From 1900s Railways to 2010s Randal Nardone Fortress Investment Group

American industrial production has led the world. In the 1900s, the railways connected the country and led to the rise of towns dotting the landscape. From 1900s railways to 2010s senior living, Fortress Investment Group Co-Founder Randal Nardone finds diamonds in the rough.

American Industrial Assets

“From sea to shining sea …” has been the goal of Manifest Destiny America. Europeans arrived on the Eastern shoreline and gradually spread across the continent. One of the important industrial powerhouses behind America’s growth was the railroad.

Originally, the railroad tycoons were the wealthiest in the world: James Hill, Cornelius Vanderbilt and Edward Harriman. They controlled the transit of merchandise around the country. This power included control over large plots of undeveloped land.

Real estate is one of the primary inputs of production. Originally, only land owners could vote in America. The Fortress Investment Group combined real estate and railways assets to deliver high profits.

In 2007, the Fortress Investment Group acquired RailAmerica and Florida East Coast Railway. In 2014, the Fortress Investment Group also purchased the Montreal, Maine and Atlantic Railway. These railways were then spun off for a nice profit after much-needed repairs were completed.

SoftBank Buys Fortress

Besides being the first ever private hedge fund to go public, the Fortress Investment Group also had a well-rounded portfolio. It held railways, real estate, senior living, travel and gaming companies. This made it a prime target for foreign investment.

Instead of trying to buy quality American companies one-by-one, all that SoftBank had to do was buy Fortress. So it did for $3.3 billion. SoftBank buying Fortress was a great deal for all parties involved.

When capital flows, it benefits all parties. Cash rich companies purchase those that have great assets but are cash poor. SoftBank was full of cash and could help repair some of the companies that were under the Fortress umbrella.

Fortress had made a pretty penny by spinning a couple of the companies to the public. Others, simply were not ready. Co-Founder Randal Nardone hoped that SoftBank had the money to make the other companies profitable for all parties. Randal Nardone is an expert at timing.

From 1900s railways to 2010s real estate, Fortress Investment Group Co-Founder Randal Nardone’s asset portfolio mirrored the development of America. The nation has been at the forefront of productivity and the Fortress is a key depository for the best of American assets.

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