Fortress Investment Group

Infobox_Company
company_name = Fortress Investment Group LLC
company_
company_type = Public
(nyse|FIG)
industry = Private Equity, hedge funds, Real Estate and railroad-related assets
foundation = 1998
location = New York, NY
key_people = Wesley R. Edens, CEO & Chairman & cofounder
Robert Kauffman, President - Europe & Director & cofounder
Randal A. Nardone COO & director & cofounder
revenue =
net_income = profit $192.7 million USD (2005)Fact|date=October 2007
num_employees = 707 (2007)
products = Asset Management
homepage = [http://www.fortress.com/ www.fortress.com]

Fortress Investment Group (nyse|FIG) is a New York, NY-based asset management firm which manages private equity, hedge funds, and real estate and railroad-related investments, with announced plans to move into casinos and horse racing. The company went public on February 9, 2007.cite news |url = http://www.washingtonpost.com/wp-dyn/content/article/2007/02/09/AR2007020901892.html |title = In a First, Hedge Fund Launches on NYSE |work = Associated Press via Washington Post |date=2007-02-10 |accessdate = 2007-02-10 |language = English ]

History

Fortress Investment Group LLC was founded as a private equity firm in 1998 by Wesley R. Edens, a former partner at BlackRock Financial Management, Inc.; Robert Kauffman, a managing director of UBS; and Randal A. Nardone, also a managing director of UBS. Fortress quickly expanded into hedge funds, real estate-related investments and debt securities, run by Michael Novogratz and Pete Briger, both former partners at Goldman Sachs.

Fortress Investment Group's investments grew rapidly, with its private equity funds netting 39.7% between 1999 and 2006.cite news |url = http://www.bloomberg.com/apps/news?pid=20601087&sid=a2II4O2ID4SU&refer=home |title = Fortress Investment's Shares Soar After Initial Sale |work = Bloomberg |date=2007-02-09 |accessdate = 2007-02-10 |language = English ]

As of September 30, 2006, the most recent date for which figures were available before Fortress Investment Group's IPO the firm held around $17.5 billion in private equity, around $9.4 billion in hedge funds and managed two publicly-traded investment companies:
* Newcastle Investment Corporation (nyse2|NCT),
* Eurocastle Investment Limited (Euronext AMS: [http://www.euronext.com/trader/summarizedmarket/0,5372,1732_6834,00.html?quotes=stock&selectedMep=2&shareprice=EUROCASTLE%20INVEST.&idInstrument=142621&isinCode=GB00B01C5N27 ECT]

In 2006, Fortress paid Sen. John Edwards, candidate for the 2008 Democratic Party nomination for president, and the 2004 nominee for vice president, $479,512 for his consulting services, a part-time job. [http://apnews1.iwon.com//article/20070517/D8P5SG100.html] The November 19, 2007 edition of the Wall Street Journal reported Edwards had invested $16 Million in Fortress and Fortress had bought poor performing New Orleans mortgages with the intention of foreclosing on properties in the Hurricane Katrina affected area through affiliates. The charges were repeated in the November 25, 2007 edition of FoxNews' Hannity's America.

Fortress has returned several of its private equity investments to public trading, including Aircastle Ltd., Brookdale Senior Living Inc. and GateHouse Media.

On May 8 2007, Florida East Coast Industries (FECI), parent company of Florida East Coast Railroad, announced that following a unanimous vote of the FECI Board of Directors, Fortress would acquire FECI in a transaction valued at $3.5 billion. [cite press release| url=http://phx.corporate-ir.net/phoenix.zhtml?c=64379&p=irol-newsArticle&ID=997164&highlight=| publisher=Florida East Coast Industries| date=2007-05-08| title=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| accessdate=2007-05-11| ]

On June 15, 2007 Fortress announced it would partner with Centerbridge Partners to acquire Penn National Gaming (nasdaq2|PENN), an operator of casinos and horse racing venues, for $6.1 billion. Penn National shareholders were to receive $67 cash for each share. It was announced on July 3rd, 2008, that Fortress had backed away from the agreement amid weakness in the economy and financial markets. Under the termination agreement, Penn National receives $1.475 billion, consisting of a break-up fee of $225 million and an interest-free $1.25 billion loan from Fortress, Centerbridge, Wachovia and Deutsche Bank. Fortress CEO Wesley Edens assumes a seat on the board of Penn National as part of the agreement. [ [http://www.usatoday.com/money/industries/2007-06-15-penn-private_N.htm?csp=34 USA Today: Penn National Gaming agrees to $6.1B deal. Retrieved June 15, 2007] ] [ [http://www.reuters.com/article/companyNewsAndPR/idUSWNAS024420080703 Reuters: Penn National says takeover deal terminated. Retrieved July 10, 2008] ]

Fortress Investment Group has backed a patent holding firm IP-Com. This firm is now suing Nokia for patent infringement for $17.77 billion.Fact|date=May 2008

References

External links

* [http://www.fortress.com/ Fortress Investment Group official web site]
* [http://finance.yahoo.com/q?s=FIG Yahoo! - Fortress Investment Group Company Profile]