Tag Archives: Financial Guru

Fortress Investment Group Growth Oriented Private Equity Firm

Making the right investments at the right time can make a lot of difference in the long-term. The financial markets are volatile, and it is essential to make investments before the time runs out. When it comes to managing millions and billions for large institutional clients, there is a need for investment managers with financial expertise and knowledge of asset and investment management. In the United States, one of the most prominent investment management firms is Fortress Investment Group. Established in 1998, the Fortress Investment Group manages assets and investments for nearly 1,750 institutional clients and private investors amounting to over $70 billion. The assets under management of Fortress Investment Group have been consistently increasing as it continues to expand its horizon and base in different countries. In 2007, Fortress Investment Group launched itself in NYSE, and at the time of its launch, Fortress Investment Group was the only equity firm to be publicly traded in the United States.

Fortress Investment Group believes in performance and results and has a team of qualified and experienced finance professionals who ensure that the clients get what they are looking for. With the increasing presence in the financial markets of Fortress Investment Group in the past few years, many other business giants were eyeing to take over the company. Recently, Softbank Group Corp of Japan purchased Fortress Investment Group for $3.3 Billion, and as per the deal, all the shares of Fortress Investment Group are now owned by Softbank Group Corp. The acquisition of Fortress Investment Group by Softbank would also allow the company to provide its services in many other countries in the Asia Pacific region, where it didn’t have presence till yet. One of the services for which Fortress Investment Group is known for is its alternative assets management. The Fortress Investment Group does intensive research in the field of alternative assets to help the clients find new avenues of profitable investments before these investment options enter the mainstream financial markets.

Fortress Investment Group was also involved in the Winter 2010 Olympics in Canada and almost had to halt the games to retrieve the debt the state of Vancouver owed to the company indirectly. The Fortress Investment Group was funding the Millennium Development Group that was constructing Olympic Village and other associated infrastructure, but due to the budget and financial constraint led by 2008 economic recession, further financing was not possible for Fortress Investment Group. It led to Fortress Investment Group denying additional financing, which forced the City of Vancouver to take over a load of nearly $450 Million (CAD) to ensure that the Olympics continue as planned. Fortress Investment Group revived well from the economic recession and is now amongst the most profitable and high performing investment managers in the world. It is also one of the top private equity firms to work for as per the many reviews left by the employees online. The company provides the employees with many perks and incentives as well as the flexibility to stay creative and focused at the same time.

Why Fortress Investment Group is Surging

Fortress Investment Group is an investment manager with more than $70 billion in real estate assets. The organization has over 1,600 major investor clients and offices in New York, Philadelphia, Los Angeles, Singapore, Italy, and Hong Kong. Founded in 1998, the firm went public in 2007. In 2014, Fortress sold its stake in the Stuyvesant Town Peter Cooper Village apartment complex for $5.3 billion. The company acquired CWCapital in 2010 in order to move deeper into commercial real estate. Today, Fortress Investment Group’s holdings include the Inverness Corners retail center in Alabama.Today, shares in Fortress are surging. This has been somewhat of a surprise since the hard hit the company took during the economic calamity of 2008. Nevertheless, the company is reasserting itself as a major contender. Here’s why. Fortress Investment Group shares are trading higher by roughly 29%.The spike happened after the company announced that is is to be acquired by the Japanese conglomerate, SoftBank.

Shareholders can expect to collect $8.08 per share, a 39% premium to the closing price- and they may receive two more quarterly dividends prior to closing, bringing the total to $8.26 per share.Fortress executives are committed to staying with the company, having signed a five-year contract and plan to invest 50% of their after-tax proceeds into investment products managed by Fortress.Fortress Investment Group went public in 2007 at $18.50 per share, doubling to trade at $35 at market open. Their IPO benefited from fortuitous timing, capitalizing on the market enthusiasm for anything related to finance. With 34.99% ownership among the company’s top execs, Fortress’ leadership are confident that the deal will receive sufficient support from shareholders. At $7.98 per share, the company trades at a 1.2% discount. Including two dividends, the discount widens to 3.4%.According to the DividendRank formula, Fortress Investment Group currently has an excellent rank well within the top 25% of competing firms. This suggests that it is among the top most attractive investment business models.

Making Fortress Investment Group even more interesting is the fact that shares of FIG entered oversold territory, exchanging at rates as low as $5.13 per share.The RSI reading has hit 28.9 — comparatively, the universe of dividend stocks as reported on by Dividend Channel has an average RSI of 48.6. All else being equal, falling stock price creates better opportunities for dividend investors to obtain a higher yield. FIG’s recent annualized dividend works out to annual yields of 6.11% based on the $5.24 share price. Bullish investors might look at FIG’s RSI readings as a strong sign that the heavy selling they’ve enjoyed is in the process of coming to an encouraging conclusion, and that they will begin to look for entry points on the buy-in side. Among the cardinal data points that dividend investors should investigate in order to decide whether or not they are bullish on FIG is its unique dividend history. Dividends are not generally always predictive; but, looking at Fortress Investment Group’s encouraging recent history might help to convince investors that the recent dividend has a promising future.

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