The Fortress Investment Group After SoftBank’s Acquisition

The Fortress Investment Group is a publicly traded company that is involved in investment management that mostly includes real estate properties that are valued over $70 billion assets. The company’s stakeholders comprise mainly of private individuals and institutional organizations all over the world, and it has service offices strategically located in Hong Kong, Singapore, Italy, Los Angeles, and Philadelphia – its main office is located in New York City. Fortress Investment Group started its operations in 1998, and it became a publicly traded company in 2007. In 2015, the company sold its Stuyvesant Town Peter Cooper Village options for $5.3 billion. The stakes in question was owned by CWCapital – a holding company of Fortress that it acquired in 2010. By 2014, the Alabama Inverness Corners Retail Center became a subsidiary of the Fortress Investment Group.The Retail Center has facilitated the funding of buildings and condos all over the city of New York. In February 2017, the SoftBank Group Corporation, a Japanese technological company based in Tokyo, promised to acquire Fortress, and on the 27th of December 2017 it has finalized the acquisition deal by paying $3.3 billion in cash.

The transaction is the first recorded event that a U.S. private equity company has been taken off the list of the New York Stock Exchange. And since the purchase transaction is over, the trading of Fortress stocks likewise stopped prior to the morning of the announcement.The SoftBank Group Corporation has adhered to the stipulation endorsed by the regulatory agencies that the daily operations and business investments will function independently from SoftBank. Thus, Fortress will still be supervised by its founders and principals – Wesley Edens, Pete Briger and Randal Nardone. Fortress’s main office will also remain in New York. Masayoshi Son, SoftBank’s CEO, stated that the culture, processes, employees, brand, business model, and management style of the Fortress Investment Group shall be maintained as it is. The cited Fortress Principals have similarly consented to carry on and manage Fortress and pledged to invest fifty percent of their net tax proceeds coming from the Fortress-operated vehicles and funds, SoftBank’s equity securities including the vehicles and managed funds of SoftBank.

Moreover, Peter Briger, Wes Edens, and Randal Nardone similarly agreed to elect shares that signifies a 34.99% cumulative outstanding voting shares of Fortress that were held by the cited principals in lieu of the acquisition deal.The Fortress Investment Group likewise manages a credit venture that is spearheaded by Pete Briger, Co-Chairman of the company, and the investment company sold its fixed-income business in Logan Circle Partners that netted over $30 billion.According to Peter Briger and Wes Edens, teaming up with SoftBank under the leadership of Masayoshi Son sets Fortress forward on an even greater course and at the same time generates a substantial value for investors.Fortress offers a diverse kind of workplace, and some employees have said that interns working at the firm are expected to learn quickly since it is a fast paced kind of company. Another remarked that the company often challenges its employees, and habitually acknowledge dedication and hard work.

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