Fortress Investment Group was founded by Randal Nardone, Rob Kauffman, and Wes Edens; all but Mr. Kauffman remain as principles of the group as Mr. Kauffman has retired. Fortress Investment Group is in charge of over $43 billion from over 1,700 investors. The group currently invests in hedge funds, the private equity markets, and the REIT spaces. The group sees this as a good mix for risk-adjusted returns. The real estate investments being the safest, while the hedge fund and private equity investments are the riskiest. The group has done well to gain from its risky investments while they have been hedged by the permanent capital vehicles.
Overall the group makes investments in assets, such as real estate. Their private equity investments revolve around the quality of operations management as well as mergers and acquisitions. The hedge funds that they apportion money to are based in the capital markets, and some of them are sector specific. The Fortress Investment Group prides itself on doing its due diligence when it comes to private companies that they invest in. The group will send people into each company periodically to assess their progress, and maintain relationships with management, and other large shareholders. Doing all of this extra footwork is really in their best interest and their investors best interest.
If you don’t keep an eye on a company that you have a substantial vested interest in, things can get out of hand pretty quickly. When the three men came together to form Fortress Investment Group they were an immediate success. They all had come from backgrounds that would help to foster the success of the company and while there is always some amount of learning that anyone can do the group hit the ground running for their investors right away. Fortress Investment Group was a global company with two offices in the United States and two in Asia. In 2017 the group was acquired by SoftBank Group Corporation out of Tokyo. The group remains on their original path bringing SoftBank along with it, as they intended to increase their investment in asset management.