Fortress Investment Group: A Leader In Private Equity Innovation

Fortress Investment Group was recently featured on the New York City Patch website in an article written by Kay Singer titled, “A Force of Innovation: Two Decades of Fortress Investment Group.” The article reveals how the company has been a trendsetter from the very beginning. Fortress Investment Group was founded in 1998 as a private equity firm. It was the first of its kind to become a publically traded investment firm on the New York Stock Exchange. Fortress Investment Group has continued to be transformational in the equity industry. It has become a diversified global investment firm that has more than a billion in assets. It works with nearly 2,000 investors in hedge funds, permanent capital vehicles, and private equity.

It has more than 900 employees and is headquartered in New York. There are three principals in different locations. Randal Nardone heads the New York base while Wes Edens and Peter Briger are based in San Francisco. The company focuses on asset-based investing, corporate mergers and acquisitions, sector-specific knowledge, operations management, and capital markets. The asset-based investing through private equity and credit funds are created through a diverse system of assets. These include capital, real estate, and financial vehicles that create cash flow over the long term for their investors. The company has become an expert in owning and managing physical and financial assets.

The company was founded by Randal Nardone in 1998. He partnered with Rob Kauffman and Wes Edens. Each of the founding members brought significant experience from positions with financial titans like Goldman Sachs, Lehman Brothers, and UBS. They realized they wanted to create a new kind of firm that focused on alternative asset strategies while raising private equity to the cutting edge. They quickly grew the firm from $400 million to $3.9 billion. They grew the assets to $32.6 billion by 2007. They also created press in 2007 when the company offered stock with an IPO. It was the first hedge fund that offered an IPO at a high priced high risk/high reward principle. After the IPO, Fortress Investment Group spent the next decade increasing its investment vehicles in real estate opportunities, transportation, and even credit opportunities.