Fortress Investment Group is trying to incentivize new investors by offering some new types of funds to invest in. a private credit fund. At present the company is attempting an expansion into intellectual property. The investment purchases real estate debts, aircraft leases, and other asset debts. The effort is spurned by a recent change in October of this year. SoftBank Group, which purchased Fortress in 2017, closed the firms direct-lending fund for a sum total of $2 billion-dollars. So far Fortress Investment Group is doing well with the change. It has already garnered $400 million in patent funds, and its open-end asset fund has raised around $500. At present open-assets is proving to be the most profitable offering. View the group’s profile on Linkedin.
Open-end asset funds are mutual funds free of restrictions. There is no cap on the amount of shares it can issue for stocks and bonds. Mutual funds have a beneficial structure in that they make it easy for investors to invest. Fund management also enjoys complete control. If they come to the decision that total assets are becoming too large they can close the fund off. Buying and selling occur on demand and use net asset value. This value is derived from the fund’s underlying securities. The NAV is calculated at the end of trading to see if a sizable number of shares have been redeemed. If that is the case the fund will sell investments to pay it investors. Shares in the fund are removed from circulation when sold.
Fortress Investment Group has been around since the late 90’s. It was first founded as a private equity firm in 1998. Wes Edens, Randal Nardone, and Rob Kauffman were the initial founders. Based in New York City Fortress Investment Group went on to become the first large private equity firm to be traded publicly in the United States. By June 30, 2016, Fortress managed around $70.2 billion-dollars in alternative assets, private equity, credit funds, and liquid hedge funds. It currently has its fingers in many pies stretching from technology to commuter rail lines. In 2017, Fortress Group was sold to Japanese multi-national holding conglomerate Softbank Group.