Fortress Investment Group: First Public Private Equity Corporation In The US

Fortress Investment Group is an investment management company that specializes in private equity investments that are headquartered in New York City. It was originally founded by its five principal founding members including Wes Edens and Randal Nardone. The company was able to enter the history books of the American economy in early 2007. On February 9, 2007, Fortress Investment Group held an initial public offering on the New York Stock Exchange and in the process became the first large private equity firm that was traded publicly within the borders of the United States. The Corporation currently manages approximately $70 billion worth of alternative assets primarily allocated to private equity, liquid hedge funds, and credit funds.

In the year of 2016, the company generated revenues in excess of $1 billion and had a net income of $180 million while employing a total of 2500 people. The Corporation was originally developed and founded by Wes Edens who continues to serve as one of the Board of Directors and Chief Executive Officer of the company. Wes Edens had had experience in the financial industry at both the Lehman Brothers as well as Blackrock financial management. After spending several decades in the finance industry Wes Edens decided that he would along with the help of several other individuals launch his own private equity investment company.

Fortress Investment Group was able to expand its scope of operations to incorporate hedge funds, real estate related investments, and debt securities at a rapid pace. Between the years of 1999 and 2006, the investments Fortress Investment Group increased by a net of 39.7%. Goldman Sachs and Lehman Brothers help to underwrite the initial public offering of the Corporation and made the Corporation the first large private equity firm to be traded publicly in the United States. In 2008 during the financial crisis, Forbes magazine listed chief executive officer of Fortress Investment Group, Wes Edens, as one of the most significant losers of the economic downturn.

During its time Fortress Investment Group has received numerous accolades for its performance including an award as hedge fund manager of the year by investment magazine Institutional Investor. As of one year ago in 2016 Fortress Investment Group was specialized in for core businesses that held a total valuation of $70.2 billion. These core competencies include private equity investments, credit, liquid markets, and traditional asset management.

In 2017 during the spring Japanese technology giant Softbank group decided to purchase Fortress Investment Group for a total of $3.3 billion. During the corporate acquisition, a premium of $2.25 per share was charged creating an immediate $140 million increase in value investment group. The steel was undertaken by stopping group as part of an effort to improve the corporation’s presence on the international markets of private equity investment. Fortress Investment Group has retained its independence from a Softbank group, and Wes Edens continues to serve as the company’s chief executive officer and maintains his role as part of the board of managing directors for the Corporation.

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