An inside look into the Fortress Investment Group, Sotbank acquisition deal

Located right at the heart of New York City, Fortress Investment Group has been a force to reckon in the finance market for over two decades now and is still going strong. This has been the case thanks to the firm’s three innovative and dedicated leaders, who since its inception in 1998 have done nothing but steer it to the right waters.

Fortress’s leaders, namely; Wes Edens, Randal Nardone, and Peter Briger have for the past two decades been setting the pace for other alternative investment firms through wise moves. For instance, in 2007, the trio set the bar high by making Fortress Investment Group the first large scale private entity to take the public path on the NYSE.

Despite enjoying good years on the public arena, Fortress Investment Group has also had its fair share of troubles. For instance, for a while now, the company has been having a hard time, causing the value of its shares to decline. However, as noted earlier, the leaders of the company have always been innovative and to return its lost glory, they recently shepherded it to the private arena again by signing a $3.3 billion acquisition deal with Softbank.

The acquisition deal which was signed last year, makes Fortress Investment Group a pacesetter once again, as it will be the first large scale private equity firm to go private without the costs associated.

It is, however, vital to note that despite Softbank spending quite a massive amount to get Fortress under its wing, the Japanese conglomerate only boasts economic ownership on FIG. In other words, Fortress’ operations will remain as they were before the deal was signed. Besides avoiding the costs, the acquisition deal brings a lot of wins to the Fortress table as it will now have access to the long string of influential partners on Softbank’s table, and as a result, increase its footprint.

What’s in it for Softbank

On the other hand, Softbank also boasts plenty of wins from the deal as it now wholly owns all of Fortress’s outstanding shares. Additionally, Softbank’s primary mission is to become a top global investment firm with operations in almost all sectors. The company already has stakes in a diverse array of areas from e-commerce to telecommunications, and by acquiring Fortress, it will now have ventured into the finance arena.

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