Fortress Investment Group

Fortress Investment Group, LLC
Company type	Private
Industry	Investment management
Founded	1 January 1998; 28 years ago in New York City, U.S.
Founder	Wes Edens, Rob Kauffman, Pete Briger, Michael Novogratz, Randal Nardone
Headquarters	New York City, United States
Area served	Worldwide
Products	Private equity, credit funds, railroads, hedge funds, asset management
Owner	Mubadala Investment Company (70%), Fortress management (30%)
Parent	Mubadala Investment Company (since 2024)

Fortress Investment Group, LLC is a U.S.-based investment management company located in New York City. Established in 1998 by Wes Edens, Rob Kauffman, Pete Briger, Michael Novogratz, and Randal Nardone, Fortress focuses on private equity, credit funds, railroads, hedge funds, and conventional asset management.

Overview

In February 2007, Fortress became the first prominent U.S. private equity firm to list publicly on the NYSE. It was taken private again after being acquired by SoftBank Group in December 2017, which led to its delisting.

As of June 30, 2023, Fortress oversees $44.7 billion in assets for more than 1,900 institutional and private investors worldwide. Its broad investment approach includes credit, real estate, private equity, and permanent capital vehicles.

In May 2023, Mubadala Investment Company agreed to purchase a controlling interest from SoftBank for an undisclosed sum. This transaction was finalized in 2024 in collaboration with Fortress’s management team, strengthening the company’s global reach and strategic position within investment management.

1998–2010

Founded in 1998 in New York City as a private equity firm, Fortress Investment Group LLC was created by Wesley R. Edens (formerly of BlackRock), Rob Kauffman and Randal A. Nardone (both ex-UBS managing directors), along with Michael Novogratz and Pete Briger (previously partners at Goldman Sachs). The firm rapidly diversified into hedge funds, real estate investments, and debt markets with Novogratz leading hedge fund initiatives and Briger managing credit and real estate operations.

Between 1999 and 2006, Fortress’s private equity funds achieved robust returns of 39.7%. When it launched its IPO on February 9, 2007—underwritten by Goldman Sachs and Lehman Brothers—Fortress made history as the first major U.S. private equity firm to go public. Nevertheless, the financial crisis of 2008 hit the firm hard; Forbes identified Edens among the “biggest billionaire losers of 2008” due to substantial investor withdrawals from Fortress’s flagship fund. These difficulties were chronicled in a 2009 Vanity Fair feature examining hedge funds during turbulent markets.

2010–present

Fortress earned several accolades in 2014 including "Hedge Fund Manager of the Year" from Institutional Investor and "Management Firm of the Year" from HFMWeek. Previous awards included “Discretionary Macro-Focused Hedge Fund of the Year” (2012) and “Credit-Focused Fund of the Year” (2010 and 2011). That year also saw the addition of Jeff Feig—former Citigroup Global Head of Foreign Exchange—as co-Chief Investment Officer for its Macro Fund. Despite this, by October 2015, the $2.3 billion Macro Fund was closed following Feig’s exit and Novogratz’s retirement plans.

By mid-2016, Fortress managed roughly $70.2 billion across four main sectors: private equity, credit, liquid markets, and traditional asset management (including Logan Circle Partners acquired in 2010). On February 14, 2017, SoftBank Group agreed to buy Fortress for $3.3 billion; the deal completed in December 2017 resulting in Fortress’s removal from the NYSE and return to private status.

Amid controversies such as the Weinstein scandal, Fortress entered negotiations to provide financing to Weinstein Co. In December 2017, it extended a $100 million loan to Theranos to avert bankruptcy. Around this period, Fortress invested in Florida’s Brightline passenger rail service and its Brightline West expansion connecting Las Vegas with Southern California. By early 2018, it divested stakes in Florida East Coast Railway and Logan Circle Partners but maintained ownership of Brightline. Additionally, Fortress prepared to sell its interest in OneMain Holdings to Apollo Global Management and Varde Partners.

In 2020, Fortress raised its offer for Japanese real estate firm Unizo to approximately $1.6 billion but was unsuccessful in a 2021 takeover attempt for UK supermarket chain Morrisons.

In 2023, Mubadala Investment Company from Abu Dhabi announced plans to acquire a majority stake from SoftBank for $3 billion. The agreement—expected to close early in 2024—would give Mubadala a 70% ownership share while Fortress management retains 30%. The acquisition underwent review by the U.S. Committee on Foreign Investment (CFIUS) due to geopolitical concerns involving UAE-China relations. By May 2024, Mubadala overcame regulatory obstacles after committing to maintain Fortress’s technology and data operations within U.S. jurisdiction to address Washington’s intellectual property protection priorities.

The acquisition was finalized on May 15, 2024 by Mubadala alongside Fortress’s leadership team.

Separately, New Fortress Energy (NFE), a subsidiary of Fortress, holds a contract with Puerto Rico's government through 2026 for supplying liquefied natural gas.

Portfolio companies

In 2006, funds managed by Fortress acquired Intrawest, the largest ski resort operator in North America, which also owned premium adventure travel brands like Abercrombie & Kent (divested in 2016).

Fortress announced the acquisition of RailAmerica in November 2006 at $16.35 per share, representing a 32% premium, with the deal closing in February 2007. The company subsequently exited RailAmerica through an initial public offering in October 2009.

In May 2007, Fortress completed a $3.5 billion all-cash purchase of Florida East Coast Industries (FECI), the parent company of Florida East Coast Railway, with approval from the Surface Transportation Board. Although RailAmerica briefly managed FEC, both entities remained distinct; after RailAmerica's public offering, Fortress maintained ownership of FEC. Florida East Coast Railway was later sold to Mexico’s GMéxico Transportes in 2017.

In June 2007, Fortress teamed up with Centerbridge Partners to acquire Penn National Gaming for $6.1 billion, offering shareholders $67 per share. Due to economic uncertainties, Fortress withdrew from the deal in July 2008 but compensated Penn National with $1.475 billion covering breakup fees and loans. Following this, Fortress co-chair Wesley Edens joined Penn National’s board of directors.

Fortress has successfully taken several portfolio companies public, including Aircastle, Brookdale Senior Living Inc., GAGFAH, and RailAmerica.

The firm experienced a $125 million loss linked to fraudulent promissory notes associated with Marc Dreier’s Ponzi scheme and initiated legal action against law firm Dechert for issuing a misleading legal opinion that facilitated the fraud.

Fortress’s private equity holdings span multiple industries and include companies such as Aircastle Limited, Alea Group Holdings, AMRESCO, Boxclever, Capstead Mortgage Corporation, CW Financial Services, Eurocastle Investment Limited, Flagler, Florida East Coast Railway, GAGFAH, GateHouse Media, Global Signal, Green Tree Servicing, Holiday Retirement, Intrawest, Italfondiario, Kramer Junction, Mapeley Limited, MBS Holdings, MS Hub, Nationstar Mortgage LLC, Penn National Gaming, Prime Retail, RailAmerica, RESG, Seacastle Inc., Simon Storage, Springleaf Financial, Umami Burger, and IPCom GmbH & Co. KG.

In January 2014, Fortress acquired assets of the bankrupt Montreal, Maine and Atlantic Railway following the Lac-Mégantic derailment tragedy. Renamed Central Maine and Quebec Railway, the operation required an estimated investment between $10 million and $20 million to restore infrastructure. The transaction was finalized in May 2014 for US$15.85 million.

Fortress expanded its retail footprint in October 2014 by purchasing Inverness Corners shopping center and also serves as the parent company for Japan’s Mystays hotel and resort brand.

In April 2024, Fortress broadened its presence in the UK market by acquiring discount retailer Poundstretcher along with its affiliate chain Bargain Buys, complementing its existing UK portfolio that includes Majestic Wine and Punch Pubs.

Early in 2024, Fortress initiated legal proceedings against businessman Charles Cohen concerning a $534 million loan default dating back to 2019. A New York Supreme Court judge authorized foreclosure auctions on Cohen’s assets despite his assertions of an ongoing restructuring plan. By November 2024, Fortress gained control of cinema operator Curzon Cinemas through auction proceedings for $5 million.

Intrawest delayed payments and Olympic village financing

Fortress Investment Group served as the main lender to Millennium Development Group for the C$875 million athlete's village constructed for the 2010 Winter Olympics in Vancouver. In September 2008, financial difficulties prevented Fortress from continuing its funding, compelling the City of Vancouver to provide around C$450 million to ensure the project’s timely completion. The City secured legislative authorization to borrow funds as necessary and fully settled the $630 million debt by April 2014, partially through condominium sales to the Aquilini Group. The village was finalized in November 2009. Just prior to the Olympics, Fortress defaulted on a loan related to its acquisition of Intrawest, which led creditors to demand that Intrawest sell off several resort assets between 2009 and 2010 to decrease its debt burden. After the conclusion of the Games, Fortress assumed ownership of the Olympic village.

VLSI Technology LLC and INVT SPE LLC

VLSI Technology LLC and INVT SPE LLC, both portfolio companies overseen by Fortress investment funds, have initiated numerous lawsuits against leading telecom corporations such as Apple, Intel, HTC, and ZTE. In 2019, VLSI alleged that Intel’s SpeedStep technology infringed on patents it had acquired through purchase. VLSI won jury awards exceeding $3 billion against Intel for patent infringement. INVT SPE LLC holds a portfolio of 740 telecommunications patents originally filed by Panasonic, obtained via Fortress’s acquisition of assets from Inventergy Global, Inc.

Labrador Diagnostics

In March 2020, Labrador Diagnostics—an LLC under Fortress-managed funds holding patents formerly owned by Theranos—filed a lawsuit against BioFire alleging infringement related to diagnostic technologies. Shortly afterward, bioMérieux announced that BioFire was developing tests for COVID-19. Labrador stated it was unaware of this development when initiating the lawsuit. In response to public criticism, Fortress granted royalty-free licenses for its COVID-19 testing-related patents to all interested parties, signaling a strategic shift amid the pandemic’s influence on the diagnostics sector.

Manwin Investment

Fortress expanded its holdings within the adult entertainment sector through investment in Manwin Company.

Key people

Randal A. Nardone: CEO, co-founder, principal
Wesley R. Edens: co-founder, principal
Peter L. Briger: principal

External links