Fortress Investment Group is a global financial advisory and asset management company that was formed in 1998. The organization was commenced with a vision of providing institutional investors, private equity funds, and traditional asset managers with an alternative investment experience through private equity investments. The fund managed by Fortress Investment Group (or FGI) achieved a 13.1% investment return as of September 30, 2014, and over the past five years was ranked as one of the most successful hedge funds in history.
Fortress Investment Group developed an efficient and proven method for investing in illiquid assets in new markets such as residential real estate, distressed securities, energy, natural resources, and private equity and credit. The New York based firm launched the first real estate-focused hedge fund, Fortress Real Estate Partners, in 2000. In 2010, FIG acquired CMG Capital Management, which the company later spun off as its own private investment management business. It launched the Fortress Infrastructure Group, also known as the Fortress Infrastructure Fund, in 2011.
Fortress Investment Group will grow its balance sheet, diversify its credit exposure and invest its excess cash primarily in debt instruments backed by privately disclosed or traded, high-quality, fundamentally sound corporate debt and other asset-backed investments. The growth in balance sheet size will be achieved by continuing its ongoing investment program into its credit-focused private equity portfolio, coupled with opportunistic investments in debt, where investments are limited to 60% of net asset value. The company based in New York expects that the value-add generated by its investment management businesses will provide a significant return on capital and drive overall growth in both earnings and AUM in the coming years.
The global alternative asset manager has approximately $60 billion in assets under management as of June 30, 2014, including private equity, credit, and real estate. The firm began operations in October 1998 and was initially named Octagon Credit Investors. Fortress Capital Strategies business was founded in 2003, and since then, it has managed funds with total committed capital of $10.1 billion and $3.4 billion of assets under management. It invests globally in private equity, credit, hedge funds, and real estate.