Fortress Investment Group Uses Open-Ended Funds to Raise Capital

Fortress Investment Group, which is owned by the Japanese telecommunications conglomerate SoftBank, has two open-ended funds that it offers to its investors. One of the funds is a direct-lending private credit fund that the firm is looking to close once it reaches the $2 billion mark. The other fund invests in asset debts, intellectual property, and aircraft leases. This second fund has already raised $400 million, and there is enough demand for this fund to where another $100 million can be raised. The success of these Fortress Investment Group funds demonstrates the health of the private credit market. Visit niemanlab.org

Open-ended funds are the most common type of funds because they offer investors and fund managers a flexible way to invest. Open-ended funds allow investors to pool their money together to have access to a diverse portfolio of securities. These funds also allow investors to invest with little money up-front. One drawback to investing in open-ended funds is that they are not listed on any of the exchanges like the NASDAQ. Another drawback is that investors cannot track the price of these funds on a minute-by-minute basis. The price per share of these funds, known as the Net Asset Value, is calculated at the end of the day. This means investors will not know how well the funds have performed until after the markets close.

Fortress Investment Group has a solid reputation that has developed over the past two decades. Experts showed some concern about Fortress Investment Group expanding its fund offerings, but the firm reduced its risk by opening opportunities for new investors. This will help Fortress Investment Group reach its goal of raising $5.5 billion by the end of 2018. The firm is expected to have continued success in 2019 with its diversified business model, high-tech platform, and its willingness to help other businesses reach their growth goals and move into new markets.
Read more on https://www.wsj.com/articles/wesley-edens-is-an-investor-with-an-affinity-for-the-underdog-1532111122

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