Fortress Investment Group, an investment management firm, manages alternative assets in private equity, liquid hedge funds, and credit funds. They are headquartered in the Greater New York Area and was founded on January 1st, 1998. The founders include Rob Kauffman, Randal Nardone, and Wes Edens. The Fortress Investment Group has been and continues to be a trendsetter in the investment management world. This is evident, especially, due to the company’s IPO in 2007, making it the first large-scale private equity firm to go public on the NYSE. All three of the founders have brought with them experience from highly renowned firms such as Goldman Sachs, Lehman Brothers, UBS, and BlackRock Financial Management. The amount that the company is worth and the value of their assets under management has also drastically increased since 1998. This gain was approximately $3.5 billion from 1998-2003.
Today, Randal Nardone and Wes Edens continue to be involved with Fortress Investment Group affairs, while Rob Kauffman decided to leave after some time with the company to work on his hobbies including car racing. Currently, the company is also increasing it’s public relations by involving itself in the further development of Times Square. Reported in September 2018, Fortress Investment Group along with Maefield Development bought out the property of 20 Times Square. The company was also purchased by the Japanese company, SoftBank Group, in 2017 for $3.3 billion. One of the reasons for the purchase of Fortress includes their business model. The model presents predictability and stability in relation to management fees. Also, Fortress places importance on balance sheet investment monitoring. This shows that Fortress is able to make strategic choices, which is why SoftBank Group chose to buy out Fortress. The Fortress Investment Group is currently using direct-lending funds to boost offerings to investors through a private credit effort. Since the company is beginning to realize the benefits of private credit markets, the demand for open-end asset funds has risen to $500 million.