In the last two decades, Wes Edens and his Fortress Investment Group founding partners have seen the company evolve from an idea to an industry trendsetter. They have also steered it into a world of many firsts such as being the first private equity firm to list in 2007 and the first to delist in 2017. Most importantly, Wes and his partners have steered the alternative investment firm into attracting the large investments in the name of assets under management. You should, however, note that in making the Fortress Investment dream possible, each of the partners is charged with the responsibility of running one of the company’s key departments with Edens taking charge of the distressed equity section.
Identifying Instruments Under Distress
Wes Edens takes on an interesting approach to investment by specializing in dealing with instruments under distress. His educational background in finance and prior experience with the Lehman Brothers and Black Rock gives him an edge in the identification of highly rewarding but distressed investment opportunities. These include businesses operating in difficult or highly fluctuating environments and other complicated investment scenarios where banks would rather not invest. Given that he is in charge of the Fortress group’s private equity division, Wes Edens sources for funds for these capital-intensive projects and leverages it for substantial returns upon recovery. The technique has not only made him one of the most sought-after hedge fund managers but also earned him respect in the alternative investment circles.
Exploring New Opportunities
The success achieved by Wes Edens in the distressed equity financing saw numerous hedge funds flock to the sector and in effect made it unrewarding. This saw the fortress founder embark on a search for equally neglected and highly profitable investment opportunities. He started off by establishing a video gaming wing of Fortress with the launch of Fly Quest. The team has gradually progressed and currently has a team that participates in the North American League of Legends Championship series. Most recently, Wes Edens led the company to the launch or the first privately-held passenger rail system, known as Brightline, which connects Miami and Fort Lauderdale. By establishing the line, Wes hopes to help ease the regular traffic gridlock experienced on the busy south Florida transport corridor. In effect, this rail line has helped cut down on the time most people spend on the road by over one hour. With success achieved with this unconventional investment, the current Fortress investment chairman is now lobbying for the extension of the rail system well beyond Florida and into neighboring states.