SoftBank Acquires Fortress Investment Bank

SoftBank Group is eager to establish itself as a global investment bank, so it’s not surprising that they recently entered into a deal to acquire another investment firm. The deal has SoftBank paying $3.3 billion for Fortress Investment Group, which will result in each stockholder receiving a buyout of $8.08 per share. When news of the buyout was made public, the price of the shares rose by 6%, but the buyout price is still 39% above the closing price on the day the news was revealed. SoftBank is controlled by Masayoshi Son, a flamboyant Japanese businessman, who is known for making surprising buyouts. The purchase of Fortress Investment Bank is surprising in that Son’s interests have previously focused on the technology and communications industries. The acquisition of Fortress indicates a new focus in the financial sector for SoftBank, confirming rumors that the company has an interest in expanding its influence as a global investment banker.

Mr. Son has previously expressed an interest in becoming the largest asset manager. Although he has focused his interests in technology, he has also shown a strategy for broadening his holdings with a goal of taking companies from a wide range of sectors under the SoftBank umbrella. Son is creating an investment fund of his own, one which will be incorporated into the Fortress Investment Group family to promote greater long-term growth.That $100 billion fund has been created with a purpose. Masayoshi is eager to capitalize on coming tech innovations, so he wants to build the capital to reinvest into the latest advances in artificial intelligence and similar innovations. Son is also interested in trends related to the Internet of Things, such as smart home devices, so Fortress Investment Group may offer more in that regard as well in the future.Fortress Investment Group is no stranger to innovation. The firm was the first hedge fund manager to offer shares to the public in 2007.

The company’s initial public offering generated more than $600 million. The company was soon valued at $7 billion and selling shares at $35, which was double the initial price of the shares. The Fortress IPO was a move to make hedge funds more accessible to the general public. Previously, hedge and private equity funds were restricted to the wealthy and the corporate investors.Today, Fortress Investment Group is just one of many publicly traded asset management groups. The price of its shares have fluctuated over the years, but they were recently up by 28% as stock prices generally increased. Fortress Investment Group has expanded into credit investing, a venture in which it has done well. However, its hedge fund management has taken some hard hits. Those struggles may take a turn under the new management represented by SoftBank. It remains to be seen how the recent buyout will affect the firm’s performance. In preparation for the purchase, SoftBank executives have shared their expectations that they will be able to double Fortress Investment Group’s assets over the next three years.

Chris Burch: The Man Who Knows How To Create Buzz

When Travel + Leisure calls your resort The Best Hotel In The World, which is what happened to Chris Burch in 2016, you know that your three years and $30 million was worth it. Nihiwatu, the five star resort on the Indonesian island of Sumba, started out as a beach hostel, however, Burch and hotelier James McBride say the potential of such a scenic property. The resort’s 27 open-air villas feature a pool and Sumbanese antiques and Ikat prints, making them ideal for a relaxing vacation; there is a beach spa where guests can get of tension as well. With ideal surfing conditions, a stable of horses, a wellness center and daily yoga sessions, guests never become bored. Burch believes in giving back to the local population; the resort is the island’s largest employer and a percentage of the resort’s profits go to the Sumba Foundation, which benefits the local community.   Continue reading on businessinsider.com

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Nihiwatu is not Burch’s first real estate venture; he has invested in luxury home development in Nantucket, Palm Beach, Florida and Southampton, New York, along with a hotel in Argentina. Nor is Burch’s philanthropy in Indonesia unprecedented; he has contributed to The Child Welfare League of China, Mt. Sinai Hospital in New York and The Henry Street Settlement. Additionally, Birch gave the Tilton prep school in New Hampshire $1.3 million in gratitude for all the school did for him while he was a student there.

As CEO and founder of Burch Creative Capital, Chris Burch invests in a number of diverse brands including ED by Ellen DeGeneres, Blink Health, Little Duck Organics and Cocoon9. The firm specializes in brand development as well. Burch became a billionaire in 2012 when he sold his interest in Tory Burch, his ex-wife’s fashion brand, which he helped establish in 2004. Related article on forbes,com.  Two of Burch’s daughters launched their own fashion line, Trademark, which Burch invested in as well.  Hop over to crunchbase.com for an update of Burch recent timeline activities.

Additional article to read on  https://www.wsj.com/articles/tory-burch-co-founder-buys-miami-beach-tear-down-1489588776