Fortress Investment Group has widened its base with the recent purchase of a distribution center owned by SuperValu. They sourced funds from the Canadian Royal Bank to procure the deal. The distribution facility located in Pompano Beach cost them a total of $66.4 million. The group made the purchase through one of their affiliate groups involved in the distribution of grocery. The facility that was constructed back in 1973 at a cost of $51 million when it was last traded. This transaction took place 12 years ago. The Florida Associated Grocers, the owners of the facility, had been planning to sell seven other facilities along with the Florida based distribution center. They made an announcement to that effect in April. Facilities in Pennsylvania, Green Bay, California, and Illinois were among those up for sale.
Softbank purchases FIG
This has come a few months after the Fortress Investment Group got new owners. Softbank paid $3.3billion in cash to acquire the leading alternative asset manager late last year. As Masayoshi Son, Softbank’s owner, had promised at the time of the purchase the executive team of FIG was not tampered with. Pete Briger, Wes Edens amd Randal Nardone did not relinquish their positions at the top of the group’s leadership.When Softbank made the purchase many analysts and critics felt that they were venturing into unknown territory. They were not entirely wrong in their opinions as the firm had been known for investing in technology based start ups. Son felt that the acquisition would give them an opportunity to expand their operations.Randal Nardone of Fortress Investment Group felt that the transaction was timely. True to his word the fortunes of FIG took a positive turn and their share value has since increased much to the delight of their clients.
FIG Services and Core Competences
Even under new owners Fortress Investment Group that was launched towards the close of the 20th century (1998) has kept its desire for excellence in service delivery. The company offers asset management services ranging from private equities, credit funds, hedge funds along with other alternative asset management services.The core competences that they pride themselves in guide all their operations. They are first asset based. This emphasizes that their operations are run around the client’s assets. They also have good command of corporate mergers as well as acquisitions. They boast in a great knowledge and understanding of the market. Their top leadership organ clearly demonstrates this as they bring on board years of experience and expertise in asset management. The other two competences are operations management and capital markets.