Fortress Investment Group: Private Equity Investments
The finance industry is one of the cornerstones of the world’s modern economic system. Without it it would be nearly impossible for individuals to gain access to the capital needed to fund their various business endeavors and the world’s economy would slow to a halt. It is obvious to us now that the finance industry is important for the health of the global economy however it is still continuously evolving even today. In fact, it was only ten years ago that the first publicly traded private equity firm came into existence. While this company is today seen as one of the world leading alternative asset management companies, it is only 20 years old. This company is known as Fortress Investment Group.
Fortress Investment Group was founded in 1998 with the help of its five principal founding members. The current chairman and CEO of the company Wes Edens had served as a former partner for Blackrock financial management Corporation whenever he decided that he would like to manage his own private equity firm. Wes Edens along with the help of four other individuals including Pete Bridger a former partner at Goldman Sachs created Fortress Investment Group as a simple private equity investment firm. For the first seven years of its life, the corporation was privately owned and experienced significant growth. From the time period of 1999 to 2006 the assets under the management of Fortress Investment Group crew by nearly 40%. In 2007 the Corporation held its initial public offering, or IPO, with the help of Goldman Sachs and Lehman Brothers and was officially launched on the New York Stock Exchange in the spring of that year. This was the first publicly traded private equity firm in the United States.
Since the company has gone public, it is experienced significant growth although it has not been spared from the financial effects of the 2008 financial crisis. During the financial crisis of 2008, the company experienced significant downturns in the company’s fortune. However, Fortress Investment Group has gone on to continue experience significant growth after the end of the financial crisis. In fact, it has been recognized as one of the world’s leading alternative asset management Corporations in the last several years. The Corporation was acquired by Softbank group Corporation. This corporate acquisition was made in spring of 2017 for a total of $3.3 billion. The acquisition was closed at the end of the year in December 2017.
Fortress Investment Group has several portfolio companies that it keeps its investments in. Fortress Investment Group is well known for the role that it had played during the building of the Olympic village. It was the primary lender for the Millennial development group that helps to finance the building of the athlete’s village in the 2010 Winter Olympics in Vancouver British Columbia. It financed the building of the $875 million Olympic athletes village however during the construction of the village the Corporation experienced significant financial turmoil. Fortress Investment Group forced the city of Vancouver to pay nearly $450 million in order to complete the project on time. The project was completed in November 2009 it became the property of Fortress Investment Group in 2010 after the winter Olympics.
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