How Fortress Investment Group was Bought for $3.3 Billion

Investment management companies exist all around the United States, especially those that offer counseling and have financial advisors who help investors and asset owners control their investments and diversify their portfolio. However, many of those are not as popular or as efficient as Fortress Investment Group, an investment management and financial advisory company located in NYC.

The company was founded in 1998 and has already celebrated its 20th anniversary in 2018 with an impressive record of growth and success since its establishment.

Fortress Investment Group was founded by three investment experts and entrepreneurs: Wesley R. Edens and Randal Nardone. Since 1998, it saw massive growth and was publicly traded in 2007, being the first large private equity firm in the country to do so. It has since then managed billions in assets from investors from all over the country, and continues to have a massive number of loyal clients to this day.

The investment management company has received acknowledgments, prizes and awards as well as some of their employees and leaders.

After 2007, many nominations took place such as 2010 and 2011’s “Credit-Focused Fund of the Year” award, and the “Discretionary Macro-Focused Hedge Fund of the Year” in 2012. 2014 was also a prominent year for the corporation as they received the “Hedge Fund Manager of the Year” nomination, from the group Institutional Investor, and another nomination, “Management Firm of the Year,” by HFMWeek, acknowledging the company’s influence in the market.

Fortress Investment Group has more than just private equity management and the traditional asset management solutions. The company deals with many investments and credit, as well as alternative assets. They offer management of hedge funds and equity funds.

In February of 2017, the corporation was doing very well in the market. The business was expanding, and they had many investors using their asset management services. Because of their success, in that same month, Softbank Group confirmed that their plans of buying the company were true and it wouldn’t take too long for the bank to acquire Fortress Investment Group. The price for the acquisition was $3.3 billion.

The group has a wide variety of other companies and financial management firms in its pockets, as its portfolio has only grown larger and larger throughout the years. The company had bought the Canadian ski resort company Intrawest, as well as a co-ownership when the company and its partner Centerbridge Partners acquired Penn National Gaming. Their portfolio has continued to increase until 2014, when a local journal announced that they had acquired Inverness Corners retail center.

 

“Freedom Checks”:Get The Oil Companies To Pay You!

Many people are risk-adverse when matters of money are concerned. Many people may end up getting suckered into the next get-rich-quick scheme. Maybe they followed a financial newsletter promising a penny stock was going to the moon. After several disappointing tries of going big, many investors give up and will end up eventually passing up legitimate investment opportunities. When Matt Badiali introduced “Freedom Checks” to the investing public, his ad seemed a little too sensational. Also, many of his claims regarding these checks seemed outrageous. Although Freedom Checks proved to be a real investment option and not a scam, most people who heard about them probably never acted on them.

Matt Badiali is a financial advisor who spent much of his career as a geologist. He traveled to numerous countries examining natural resource projects and even met with many CEOs who helped him to understand the business side of a particular resource play. Many companies that pay “Freedom Checks” are natural resource companies, specifically related in some way to the oil and gas industry. Matt Badiali learned that these companies were “Master Limited Partnerships” and that it was the tax code that made these companies unique for investors. MLPs can be in business without paying the federal government any income taxes. One of the requirements for the company is that they must give ninety percent of the company profits to their shareholders in the form of “Freedom Checks”.

Matt Badiali is not just pushing MLPs because they pay shareholders good distributions. He sees many of the share prices n MLPs being significantly higher over the next several years. As Earth’s population continues to grow, more people will use vehicles and fuel consumption will rise. The US has utilized fracking technology in a way that domestic oil companies are producing larger amounts of oil. If this trend continues, the reliance on oil from the Middle East will continue to decline. All Your ‘Freedom Checks’ Questions Answered.

This will mean the US companies will be more profitable. More profits will mean higher “Freedom Checks” form these companies. Investors itching to start taking advantage of MLPs can start with a small starting capital and just need a brokerage account to purchase shares. After they are invested they will receive distributions in a similar manner to dividend investing.

Corbel to Provide Minority Equity and Subordinated Debt Investment for Ares Security

On 10th January 2017, Madison Street Capital secured Ares Security a subordinated debt investment and minority equity in a deal it had exclusively arranged for the Security company. With its headquarters in Vienna, ARES Security Cooperation is a giant company which deals with security risk management. The company is a provider of a comprehensive array of end-to-end security software solutions.

 

Corbel Structured Equity Partners agreed to provide the minority recapitalization. This transaction was announced by the chief executive officer of Madison Street Capital, Charles Botchway. Madison’s senior managing director, Mr. Reginald McGaugh led the process from the start to the end.

 

Ares Security said that partnering with Corbel to uniquely structure the investment deal was the best step to take in their bid to create significant equity value. Corbel’s operationally-supportive structure and its flexible capital solution will enable the security company to commence its sales while at the same time, capitalize on new revenue opportunities.

 

Statements from Reginald McGaugh and Ben Eazzetta

 

Mr. McGaugh considered it an honor to have worked directly with Ben Eazzetta, ARES Security president, and shareholder. Reginald said ARES Security protects some of the most critical assets in the world. He acknowledged that the company has a high-end suite of technological solutions. He added that ARES Security has an efficient management team and board who had consistently challenged Madison Street Capital to identify a suitable financing partner.

 

Mr. Eazzetta appreciated the entire Madison Street Capital team for the good job they had done throughout 2016. He said he was impressed by the whole process from the valuation analysis to the final capital raising process. He acknowledged how hard and diligently Madison Street Capital had worked to help them find the right financial partner. He concluded by expressing his excitement for the future with their new capital structure.

 

About Madison Street Capital

 

Madison Street Capital reputation is globally acknowledged. With its steadfast commitment to its values of service, leadership, excellence and integrity, this firm is at the top of its game. Madison works in the financial services field offering corporate consulting, M&A expertise, and evaluation services for both public and private entities. When undertaking any project, Madison places itself in the client’s shoes and assumes their objectives as theirs.

 

Madison’s headquarters are in Chicago, Illinois. The firm has been operational for the past 12 years. Its team of professionals – with diverse knowledge, skills, and expertise – have played a huge role in making Madison a leading global investment banking firm. The company has opened branches in several nations and continents including Africa, North America, and Asia. They specialize in arranging suitable financing and capitalization structures that are in line in with their clients’ needs.

 

Sanjay Shah Supporting Autism Cause through Music

The Autism Rocks Festival, headlined by Tyga and Flo Rida, took place on April 1, 2016, to raise cash for autism awareness and research. Sanjay Shah Denmark, together with his wife Usha are the people behind the charity event that brings in some big names in entertainment to hold concerts for the foundation, Autism Rocks, which is an idea that they brought to life after their son, Nikhil was diagnosed with the developmental condition. According to Sanjay, even with the significant support that special needs people get, it is still vital to highlight the challenges individuals with autism face and to reshape how the society perceives them.

Autism Rocks

Autism Rocks was launched in 2014 when Sanjay Shah was inspired by a visit from Snoop Dogg to use his passion for music for some good in the community. Shah has always been a prolific philanthropist but never paid much attention where the money was going until in 2011 when his son needed behavior analysis therapy, and he took him to Dubai Autism Center but was told his son would have to wait 5 years. He could afford the private therapy, but Shah started thinking about all the families that did not have the means, and that is when he decided there was a need to do more. Through Autism Rocks, Shah has put together concerts in London and Dubai with names like Lenny Kravitz, Michael Bublè, Prince, Joss Stone, and Elvis Costello.

Sanjay Shah

Sanjay Shah grew up in London where he attended medical school at King’s College but dropped out to become an accountant. He has worked with various financial outfits including Morgan Stanley, Rabobank, Merrill Lynch, ING, and Credit Suisse. In the financial crisis of 2009, Sanjay found himself looking for a job, and that was when he created Solo Capital, a London-based financial services firm. In addition to Solo Capital, Shah is the owner of about three dozen other entities in the UK.

Presently, Shah considers himself semi-retired because he has taken a step back when it comes to the day-to-day activities of Solo Capital. Sanjay and his family moved to Dubai in 2009 because he loved the place and has now set up offices there as well. When in college, Shah used to DJ various events and that is where his enthusiasm for music started. Shah partnered with event’s organizer, Done Events to come up with a jazz-like festival in Dubai called Blended. All the money Shah raises from these concerts ends up at the Autism Research Trust, which supports the Autism Research Center at Cambridge.