The Journey of Fortress to becoming a Giant Investment Group
The most difficult part of running a business is the management part. Someone can be a talented entrepreneur with the best business strategies and ideas that could earn him superior profits but without good management, the business could end up closing down. That is why a group of investors from America who were determined to as many investors as possible who are out there manage their investments teamed up to start one of the biggest investment management group in the United States. Wesley, Rob, and Randal collaborated to start Fortress investment Group in 1998. The company first started by managing few companies and assets in America and with a short period, they expanded the market to various parts of the world including the United Kingdom. As per the company’s reports in 2016, the total value of investment firms and assets they managed was $70 billion.
The Growth of Fortress Investment Group
After being founded in 1998 by the three American businessmen, the company quickly extended its services to the real estate sector and providing debts securities. The company also observed the changes that had been made in the private credit sector for some time and they spotted an opportunity to make superior profits for the company. When several changes were made in the private credit sector in 2008, it became difficult for private investors to acquire loans from banks. Fortress Investment Group decided to came in the private investors’ rescue by investing on private equity funds.
The Fortress Group’s new venture into the private credit sector earned the company 39.7% returns in seven years. In 2009, the company’s five principles decided to go public by selling their shares to the public. This move made the company to be the first private investment group in America to go public. According to the Fortress Investment Group latest news, they had successfully signed a business deal with a Japanese biggest bank known as SoftBank that was interested in buying the company. However, the company has stated that the company will go on operating independently. While interview by various business articles’ journalists, the Fortress leaders stated that this a good opportunity for the company to grow its global market.