Fortress Investment Group: The 2 Billion Dollar Deal
With new ownership at the helm, the formidable Fortress Investment Group is looking to raise funds after a successful acquisition. Fortress’s first goal under their new owner Softbank, is to raise at least $2 billion in its first fund that is solely dedicated to direct lending. That being said, no one yet knows the players involved. The current undertaking is one that the company is not choosing to make public.
Never one for small plays, Fortress has also set a $5 billion dollar goal for what Bloomberg is calling its, flagship credit opportunities fund. The most recent version of that fund was closed in 2015 at exactly $5 billion. It seems that Fortress is ready to reinvest in that program.
A Company of Firsts
The Fortress Investment Group is a company that is not afraid of doing things that go against the established order and wander from the beaten path. It seems that Fortress is bent on being a company of firsts. When Fortress got its start, it was the first private-equity firm to go public. Now the company is becoming the first of these firms to delist.
It seems that the Fortress Investment Group is looking to start a new chapter in their brand’s life. This should not come as a surprise, considering that they have new owners who are looking to make some internal changes themselves. Interestingly enough, Softbank, the Japanese conglomerate now at the helm of FIG, had to agree to only limited control of the company for regulatory reasons. It is because of these regulations that FIG is still currently making all of the executive decisions.
There is no doubt in anyone’s mind that the Fortress Investment Group is changing. New faces are making appearances in big places. For starters, FIG recently promoted Josh Pack and Drew McKnight to managing partners in their credit group.
With every transition of power, there are gains as well as losses. Joel Holsinger stepped down from his role at FIG in March, becoming the first executive to leave the firm following the Softbank acquisition. While the future of FIG is still unknown, many are watching and waiting to see if success or a sinking ship is on the horizon.