Financial, Investments

The History Of The Fortress Investment Group

Fortress Investment Group is one of New York City’s investment management firms. The company began in 1988 as a private equity firm. The founders were Randal Nardone, Rob Kauffman and Wesley R. Edens. Fortress Investment Group officially launched on February 9th of 2017. At this time they were the first major United States private equity firm in history to be traded publically. By June of 2016 the firm was responsible for the management of roughly $70.2 billion in assets including credit funds, liquid hedge funds and private equity.Fortress Investment Group ventured into the hedge fund, debt securities and real estate segments shortly after the company was founded. The company was successful with their investments. Between 1999 and 2006 their private equity finds netted 39.7 percent. Lehman Brothers and Goldman Sachs underwrote the IPO enabling Fortress Investment Group to launch on the NYSE in 2007. The company was honored by Institutional Investor in 2014 as the Hedge Fund Manager of the Year and by HFMWeek as the Management Firm of the Year. Fortress Investment Group had previously received recognition as the Hedge Fund of the Year in the Discretionary Macro Focused category by Institutional Investor in 2012. In 2010 and 2011 they were honored as the Credit Focused Fund of the Year.

Jeff Feig was hired by Fortress Investment Group in 2014. He was previously Citigroup’s Global Head of Foreign Exchange. He joined the Fortress Macro Fund as one of the CIO’s. In October of 2015 an announcement was made by the company that the Macro Fund worth $2.3 billion would be closed so the assets could be distributed to the investors. This occured after Jeff Fein had already stepped down in July of 2015. Novogratz was the only CIO remaining and his retirement was expected by the time 2015 closed. Fortress Investment Group encompassed four core businesses by June of 2016. The total of assets under management were roughly $70.2 billion. This included traditional asset management, credit, private equity and liquid markets. In April of 2010 they acquired Logan Circle Partners.

The SoftBank Group agreed to purchase Fortress Investment Group for $3.3 billion in February of 2017. This acquisition reached completion in December of 2017 for $3.3 billion. The medical startup group Theranos received a loan from Fortress Investment Group in December of 2017 for $100 million. The reports indicated Theranos was nearing bankruptcy at the time and the loan was mean to keep them financial solvent. Fortress Investment Group was invested one of Florida’s private passenger rail lines at this time. In January of 2018 the company divested themselves of both Logan Circle Partners and the Florida East Coast Railway.Fortress Investment Group was still Florida’s Brightline passenger rails parent company. This is the only passenger railroad privately operated and owned in the United States. There were reports in January of 2018 Fortress Investment Group intended to sell their OneMain stake to Apollo Global Management. On January 5th this agreement was officially announced. Varde Partners were also involved in the acquisition.