Fortress Investment Group leadership invests in the growing industries that will control the world’s economies in the future. The telecommunication industry is one of those industries. Fortress Group offered $20 million to the world’s leading connectivity provider, iPass where $10 million was immediately available. iPass CEO and president, Gary Griffiths, said that the funding would aid them in closing the profitability gap as it grows the revenue base. It helped to transform iPass into a cloud-based business. iPass promised to use its patent as security for the funding/loan.
iPass is known to be the largest Wi-Fi network in the world. It offers unlimited Wi-Fi connectivity to millions of its customers. They use SaaS technology to provide more than 64 million hotspots to airports, hotels, train stations, restaurants, convention centers, outdoor entertainment venues, and individuals. They hoped to increase the number of hotspots to 340 million years by December 2018. Fortress Investment Group saw potential in the exponential growth of iPass Wi-Fi technology. Therefore, it was a good investment for them. Visit bizjournals.com to learn more about Fortress Investment Group.
The philosophy of the Fortress Investment Group has been to invest where its investors enjoy strong risk-adjusted returns: This converts to long-term profitability and stability. Allowing customers to enjoy unlimited connectivity boosts business transactions. Therefore, the popularity of the Wi-Fi service provision is on the rise; hence, Fortress Investment Group made a smart move to invest in the iPad. The $20 million funding was meant to bring the profits earlier than it was planned, hence, placing iPass ahead of its competition.
Fortress has a great interest in rail services. Through its Brightline group, it runs All Aboard Florida, a rail service that was awarded a bond by Florida Development Finance Corp. These funds were to expand its services in Florida. Brightline intends to expand the rail services from Orlando through Miami to West Palm Beach. The expansion of the rail industry will reduce traffic congestion on the roads and will consequently lead to the growth of the tourism industry. Rail industry brings relief to the transport industry; speed trains enable quick transport of good and people, thus consequently leads to economic growth. Therefore, investing in rail services guarantees long-term returns.