Not that many people are familiar with Fortress Investment Group, a relatively new alternative portfolio and investment management firm located in the one and only New York City – the Big Apple – in the great state of New York. Fortress Investment Group was created by three people who, believe it or not, all came from genuinely unique backgrounds: Wes Edens, best known as being involved in the ownership of the NBA’s – professional basketball – very own Milwaukee Bucks franchise, a relatively small electronic sports team that doesn’t make anywhere near as much as the Milwaukee Bucks, and for founding other companies mostly related to finance; Randal Nardone, another one of the three original founders of Fortress Investment Group, who is still a principal of the investment firm today; lastly, Rob Kauffman was the third stooge to found Fortress Investment Group some 20 years ago, though he retired as the only other principal outside of the aforementioned two principals and co-founders in 2012.
To kick off Fortress Investment Group’s assets under trained management with $400 million was nothing short of remarkable for an entirely new business that hadn’t at all been established at the time.
Later on – no more than just five full calendar years down the proverbial road – Fortress Investment Group was in control of just less than $4 billion of assets under control – rather, it was just $100 million short of $4 billion – $3.9 billion.
Fortress has always been private equity, but not any longer
Private equity investment firms purchase 100 percent of businesses that such investment firms’ managerial staff think are solid choices to succeed in general. Venture capital firms are different than private equity entirely, because they never buy out the whole 100 percent; rather they’ll buy out between a few percentage points and 50 percent, for example.
Fortress is slated to raise $2 billion so it can start lending money and make a lot of cash money in return. After SoftBank Group Corp. – often shortened to SoftBank – the firm desires the ability to lend very strongly.