Recently, the investment firm Fortress Investment Group has looked to use a direct lending fund to help provide capital to a number of investors. The firm will also look to expand by using another source of funding. This additional source of funding will include an investment in intellectual property along with aircraft leases, real estate debts and a number of other valuable assets. Within a couple of months, the entity known as SoftBank Group will close the direct lending fund. The total amount of this transaction will be $2 billion. By October of 2018, this major funding deal will be completed as a result.
In order to complete the asset fund, Fortress Investment Group needs to accumulate an amount of $500 million. So far, the firm has amassed $400 million. Due to a healthy credit market, Fortress will likely raise the remaining $100 million in capital very soon. One of the things that will help Fortress reach their goal is the advantage of private credit markets. In these types of markets, the yields are very favorable for small and medium sized companies. Another advantage for Fortress is that many companies are often reluctant to invest in open end asset funds in things such as insurance, pension plans and sovereign wealth funds.
During the last few months, Fortress Investment Group has been looking to invest in an open end asset fund in an effort to raise a certain amount of capital. The firm is looking to invest in an open asset fund which allows it to avoid restrictions on the number of shares that issues for financial securities. Investing in the open end asset fund provides the firm with an opportunity to take advantage of the benefits of an unregulated debt market. While interest rates are likely to go up within the next couple of months, the firm is prepared to manage the potential risks. Fortress will extend credit to new purchasers in order to best cope with the rising interest rates. By taking this action, Fortress Investment Group will be in position to improve its financial situation and reach its current financial goals.