The Force Behind Fortress Investment Group – Randal Nardone
Most of the top business executives and administrators have something in common. They come from a rich educational background in finance, marketing, sales, business administration, etc. But this is not the case for Randal Nardone. The revered business executive has legal roots from his law studies at Boston University. Besides, he never studied any business related course at the University of Connecticut, where he underwent undergraduate studies. Nevertheless, Nardone is a name to reckon in the financial industry, mainly because of his roles at the leading alternative asset manager Fortress Investment Group.
After practicing in the legal industry for a short while, Randal Nardone decided to poke his nose in the financial sector. He worked in companies such as USB before co-founding Fortress in 1997. During this foundation, Nardone alongside his co-founders (Wes Edens and Rob Kauffman) had $400 million, which became their initial investment in the asset management sector.
With the dynamic leadership skills from the Fortress principals, the company realized close to $4 billion of asset value in 2007. The reason behind this massive profit was, perhaps, the expansion of the firm through strategic acquisition during the 2006/2007 period. During this period, Randal Nardone made his way into the Forbes billionaire list, becoming position 557 with a net worth of 1.8 billion US dollars. The money was majorly from the 53 million Fortress shares he owned, valued at 1.6 billion US dollars.
In 2017, Tokyo-based Softbank Group Corporation and Fortress reached a deal where the latter would buy Fortress for $3.3 billion. Though not much details were given concerning the acquisition, the principals remained at their positions for a deal that would last five years. Thus, Nardone continues to serve as CEO and Co-chair of Fortress Board alongside Wes Edens.
During the acquisition by Softbank, Randal Nardone and other top executives communicated to their employee through a letter. They acknowledged that the asset management company had been the first company of its kind to trade public in 2007. Further, the deal with Softbank would open a broader market and new challenges for the regular name on the New York Stock Exchange. Fortress Three Top Executives Split $44 Million Bonuses In 2015