The Transformation of Fortress Investment Group after Acquisition by SoftBank

It’s barely a year since the acquisition of Fortress Investment Group by the big multinational organization of Japanese nationality, SoftBank. This was a transaction that left many tongues wagging, both in the industry and also in public. People wondered what fate was awaiting Fortress in the future. A lot of investors who had put their wealth under the company’s management had got into the panic mode and suspected that the company was going “under.” However, all these anticipations and suspicions were very far from the truth.

The reality came to indicate that Fortress Investment Group has even grown into a more vibrant company. Both its growth and assets under management have skyrocketed, something that many never anticipated. For instance, before the acquisition, the company’s managed assets had barely raised over $43 billion. Currently, as we speak, the total assets under the management of Fortress Group have shot upward to approximately $64 billion. This has been attributed to the leadership of the company that remained unmoved even after the acquisition process. The previous heads of Fortress; Wes Edens, Peter Briger, and Randal Nardone continued to be the champions of the company although the operations of the organizations were being run under SoftBank.

The other aspect that has benefited Fortress Investment Group from the acquisition is the leverage it has experienced from the huge clientele base and reputation of SoftBank Group. Being an international organization that has a customer base from every corner of the world, Fortress Group has benefited from this business relationship with the company since it requires fewer expenses to woe clients of the acquirer. This has been an exceptional transaction starting from the beginning. First, it was done on a cash basis. SoftBank produced a total of $3.3 billion to complete the purchase process. This was after meeting all the regulatory requirements that are required to make the process legally binding; for instance, the agreement of all the shareholders of Fortress Investment Group to carry on the transactions, and also the compliance with the regulatory authorities and rule that govern mergers and acquisitions. SoftBank deals with the technology, telecommunication and the transport sectors, all of which have a lot of potential clients that Fortress is likely to enjoy.

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