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A Look at The Origins of Asset Management Firm Fortress Investment Group

Back in 1998 a group of three investors came together and began a private management firm. The three Wesley R. Edens, Rob Kauffman, and Randal Nardone all shared a dream of being their own bosses and achieving success while at it. They already had enough experience in their respective field seeing as Rob Kauffman and Randal Nardone were managing directors at UBS while Wesley R. Edens, was a partner at BlackRock. These were credentials that spoke of competence and the shared vision they had meant they would work to bring their startup Fortress Investment Group to succeed. The three began managing assets of approximately 400 million and would grow them within the first six years to about 3.2 billion dollars. This was an indication of things to come.

Fortress Investment Group would need to diversify in order to grow and to achieve this it needed to get into capital markets as well as mergers and acquisitions which would only be achieved through private equity and credit financing. Realizing they would require to take own a substantial amount of credit they needed to bring in experts in the field and to achieve this they raided Goldman Sachs coming out with Peter Briger and Michael Novogratz. This two former partners at the bank understood the vision of Fortress investment Group had and at the same time understood what it would take to get to the next level.

After their arrival, they were able to make some rapid changes, and by 2007 the firm was going public managing about thirty billion in assets. They had managed to make some major acquisitions such as Brightline which today runs a number of private railroads where it operates mostly passenger trains the group had also acquired the biggest ski resorts in Canada and were planning to do more. By this time Peter Briger had already become a member of the Board and subsequently been appointed Co-Chairman heading the San Francisco offices. Fortress investment group would get acquired by Softbank in 2018 for 3.3 billion dollars after shareholders approved the acquisition in mid-2017 returning it to private hands.

Source of the article : https://www.inc.com/profile/fortress-investment-group