Fortress Investment Group is amongst the fastest growing companies in the United States, and the company has been able to establish itself in the financial sector in a relatively short period of time. One of the primary reasons why Fortress Investment has been able to grow so fast in an otherwise highly competitive sector is because of its leadership, which consists of its co-founders, Randal Nardone, Wesley Edens, and Rob Kauffman. All three of its co-founders have extensive experience in the field of finance, and they have been able to provide the company with the right direction in terms of the marketing and investment strategies it should follow to leave the competitors behind. The company has set new standards in the financial industry and continue to do so.
Fortress Investment Group is a publicly traded firm in the United States and was launched in the NYSE in the year 2007. At the time when the company was launched for public trading, it was the only private equity of its size to be publicly traded. The company has a huge experience in providing personalized financial solutions to its clients and time and again has proved its expertise by providing clients with great returns even during sluggish market. The company has its headquarters based in New York and has over a thousand employees. Fortress Investment Group is currently focusing on expanding its global network, especially after it was taken over by Softbank Group of Japan. The net revenue of the company has been steadily growing, and in the year 2016 booked the profit of $180 million.
The company has made many strategic investments in different industries that promise the firm steady flow of income and anchors its investments, irrespective of the market trends and situation. The company has subsidiary businesses across the globe. Ever since Fortress Investment Group was established, it has managed to grow in spite of the tough economy. The major reason behind it is that the company has always put their clients and their needs first. From the top management to its employees, everyone works hard to ensure that the financial goals of their clients are met at every phase. Fortress Investment Group believes in hiring only the best team members who can live up to the expectations of the company and help it to reach its goal. They are also provided with great benefits in return for their excellent services.
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.