Fortress Investment Group has played a key role in some of real estate’s biggest — and most audacious — deals.
From Harry Macklowe’s infamous $7 billion purchase of a chunk of the Equity Office Properties portfolio, to the $5.5 billion sale of Stuyvesant Town–Peter Cooper Village, to backing Trump Tower Chicago, the private equity firm earned a reputation for getting involved in hairy projects that scared others away.
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New York
Hidden Fortress: Behind SoftBank's $3.3B buy of the asset managerNow, with SoftBank considering a sale of the firm, a new chapter might await Fortress, which was founded in 1998 by Wes Edens, Rob Kauffman, and Randal Nardone and has $53 billion in assets under management.
Masa Son’s SoftBank had taken the publicly listed private equity firm private in 2017 in an all-cash deal worth $3.3 billion with the aim of integrating the company into its Vision Fund. But as early as 2021, SoftBank was reportedly open to a sale of the company, which is run as a fully independent subsidiary as per an agreement with the Committee on Foreign Investment in the U.S.
Here’s a look at some of Fortress’ biggest real estate hits:
Equity Office Properties
When Macklowe made a whirlwind play to buy 7 million square feet of offices from Blackstone Group in 2007, he put up just $50 million of his own money and borrowed $5.8 billion from Deutsche Bank.
That left him short by $1.2 billion, which he needed to raise in two weeks.
“It was an absurd amount of money to come up with so quickly. Even in the high-flying world of big-city real estate, this was shylock territory,” author Adam Piore wrote in his book, The New Kings of New York. “But both [Fortress’ Steve] Stuart and Macklowe knew that Fortress was one of the very few players who might consider it.”
Fortress agreed to lend the money at a sky-high interest rate – north of 15 percent – and with personal guarantees from Macklowe. When Lehman Brothers collapsed and the market seized up, Macklowe defaulted on his loans and lost most of his office properties, including his beloved GM Building.
More recently, Fortress lent Macklowe $192 million to refinance his “Tower Fifth” development site, where he plans to build a 1 million-square-foot office tower that would rise 1,500 feet into the sky.
Stuy Town
Stuyvesant Town (Getty)
When Tishman Speyer and BlackRock fell behind on their $3 billion mortgage in 2010, the massive complex, which has over 11,000 apartments, fell into the hands of special servicer CWCapital, which got to work preparing a foreclosure auction.
Fortress, looking to expand its reach into real estate, bought CWCapital later that year for an undisclosed price. CWCapital and Fortress reportedly reaped more than $45 million in fees over six years and $566 million in default interest by the time Blackstone bought Stuy Town in 2015.
Times Square
The private equity group is backing two transformative development projects at the Crossroads of the World.
Fortress partnered with L&L Holding at the $2.5 billion TSX Broadway (aka 1568 Broadway), where the developers raised the landmarked Palace Theatre 30 feet to make way for their retail and hotel development. The 470-foot-tall, 669-key tower is set to open next year.
Right next door, Fortress also partnered with Maefield Development on the $1.5 billion Edition Hotel project at 20 Times Square. That tower has been mired in controversy, though, with lender Natixis foreclosing on Maefield and Fortress’ leasehold on the property this year. (The developers still own the ground underneath.)
Trump Tower Chicago
Long before Donald Trump became president, Fortress floated him a $130 million mezzanine loan in 2005 to build his Trump International Hotel & Tower in Chicago.
By 2012, Fortress reportedly forgave more than $100 million of the debt — a move that drew the attention of then-Manhattan District Attorney Cyrus Vance, who reportedly subpoenaed the firm in 2020 as part of an investigation into the former president and his company.
The Sheffield
When Kent Swig’s planned condominium conversion of the 845-unit Sheffield rental tower just south of Columbus Circle started to implode around 2008, he turned to Fortress to bail him out.
The developer concocted a scheme whereby Fortress would buy a stake in the project’s mezzanine debt and foreclose on the property. Swig agreed not to put the project into bankruptcy and to hand over his condo plan — giving Fortress a clear path to complete the project.
“I’m going to let you be rough with me and push me over,” Swig told the Fortress execs, according to The New Kings of New York. “I know you like to play rough. You can knock me out of the way, and you’re going to make a ton of money.”
At the foreclosure auction, Fortress paid less than $100 million for the building — which Swig had purchased three years earlier for $418 million, predicting it would yield more than $800 million.
“We stole a building in broad daylight,” a top Fortress executive later said of the deal.
FAQs
What is Fortress Investment Group known for? ›
Founded in 1998, Fortress manages assets on behalf of over 1,900 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies.
Is Fortress Investment Group a good company to work for? ›Is Fortress Investment Group a good company to work for? Fortress Investment Group has an overall rating of 3.9 out of 5, based on over 195 reviews left anonymously by employees. 68% of employees would recommend working at Fortress Investment Group to a friend and 90% have a positive outlook for the business.
What happened with Fortress? ›When Fortress launched on the NYSE in February 2007, it was the first large private equity firm in the US to be traded publicly. In December 2017, Fortress was fully acquired by SoftBank Group, was delisted, and returned to being a privately held company.
What type of company is Fortress Investment Group? ›Fortress Investment Group LLC operates as an investment management company. The Company raises, invests, and manages assets such as range of credit and real estate, private equity, and permanent capital investment strategies. Fortress Investment Group serves institutional clients and private investors worldwide.
What does Fortress REIT do? ›Fortress Real Estate Investments Ltd (Fortress), formerly Fortress REIT Ltd, is a real estate investment trust (REIT). It executes acquisition, investment, development and management of various property types.
Who are fortress investment competitors? ›Fortress Partners's competitors include Franklin Templeton India, ARK Investment Management, First Trust Portfolios, GAMCO. Fortress Partners ranks 74th among 138 active competitors.
Who owns Fortress Investments? ›Abu Dhabi's Mubadala to buy majority stake in Fortress Investment from SoftBank. May 22 (Reuters) - Abu Dhabi's Mubadala Investment Co will acquire a majority stake in U.S. asset manager Fortress Investment Group from Japan's SoftBank Group Corp (9984.T).
How many employees does Fortress have? ›Fortress Investment Group has 2,533 employees.
What is the new name of fortress? ›Fortress Income Fund to change name to Fortress REIT.
What is the revenue of fortress investment? ›
Fortress Investment Group revenue is $1.1B annually.
Why was the fortress demolished? ›It was stormed by a crowd on 14 July 1789, in the French Revolution, becoming an important symbol for the French Republican movement. It was later demolished and replaced by the Place de la Bastille.
Who runs Fortress? ›SoftBank acquired Fortress in 2017, intending to use the New York-based firm's expertise to help manage its behemoth Vision Fund. The firm, led by co-Chief Executive Officers Pete Briger and Wesley Edens, managed $53.3 billion as of Dec.
Who owns BGF investments? ›In the UK, BGF is backed by Barclays, HSBC, Lloyds Banking Group, NatWest and Standard Chartered. BGF in Ireland is backed by the Ireland Strategic Investment Fund, AIB, Bank of Ireland and Ulster Bank.
Who owns Fortress brands? ›We're Alex and Matt Beer — brothers, Co-Founders and Co-CEOs of Fortress Brand. In 2012 as early adopters of the Amazon marketplace, we developed a deep knowledge of the platform and uncovered market trends to help bring nutritional supplements to the DTC market.
Why are REITs not a good investment? ›Summary of Why Investors May Not Want to Invest in REITs
But, REITs are not risk free. They may have highly variable returns, are sensitive to changes in interest rates, have income tax implications, may not be liquid, and fees can impact total returns.
- Equity Residential with $36.2 billion in assets, 310 properties, and over 80,000 apartment units.
- AvalonBay with $24.6 billion in assets and over 79,000 apartment units.
- UDR, Inc. with $11.8 billion in assets, 149 properties, and over 48,000 units.
The benefits of a REIT investment include liquidity, diversification, and passive income in the form of high dividends. The potential downsides of a REIT investment include taxes, fees, and market volatility due to interest rate movements or trends in the real estate market.
Is Fortress a private equity company? ›Founded in 1998, Fortress Investment Group is a private equity firm based in New York, New York. The firm seeks to invest in companies operating in the financial services, transportation, energy, infrastructure and healthcare sectors.
Who is Vanguard's largest competitor? ›Fidelity and Vanguard are two of the largest investment companies in the world. Fidelity boasts 40 million individual investors and $9.9 trillion in assets under management (AUM).
Who are the largest shareholders of New Fortress Energy? ›
| Holder | Shares | Date Reported |
|---|---|---|
| Great Mountain Partners LLC | 25,559,846 | Mar 30, 2023 |
| Fortress Investment Group LLC | 13,399,317 | Mar 30, 2023 |
| Capital World Investors | 10,786,501 | Mar 30, 2023 |
| Vanguard Group, Inc. (The) | 5,919,648 | Mar 30, 2023 |
IPO & Stock Price
Fortress Investment Group is registered under the ticker NYSE:FIG . Their stock opened with $18.50 in its Feb 9, 2007 IPO.
Founded in 1998, Fortress manages $44.2 billion of assets under management as of March 31, 2023, on behalf of over 1,900 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies.
What did SoftBank pay for Fortress? ›The Japanese technology company, which has struggled due to its investment in hundreds of tech startups through its $100 billion Vision Fund and a successor fund, purchased Fortress in 2017 for $3.3 billion.
Who owns PJ investment Group? ›Peter Jones - Chairman - PJ INVESTMENT (GROUP) LIMITED | LinkedIn.
What does Fortress sell? ›- Dehumidifers. Insect Killer and Repeller. ...
- Outing & Camping.
- haha TRAVEL. Sim Card and Pocket Wifi. ...
- Sim Card and Pocket Wifi. MagSafe Accessories.
- Turntable and LP. Karaoke Equipment. ...
- Travel Backpack and Bags. Monitor Light Bar.
- 2 in 1 Air Purifying Dehumidifier. Irons and Cloth Care. ...
- Coffee Machines and Accessories.
Where is Fortress Brand 's headquarters? Fortress Brand is located in New York, New York, United States .
Why is it called a fortress? ›A fortress is a large building or complex of buildings used as a military stronghold. In a military sense, a fortress is often called a “fort." From its original sense of stronghold, the word fortress has stretched to include strongholds in a more figurative sense.
What platform is fortress on? ›Watch The Fortress | Netflix.
What is the largest fortress? ›The Castle of the Teutonic Order in Malbork (Polish: Zamek w Malborku; German: Ordensburg Marienburg) is a 13th-century Teutonic castle and fortress located near the town of Malbork, Poland. It is the largest castle in the world measured by land area and a UNESCO World Heritage Site. Reference no.
Who is the richest investment firm? ›
- BlackRock (BLK) is the largest investment firm in the world. ...
- BlackRock is a powerhouse, operating in more than 30 countries with clients in more than 100 countries.
- With $7.2 trillion in total AUM as of Dec. ...
- Fidelity manages nearly $3.9 trillion in assets as of Dec.
- BlackRock. AUM: $9.464 trillion. ...
- The Vanguard Group. AUM: $8.4 trillion. ...
- UBS Group. AUM: $4.432 trillion. ...
- Fidelity. AUM: $4.23 trillion. ...
- State Street Global Advisors. AUM: $3.86 trillion. ...
- Morgan Stanley. AUM: $3.274 trillion. ...
- JPMorgan Chase. AUM: $2.996 trillion. ...
- Allianz. AUM: $2.953 trillion.
...
Compare NFE With Other Stocks.
| New Fortress Energy LLC Annual Revenue (Millions of US $) | |
|---|---|
| 2021 | $1,323 |
| 2020 | $452 |
| 2019 | $189 |
| 2018 | $112 |
The building is past its best
Structural problems like weakened basement foundations, or issues including poor plumbing and ventilation, can make demolition the best solution. In addition, it's often cheaper to demolish and rebuild than to renovate.
Great Fear, French Grande Peur, (1789) in the French Revolution, a period of panic and riot by peasants and others amid rumours of an “aristocratic conspiracy” by the king and the privileged to overthrow the Third Estate.
What did the term old regime mean? ›Answer: The term old Regime is usually used to describe the society and institutions of France before 1789. France was a monarchy under the old regime. Under the regime, everyone was a subject of the king of France as well as a member of an estate and province.
Is Fortress a broker dealer? ›Our Broker/Dealer. We are proud to partner with Commonwealth Financial Network®, a Registered Investment Adviser–broker/dealer that helps independent advisors like us serve their clients.
Does Fortress own mr cooper? ›Mr. Cooper, Nationstar's flagship brand, is the largest non-bank mortgage servicer in the nation. Fortress acquired Nationstar in July 2006 and took the company public in March 2012.
Who is the famous bear market investor? ›Warren Buffett is one of the modern era's most well-known and successful investors, able to weather even the most severe bear markets.
What does BGF fund stand for? ›BlackRock Global Funds (BGF)
What is the new name of Investors Group? ›
In 2018 Investors Group became IG Wealth Management. Selected to more clearly communicate our value proposition, our new name and complete rebrand is also an important signal of a much greater transformation. Change started with a re-affirmed commitment to put Clients at the centre of everything we do.
What is a fortress brand? ›Fortress Brand is how consumer brands accelerate their growth in online marketplaces—at any stage of a brand's lifecycle. With a dedicated team of in-house specialists, plus a robust analytics platform – we can help you build something beautiful.
Who is the CEO of Fortress shoes? ›Investors who take an interest in Fortress Minerals Limited (Catalist:OAJ) should definitely note that the CEO & Executive Director, Yew Fei Chee, recently paid S$0.45 per share to buy S$450k worth of the stock.
Who is the largest investment group in the world? ›BlackRock
BlackRock (BLK) is the largest investment firm in the world. It manages $8.6 trillion in assets as of Dec. 31, 2022.
Goldman Sachs Asset Management is one of the world's leading investment managers. With more than 2,000 professionals across 31 offices worldwide, GSAM provides institutional and individual investors with investment and advisory solutions, with strategies spanning asset classes, industries and geographies.
What are the top 10 fiduciary companies? ›| Rank | Financial Advisor | Minimum Assets |
|---|---|---|
| 1 | CAPTRUST Find an Advisor Read Review | No set account minimum |
| 2 | Fisher Investments Find an Advisor Read Review | Varies based on account type |
| 3 | GW&K Investment Management, LLC Find an Advisor Read Review | Varies by asset class and strategy |
- BlackRock.
- Goldman Sachs Group Inc.
- The Vanguard Group.
- UBS Group.
- Fidelity Investments.
| Rank | Company | Assets under Management (USD trillions) |
|---|---|---|
| 1 | BlackRock | USD 7.43 trillion |
| 2 | The Vanguard Group | USD 6.2 trillion |
| 3 | Charles Schwab Corporation | USD 3.3 trillion |
| 4 | UBS Group | USD 3.26 trillion |
The main competitors of New Fortress Energy include Ultrapar Participações (UGP), Excelerate Energy (EE), Cheniere Energy Partners (CQP), Southwestern Energy (SWN), Murphy Oil (MUR), Murphy USA (MUSA), Brookfield Renewable (BEPC), Matador Resources (MTDR), Clearway Energy (CWEN), and Permian Resources (PR).
How many employees does Fortress Investment Group have? ›
Fortress Investment Group has 2,533 employees.
What is the Goldman Sachs forecast for real estate? ›According to a recent note to clients, Goldman Sachs analysts predict that by the end of 2024, home prices will plunge by 19% in Austin, 16% in Phoenix, 15% in San Francisco, and 12% in Seattle.
Who makes the most money at Goldman Sachs? ›Highest Paying Jobs At Goldman Sachs
Some of the job titles with high salaries at Goldman Sachs are managing director, vice president research, finance vice president, and associate. A typical managing director salary at Goldman Sachs is $274,338 per year.
Goldman Sachs is one of the oldest and most prestigious investment banks on Wall Street. With hundreds or thousands of applicants for every job opening, getting into this company is notoriously hard.