Fortress Investment Group, an investment management firm headquartered in New York, is the world investment management leader. Started in 1998 by its three founders Randal Nardone, Rob Kauffman, and Wesley R. Edens, Fortress is one of the firms that has shown exceptional growth. It was established as private equity firm with only $400 million in managed assets. Within the first five years of operation, the private equity experienced a supernormal growth, growing at an average rate of 39.7%. By 2007, Fortress had advanced its investment strategies to become an alternative asset manager; managing assets ranging from private equity to credit fund, hedge fund and various permanent capital vehicles like real estate.
Regarding their Assets under management (AUM), Fortress Investment Group has adopted a very balanced investment approach to ensure that they provide lucrative returns to their clients. 15% of the assets are in private equity, 20% in permanent capital vehicles, 40% in credit private equity and the remaining 25% invested in credit hedge funds. In total, the firm is poised to have over $43 billion in managed assets.The strong leadership of Fortress Investment Group led by its able principals has enabled the firm to assume a very respectable position in the industry. This has seen Fortress receive countless industry performance-based awards and accolades. For instance, in 2014, the Institutional Investor magazine named the firm their “Hedge Fund of the Year.”
In the same year, HFMWeek, a leading industry publication named Fortress their “Management Firm of the Year.”In 2011 and 2012, the same institutional investor had nominated Fortress Group as their “Hedge Fund of the Year” and the “Discretionary Macro-Focused Hedge Fund of the Year” respectively. The Success of Fortress Investment Group is not coincidental or by luck. It has been as a result of a combination of numerous competencies that enable the company to keep standing out throughout the period. Among the core competencies that support the success of Fortress is its asset-based investment strategies. Apart from private equity and credit funds, which are the dominant investment vehicles for the Fortress, the firm has also diversified its investment strategies by including such assets as real estate, capital, and other financial vehicles that generate long-term cash flow.
Fortress Investment Group has expanded following a very rapid growth that the firm has undergone over the years since it was formed. As a result, it has opened three additional headquarters outside New York and numerous satellite offices worldwide to enhance reach for its clients and potential customers.