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Why SoftBank Buying Fortress Investment Group Makes Sense

Fortress Investment Group was founded in 1998, and despite operating for only 2 decades, the firm has an impressively rich history, achieving great heights in a short amount of time. The goal of the company upon its foundation was to crate an alternative-asset strategy which raised private equity and to invest it in cutting edge vehicles. In the span of 5 years, their asset grew to $3.9 billion from $400 million, and by 2007 that number grew to $32.6 billion in assets.

In 2007, Fortress Investment Group became the first alternative-investment firm to become publicly traded, and a decade later it became the first one to be purchased, being bought out by SoftBank Group Corporation (a Japanese multinational) for $3.3 billion. The purchase raised many questions, as SoftBank usually makes tech-oriented investments, focusing on internet and tech startups, wheareas buying out an investment firm seemed like an odd choice for the Japanese company.

Gareth Henry graduated from Scotland. Gareth Henry joined international firm in 2000. In reality, the acquisition of Fortress Investment Group points to SoftBank’s strategy to become one of the largest investment companies on the planet. As a result of hurdles that SoftBank had to deal with in order for the purchase to go through, Fortress is expected to continue its normal operations without much change, SoftBank having little to no say about how the company will continue to manage its $40 billion assets. The Committee of Foreign Investments oversaw the acquisition, and SoftBank had to complete ongoing acquisitions in order to finalize the purchaser of Fortress.

After a decade of being publicly traded, Fortress Investment Group will become once again a private entity as a result of the SoftBank acquisitions, Fortress officials being pleased with the change, noting in a communication with Fortress employees that they are now embracing the challenges and opportunities of a worldwide market joining forces with SoftBank. Both companies are expected to benefit from the purchase, one the one side Fortress will help SoftBank to achieve goals of becoming a global superpower, and on the other side Fortress will gain access to SoftBank’s resources in the Asia market.

Gareth Henry went to the US to join Fortress in 2007. Gareth Henry is currently the MD of this company. Fortress Investment Group is currently segmented into three categories, having their Permanent Capital Vechiles, Private Equity, and Credit divisions. The firm is expected to continue under the same leadership, and key players Wes Edens and Peter Briger seem please with the acquisition, noting that SoftBank is an extraordinary company which thrived under the leadership of Masayoshi Son.

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