Fortress Investment Group: A pioneer in Alternative Asset management

Fortress Investment Group is an innovative investment firm that was started out in 1998 by three partners, Randal Nardone, Wes Edens and Rob Kaufmann. All three founders had a rick and distinguished investment banking expertise from decades of working in firms such as UBS, Lehman’s Brothers, and Goldman Sachs. Seeking to break from the mold of ‘traditional’ investment banking, Fortress Investment Group chose to focus on alternative investments. One of the partners, Rob Kaufman, retired in 2012 from active management to focus on his passion, car racing. The company grew very fast within its first decade, from its humble beginnings as an investment management firm managing $400 million in assets to managing more than $43 Billion in assets for more than 170 investors from all over the world.

While it had some focus on capital market investments, Fortress Investment Company also invested heavily in asset acquisition either regarding real estate or equity in corporate entities. Fortress Investment Group has also set itself apart from their investment management firms due to its aggressive acquisitions strategy. The company employs managers with industry-specific expertise to assist in the management of the corporate entities that it acquires. In 2007, Fortress Investment Company became the first major asset management firm to be traded on the NYSE after it offered its IPO. The company has headquarters in New York, San Francisco, Singapore, and Shanghai.

This is not the only testament to its global reach, but also to the diverse asset holdings that it has. Some of the industries it operates on include real estate, hospitality, rail transport, casinos, debt securities and capital markets. The company has also been interested in the tech industry, with recent efforts to get into the cryptocurrency industry being noted. In 2017, Fortress Investment Group was bought by the Japanese conglomerate, Softbank. While fully owned by Softbank, Fortress Investment Company still operates semi-autonomously under the management of two of its founding members, Edens and Nardone. With the company still maintaining its core DNA, and the increased resources at its disposal, Fortress Investment Group is expected to maintain its course of the path of success that it has carved itself.

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