Freedom Checks and MLPs

Freedom Checks are cash payments made to shareholders of publicly traded companies called Master Limited partnerships(MLPs). To be classified as an MLP, a company must be in the energy industry and it has to pass on 90 percent of its profit onto shareholders. Freedom Checks are issued for American companies based on 26 U.S. Code 7704 Subdivision F. This allows them to be a form of payment that is not subject to federal taxes.

Freedom Checks were a way to provide an incentive for people to invest in the oil and gas companies. The laws regarding MPLs were passed in 1981 during Nixon’s presidency as an incentive to produce domestic oil and gas in the United States.

There are approximately 568 companies that are classified as MLPs. Every year they issue over 34 billion dollars to shareholders in the form of Freedom Checks. They work in a way that is similar to dividend payments from investments. Just like market shares, the payout depends on the value of the company and the payments are issued on a quarterly basis. Freedom Checks are received in the same way that dividends from a traditional investment in stocks would be. Like with any other investment, their annual yield varies from company to company but MPLs typically average around five percent. They tend to be a type of slow growth investment that is low risk.

The reason why MPLs can remain stable while oil and gas prices fluctuate is that many of the companies involved are responsible for transporting these commodities and provide services that are not outright dependent on the current value for fossil fuels. Investing in an MLP carries similar benefits and risks as investing in other types of stocks. It can serve as an additional way to build wealth over time by providing an additional source of passive income.

The Contributions of Fortress Investment Group’s Co-founder to its Success

In erecting a firm, there are several things to be considered and the essential one being the presence of willing individuals to become its co-founder and such scenario existed in 1998 when three colleagues who comprised of Randal Nardone, Wes, and Kaufman teamed up. They resolved to work jointly thus establishing the asset control firm which is also known as Fortress Investment Group with its first headquarters placed in New York City. Due to the growth, it was experiencing in 2014, and it set up several additional offices in different geographical areas such as in Asia, Shanghai, San Francisco, and Singapore.

In 2007, Fortress Investment Group became part of the stock market trade of New York thus being the first private capital firm to be operated in public. Under its roof, it has a capacity of over 900 people who are employed as management experts. Also, the firm has proven that it cares a lot for its clients to the extent of being characterized as trendsetter due to its habit of being involved in investment strategies which are risk-adjusted income. It has primary expertise in investment management and providing debt funds, and private equity is the only way out that has been identified. It also has experts who aid in the delivery of services such as managing and pricing of the physical and financial assets.

The issue of the acquisition of Fortress Group by the famous Japanese multinational is one that has brought a lot of controversial debates among the investors and the other competitors who understand very little about the purpose of that transaction. They have criticized the company of making a decision that was seemingly suicidal. However, the management of Fortress Group, led by Randal Nardone has emerged from the silence and shed light on the investors, telling them that the move that they made was client-oriented. They continued to confirm that they were expecting to reap sweet fruits from the transaction shortly.

In conclusion, Fortress Investment Group has succeeded in its operations management via developing robust tools which have helped a lot as well as making it possible to extract the value straight from the complex investment. Also, the assessing of the structural, operational and facets trending became successful due to the appropriate control of the Group’s portfolio. Since the existence of Fortress Investment Group, it has achieved a lot including nurturing managers who are well equipped with skills and knowledge to manage its mergers and Acquisitions.