Will Turner: Steering The Ship At Fortress Investment Group

Fortress Investment Group is a pioneer and leader in alternative assets, with over $49 billion in managed assets and over $195 billion invested. The group has been investing in legal assets for over a decade and has a collaborative process that allows them to pivot between public and private markets and across asset classes and geographies. William Turner is a professional based in Santa Monica, California, who has liked a post on LinkedIn that congratulates the Alta Convenience team on their acquisition of JR's retail stores.

Fortress Investment Group's leadership in legal assets investing

Fortress Investment Group is an American investment management firm based in New York City. The company was founded in 1998 and has since expanded into hedge funds, real estate-related investments, and debt securities. Fortress has been recognised for its expertise in legal assets investing, with over $195 billion in invested capital and $49 billion in managed assets.

Fortress has been a pioneer and leader in legal assets investing for over a decade. The company's Legal Assets leadership team is comprised of experts in various fields, including law, finance, and asset management. This team is responsible for the company's success in this growing asset class.

The genesis of Fortress's business in legal assets investing began with their willingness to invest in complex opportunities. Legal risks are often at the core of these complex investments, and Fortress became adept at identifying and underwriting these risks. This expertise in addressing legal risks evolved into a focused investment strategy for the company.

Fortress's legal assets capabilities were refined in their main Credit funds. They developed tools to measure legal risks and outcomes and built the resources necessary to assess situations where their capital was protected, and litigation claims provided meaningful potential upside. Eventually, Fortress expanded into investments where legal outcomes represented the core of their investment thesis.

Fortress's Legal Assets team consists of over 20 people, primarily based in New York and London, with offices in other jurisdictions. The team includes former lawyers, active litigation analysts, and dedicated finance and asset management professionals. Their diverse skill sets enable them to analyse risk, develop deal structures, and execute transactions effectively.

Fortress's approach to legal assets investing is characterised by their focus on diversification and downside protection. They have invested in single-claim risks while also focusing on diversified credit-oriented investments to create the right scale and risk-return profile for their investors. Their investments are often structured to cross-collateralise across a diverse pool of allocations, reducing the binary risk associated with litigation finance.

Fortress's expertise, experience, and global reach have positioned them as leaders in legal assets investing. Their ability to analyse and underwrite complex investments, coupled with their talent acquisition and development, contribute to their success in this field.

Fortress' $225 million equity investment in First Foundation Inc

On July 2, 2024, First Foundation Inc. (FFWM) announced that it had secured individual investments totalling $228 million from several investors, including affiliates of Fortress Investment Group, Canyon Partners, Strategic Value Bank Partners, North Reef Capital, and others. The investment by Fortress affiliates is expected to amount to $115 million.

First Foundation Bank will add four new directors to its board following the closing of the equity investment, with Fortress reserving the right to appoint another board member in the future. The new board members will include Simone Lagomarsino, who will also serve as President of the Bank, Henchy Enden, Sam Edelson, and Ben Mackovak.

Scott F. Kavanaugh, President and CEO of First Foundation Inc., welcomed the new board members and investors, expressing confidence in the company's ability to "refocus [its] balance sheet, reduce multi-family concentrations over time, grow C&I platforms, increase ACL and materially strengthen earnings."

Drew McKnight, co-CEO of Fortress Investment Group, stated that the investment in First Foundation Inc. would "further position the Company for long-term growth and profitability." He highlighted the company's significant competitive advantages, including its presence in dynamic and expanding markets in Texas, California, and Florida.

The transaction is expected to close around July 8, 2024, subject to certain closing conditions, including the filing of a supplemental listing application for the New York Stock Exchange.

Fortress' focus on attracting and retaining top talent

Attracting and retaining top talent is a challenge for any organization. With 61% of employers struggling to retain employees and 73% facing difficulties in attracting them, according to the Integrated Benefits Institute (IBI), it is clear that this is a complex issue. A company's ability to attract and retain talent is influenced by various factors, including the competitive job market, employee engagement, and the cultivation of a positive company culture.

Fortress Investment Group recognizes the importance of attracting, retaining, and developing top talent, and they do so by offering a highly competitive package of compensation and benefits. They understand that a talented team of problem solvers is essential for their success, and they are committed to providing their employees with the resources and support needed to reach their full potential.

Competitive Compensation and Benefits:

Fortress offers a comprehensive package that includes top-notch medical, dental, and vision insurance, as well as retirement savings options with employer contributions. They also provide student debt support, tuition reimbursement, charitable donation matching, and a fitness reimbursement program. These benefits not only help attract talented individuals but also show Fortress's commitment to supporting their employees' well-being and long-term financial health.

Culture of Innovation and Continuous Improvement:

Fortress cultivates a culture that values innovation, initiative, and continuous improvement. They encourage intellectual curiosity and rigorous scrutiny, leading with questions to find pathways forward. This approach fosters an environment where employees are motivated to bring new ideas and creative solutions, contributing to the company's success.

Non-Hierarchical Team Structure and Collaboration:

Fortress prides itself on having a flat organizational structure, which promotes collaboration across levels and business groups. This structure breaks down barriers and encourages the free flow of ideas, knowledge, and expertise. By working together, employees can achieve stronger and more rewarding results, benefiting from a common vision and shared knowledge.

Diversity and Inclusion:

Fortress strongly believes in the power of diversity and inclusion. Their Diversity and Inclusion Committee includes representatives from the highest ranks of leaders and varying levels of employees. They understand that a breadth of backgrounds, experiences, and knowledge enhances the well-being and effectiveness of their team, creating a competitive advantage.

Performance Recognition:

Fortress prioritizes recognizing and rewarding results. They value the contributions of every team member and believe that diverse perspectives lead to sounder solutions. By consistently rewarding performance, they create an environment where employees feel valued and motivated to deliver superior results.

Career Development Opportunities:

Fortress empowers its employees to reach their fullest potential by providing opportunities for personal and professional growth. They offer the latitude to grow strengths and develop new interests, fostering a culture of continuous learning and improvement. This approach not only benefits the individual employees but also contributes to the overall success and adaptability of the organization.

By implementing these strategies, Fortress Investment Group demonstrates its commitment to attracting, retaining, and developing top talent. They understand that their employees are their greatest asset, and by investing in their talent, they can drive innovation, performance, and long-term success.

Fortress' expertise in private credit

Fortress Investment Group has established itself as a pioneer and leader in alternative assets, with a particular focus on private credit. With $49 billion in managed assets and over $195 billion invested, Fortress has a proven track record in delivering strong outcomes through its expertise in private credit.

Fortress's approach to private credit is characterised by its precision and discipline. The firm actively seeks out long-term value-creation opportunities, employing an opportunistic investment strategy with hands-on management. This strategy is underpinned by Fortress's ability to pivot between public and private markets and across asset classes and geographies, allowing it to identify the most attractive risk-adjusted opportunities.

A key strength of Fortress lies in its direct corporate lending capabilities. With nearly $100 billion deployed across thousands of transactions since 2006, Fortress is one of the most experienced managers in the market. The firm's credit business operates as one efficient team across liquid and private credit, providing debt and capital solutions for borrowers and sponsors.

Fortress's credit-first approach prioritises strong asset performance and debt coverage throughout market cycles. The firm's rigorous asset management process involves proactive management and high-touch contact with borrowers. This approach, combined with deep underwriting and detail-oriented structuring, enables early issue identification and value-added dialogue, ultimately enhancing the mutual benefits for all stakeholders.

In addition to its direct lending activities, Fortress also excels in the broadly syndicated loan market and is among the largest CLO managers in the US. The firm's credit strategies encompass a range of structured equity options, including preferred equity, holdco debt, and convertible debt. By leveraging its deep sector experience, Fortress offers flexible financing solutions tailored to the unique needs of sponsored and non-sponsored borrowers.

Fortress' success as a manager for large, sophisticated investors

Fortress Investment Group is an American investment management firm based in New York City. It was founded in 1998 and has since expanded into hedge funds, real estate-related investments, and debt securities. Fortress has been recognised for its success in managing assets for large, sophisticated investors.

The company has a proven culture of discipline, risk analysis, and performance focus, with a mission to deliver superior risk-adjusted returns. This approach has earned the trust of its investors, and as of March 31, 2024, Fortress managed $49 billion in assets on behalf of over 2,000 institutional and private investors worldwide.

Fortress's success as a manager for large, sophisticated investors can be attributed to its ability to pivot between public and private markets and across asset classes and geographies. The company's global team relentlessly pursues better ways of thinking, working, and collaborating, leveraging cutting-edge technology and talented personnel to deliver consistent outcomes.

Fortress's success is also due to its focus on attracting, retaining, and developing top talent. The company prioritises building strong teams and consistently rewarding performance. This approach has resulted in strong outcomes and has contributed to the company's ability to manage large and complex investments.

Additionally, Fortress's success can be attributed to its commitment to social responsibility and diversity and inclusion. The company recognises that diverse perspectives make sounder solutions, and this is reflected in its hiring practices and company culture. By embracing curiosity over complacency, Fortress has been able to identify and deliver value where others have not.

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