Fortress investment group is an alternative asset investment manager that was established when there was a contraction of funds or loans originated by banks to business in 1998. This contraction was brought about by regulations by banks to limit or withhold their funds from businesses due to a number of factors. Other factors that led to the deficit in funds and finances were regulations requiring companies to disclose their financial transactions to the public. Fortress investment manager deals with alternative asset investments like private equity, private credit and liquid hedge funds among others. Over the years fortress investment group has had its fair share of success and challenges. It has grown and spread over the United States and Europe due to the unending need for financing and funds by businesses. Current the alternative investment group manages over $ 70 billion dollars in private equity, real estate, and private credit.
Acquisition by Softbank.
In an effort to become the world’s leading investment group, Softbank acquired fortress investment group for 3.3 billion dollars in 2018. Softbank is one of the world’s leading technological giant from Japan led by Masayoshi Son. In terms of the acquisitions, the fortress is set to work independently within Softbank. It is to 8.08 dollars for each share which totals to 39%, excluding dividends, above the closing price, while Softbank gets a larger financial platform to go ahead with its technological and communication advancement. Since the company’s, Softbank, funds have increased to about 100 billion dollars, it plans to speed up technological transformation and put its investors and the company at the frontline of technological advancements in artificial intelligence, internet of things (IoT), and machine learning.
Fortress is led by Randy Nardone as the CEO, Wes Edens, and Pete Briger. These executives will still head fortress after the acquisition. The fortress investment group was the first private credit investment firm to sell its shares to the public in 2007. Softbank is almost certain it can increase the firm’s assets within the next few years due to Mr. Masayoshi Son’s network of global billionaires and sovereign funds. Masayoshi Son is a renowned business person and is the best known for bold acquisitions moves.