Fortress investment group is a leading global firm that deals with managing investment. It mainly specializes in credit, liquid markets, private equity and traditional ways of managing assets. The firm has over 1,500 clients and institutional investors worldwide.
On December 27th 2017, what was thought to be a rumor came to many by surprise when a deal of Fortress investment group acquiring $3.3 billion from soft bank was officially made. This move by Softbank was so that it can benefit from the group’s financial management skills and also help it become a big investment firm which has been one of their goals for long. The deal is however unlikely to change how Fortress investment runs because part of it is that Softbank is to keep off in managing most of Fortress investment group’s assets.
How the two companies came to this decision remains a wonder considering their history. When Masayoshi Son founded Softbank in 1981 it was a PC software wholesale company. In the 90s the company started dealing with publishing computer magazines and computer trade shows. The company started growing very fast after getting control over Yahoo’s interest. It currently is a stake holder of over 400 Internet Companies. Fortress on the other hand was started by CEO Randy Nardone and co-chair Wes Edens in the year 1998. This investment management company, which has its headquarters in New York city, has over 20 years of experience has an approximate of 1,750 clients and private investors.
The $3.3 billion may seem like a lot to invest in but it actually is a worthy venture for soft bank. This is because Fortress has a number of assets in several companies and it also makes good profit with a reported $215 million in 2018. To many, it may seem like Softbank has the upper hand in this deal but it is not the case. This deal will allow Fortress Investment group to once again become private which has been their plan for long. This move will also allow fortress acquire partners around Asia enabling them to grow even more. At the end, the deal is a win win for both companies.
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