2018 was a phenomenal year for Fortress Investment Group, a leading alternate asset manager in the world. Transition and expansion dominated the asset management firm’s year. It hit business headlines for being acquired by SoftBank for $3.3 billion. The firm was founded in 1998 as an equity firm and since then, it has built its name while expanding its broad investment portfolio. It went public in 2007 and 10 years, it becomes private, a development that excites Wes Edens, one of the firm’s principals, about the deal.
Purchase by SoftBank
Fortress has continued to incorporate its operations including management of about $40 billion in global assets into SoftBank’s global strategies. The transition has been smooth owing to the goodwill of Fortress’s principles including Wes Edens, Randal Nardone, and Peter Briger. SoftBank is a Japanese company that has been acquiring and helping tech start-ups to grow. It has been dedicated to supporting the information revolution. With this deal, the company makes an entrance to the world of asset management. Led by Masayoshi Son, the company is known for its ownership stake in U.S. telecom giant Sprint as well as significant stakes in Uber and Alibaba. The excellent track record of Fortress Investment Group put it in a better position to make SoftBank a world leader in asset management. The long term strategy seems to be collaboration between SoftBank Vision Fund and Fortress Investment Group, while remaining separate entities, to solidify current strategies. According to the CEO of Wisdom Tree Japan K.K., the acquisition is a visionary strategy that will make SoftBank gain the financial management expertise it needs to become a leader in the asset management and private equity business.
Growth into high profile real estate
Fortress Investment Group has been able to venture into prime real estate with a $2.2 billion investment in TSX Broadway, New York’s Time Square mega development, alongside its partners L&L Holding Company and Maefield Development. It also bought Tiffany & Co. Building for $20 million. The building is an iconic property which dates back to 1950. Fortress also bought SuperValu through its affiliate CF Grocery Distribution PropCo for $66.4 million. With the new investments and other efforts, Fortress Investment Group has been unrelenting with its efforts to expand its broad investment portfolio and adapting to change.