The asset manager behemoth Fortress Investment Group was purchased by SoftBank Group for $3.3 billion recently in a move that shocked the business world. The maneuver is another in a line of bold moves by the Japanese telecommunications company.
The sale of Fortress Investment Group was first conceived by co-Chairman Peter Briger and Rajeev Misra. The latter had previously been employed by Fortress until leaving for SoftBank Group in 2014. Those two former co-workers turned an idea session over a phone call into a multi-billion dollar deal. The pair moved quickly thanks to the equally fast-moving leadership of Masayoshi Son, the billionaire founder of SoftBank.
In the terms of the deal, Fortress Investment Group will be sold for $3.3 billion with Class A stockholders getting $8.08 a share. While the value is much less than the $13.4 billion market value that Fortress once commanded, the shares were still 39% above the value the stock held on the day of the sale. News of the deal caused a jump in the value of the stock, as well. The shares jumped a total of 38% over the next two days.
Fortress Investment Group is largely known for managing private-equity pools and credit funds. The largest recent piece of assets is in Logan Circle Partners, a company which resides in Philadelphia. The company manages over $33 billion. Fortress bought the company in 2010 in an attempt to invest in more common money management strategies.
Founded in 1998 by current Chief Executive Randy Nardone, Fortress Investment Group will continue to be led by its current administrators. In addition to Nardone, Pete Briger and Wes Edens will steer the ship into a new frontier for the company and SoftBank. While SoftBank is a Japanese company, Fortress will continue to operate from New York and will be an independent entity within the SoftBank umbrella. The new owners have the short-term goal of doubling Fortress’s assets. Wesley Edens Is an Investor With an Affinity for the Underdog
Learn more about Fortress Investment Group : http://careers.fortress.com/