Fortress Investment Group LLC is a highly diversified alternative asset manager (credit hedge fund) investment management company, founded in 1998. Today, Fortress Investment Group LLC manages over $ 40 billion in assets for 1,750 of their clients. On December 28th 2017, Japanese technology investment company, SoftBank Group Corp bought Fortress Investment Group LLC for a staggering $ 3.3 billion. This latest acquisition, by SoftBank Group Corp, to buy Fortress Investment Group LLC is one of the latest acquisition by SoftBank. The international investment company has acquisitions dating back decades, adding Fortress Investment Group to its portfolio of companies is a testament to the financial business investment influence and power in the sector.SoftBank was founded September 3rd 1981, in Tokyo Japan and has since grown to report revenues of over $ 74 billion (REV) and over $ 9 billion in (NI), with more than 68,000 employees.
SoftBank’s founder Masayoshi Son is leading the company to be the world’s largest investment company. SoftBank buying Fortress is a deviation from its usual technology investments. The deal cost SoftBank $8.08 per share totalling $ 3.3 billion. A few years before the acquisition, Fortress was trading in the teens and SoftBank paying only $ 8.08 per share is quite a discount. The last of trading for Fortress the stock was at $ 7.85 per share, which was almost 60% less its initial public offering prince ten years ago. Fortress’s shareholders had not appreciated the value in Fortress, which is why the stock’s value had lost so much value prior to the acquisition. The co-founder of Fortress Investment Group LLC, Wes Edens was very excited about the deal. Wes Edens said he looked forward to not having earnings calls anymore. Fortress Investment Group LLC is happy making long term investments, and this is the value SoftBank seeks to capitalize on. Fortress no longer has to try and convince shareholders their investments are worth more.
Fortress can now use SoftBank’s capital to expand and have the freedom to make longer term investments, for higher yields and more capital appreciation.Fortress Investment Group LLC became the first alternative asset management firm to go public on February 9th 2007, and became the first common stock delisted from the New York Stock Exchange. Wes Edens, co-founder of Fortress graduated from Oregon State University in 1984 with a Bachelor’s of Science in Finance and Business Administration. In 1987, Wes Edens became a partner at Lehman Brothers. Mr. Edens was a partner and managing director of BlackRock Asset Investors from 1993 to 1997. Principal and Co-Chairman of the Board of Directors of Fortress, Peter Briger is a Princeton University grad. Mr. Briger also has an MBA from the University of Pennsylvania’s, business school Wharton. Peter Briger was partner at Goldman Sachs and served on the committees of Global Control and Asian Management Committee. Randy Alan Nordon, has been Chief Executive Officer and Chief Operating Officers since August 2013 and has been a principal of Fortress Investment dating back to 1998.