The growth of Fortress Investment Group in the recent years has been quite intriguing. This is because it has been barely two decades since the company was established, with a total capital base of less than $400 million. The company’s then assets under management then increased to $3.9 billion over the next five years due to some viable initiatives that were taken by its leaders. The source of capital for Fortress Investment Group at this time was solely private equity. This never worked as the founders had planned at the foundation stage because they expected that the private equity would raise enough funds that would be later invested in other cutting-edge investment vehicles that would generate sufficient cash flows for the company.
However, the renowned founders had not yet run out of ideas. Randal Nardone, Wes Edens, and Rob Kauffman went back on to the drawing board to figure out how they could improve on their investment project. The ultimate decision that they all settled for was to introduce other investment machines that would aid in the consolidation and harnessing of capital. However, the three lacked some expertise to manage the proposed additional asset strategies. That’s how they came up with the idea of bringing Peter Briger on board.
At that time, Briger was at his peak of popularity in the investment industry. He had been working for a long period at the Goldman Sachs Bank where he had acquired extensive knowledge on the management of real estate assets, hedge funds, credit funds, and distressed assets. His proficiency in these investment sectors made him the best candidate for the work needed at Fortress Investment Group. Briger joined Fortress in 2002 when he became a co-CEO, alongside Randal and Wes. He helped the company to manage the required new assets. Under Briger’s guidance, the hedge fund of Fortress Investment Group performed exceptionally, an aspect that made the company get recognized and acknowledged by the whole investment industry. Fortress Group also received a performance-based accolade from the industry where its hedge fund was named the best hedge fund of that year by the institution magazine, in 2010. Peter Briger was also named the best hedge fund manager in the same year.