s leadership aims at maintaining solid company governance practices and policies. Moreover, the Board of Directors has formulated a framework to ensure a high level of corporate accountability and integrity. As per December 2017 statistics, the company managed assets worth $43.6 billion.

One of the main contributions to Fortress investment Group success is its core competencies. First, the company specializes in asset-based investments hence it has a long time and broad experience. Additionally, the company’s expertise is also evident in pricing and financing of capital assets and real estate properties. Apart from proficiency in asset management, the company has adequate knowledge about the industries it invests. Indeed, the company has formed a group of investment specialists and developed good relationships with prominent institutions and individuals globally. Thirdly, fortress investment group is highly competent in its management operations because it has established tools to assess existing challenges. The company also ensures low-cost and fewer risks when financing its investments as a result of extensive expertise in capital markets. The capital market expertise enables the group to access debt as well as equity capital markets.

Fortress investment group has broad and extensive know-how in acquisitions and corporate merging. Acquisitions experience enables the corporate management to work and get along with various stakeholders. In February 2017, Softbank signed a treaty to acquire Fortress investment group for about cash of $ 3.3 billion. Under this merger treaty conditions, every Class A investor in Fortress would get $8.08 for each share which represented a first-class of 51.2% of Fortress’s 3-month volume-weighted typical price, but it excluded dividend. The senior investment professional remained and their significant contribution to fund performance. However, Fortress operates within Softbank as an independent whereby the three principals, Peter Briger, Randy Nardone and Wes Eden, will continue managing. The Softbank is responsible for sustaining the leadership, brand, personnel, business model, processes, and culture. Moreover, the Softbank has the mandate to get in partners and shareholders a given percentage of the venture.

May 13, 2018

Posted In: Finance Industry, Investor

Tags: