It almost always an advantage to be the first mover in a market. The founders of Fortress Investment Group understood this when they started the investment firm a decade ago.
Fortress Investment Group was the first financial firm focusing on alternative investments to go public. Then, in 2017, Fortress Investment Group became the first hedge fund to be purchased. Softbank Group Corporation, a multinational banking corporation headquartered in Tokyo, purchased Fortress for $3.3 billion.
Strong business model
When one looks at the business model and track record of Fortress it is no wonder Softbank saw great potential. The company’s asset-based investment services is well-diversified between a variety of different assets which include real estate, various financial vehicles for longer term cash flow and capital. Another advantage of owning Fortress is the company’s robust tools it has developed for evaluating highly complex investments. Additionally, over the course of two decades, Fortress Investment Group has garnered significant experience in managing acquisitions and mergers. Find out more about of Fortress Investment Group at therealdeal.com
Growing investment portfolio
Following the initial public offering, Fortress consistently worked to grow its investment portfolio. Over the course of a decade, the company increased its available investment vehicles, which included the Credit Opportunities Funds, the Fortress Real Estate Opportunities Funds, the Worldwide Transportation and Infrastructure Fund and the Intellectual Property Fund. The firm also added funds focused on international investments as well.
Then, in 2010 the firm purchased American General Financial Services from AIG which rebranded as Springleaf Financial Services. Under the management of Fortress, Springleaf grew to be worth $3.5 billion. This was over 27 times more than its original value.
After many notable achievements, including the purchase from AIG, Fortress Investment Group began to gain industry-wide recognition. The firm won awards from Institutional Investor magazine in 2010, 2011 and 2012. HFMWeek, the leading publication in the hedge fund industry, recognized Fortress in 2014 as the Management Firm of the Year.