September 8, 2018

Fortress Investment Group Acquisition

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Fortress Investment Group was the first privately held organization to be traded publicly on the New York Stock Markets. The company has also been the first privately owned company to be delisted from the NYSE. Japanese multinational holding conglomerate, SoftBank has acquired fortress Investment Group. SoftBank comes in number 38 in the largest publicly traded organizations in the world. With the acquisition, the Fortress Investment will be able to run its operations on its own. In addition to this, Fortress will be able to maintain its leadership whereby Wes Edens and Randal Nardone will be managing the company. According to many, it looks like that acquisition is just but a name although there is a lot to be achieved in terms of benefits to both companies.

SoftBank did not have it smooth when it came to acquiring Fortress Investment Group. But the deal is done, and it was finalized in December 2017. The announcement came as a surprise to many as people were wondering what will bring these two companies to be one. Fortress Investment Company is primarily involved in alternative assets management while SoftBank is engaged in funding technology-based organizations. This announcement displays that Softbank is looking forward to becoming the leader in the world when it comes to alternative asset management. The Fortress Investment Group has been in the market for the last two decades and manages over $40 million in assets something that made it look more appealing to SoftBank.

This acquisition saw SoftBank part with $3.3 billion and currently own all the outstanding shares of Fortress Company. Fortress Group has been operating for the last 20 years before being acquired. The company came into being in 1998 by its CEO and co-chairman Wes Edens. Over the years the company has achieved a lot including being named as the 2014 Hedge fund manager of the years an event that is organized by Institutional Investor. The Fortress Group has a track record in Japan as well. When in 2008 economic downturn took place, the company purchased hotels that were formerly owned by Lehman Brothers.

SoftBank, on the other hand, has it interesting story since the company was established back in 1981. The organization has its main offices in Tokyo. It was just a few years ago when it started developing an arm targeting alternative asset investment. The company then sent officials from its London as well as Tokyo office in search of potential deals and landed one when they came across Fortress Investment Group.

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