Fortress Investment Group is an alternative asset management company with such assets in private equity, credit funds, and hedge funds. Fortress was started in 1998 to cater for the segment of clients who were left out by the traditional asset managers. The group has grown into a global entity with its headquarters in New York City. Currently, Fortress Investment Group operates as an independent company under SoftBank Group which recently acquired it for $3.3 billion. Fortress continues to operate as it was except that all its assets belong to the new owner by the name SoftBank.
Tracing the Growth of Fortress to Global Company
Fortress Investment has been growing gradually but steadily into regions beyond the US territory. The company has made a name for itself as an experienced risk management company across the globe. It engages clients on a wide range of investment options that make it easier for them to fit in. Fortress creates tailor-made solutions depending on the circumstances of a particular business. The investment group also has over 1700 clients under its fold as their asset manager. The clients cut across the public and private sector. In 2010 Fortress made news after it nearly brought the winter Olympics that were being organized in Canada to stop. Fortress Group was at the heart of the Olympics crisis in which the company had sued the Olympic organizers for planning to use private property without prior agreement from the owners. At the time, Fortress Investment Group was in charge of the Whistler Black Comb Resort which Intrawest had surrendered temporarily to Fortress because the latter had bailed it out of the auctioneers’ hands. The Winter Olympics organizers were caught in a situation they had to solve fast.
Softbank and Fortress
Fortress Investment Group was acquired by SoftBank after negotiations. Softbank bought Fortress for $3.3 in a deal that saw Fortress allowed to operate independently and to retain its business model. The deal meant that the principals at Fortress would maintain their positions. That’s exactly what the principals Wes Edens, Pete Briger and Randal Nardone must have wanted. The company has also maintained its entire staff. Fortress Investment Group was noted for its highly valued skills in investment and asset management. The Softbank executives were asked why they allowed Fortress to continue as it is. They responded by saying that SoftBank had a readily working formula, so there was really no point in changing anything. SoftBank announced the acquisition of the investment company after successfully meeting all the requirements presented. Fortress says that the deal was sealed after it had consulted widely and had the consent of its shareholders. Fortress shares will be pulled out of the New York Stock Exchange because they all belong to SoftBank now. The Japanese giant says that they are impressed to have Fortress under their fold because Fortress is known to be one of the best investment outfits in the US.
Fortress got into a partnership with Softbank which is seeking to create a revolution in the world of technology including AI, robotics, telecommunications, internet services, clean energy sources, smart robotics and more. SoftBank says Fortress has added value to its investment portfolio; noting that Fortress has demonstrated high skills in the investment business.