Since its establishment four decades ago, Softbank has concentrated its efforts in funding technological startups all over the world. The Japan-based company founded by Masayoshi Son made it boldest investment move yet when it acquired Fortress Investment Group in early 2017 for $3 Billion.
A significant percentage of this amount of this amount would go towards repurchasing the shares that were already trading publicly on NYSE thus forcing the company to delist. What then can the Fortress investors who have entrusted over$40 billion to the investment company expect their new masters? Learn more at patch.com
According to Wes Edens, one of Fortress Investment Group Founders and current principal, the founders’ maintain operational control of the fund that will now operate as an independent arm of Softbank. The Japanese investor will only play an oversight role in the company while the principals continue running its operations as usual. Wes went on to assure fortress clients that safe for the ownership status, everything else such as investment management team, investment decisions, and running company operations will still be handled internally by its principals.
Before 2008, Fortress Investment Group banked heavily on distressed debt such as equity debt ad mortgages as their biggest revenue earners. The company has, however, been on the lookout for new more promising and investment vehicles while shying away from the distressed debts particularly after the real estate instigated financial meltdown.
The fact that Softbank has been in the investment world longer than Fortress and have a more global footprint means that they can help Fortress Investment group expound on their operations by advising on most promising opportunities. For instance, it was under Softbank’s watch that Fortress was able to bring home the Brightline and All Aboard Florida infrastructural projects.
Wes Edens believes that having been in the investment industry for quite a long time, particularly interacting with different technology companies, Softbank has the much-needed expertise to push Fortress Investment group to the next level. The banker has access to technological tools and human expertise needed to improve the New York based investor’s efficiency. Wes, therefore, holds the opinion that the acquisition by Softbank will only result in net good for the investors in the long run.