Fortress Investment Group is a New York-based investment management firm founded back in 1998 by Rob Kauffman, Wes Edens, and Randal Nardone. It gained fame as the first large-size private equity firm in the U.S. to go public. In the year 2016 Fortress was managing $70+ billion-dollars in combined private equity, alternative assets, liquid hedge funds, and credit funds. In 2017, Fortress Investment Group was purchased by Japanese conglomerate SoftBank.
Fortress Investment Group is known for its numerous hedge funds. These investment opportunities are behind many physical acquisitions as well. Fortress is the company behind Brightline, a successful commuter rail line that connects Miami to Ft. Lauderdale. It has bought and sold properties like RailAmerica Inc., Abercrombie and Fitch, and AirCastle Ltd. Many of the companies are sold by public offering leaving Fortress’s hedge groups to manage the businesses. Most recently Fortress saw the extensions of Brightline to Nevada, where the commuter line plans to create a line connected Southern California to Las Vegas. Fortress also acquired the landmark Tiffany & Co. building in Palm Beach. All of these done through its numerous hedge funds. Since its acquisition by SoftBank Fotress has attempted to expand those funds even further.
At present Fortress investment Group is offering intellectual property funds to investors. These funds are buying up asset debts such as aircraft leases or real estate debts. These new funds come right behind its patent funds which are netting the company $400 million. So far, its most successful new funds are open-end asset funds which are topping out at about $500 million. Open-end asset funds are non-restricted mutual funds that can take in as many investors as they want. These mutual funds are organized to increase the ease in which investors can invest. The group managing them can close the account off whenever they want, which is usually when they feel it has gotten too big. The buying and selling of these funds occurs on demand and uses net asset value. The value is calculated from the funds underlying securities. If the shares are redeemed by a considerable amount some of the fund’s investments can be sold to make payments to investors.