How the Fortress Investment Group is venturing into the technology sector

The Fortress Investment Group has been one of the most consistent asset management companies in the country. They were able to grow their 400 million initial investment to 3 billion dollars within the first five years of their existence. All this was done at a time when they were giving a 39 percent return on equity. By 2002 the company needed to grow in other areas, and in order to achieve this, they realized they had to go into Credit assets acquisition and lending. The need for a credit division had been identified before, but it was in that year that it really became urgent. They were able to get a team of experts led by Peter Briger who is the current Co-CEO to start the division. He was tasked with developing and growing the division to one capable of doing multi-billion deals anywhere in the country, and it did not take long for the results to start showing. The division is now responsible for the largest portfolio within the group with an estimated 17 billion dollars in investments. The Fortress Investment Group Credit division has done deals worth more than 100 billion dollars and continues to grow given the rounds of funding it has previously led. It had one two years ago that raised two billion dollars with their latest round targeting five billion dollars.

The division recently advanced a line of credit worth 20 million dollars to the tech company iPass. iPass according to their CEO was looking for a partner who understood their business model and who was willing to offer the said financing and use its patents that include Smartconnect as collateral to secure the same. The Fortress Investment Group after the evaluation of the proposal concluded that it was a worthy investment and with that, the deal was signed. They went ahead to offer the initial ten million dollars up front will the other 10 billion dollars are structured as agreed upon. The Fortress investment group has been looking to grow its investments in the technology sector given its rapid growth an iPass is just one of the many expected to come in future.

LinkedIn: https://www.linkedin.com/company/fortress-investment-group

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