How Softbank Acquired Fortress Investment Group

The Fortress Investment Group, a private equity firm with headquarters in New York, was founded in 1998. It offers various services, including investments in real estate, loans, financing solutions, permanent capital, and private equity investment strategies. On the other hand, SoftBank is a technology company offering telecommunication services, artificial intelligence, internet services, smart robotics, and clean energy provision.

In 2017, SoftBank vision fund used to make investments in business and technology, generated USD 93 billion, and fully acquired Fortress Investment Group. After the acquisition, SoftBank Fortress could not engage in Fortress operations alone and had other options; however, none of the SoftBank or Fortress representatives commented on the same.

Since its operations, Fortress has managed the assets on behalf of 1,800 institutions and private investors globally. Having more than $ 3 billion in Fortress acquisition, SoftBank intended to use the investments to manage the behemoth Vision fund.

The chance was to help Fortress Investment Group’s capabilities and the upcoming SoftBank Vision Fund boost the SoftBank 2.0 transformation strategy. Winning the committee approval on foreign investment in the US, SoftBank agreed to hand over the Fortress’s daily operations. Since the closure of its transaction in 2017, Fortress Investment Group has been operating independently. After the closure of the transaction, SoftBank group owns the entire Fortress shares.

Every outstanding Fortress Class A share would receive $8.08 in every share in cash and be distributed according to the payments highlighted in Fortress Proxy. Fortress Investment Group continues operating as an independent business with its headquarters in New York City. Its principals, Pete Briger, Wes Edens, and Randy Nardone, continue leading in its daily operations. In addition, SoftBank has made commitments to maintain good leadership, brand, process, and culture, vital for Fortress’s success.

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