Fortress Investment Group has been operating as an investment management firm for 2 decades, being founded in New York City by Randal Nardone, Wesley Edens and Rob Kauffman. At the end of 2017 the firm was acquired by SoftBank, a Japanese multinational, for the price of $3.3 billion. Throughout its history, Fortress had many exciting developments, being the first equity firm in America to get publicly traded.
Although SoftBank is known for its investment in the tech field, which made the acquisition even more surprising, the purchase of Fortress Investment Group points to their plan to expand and branch out towards their goal of becoming one of the biggest investment companies in the world. Despite the large amount of money that SoftBank paid in order to acquire Fortress, the New York firm is expected to continue its operations without change, as due to regulations SoftBank had to agree to a hands-off approach, which means they will have no say in how the firm will manage its assets. The one thing that changed is the fact that Fortress Investment Group became a private company, after being delisted as a publicly traded entity. At the time of the purchase, Fortress had more than $40 billion in managed assets.
SoftBank has been around for close to 40 years, and one of their biggest splashes was the development of Vision Fund, which is the largest technology investment fund to ever get developed, and is valued at approximately $93 billion. There were speculations about any interaction between Fortress Investment Group and Vision Fund, but the two entities noted that Fortress will not be directly involved with the fund, despite working alongside it.
Despite the fact that SoftBank will let Fortress operate independently, the move is important as far as SoftBank’s segue into investment services. Both companies can benefit from the deal however, as Fortress gets to no longer be publicly traded and at the same time gains access to a large number of limited partners in the continent of Asia. Expectations are that Fortress could move into new directions, and with this acquisition SoftBank can continue with its goal to reach new heights.