How the Fortress Investment Group is changing the investment game
The fortress investment group is today considered one of the biggest private asset management firms. The group has grown since its founding in 1998 by three partners who at the time left various positions within the financial sector. The group would begin with 400 million in assets under management and grow the same over the years. During the first five years, it managed to grow its asset base from the initial four hundred million to three and a half billion dollars. This growth meant that private equity return on investment was performing very well at 39 percent. The group established a credit wing that would be responsible for the various investments undertaken by the group financed by the credit option as well as giving the group the option of financing other investments in this way.
In recent years the fortress investment group had turned its interest around and is keen on investing in emerging sectors. This was recently witnessed when they financed ipass to the tune of 20 million dollars. The investment was advanced as a line of credit that would be borrowed on the company’s diverse portfolio of assets. Ipass has a number of highly valuable patents as well as their smartconnect technology, which allows them to offer Wi-Fi to a wide range of clients be it individuals, homes or businesses. This is supported by their over 340 million Wi-Fi hotspots located all over the globe. It was therefore essential for ipass to inject new capital into the business. This would strengthen their spreadsheet and enable them to concentrate on revenue generation as well as profit growth.
The Fortress Investment Group has also taken on new projects given their 2017 round of funding, which saw them raise 2.9 billion dollars. This would be followed by another one this year, which aims to raise five billion dollars. These funding rounds are in line with the group’s vision of raising investment capital through alternative means as well as boosting that already held as private equity. The Fortress Investment Group recently went back to its private status after it was acquired by Softbank a Tokyo based investment bank.
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