Tag Archives: Investment

The making of Peter Briger.

When he first walked into Princeton, he may not have realized what a defining moment that was, this however would change when Peter Briger graduated with his B.A in 1986. Princeton to this day is one of the most important places to him and this has been shown in his continuous and generous contributions that he continues to give. When the Princeton Entrepreneurship Advisory Committee came calling he was ready and would help establish the Alumni Entrepreneurship fund which helps others to finance their startups. Peter Briger understands the need to have a very strong entrepreneurial spirit in the school and driving it towards the Princeton entrepreneurial way. This will ensure that in years to come Alumni from the school will be captains of industry, investors and potential employers.

This understanding is what has made Peter Briger on of the most influential business minds in America. He began his career at Goldman Sachs, where he nurtured his love for business and deal-making to new levels. He would then hone these skills by attending the prestigious Wharton School of Business where he learnt much more. His 15 years stay with Goldman would prove to be very instrumental to both the bank and his own career.Those he worked with recognized his leadership abilities and by 96 he had made partner. It did not take long for Fortress investment group to notice this potential and he joined the team. This happened in 2002 at a time when Fortress investment group was growing rapidly. Having started with 400 million they were at the thirty billion mark and growing.

Peter Briger realized this was the kind of growth and ambition, he craved and as such rose through the ranks quite fast. By 2006 he had joined the board of directors and would help Fortress go public in 2007. This was no mean task as the group was already managing assets worth about 70 billion dollars. Lehman Brothers and Goldman Sachs were underwriting the IPO at the time. This was an area he was already familiar with and everything went on quite smoothly. The IPO would create the first billionaires for Fortress including the co-founders. The leadership skills of Peter Briger have been not only useful at the Fortress Investment Group but also applicable in other boards where he is a member. He hopes to continue mentoring younger entrepreneurs while at the same time growing Fortress.

Unprecedented Growth of Fortress Investment Group

In 1998, three gentlemen contemplated creating a unique type of investment management firm that would raise equity fund and invest it in cutting-edge vehicles. The three gentlemen; Wesley R. Edens, Rob Kauffman, and Randal Nardone, founded Fortress Investment Group which was only a private equity firm. Later, the form grew into a large alternative asset business that manages alternative investment strategies for its clients. Currently, Fortress manages private equity, hedge find, credit fund, permanent capital vehicles and other traditional asset strategies.The operations of Fortress Investment Group has been divided into three segments; credit, permanent capital vehicles, and private equity divisions. The section constitutes of Fortress Credit Opportunities Funds, Fortress Real Estate Opportunities Funds, Drawbridge Special Opportunities Funds, Drawbridge Real Assets Funds, Fortress Japan Opportunity Funds, Fortress Secured Lending Fund, Fortress Japan Income Fund, and the Drawbridge Long Dated Value Funds. The division was launched in 2002 after the arrival of Peter Briger, who is currently the chief of the segment; alongside Dean Dakolias, who joined Fortress in 2001.

The investments in this class are global and concentrate more on illiquid and distressed credit investments and also on the undervalued assets.The private equity section mainly focuses on the generation of cash flow. The division is led by Wes Edens and Randal Nardone. The operations of this section catapult by the extensive expertise of Fortress Investment Group in the management of assets from all economic sectors; be it healthcare, transport, energy and infrastructure, and the financial services industry.The other division is the permanent capital vehicles segment. What dominates this section is the management of the permanent capital vehicles that are traded publicly. These are the Fortress Transportation and Infrastructure Investors LLC, New Residential Investment Corp., Eurocastle Investment Limited, New Media Investment Group, and the New Senior Investment Group. All these entities concentrate their investments on senior housing in the United States, real estate related assets in Italy, local media assets, transportation infrastructure, and residential real estate.

About Fortress Group

Fortress Investment Group is an alternative asset investment manager headquartered in New York. It’s currently the leader of the investment management globally. The firm manages a total of over $60 billion in assets for its international clients who are both private and institutional investors. The company has immensely grown over the years, leading to the opening of new headquarters in San Francisco, Shanghai, and Singapore. Fortress has also increased the number of its employees and professionals to over 900; to enable the firm smoothly run its operations globally.

Shervin Pishevar’s prediction of the future

Shervin Pishevar is a peculiar investor. He does not just sit around watching numbers all day. He is interested in matters affecting the country’s economy and the world’s at large. In general, he is a chatty investor. In 2008 for instance, he realized that Facebook would soon have an identity crisis. Instead of quietly watching as the situation unfolded. He published an article. True to his word, Facebook did face an identity crisis.

This year, Shervin Pishevar foresees a grim future for the US economy. The investor who had kept a low profile since December posted 50 messages on twitter explaining why he thought the US economy will experience a 6000 point decline. Here are some of the predictions he made:

Bonds are volatile

The government has always used bonds to correct the market. Though useful in easing market strains, it will not be useful anymore because the government has used it too often and every tool has its limits.

Silicon Valley has gone global

Silicon Valley was once the hub of tech inventions. Today, Silicon Valley is not a place, it is an idea gone global. Everyone across the globe is great ideas and inventions. While this is not a bad thing for the global economy, Shervin Pishevar argues that it is not good for the country’s economy. Since the US has lost exclusivity on ideas and talent, the economy can no longer bank on these as a stronghold.

US will lose to countries that capitalize on speed in execution

Recently, as a demonstration that they have speed of execution, China built a railway station in 9 hours. On the other hand, The US government and companies are stuck in short term thinking. This has resulted in the decay of infrastructure.

Big companies will continue to hold on to too much power

Silicon valley’s big five: Alphabet, Amazon, Apple, Facebook, Microsoft hold on to too much power. As a result, they are stifling start-ups. For years, the trend has been acquisition. Big companies simply buy out their competitions.

Other than the grim forecasts, Shervin Pishevar also foresees the birth of a new type of economy. His tweets seem to suggest that impending economic disaster will make was for a new borderless and classless economy.

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