Tag: investment management organization

Severe Criticism on Fortress Investment Group after Going Public

Published / by rattlin

Fortress Investment Group is one investment management organization whose achievements will never fade from the minds and hearts of its investors. Since the company was established in 1998, its performance’s star has remained shining brightly throughout its years of operations. This has been evident through the countless accolades and awards that the company has won in the industry whenever there is an event to recognize the best performers in the investment sector. Most of the awards that Fortress Group received came after 2007 when the organization started making critical decisions that brought drastic changes to the management and administration of the firm. These decisions changed the way operations were made in Fortress Investment Group and consequently, the performance of the organization improved. As a result, Fortress Group ended up in the reception of several awards, among them being the best investment management company of the year, in corporate leadership.

Two decisions made the dramatic changes that happened in Fortress Investment Group. One of them was the transformation of the company from a private equity management organization to make it a multiple asset manager. This happened in 2002 after the entrance of Peter Briger into the company. Before, Fortress Group relied on private equity to raise the entire investment funds for the company. However, when Peter Briger joined the organization, the first operation that he made was this transformation. It was a very brilliant decision for the company’s management because the introduction of the new investment strategies led to the diversification of the company’s portfolio and as a result, the investment risk to which Fortress Investment Group was exposed reduced significantly.

The other critical decision that Fortress Group made was the one that saw the organization start trading publicly. This was back in 2007 when the three co-principals of the organization decided that they would increase the revenue collection so that they could operate with a larger capital base. Despite Fortress Investment Group being a private company, they decided to invite the public to participate in their trading activities. This decision was met with tons of criticism by both their counterparts and the general public. The criticism was quite understandable because in that case, Fortress Group was the first private firm of its size to make such a move.

However, the companies that criticized the decision later came to swallow their words as they watched the progress that Fortress had made after the IPO.