Peter Briger: Debt and Profits

Once Briger, a known billionaire from the Fortress Investment Group IPO, left Goldman Sachs his success never suffered and only flourished. For the first quarter, Briger’s team reeped in $4.7 billion in a new fund titled “Fortress Credit Opportunities Fund IV” The amount of it was nearly 87 percent of new funds acquired and raised by the company. Fortress also handles a liquid market division and private equity. In the last few years, Briger has only found continued wealth in the after days of the tragic financial crises years ago. He names his type of business practice today as a “financial services Garbage collection.” He further told the Institutional Investor magazine that governments also force sell offs on risky ill-liquid assets and those that aren’t performing.

This is due to the demands of shareholders and regulators. Briger and the Fortress Capital team are more than happy to jump on the huge discounts. Evidence that Briger is still profiting is in the rates of return on the credit opportunity funds. Now that the financial crisis is way behind us, Peter Briger continues to see opportunities from distressed assets that can bring in big profits. This is especially true for the financial sectors. He reveals that banks have recovered from the last financial fiasco, but are still stuck with having to change under all of the political and regulatory demands. The Dodd-Frank reform literally forces banks to now hold high-top assets on their books.

They must require large capital reserves against any assets that are considered risky. What this does is put a lot of pressure on banks struggling to sell risky assets to get a return on the equity. This is what Peter Briger has continued to capitalize on for years and years. Peter Briger is a master at his game and knows the markets. He sees an opportunity when other don’t. So if there is ever a dry spell and there are no opportunities to be had, Briger knows one will soon along. When that time comes, Peter Briger will be right there capitalizing as he always has done and will continue to do so.

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