Fortress Investment Group Gained Much of its Wealth by Investing in Alternative Assets
Investing in alternative assets has always been a problem for a significant number of investment companies operating in the United States and other parts of the world. Some companies believe that investing in such assets would lead to devastating financial challenges because they do not guarantee income both in short and long term. However, Fortress Investment Group has created its significant wealth by investing in some alternative assets that some organizations would never have considered.
During the 2008 financial crisis that hit the financial market in the United States and other parts of the world, Fortress Investment Group was still operational and had reserved enough cash that would enable it to take advantage of the market and buy some assets. Some companies were experiencing extreme financial difficulties as they had lost their cash while their stocks in the money market had lost value.
The struggling companies did not have any other option rather than to sell some of their most valuable assets such as land and buildings located in prime areas, furniture, machines, tools, and equipment among other valuable properties. The entities were not generating any cash and as such, they needed to remain operational with the hope that the market turbulence would subsidize and enable the entities to recover their investments. Fortress Investment Group took this advantage and used the cash that it had stored in its reserves to acquire some of these assets. To know more about the company click here.
The benefit was that Fortress Investment Group was acquiring these assets at reduced prices because there were no other companies that were willing to purchase the same assets as they were fearing that the financial problems would remain for some few years. The company acquired so much assets at reduced prices with the hope that the market would change and give an opportunity to sell these assets.
It only took one year for the financial market to drastically change and all the assets that were trading at discounted prices changed and their value skyrocketed. This gave an opportunity to Fortress Group to dispose its assets some of which were at a higher demand than what the market had witnessed prior to the market challenges. The entity acquired much wealth by selling these assets to other financial entities.
Tags: alternative assets