Do you know what Japan’s SoftBank is so excited about as of late? Well, it turns out that the group completed the important acquisition of an investment management firm from New York, Fortress Investment Group. The Japanese company spent approximately $3.3 billion by the time the deal’s negotiations were finally reaching completion, but its CEO is confident that every cent of this price will bring substantial value to him and his business. The executive at Fortress expressed similar sentiments as well, and were particularly optimistic about the prospect of now being part of a company that is truly global, since it is based out of Japan. Are you curious as to what changes Fortress Investment Group will see now that it is under new ownership? Visit wsj.com
Well, the answer may not be what you expect because there are relatively few changes coming to the team. It will still act as mostly an independent entity through its base in New York. The same brand name will stay in place, and the same leaders will head the Fortress team and run daily operations. However, the company’s shares are the big talking point here. SoftBank now owns the outstanding shares, which will no longer be available on public markets like the NYSE. Other than that, the philosophy seems to be against changing a machine that has consistently preformed well over two decades.
Much has been accomplished by Fortress Investment Group thus far, and the investment management giant is only going to get bigger now that it has access to more resources and global connections. The firm was launched three men in 1998, and they are still around leading things. Briger, Nardone and also Edens stated that the future of Fortress Investment Group looks even brighter for Fortress now that SoftBank is in the picture. The acquisition, then, may very well be a positive stepping stone for both the American company and the Japanese company. Fortress will no doubt be of great help when SoftBank ramps up its efforts regarding the world of finance in the very near future. The company has already taken a step in that direction with SoftBank Vision Fund.