The Unique Acquisition Deal Between Fortress Investment Group And Softbank

Founded in 1998, Fortress Investment Group is one of the top investment firms in the USA and the world. It is in charge of managing assets for more than 1,750 institutional investors as well as individual investors from various parts of the world.

Fortress Investment Group has expertise in a wide array of investment strategies including private equity, real estate, permanent capital, and credit. The company strives to create a strong return for all the investor clients. It has hired 919 asset managers and 209 investment professionals. Fortress Investment Group is headquartered in New York and it has established regional offices in various regions around the globe.

The acquisition of Fortress Investment Group investment by SoftBank Group Corp was completed in December 2017. Fortress Investment was bought at 3.3 billion. SoftBank is one of the world’s largest financiers of revolutionary technology. Apart from its interest in cutting edge technology such as robotics, SoftBank also has interests in telecommunication. Their engagements make the acquisition of Fortress by the company a natural fit.

FIG is expecting to reap great benefits from its association with SoftBank. SoftBank is expected to emerge among the world’s largest investors because it will soon be launching a technology fund worth $100 billion. As part of the acquisition agreement, SoftBank agreed that it would stay off the management of the considerable assets owned by Fortress Investment Group. It is a mutually benefiting agreement since Fortress thrives when it is given the autonomy of deciding it path and determining the avenues it wants to pursue. The arrangement is expected to bring in great returns.

The other unique aspects of the deal were that FIG retains its independence in operations and not shift its headquarters. The acquisition was unlike other large acquisitions that result in the buyer setting all the terms, and mostly they launch extensive renovations that completely change the operations and the management of the company being bought. However, in this case, FIG was not hugely affected by the new ownership. This is because SoftBank recognizes the value of obtaining an already successful company and allowing it to continue engaging in activities that have made it succeed.

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