The history of the finance industry and don’t only North America, but the entire world is a history of the flow of capital. While it may not seem that long ago in early 2000, there were no publicly traded private equity investment companies. It may seem hard to believe that one of the cornerstones of the modern finance industry is so young but even in an industry as unanimous as finance is continuously evolving today. Fortress Investment Group proudly holds the title of the first publicly traded private equity firm in the North American continent. It gained this title in 2007 when with the help of Goldman Sachs and Lehman Brothers it was able to hold its initial public offering in February of that year. The history of Fortress Investment Group is one of growth and challenges.
Fortress Investment Group was originally founded in 1998 by its five principal founding members including current chairman and president of the Corporation Wes Edens. Wes Edens had managed to get experience in the industry of finance by working at the Lehman Brothers as a managing director for the finance firm and eventually moved on to become a partner for Blackrock financial management Corporation. Wes Edens had help from several other partners of Goldman Sachs including Pete Bridger who else to expand the company’s operations to include not only private equity investments but also hedge funds and real estate related investment securities. During a seven-year period from 1999 2006, the investments managed by Fortress Investment Group experienced nearly 40% growth an absolutely phenomenal performance.
However, all was not perfect in the finance industry as in 2008 merely one year after the company’s initial public offering the world was rocked by the financial turmoil caused by the 2008 financial crisis. During this time. The holdings of financial companies around the world plummeted in value and Fortress Investment Group was not spared. However, this was not the end of the road for the private equity investment firm. Fortress Investment Group managed to hold on through the hardships caused by the financial crisis that year and has since gone on to become one of the world leading figures in alternative asset management.
As of last year, the Corporation was managing over $70 billion in alternative assets primarily devoted into private equity, credit, and liquid asset management markets. This company’s strong performance has made it prominent in the finance industry, and Fortress Investment Group was acquired by Japanese technology company Softbank group in early 2017 for a sum of $3.3 billion.
This corporate acquisition did not change the leadership of Fortress Investment Group as it is still run by Chairman Wes Edens it manages its business affairs independently. Today the Corporation serves as one of the primary holdings for Softbank group as the Japanese tech giant tries to positions itself for future growth and to become one of the largest companies in finance industry in not only the Eastern Hemisphere. With Wes Edens as chairman of the Corporation is poised to experience significant further growth.
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