What are the odds that some of the top principals of the Fortress Investment Group would have also worked at Black Rock Financial? They must have created Fortress as a spin-off, right? Which of the Fortress Investment Group principals learned their trade at BlackRock?
The Sleeping Giant Named BlackRock
It takes time to build up a financial powerhouse. Wall Street can make it very difficult on the “new kid on the block.” By the time people hear of a famous financial company, it already has had a long history behind it. That is true for Black Rock. BlackRock was established in 1988 by Larry Fink. It started by offering conservative passive investment funds, such as exchange traded funds (ETFs). It had very tight risk management. BlackRock is primarily a wealth manager. It helps its clients get the best return on their investments (ROI). Unlike other financial institutions, it does not own a large number of assets, but simply manages them on behalf of its clients.Gradually, this strategy has allowed it to carve out its own low-key niche. It acts more like the Rothschilds, who are the power behind the throne. You might be surprised by the value of assets managed by BlackRock – some think it is #1 in the world for this category. It also manages the media company assets that own “The Economist.”The Economist claims that Black Rock Financial manages $4.1 trillion of directly controlled assets – stocks, bonds, commodities and sovereign debt. That is more than 2 full months of American productivity.
Survive & Advance
For March Madness, the theme was “Survive & Advance.” Surviving was also the focus during the 2008 Sub-Prime Mortgage Crisis. But, Lehman Brothers did not follow that advice. BlackRock did. BlackRock had a solid risk management strategy to handle the toxic debt based on each debtor’s zip code. As liberal banks collapsed, the conservative Black Rock “survived and advanced.”
Fortress & BlackRock
This conservative risk management model might have been very influential in the growth of two Fortress Investment Group principals: Wes Edens and Randal Nardone, who both worked at BlackRock. They learned how to properly conduct risk management. Also, Wes Edens and Randal Nardone can figure that Fortress might purchase a certain number of its IPO shares. BlackRock is good for the Fortress Investment Group and the Fortress Investment Group is good for BlackRock Financial.
Source of the article : https://www.fortress.com/about