Fortress Investment Group was established in 1998 by its current CEO Randal Nardone and principal Wes Edens as a private equity firm. The company has since grown to become a global investment firm that manages around $43 billion in assets for over 1700 private investors and other institutional clients.
In 2007 it became the first large private equity firm to go public on the New York stock exchange. Its headquarters are in New York City, and it employs about 950 people. The company specializes in mergers and acquisitions, asset based investments, portfolio operations management and has some expertise in capital markets.
Fortress Investment Group recently brokered a $20 million deal with iPass, a Wi-Fi connectivity options provider. The deal, brokered by Riley Financial Inc. is in the form of a loan secured by all of iPass’significant asset base that includes several patents and SmartConnect. iPass operates a large Wi-Fi network worldwide that allows consumers to access and enjoy always-on Wi-Fi.
Customers can currently access over 64 million hotspots that are found in many public areas worldwide. The number of hotspots is projected to increase by about 340 million by the end of 2018. Ipass’ growth potential is what makes it such a suitable investment. $10 million was made available to iPass immediately after signing the deal.
One of Fortress Investment Group’s investments is Brightline Trains. Brightline train, the only passenger rail system that is privately owned and run in the United States helps South Florida residents travel faster between their major cities.
Brightline’s trains run between Miami and Fort Lauderdale daily. Average travel times in any route vary between 33 and 35 minutes depending on where you are going. In the future, Brightline hopes to expand to many of the major cities in the United States. Brightline received a lot of support and publicity.
It is touted to increase real estate prices in areas that are served by the trains.
In December 2017, Softbank acquired Fortress Investment Group in a deal reported to be worth $3.3 billion. Softbank is a diverse company that owns shares in many firms spanning several sectors that include tech services, internet, broadband and many more.
Despite a large amount of money it had to use to acquire Fortress Investment Group, Softbank will not be involved in any of the company’s operations. This is because to overcome regulatory hurdles, Softbank had to agree to let Fortress keep managing numerous assets.
By acquiring Fortress, Softbank is achieving its goal of setting up a structure conducive to essential investment activities. Fortress, on the other hand, will gain access to many new partners in Asia in addition to not being publicly traded.