The global investment management industry has for many years been characterized by slow growth and in some instances losses or meager returns on the clients’ investments. This has however been proved wrong by Fortress Investment Group, an investment management company that has lead the industry for two decades. Fortress’ formation idea came as an intention of its founders to develop a firm of a unique nature that would help them to collect funds in the form of equity and then reinvest the equity fund in cutting-edge capital instruments that would help generate futuristic cash flow for their clients. Immediately after its formation, Fortress Investment Group started turning into a success. By then, the firm was only managing private equity. The portfolio of assets that Fortress managed was barely above $400 million.
However, after operating for the first seven years, the company’s managed assets rose to slightly above $3.9 billion. This was as a result of the firm’s management’s decision to expand the business to start managing other asset strategies like hedge funds, permanent capital vehicles, real estate and capital. By 2007, Fortress had managed to obtain a total of more than $43 billion assets, a portfolio that it managed on behalf of its highly valued clients. Fortress Investment Group has recently decided to diversify its asset management strategies. Other than credit fund and private equity fund which are the most common strategies that it had been managing, Fortress has also incorporated other instruments like permanent capital vehicles and real estate. These efforts and innovation to expand its business have been boosted by the unique expertise that the employees of the company possess in the pricing, managing and valuation of physical assets and also the financial ones.
Due to the tremendous way in which Fortress Investment Group is expanding, the management has decided to open more headquarters other than the main one that is located in New York. One has been opened in San Francisco while the other two have been opened in Singapore and Shanghai. This decision is aimed at enhancing their client reach and consequently customer satisfaction. After the acquisition of Fortress Investment Group by the Japanese Multinational Corporation, SoftBank, the leadership of the company has remained intact. This is a move that has been properly considered and well contemplated, that will enable Fortress to explore other sectors of the economy, especially the telecommunication sector. The company will continue with its independent operations under SoftBank’s umbrella but still under the able management of its three co-Presidents.