The Acquisition Deal between Fortress Investment Group and SoftBank

Fortress Investment Group was formed in 1998 as a private equity firm. Its founders are Randal Nardone, Wes Edens, and Rob Kauffman. It was established with an aim of offering new investment solutions as an alternative asset firm. The three principals brought in vast experience and expertise from the various previous positions in the financial sector to the management of the company.

Currently, Fortress operates as a diversified asset management firm globally. It has over 43 billion dollars’ worth of assets under its control. The firm serves about 1,750 investors in areas of private equity, hedge funds, and permanent capital vehicles. It primarily focuses on asset investments, management of operations and capital markets. It also specializes in the management of mergers and acquisitions as well as analysis of companies and institutions specific knowledge in the industry.

Fortress Investment Group had one of its major breakthroughs in 2007 through the Initial Public Offering (IPO). At this time, it ranked as the only private equity firm to feature publicly the New York Stock Exchange. It was a significant move towards its growth and development. Following this highlight, SoftBank expressed its interests in purchasing the firm which was received positively by the company’s management. SoftBank’s acquired Fortress to enhance its future goals of venturing into the alternative assets investments. The Japanese technology company bought Fortress for 3.3 billion dollars.

However, Fortress Investment Group continues its operations as an independent entity. The company will not have to be traded publicly anymore. It will also have access to a wider-range of clients and partners in Asia. SoftBank will easily blend Fortress’s institutional structure with vital investment activities such as compliance and investor relations. According to the two firms, Fortress will only work alongside the Vision Fund without any direct involvements with it. As such, the move is beneficial to both firms. The successful acquisition of Fortress pushes forward SoftBank’s plans to establish a new firm in London offering financial services. It will create job opportunities for about 1,000 people.

Fortress Investment Group head offices are located in New York. Besides the excellent leadership, Fortress also takes pride in a diverse team of over 900 employees.

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