Fortress Investment Group was started in 1998 as a pure private equity fund. Times have changed though, and so has the organization. It is now a formidable asset management and financial solutions advisory firm with a strong capital and asset base. Fortress Investment Group estimates its assets under management to total $43.6 billion. It is also reported to employ over 953 workers. However, to investment pundits, that is just a tip of the iceberg. Fortress has galvanized its business to the extent that it has offices across the globe. One of the outstanding specialties of the organization is its focus on risk management and value addition to assets that are wrongfully thought to be of little economic importance. Fortress manifests an impressive portfolio that includes managing assets for over 1750 public companies. It also includes private clients in the provision of its services.
While its competencies are largely financial and asset related dealings, Fortress Investment Group has employed a group of competent staff who attend to clients in a customized manner. The team ensures that the solution they suggest is born out of the clients’ circumstances. Fortress deals in asset investment, diversification of investments, alternative asset investment, and management including the buying of foreclosures and refurbishing assets sold in auctions. Fortress rents out or sells the assets depending on the best options on the cards. It also offers pricing advice, ownership guidance and provides financing to businesses. For instance, Fortress nearly stopped the 2010 Winter Olympics from proceeding because the organizers were planning to use the premise that was under its control as a result of having intervened when the original owners were up for foreclosure from the lenders. They were finally paid the sums that they demanded from the Olympics organizers in Canada before the games proceeded. The saga related to the Whistler Blackcomb Resort owned by Intrawest but under the management of Fortress Investment Group at the time.
Softbank Acquired Fortress Investment Group but It Allowed It to Operate Independently.In a deal that is seen as an evolution from the traditional acquisitions, the Japanese giant Softbank bought Fortress for a sum of $3.3 billion. While the new owner is legally the mother company, they allowed Fortress to continue with their operations uninterrupted. In a deal that avoided closures and retrenchments, Fortress continues with its staff undisturbed. The only difference is that the annual financial report from all Fortress outlets will be incorporated with those of SoftBank. The company also bought all of Fortress’ shares, a move which led to the pulling out of Fortress shares from the New York Stock Exchange. According to the SoftBank management, the purchase of Fortress Investment Group will add to its investment portfolio; given the skill that has resulted in the highly successful growth and expansion of Fortress. Fortress will retain its leadership in New York. The officials at both organizations confirm that the deal is done, following SoftBank’s fulfillment of all the statutory and regulatory requirements for the acquisition. The details of the acquisition have been disclosed. Class A shares of Fortress will be converted to $8.08 earnings per share. The proceeds of the merger will also be distributed as guided by Fortress Definitive Proxy of June 7th, 2017.