Fortress Investment Group
Website | fortress |
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Fortress Investment Group is an American
History
1998–2010
Fortress Investment Group LLC was founded as a private equity firm in 1998 by Wesley R. Edens, a former partner at
Fortress's investments grew rapidly, with its private equity funds netting 39.7% between 1999 and 2006.
2010–present
In 2014, Fortress was named "Hedge Fund Manager of the Year" by Institutional Investor and "Management Firm of the Year" by HFMWeek. Fortress has previously been recognized by Institutional Investor as “Discretionary Macro-Focused Hedge Fund of the Year” for 2012, and “Credit-Focused Fund of the Year” for both 2011 and 2010.[12] In Autumn 2014, Fortress hired Jeff Feig, formerly the Global Head of Foreign Exchange at Citigroup to join Novogratz as co-CIO of the Fortress Macro Fund.[13] As of October 13, 2015, the company announced that the $2.3 billion Macro Fund was to close down and distribute its assets to investors. This development came after Feig stepped down as co-CIO of the fund in July 2015.[14] According to the firm, Novogratz, the remaining CIO, was expected to retire from the firm by the end of 2015.[15] As of June 30, 2016, Fortress Investment Group had four core businesses totaling approximately $70.2 billion of assets under management: private equity, credit, liquid markets[16] and traditional asset management (Logan Circle Partners was acquired in April 2010).[citation needed]
On February 14, 2017, SoftBank Group agreed that it would buy Fortress Investment Group LLC for $3.3 billion.[17][18] The SoftBank acquisition was completed in the last week of December,[19] with Fortress being delisted from the New York Stock Exchange, and returned to being a privately held company.[20]
In the wake of the
In 2020, Fortress Investment increased its bid for Japanese company Unizo to roughly $1.6 billion.[27][28] In 2021, Fortress failed in a takeover bid for UK supermarket chain Morrisons.[29]
In 2023,
Portfolio companies
In 2006, Fortress-managed funds acquired Canadian ski resort operator Intrawest, North America's largest ski resort operator that also operated luxury adventure travel brands such as Abercrombie & Kent, which was sold in August, 2016.[citation needed][32]
In November 2006, RailAmerica announced that a Fortress-managed fund would acquire the company, offering $16.35 per share (a 32% premium). The transaction was completed in February 2007. Fortress later sold RailAmerica via initial public offering in October 2009.
In May 2007, Florida East Coast Industries (FECI), parent company of Florida East Coast Railway (FEC), announced that following a unanimous vote of the FECI Board of Directors, a Fortress-managed fund would acquire FECI in a transaction valued at $3.5 billion.[33][34] The Surface Transportation Board approved the transaction in September 2007. Although RailAmerica operated FEC for a time, the two were never merged, and after the RailAmerica IPO Fortress retained FEC. Florida East Coast Railway was sold to Mexican transportation company GMéxico Transportes S.A. de C.V. (GMXT), a unit of Grupo Mexico in 2017.[35]
In June 2007, Fortress announced that it would partner with
Fortress has taken several of its portfolio companies public, such as
Fortress has said it lost $125 million purchasing fraudulent promissory notes from Marc Dreier, who had been operating a Ponzi scheme. Fortress filed a lawsuit against the law firm Dechert in an attempt to recover the loss.[38] The lawsuit was filed in New York state court, alleging Dechert issued a "false" legal opinion letter that Dreier used to defraud Fortress.[39]
Fortress's private equity investment portfolio includes
In January 2014, Fortress was the winning bidder for the assets of the
In October 2014, it was reported by the Birmingham Business Journal that Fortress had purchased the Inverness Corners retail center.[44] Fortress Investment Group is also the parent company to Mystays hotels and resorts in Japan.[45]
In April 2024, Fortress purchased the UK discount retailer Poundstretcher, which also included it's 60 store sister discount chain Bargain Buys. This added to their other UK businesses Majestic Wine and Punch Pubs.[29]
Controversies
Intrawest late payment & Olympic village funds
Fortress Investment Group was the primary lender to Millennium Development Group for building the C$875 million athlete's village for the
VLSI Technology LLC & INVT SPE LLC
VLSI Technology LLC & INVT SPE LLC are portfolio companies owned by investment funds managed by Fortress that have filed several lawsuits against Apple, Intel, HTC, ZTE and other telecommunications companies. In 2019, VLSI Technology LLC alleged Intel's SpeedStep technology introduced in 2005 infringes on its patent purchased.[51] During this same time, VLSI asserted its patents against several other Intel products and obtained two jury verdicts totaling over $3 billion.[52][53] INVT SPE LLC was assigned 740 telecommunications patents originally filed by Panasonic after funds managed by Fortress Investment Group acquired assets previously belonging to Inventergy Global, Inc.[54][55]
Labrador Diagnostics
On March 9, 2020, an LLC owned by funds managed by Fortress Investment Group, through its
Manwin Investment
Fortress invested in Manwin Company.[61]
Key people
- Randal A. Nardone: CEO, co-founder, principal[62]
- Wesley R. Edens: co-founder, principal[62]
- Peter L. Briger: principal[62][63]
See also
References
- ^ a b "Overview". Fortress Investment Group. Retrieved February 23, 2022.
Fortress manages $45.7 billion of assets under management as of September 30, 2022, on behalf of over 1,900 institutional clients and private investors worldwide
- ^ "Nassau Financial Group and Fortress Investment Group Enter into Strategic Partnership". Nassau News. September 5, 2023. Retrieved October 12, 2023.
- ^ "Fortress Management and Mubadala to Acquire Fortress Investment Group". www.businesswire.com. May 22, 2023. Retrieved December 6, 2023.
- ^ "Company Overview of Fortress Investment Group LLC". Businessweek. Archived from the original on June 28, 2013. Retrieved June 4, 2013.
- ^ "Company Profile for Fortress Investment Group LLC". Bloomberg L.P. Archived from the original on March 6, 2012. Retrieved June 4, 2013.
- ^ McLean, Bethany (March 4, 2009). "Bethany McLean on the Fortress Group". Vanity Fair. Retrieved March 24, 2020.
- ^ "Fortress Investment's Shares Soar After Initial Sale". Bloomberg. February 9, 2007. Retrieved February 10, 2007.
- ^ Protess, Ben; Silver-Greenberg, Jessica; Abrams, Rachel (July 14, 2016). "How Private Equity Found Power and Profit in State Capitols". The New York Times. Archived from the original on July 14, 2016.
- ^ Seymour, Dan (February 9, 2007). "In a First, Hedge Fund Launches on NYSE". Associated Press via Washington Post. Retrieved December 24, 2016.
- Forbes, December 16, 2008 (retrieved March 12, 2009).
- ^ McLean, Bethany (April 2009). "Over the Hedge". Vanity Fair. Retrieved September 28, 2013.
- ^ "Fortress Investment Group Named Institutional Investor's Hedge Fund Manager of the Year". Fortress Investment Group LLC. Archived from the original on January 19, 2016. Retrieved December 31, 2014.
- ^ "Citigroup FX chief Jeff Feig leaving bank for Fortress". Reuters. June 17, 2011. Retrieved April 5, 2017.
- ^ "Fortress macro fund co-investment chief Jeff Feig leaving firm". Reuters. July 6, 2015. Retrieved February 5, 2017.
- ^ "Fortress Announces Closing of Fortress Macro Fund". Fortress. Retrieved December 2, 2015.[permanent dead link]
- ^ "Fortress Investment Group LLC (FIG.N)". Reuters. Archived from the original on September 24, 2008. Retrieved June 4, 2013.
- ^ Hoffman, Liz; Jenny, Strasburg; Sarah, Krouse (February 14, 2017), SoftBank to Buy Fortress Investment Group for $3.3 Billion, The Wall Street Journal, retrieved February 15, 2017
- ^ Ingrid, Lunden (February 15, 2017). "SoftBank confirms $3.3B acquisition of Fortress Investment Group". TechCrunch. Retrieved March 24, 2018.
- ^ a b Roumeliotis, Greg (January 3, 2018). "Exclusive: Apollo nears deal for Fortress' stake in OneMain - sources". Reuters. Retrieved January 15, 2018.
- ^ "SoftBank Group Completes Acquisition of Fortress Investment Group" (Press release). Business Wire. Sard Verbinnen & Co. December 27, 2017. Retrieved February 23, 2023.
- Wall Street Journal. New York City, United States. Retrieved October 26, 2017.
- ^ Carreyrou, John (December 24, 2018). "Blood-Testing Firm Theranos Gets $100 Million Lifeline From Fortress". The Wall Street Journal. Retrieved January 15, 2018.
- ^ a b c Morris, David Z. (December 23, 2017). "Theranos Secures $100 Million in New Funding from Fortress Capital". Fortune. Retrieved January 15, 2018.
- ^ Sheetz, Michael (December 26, 2017). "Theranos dodges bankruptcy after $100 million loan: Report". CNBC. Retrieved January 15, 2018.
- King5. Retrieved January 15, 2018.
- ^ "Apollo Global Partners With Varde to Buy Stake in OneMain". Nasdaq. January 5, 2018. Retrieved January 15, 2018.
- ^ "Fortress Investment Makes $1.6B Offer For Unizo - Law360". www.law360.com. Retrieved January 31, 2020.
- ^ "Softbank-backed Fortress Investment raises offer for Japan's Unizo". Reuters. January 29, 2020. Retrieved January 31, 2020.
- ^ a b "Poundstretcher sold to Majestic Wine owner Fortress". The Guardian. April 11, 2024.
- ^ "Abu Dhabi's Mubadala to buy majority stake in Fortress Investment from SoftBank". Reuters. May 22, 2023.
- ^ Massoudi, Arash; Sevastopulo, Demetri (July 24, 2023). "US security officials scrutinise Abu Dhabi's $3bn Fortress takeover". Financial Times. Retrieved August 8, 2023.
- ^ Ebner, David (March 2, 2010), "Fortress keeps grip on Intrawest", The Globe and Mail, Vancouver, archived from the original on November 21, 2013, retrieved December 24, 2016
- ISBN 978-0-07-174286-3. Retrieved August 2, 2011.
- ^ "Florida East Coast Industries to Be Acquired By Funds Managed By Fortress Investment Group LLC in an All-Cash Transaction Valued at $3.5 Billion" (Press release). Florida East Coast Industries. May 8, 2007. Archived from the original on July 30, 2012. Retrieved May 11, 2007.
- ^ Basch, Mark (March 28, 2017). "Florida East Coast Railway sold to Mexican transportation company". Jacksonville Daily Record. Retrieved September 23, 2023.
- ^ "Penn National Gaming agrees to $6.1B deal - USATODAY.com". usatoday.com.
- ^ McSherry, Jessica Hall (July 3, 2008). "Penn National says takeover deal terminated". Reuters.
- ^ "Fortress Files Suit Against Law Firm". The New York Times. December 22, 2009. Retrieved May 2, 2010.
- ^ Opalesque (December 22, 2009). "Fortress sues law firm Dechert over Dreier loss".
- ^ Lacter, Mark (February 26, 2013). "Umami Burger shuts first store, picks up more investors for expansion". LAObserved.com. Archived from the original on June 2, 2013.
- ^ "Lac-Mégantic disaster's MM&A sold to Florida Great Lakes Partners". CBC Montréal. January 21, 2014. Retrieved April 25, 2014.
- ^ Le futur propriétaire de MMA veut maintenir un lien de confiance Archived 2019-03-12 at the Wayback Machine, Rémi Tremblay, L'Echo de Frontenac (March 20, 2014)
- ^ "La vente de la MMA pour 17,24 M $ a été complétée aux États-Unis". La Presse. May 21, 2023.
- ^ "Inverness Corners sold to New York investment group". Birmingham Business Journal. October 21, 2014.
- ^ Fujita, Junko (September 22, 2014). "U.S. asset manager Fortress seeks more Japan hotel investments amid tourism boom". Reuters – via www.reuters.com.
- ^ "home". The Globe and Mail. 2009. Archived from the original on February 4, 2009. Retrieved August 28, 2017.
- ^ "Olympic Funding". CBC News. 2008. Retrieved December 24, 2016. "By April 2014, the City of Vancouver had paid off the entire $630 million debt of the Olympic Village project at Southeast False Creek, with $91 million being recently recouped through the sale of 67 condos for $91 million to the Aquilini Group."
- ^ Joanne Blain (January 14, 2010). "Athletes' Village Getting New Life After Winter Games". The New York Times.
- ^ "Intrawest on the auction block". Montreal Gazette. January 20, 2010. Archived from the original on January 24, 2010. Retrieved February 15, 2010.
- ^ Howell, Mike (April 28, 2014). "Updated: City of Vancouver sells final stake in Olympic Village City's revenue projections with developer fell short $130 million". Vancouver Courier. Retrieved December 24, 2016.
- ^ "Intel Wins Trial Over Chips, Dodging $1 Billion-Plus Blow". Bloomberg.com. April 21, 2021. Retrieved April 26, 2021.
- ^ "Intel fails to overturn $2.18 billion patent verdict, plans appeal". Reuters. August 10, 2021. Retrieved May 19, 2023.
- ^ Blake Brittain (November 16, 2022). "Intel hit with $949 mln U.S. verdict in VLSI computer chip patent trial". Reuters. Retrieved May 19, 2023.
- ^ "Judge McNamara finds INVT patents are not essential, will issue comments on FRAND commitments (INVT v. Apple, 337-TA-1138)". Essential Patent LLC. April 23, 2020. Retrieved April 27, 2021.
- ^ "Fortress Hits ZTE over Patents Acquired from Inventergy". Retrieved April 27, 2021.
- ^ "LABRADOR DIAGNOSTICS V. BIOFIRE DIAGNOSTICS, LLC and BIOMERIEUX S.A." (PDF). IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE.
- ^ "Hospitals, Companies Race to Develop Tests to Spot Coronavirus-Linked Illness". www.wsj.com. March 3, 2020. Retrieved March 24, 2020.(Subscription required.)
- ^ "First of 3 diagnostic tests for SARS-CoV-2 coronavirus available from bioMérieux". March 11, 2020.
- ^ a b Edward Pearcey. "Fortress withdraws patent lawsuit over COVID-19 testing discovery". Life Sciences IP Review.
- ^ "Labrador Diagnostics Will Grant Royalty-free Licenses for COVID-19 Testing". Business Wire. March 17, 2020.
- ^ "How a (Canadian-founded) company you've never heard of took control of the porn industry". National Post. October 24, 2014.
- ^ a b c Leadership, Fortress, retrieved October 26, 2017
- ^ "Peter Lionel Briger Jr". Bloomberg. Retrieved October 26, 2017.
External links
- Official website
- Historical business data for Fortress Investment Group:
- SEC filings