Successful investors know when to “hold them and fold them.” The Fortress Investment Group was the first hedge fund to go public. But, eventually it was sold off to SoftBank. What did Fortress Investment Group Co-Founder Randal Nardone gain when SoftBank acquired his company?
Dramatic Rise to Top
Financial expertise is not gained in one day, it takes a long arduous journey. That might be what Business Executive Randal Nardone has learned. He started as a partner of the Thacher Proffitt & Wood Law Firm.
Randal Nardone was a managing director of UBS from May 1997 to May 1998. This might have allowed him to gain the expertise to determine the most profitable hedge fund strategies. He also learned how the best global financial brands operated.
On February 9, 2007, the Fortress Investment Group made history as the first hedge fund to go public. The firm managed an estimated $70 billion in 2016. Institutions had become flush with money and needed a viable way to earn the best return on investment (ROI). Fortress satisfied this need.
One of the many functions provided by the Fortress Investment Group was under its subsidiary, New Residential Investment. New Residential Investment purchased mortgage servicing rights. Building its business on housing finance is a secret to the success of the Billionaire Randal Nardone’s Fortress.
SoftBank Keeps Nardone in the Game
Timing is essential to earning the best profits. For centuries, the US property market slowly yawed upwards. Then, when it was denominated in the 1990s, it shot straight up. Fortress Investment Group rode that wave higher.
But, when the housing market soured, Fortress Investment Group Co-Founder Randal Nardone understood that it was time to sell. All of the value built up over the years needed to be retained. A sale to SoftBank offered the perfect vehicle. SoftBank paid $3.3 billion in cash for Fortress on February 14, 2017.
“What did Randal Nardone gain from the sale?”
Randal Nardone had a nice run for almost a decade. He had become a billionaire and new that the housing and financial markets were changing. He was able to earn a nice profit by selling to a powerful financial firm.
Mr. Nardone was able to stay in the game. He had made a good exit from an untenable position. No one could take away the fact that the Fortress Investment Group was the first hedge fund to go public.
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