Last year, SoftBank acquired Fortress Investment Group, a move that is going to change the development direction of the Japanese company. SoftBank is a Japanese multinational that has acquired over 500 tech companies. The company bought Fortress for $3.3 billion.
Fortress Investment Group has come a long way to become one of the leading alternative asset managers in the world. It was founded in 1998 as an equity firm. It took up an alternative asset manager approach that saw the company grow rapidly to have over $43 billion worth of assets on behalf over 1500 clients around the world. The investment firm specializes on sector-specific knowledge of companies and institutions, mergers and acquisitions, operations management, asset-based investing as well as capital markets.
According to Fortress Investment Group principals, ten years after the company came into existence, they went public, making it the first private equity alternative asset manager to go public. Furthermore, the acquisition by SoftBank marked the beginning of a journey in a new path. According to the executives, the company has combined efforts to face head on challenges and take advantage of opportunities that comes with being a global company.
SoftBank has been relentless in its efforts to be a leader in the unfolding information revolution. The company is affiliated to companies in advanced telecommunications, clean-energy technology, artificial intelligence, Internet of Things, internet services and smart robotics.
SoftBank established an investment fund and the acquisition is in line with its efforts to improve its investment and management expertise of the investment fund. The acquisition deal is one of its kind for SoftBank as it has never made a direct investment on an asset manager as big as Fortress.
Earlier, SoftBank had hired a former Fortress Investment Group senior executive officer to head its Vision Fund, specifically, strategic finance. The Vision Fund has grown really big and now, it has combined efforts with various partners to build a solar power generation plant like no other in Saudi desert.
Morgan Stanley and JP Morgan Securities were the acquisition deal’s financial advisors. Additionally, Fortress Investment Groups’ Board of Directors selected Evercore to advice the Board’s Special Committee. Fortress continues its operations as an independent entity with Edens, Nardone and Briger staying as its principals. Edens was excited about the deal, specifically, about the privatization of its operations.