Wes Edens is widely known for his ownership of the Bucks basketball team. He is also an accomplished businessman and a private investor. In the year 2014, he partnered with Lasry to purchase the Bucks from Herb Kohl at $550 million. Today, the team has appreciated to $1 billion. In 1984, he attained his Bachelors in Finance and Business Administration from Oregon State University. After graduation, he kicked off his career at a California bank before moving to Lehman Brothers as a partner and a managing director.In the year 1993, he joined BlackRock’s private equity division and served as an associate and an MD till 1997. In 1998, he realized his major breakthrough when he partnered with Michael Edward, Randal Nardone, Peter Briger and Robert Kauffman to launch Fortress Investment Group.
In 2009, he became the Co-Chairman of the Board of Directors of the firm.He was also tasked to run Fortress’s private equity business by virtue of his extensive knowledge and expertise. Wes Edens was the reason behind Fortress’s purchase of subprime lender Springleaf Financial Services.This made Fortress the Springleaf’s majority stakeholder and by 2015, the value of Springleaf had exponentially risen to over $3.5 billion. In the year 2006, Fortress Investment Group purchased Nationstar Mortgage formerly called Centex Home Equity Company at $575 million.It is a subprime home equity mortgage lender. Wes Edens was appointed the chairman of the group to oversee its operations. His annual earnings according to Bizjournals stands at a skyrocketing $54.4 million.
This includes his annual compensation from Fortress Investment group of about $13.4 million and $41 million in dividends he receives as a shareholder.He earns almost $1.1 million in stock awards, an $11.6 million in bonuses, $478400 in other compensations and a salary of $200,000. In January 2018, he confirmed that he would sell his main business Fortress Investment Group to the Japanese side Softbank Group Corporation at a cost of $3.3 billion in cash.The company would, however, retain its headquarters in New York. Wes Edens would also secure his position together with Randal Nardone in a five-year contract. He is married to Lynn Edens and together they have 4 children. He is also renowned for his philanthropic work, he majorly donates to education, health, and art organizations. Apart from business, he is also interested in horse riding and mountain climbing. He has climbed Mt. Kilimanjaro in Tanzania.
The Fortress Investment Group was on the cutting edge of hedge funds becoming the first to go public in 2007. This allowed it to lead the financial industry. What does the Fortress Investment Group provide to SoftBank Vision 2.0?
What financial function does the Fortress Investment Group perform? The Fortress Investment Group is an intermediary. It has used its strong group of talented financial experts to remake companies.This human capital can peruse the landscape for good assets to buy. Which companies had fixable problems? These financial experts would determine which mergers, acquisitions and IPOs were best for their bottom line.The Fortress purchased railways, resorts, casinos, racetracks and senior living homes primarily. The Fortress strength seemed to focus on physical, brick-and-mortar businesses with land.Some might refer to the Fortress strategy as “Old Economy.” They did not have a lot of Internet, Dot.com or Web-based brands under their umbrella. Some wonder if this Old Economy Strategy was in tune with the cutting-edge SoftBank Vision 2.0 Strategy.
2000s Smart Phone
All that you have to do is look at the names of Fortress and SoftBank. The Fortress hearkens back to the days of knights in shining armor. It evokes an image of a strong, concrete fortress of stone. It focused more on companies with property, not just websites.The SoftBank refers to the Internet, Web and software that use computer languages to make things work. Many of the SoftBank purchases have been for cutting-edge technologies, like Nvidia and Uber.As the world has added smart phone technology, traditional brick-and-mortar assets have taken a backseat. These are not seen as being as glitzy. They still might offer a solid return on investment (ROI), but they seem to be technologically-challenged.
Next Generation Technology
The 2008 Sub-Prime Mortgage Crisis might have also hit the Fortress Investment Group asset portfolio particularly hard. Because its assets had significant amounts of land, their real estate assets might have lost some value. The United States has also been de-industrialized.Some might have been surprised by the SoftBank purchase of Fortress in 2017. Yet, Fortress offered at least three strengths: 1. Land, 2. Human Capital and 3. American Access. SoftBank might be trying to upgrade brick-and-mortar assets to a more futuristic functionality.The SoftBank Vision 2.0 Strategy is to buy assets that will add to the future infrastructure of the world. These brands will become household names. How do the Fortress Investment Group assets fit in?When SoftBank purchased the Fortress Investment Group, it did not replace the principals. The Fortress Investment Group principals had valuable connections and expertise that could not be replicated. This human capital could provide SoftBank with the expertise to purchase more assets for its Vision 2.0 Strategy. Finding valuable assets might be the easy part. Finding valuable assets that are undervalued is very challenging. Perhaps, the Fortress Investment Group principals will be key factors in purchasing the next group of global assets for the SoftBank Vision 2.0 Strategy.
Technology is always advancing, especially in the field of medicine as new cures and treatments are always in the works. Unfortunately, like any other business out there, things are not always what they seem. This looks like the case for a Biotech company that has introduced a new medical treatment for patients to fight cystic fibrosis. Kerrisdale Capital has issued a negative report on said Biotech company with the backing of Sahm Adrangi, Kerrisdale Founder, and CEO. As a leading investment company and one of the most reputable investors in the country, Sahm Adrangi is often heard about and listen to for his insight.
Proteostasis is the Biotech company that Sahm Adrangi iscurrently calling into question, as he doesn’t believe their medical research was thorough and even reviewed to the maximum extent. Kerrisdale managed to get a closer look into the biotech company and has determined that their research and claims have not be done on an adequate sample sizing since they only had four patients for testing. What Sahm found was that during the trial period for their testing, these four patients experience severe drops in their overall lung performance. With such a small sample size and data that looks sloppy and certainly not finished, Kerrisdale is calling Proteostasis claims into question.
Sahm Adrangi has invested in many companies over the course of his career and to tremendous success because of his insight and deep research protocols. Before investing in a company or letting others know a company is safe, Sahm takes the time to truly dig into a company. This is how he found Proteostasis’s supposed breakthrough was actually much less than what it seemed at the surface. According to the report from Kerrisdale, there are no results to be found through the biotech company’s data. Also, should the biotech company’s drug fail to work, they stand to lose virtually all of their assets, so the desire to produce profits is extremely high. After the initial Kerrisdale report on Proteostasis, the biotech company’s share value fell more than 15 percent.
Mr. Ted Bauman is the Editorial Director at the esteemed Banyan Hill Publishing as well as an author. Mr. Ted Bauman has written a vast number of original articles encompassing a variety of topics such as finance, media, business, travel, and many other topics.
One of his latest works has been dedicated to financing and, to be more precise, to retirement. In his article, Mr. Ted Bauman talks about a mistake he made in terms of his retirement plan which he explains and advises against. Mr. Ted Bauman has a quirky writing style he has been polishing over the years. His articles flow easy and intriguing.
In terms of his retirement mistake, Mr. Ted Bauman mentions three numbers that some financial experts would say are some of the most important ones. They are located on a person’s dashboard on their financial software. One of the numbers is the person’s credit score which according to many people is one of the ways to assess a person.
Many people fail to recognize the true significance of that number, however, which is personal financial stability during retirement on tedbaumanguru.com. Net worth is one of those figures that people often forget to remember about themselves. Having a wrong number for one’s net worth before retirement can prove problematic, especially since the net worth is the foundation of many people’s retirement plan.
One of the counterparts of a person’s net worth is their house. After retirement, most people sell off their house yo a younger family and move into a smaller dwelling that does not need as much maintenance. Some use the money to move into an assisted living apartment where they can be taken care of from then on.
This is where the next generation comes into play. The amount of money that one’s house would sell for today is vastly different than what it will be worth in the future, say ten years ahead. The next generation might not be able to afford the price of the said house, even.
Mr. Ted Bauman has come to the realization that when it comes to one’s retirement, including his own, it is better to look for value instead of price as monetary amounts vary but what is valuable to you will remain more or less constant, especially when it comes to your home.
Ted is active on both Twitter and Facebook where he shares his knowledge on investment matters.
Net worth will change because currencies change but if you plan your retirement more based on the value you should have an easier time.