At the beginning of last year, Fortress Investment Group was acquired by Japanese multinational Softbank. The deal involved Softbank offering $3.3 billion in cash. After this deal, Fortress Group was delisted from the New York Stock Exchange making it the first private equity firm to be publicly traded and the first private equity firm to leave the market. Fortress Investment Group will continue to run as an independent entity even after the acquisition by software. It will also retain its leadership led by CEO Randy Nardone and co-chair Wes Edens. Visit https://www.bloomberg.com/profiles/companies/FIG:US-fortress-investment-group-llc
The acquisition deal did not come easily since it involved the committee of foreign investments in the United States. Fortress Group being one of the largest alternative assets managers in the world, the government felt that it was a matter of national security for this deal to be completed. It is at this point that it was agreed that Fortress Group would retain its management as part of the deal.
Softbank is known for its outstanding investment in tech startups which mainly deal with innovative new technologies. This deal was one of its kind since Fortress Investment Group deals with alternative asset management. The reason for this acquisition has roots in need for Softbank to expand its authority as a globally recognized investment company.
Fortress Investment Group was established in 1998 by CEO Randy Nardone and Co-chair Wes Edens. At the time of completing this deal, fortress investment had over 1,750 private and institutional investors. Over the years, it has received recognition as one of the best hedge fund managers for institutional investors.
From this deal, Fortress Group will not be affected in any way in the management of its day-to-day operations. According to Wes Edens, the company is pleased that it is not a private company and will continue to run its operations privately. On its part, Softbank is recognized as one of the largest funds in the world with a net worth of $93 billion. After the deal, Softbank’s Vision Fund will work alongside Fortress Investment Group but not directly with it. Fortress Group also runs a credit business that is led by the third principal of the company Mr. Peter Briger. Visit thestreet.com