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Investment Strategy

Fortress Transportation and Infrastructure Investors LLC invests across a number of major sectors within the transportation industry, including aviation, energy, intermodal transport and rail, and may pursue acquisitions in other areas as and when they arise in the future. In general, FTAI seeks to own a diverse mix of high quality infrastructure and equipment within its target sectors that generate predictable cash flows, in markets that we believe provide the potential for strong long-term growth and attractive returns on deployed capital. We believe that by investing in a diverse mix of assets across sectors, we can select from among the best risk-adjusted investment opportunities, while avoiding overconcentration in any one segment, further adding to the stability of its business. FTAI targets total returns, or IRRs, of 15% to 25% with the use of what we believe to be reasonable leverage.

Our broad investment mandate allows us to invest across the entire transportation and transportation-related infrastructure market while our permanent capital base allows us to be a buy-and-hold investor with very long term investment time horizons.

Our portfolio currently consists of assets in the aviation, energy, intermodal transport and rail market sectors.

Jefferson Terminal

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As of September 30, 2016, FTAI owns approximately 60% of a multi-modal crude oil and refined products terminal in Beaumont, Texas called Jefferson Energy Company (“Jefferson Terminal”) which includes rail, truck, ship, storage and pipeline infrastructure. The Company’s Jefferson Terminal is currently capable of handling approximately 230,000 barrels per day of free-flowing crude oil and heavy bitumen. In connection with the Company’s acquisition of Jefferson Terminal in 2014, it also acquired 300 tank railcars.

Aviation

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To date, FTAI’s activity in the aviation sector has been focused on the commercial jet engine leasing market. FTAI has acquired engines either directly or in connection with the acquisition of commercial aircraft.

As of June 30, 2016, FTAI’s aviation portfolio includes 24 commercial passenger aircraft and 47 commercial jet engines.

Offshore Energy

offshore-energy

Within the energy infrastructure and transportation equipment market, FTAI is focused on two sub-sectors: land-based infrastructure and offshore energy service equipment. Land-based infrastructure refers to facilities that enable the storage, unloading, loading and movement of crude oil and refined products or gas from producers to end users, such as refineries.

Offshore energy equipment refers to the assets used to support the production, processing and transportation of oil and natural gas from offshore (subsea) reserves. FTAI is currently targeting energy service equipment investments within this market, including inspection, maintenance and repair-related opportunities in countries that have a strong national oil company presence.

FTAI has three offshore energy investments, including one remote operated vehicle (“ROV”) support vessel, one Anchor Handling Tug Supply (“AHTS”) vessel, and one construction support vessel ("CSV").

Shipping Containers

shipping-containers

The Intermodal Transport, or containerized, market includes the infrastructure and equipment that enables the efficient movement of goods via shipping containers throughout multiple modes of transportation, including trucking, shipping and rail. The Intermodal market includes infrastructure such as container seaports and inland terminals as well as equipment such as containers, chassis or trailers, generators sets, containerships, cranes and other loading equipment. To date, the Company has focused its investment activity on acquiring container boxes but it also considers other related opportunities across the sector, including in container seaports and terminals. As of September 30, 2016, FTAI’s intermodal portfolio includes ~83,000 shipping containers and related intermodal equipment.

Central Maine & Quebec Railway

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As of September 30, 2016, FTAI owns transportation infrastructure in the rail and energy sectors, including a multi-modal crude oil and refined products terminal in Beaumont, Texas with 300 tank railcars and a short line railroad that operates from Maine to Montreal.