Fortress’s Private Equity Funds focus primarily on control-oriented investments in cash flow generating, asset-based businesses in North America and Western Europe. The Funds seek to invest in companies and portfolios with valuable, often unique assets that in our view can benefit over time from high barriers to entry, strong, stable cash flows and attractive fundamentals. The Funds take an active approach to private equity investing, seeking situations where significant value can be unlocked and created through balance sheet restructuring, operational improvements, and strategic management. We also partner with management to grow our businesses organically and through acquisitions, particularly in consolidating industries.
We are value-oriented investors, and will invest in situations that may be overlooked by others, including in companies suffering from capital markets dislocation, financial distress, complexity or negative market sentiment. To secure the best investments, we take a flexible approach to sourcing and structuring investments, and will be involved in multifaceted transactions (including investments through the bankruptcy process).
Underlying Fortress’s approach to private equity investing is our focus on capital preservation and downside protection. Even in highly volatile valuation environments, we believe that tangible collateral and diversified cash flows provide a foundation of long term investment value, as well as a platform from which meaningful growth can be achieved.
While we are open to investments across a range of industries, our investments have focused recently on capital intensive sectors in which we have specialized expertise: transportation and infrastructure, financial services (particularly loan servicing and consumer finance) and senior living. We believe that this focused, repeatable process gives us an advantage in pricing, owning, financing, optimizing cash flows and overseeing the management of our investments.