Whenever there is mention of asset management firms, the first thing that comes to the minds of many is Fortress investment group alias FIG. That is because the company is well rooted in that sector and ever since it was established about two decades ago, it has undergone massive growth and has taken over the arena at an incredibly impressive rate.
Who or What is Fortress Investment Group?
Headquartered in New York, Fortress investment group is an investment management firm specializing in the sector of asset management. The company which was formed by Randal Nardone, Wesley R. Edens, and Rob Kaufman back in 1998, currently manages over $70.2 billion worth of alternative assets, credit funds and also liquid hedge funds. The firm’s tremendous success can be attributed to its group of leaders who are well versed with the ropes of the financial world.For instance, just eight years after its inception the company had managed to increase its asset size by about 40%. This was before it was publicly traded in the NYSE IN 2007. Even though it has had its shares of ups and downs such as being hit by the financial crisis of 2008, the firm has always managed to come back up stronger than ever.Fortress investment group has made a name for itself by investing where most people or rather financial companies would never dare to try. The company ventures in the murky waters of undervalued stocks, unwanted assets and failing companies and has mastered the efforts of turning around the fortunes of the failing businesses and making massive profits out of these.
In other words, the company invests in areas where the money doesn’t flow and again it excels in such areas thanks to its excellent management team which includes proficient individuals like Randal Nardone, Peter Briger and several other.Initially, Fortress was a pure private equity firm but when Peter Briger joined in, it expanded into the world of hedge funds and since then it continues to expand to better horizons with each dawn. Currently, the company is high flying and sings to the tune of over $43.6 billion in asset base. It also boasts a vast customer base and serves more than 1700 organizations worldwide which include private and corporate groups. The community has also benefited from its high flying success as it currently employs over 900 people who would otherwise be a jobless lot if Fortress wasn’t there. It is surely a force to reckon and continues to surprise us with its strategic moves such as its recent acquisition by Softbank as discussed below.
Why FIG’S 3.3 billion merger deal with Softbank is an innovative strategy.In a bid to expand, even more, the company recently accepted a $3.3 billion merger deal from Softbank visuals bank which was closed on December 2017 with the Japanese financial conglomerate. By signing the deal, Fortress investment accepted to be operating under Softbank even though they’ll exist as separate entities. The two are officially known as Softbank financial services.Even though many might see the move as unwise, it has proved to be quite beneficial because since this acquisition the company’s share value recently shot up and is doing pretty well in the stock market. Additionally, both companies already have a rich market base and boast global influence which means by coming together as one big asset management firm they’ll l help strengthen their influence and help achieve their mission which is to take over Wall Street by tapping clientele from the Wall Street heavyweights.