An Artist Performs
Fortress Investment Group first hung its shingle in 1998 as a private equity firm. Founded by Randall Nardone, Wesley Edens, and Rob Kauffman the firm quickly gained success. By 2007 it had become the first sizable private equity firm to become publicly traded in the U.S. By 2016 it was managing over $70 millon-dollars in private equity, alternative assets, liquid hedge funds, and credit funds. Mostly, Fortress Investment Group is known for its assets. The New York-based company is behind commuter railways, real-estate acquisitions, and innovating tech. Its hedge funds are also quite interesting, but only to those who understand the business world. In 2017 Fortress was bought by Japanese conglomerate Softbank Group. Now, in the wake of closing down its direct-lending fund in October of this year, Fortress is branching out with some new funds for investors. Read more at zoominfo.com about fortress investment.
At present Fortress Investment Group is expanding into intellectual property. It is buying asset debts like aircraft leases or real estate debts. This provides a unique opportunity for savvy investors as so far is doing well. The two funds carrying Fortress at present are its patent fund, which has raised $400 million so far, and its open-end asset fund that is currently topped out at $500 million. The funds are taking advantage of the healthy private credit market. Fortress Investment Group, along with many other companies, is starting to wean itself away from insurance, pension plans, and sovereign wealth funds.
Open-end asset funds are a type of mutual fund. They are popular because they offer freedom from restriction on the number of shares it issues. The shares can be for bonds or stocks and are directly controlled by the management. If the management feels the fund is getting too big, they can cap it off. Investors within the fund may lose the ability to make additional investments, and no new investors will be accepted. Mutual funds are great as they are structured in a way that gives investors an easier way to invest. The buying and selling of these shares happen on demand and uses net asset value. The value is derived from the underlying securities of the fund. When trading closes each day, the NAV is calculated. If many the shares have been redeemed, a number of the fund’s investments can be sold in order to pay investors.