Discover Fortress’ disciplined credit-first investment approach for RIAs and financial advisors seeking risk-adjusted returns through private and real estate credit.
Fortress’ credit-first approach emphasizes disciplined underwriting, protective structuring, and active asset management. In this video, Fortress professionals explain how this strategy can help advisors deliver consistent, risk-adjusted returns through private credit and real estate-credit opportunities.
A foundation in credit:
- Fortress’ credit-first philosophy is built on capital preservation and disciplined risk management.
- The firm’s direct-sourcing model can offer differentiated access to private credit opportunities.
- Each investment undergoes rigorous underwriting, emphasizing downside protection and consistent yield generation.
Three core pillars of Fortress’ approach:
- Direct Sourcing: Fortress originates opportunities through established relationships, reducing reliance on intermediaries.
- Disciplined Structuring: Bilateral agreements with protective covenants can help safeguard investor capital.
- Active Asset Management: Over 160 professionals manage assets throughout the lifecycle, supported by advanced data tools.
Why it matters for advisors:
- Provides potential diversification benefits through low-correlation, income-generating assets.
- Helps to potentially reduce volatility in client portfolios while maintaining transparency and control.
- Allows advisors to introduce institutional quality private credit with confidence.
Q&A: What does a credit-first approach mean for advisors?
A: Fortress prioritizes preserving investor capital by structuring private credit deals with strong covenants, disciplined underwriting, and active asset management.
Jack Neumark: One thing that distinguishes Fortress from our peers is that we really take a credit-first approach to investing.
Adam Bobker: Throughout our history at Fortress, we've managed money through various market cycles, through the global financial crisis, through COVID, and we have provided our clients with consistent risk-adjusted returns over these time periods.
Jack Neumark: Our credit-first mindset pervades our entire approach to investing. Some of the ways that mindset shows up is in how we source investments, how we negotiate with borrowers, and in how we asset manage our investments. For example, at Fortress, the majority of our investments are directly sourced by us. By sourcing our own opportunities directly, we ensure that we're able to maintain our strict underwriting guidelines. We also negotiate our own bilateral agreements, which is an important result of placing a significant focus on our direct sourcing capabilities.
Adam Bobker: When times get tough, we want to protect your investment. And one way that we do that is through the structure of the deals that we make to ensure that we have the appropriate covenants in place.
Jack Neumark: Finally, we've invested a tremendous amount in technology and personnel for our asset management group.
Adam Bobker: We have an asset management team of over 160 professionals that have the experience to be ahead of any potential risks in the deals that we make.
Jack Neumark: Our credit-first approach to investing has been honed through our more than two decades of experience. If you'd like to learn more about Fortress, our approach to investing, and how our approach benefits investors, we encourage you to reach out. We'd appreciate the opportunity to discuss in further detail.
