Based in New York, Fortress Investment Group is a private equity firm founded in 1985 by Robert Mercer, who serves as chairman and chief executive officer. The group has $32 billion under management as of March 31, 2017. It specializes in leveraged buyouts and distressed acquisitions. In addition to its flagship company, the firm also owns other companies, including:
• Fortress Credit Corporation
• Fortress Insurance Company
• Fortress Reinsurance Company
Fortress Investment Group Acquisition By SoftBank
Japanese telecoms giant Softbank acquired the Fortress Investment Group for $3.3 billion on March 1, 2018. SoftBank was hoping to use the acquisition to expand into the U.S. market. The New York-based hedge fund company is one of the largest private equity firms globally, so it only made sense for SoftBank to acquire them.
SoftBank’s Plans to Sale Fortress Investment Group
In January 2019, SoftBank announced that they would be selling their stake in the group. They had been planning this sale since acquiring the company in 2018. This move will allow SoftBank to focus on investing in technology instead of real estate. However, the deal hasn’t closed yet.
The sale is mainly because SoftBank’s shares plummeted since acquiring the New York group. Their stock price dropped from around $90 per share at the time of purchase to less than $50 per share now. So, SoftBank decided to sell off some of its assets to raise money.
Softbank has been shedding non-essential assets as part of a plan to focus on core businesses. Last week, the Japanese telecommunications giant said it was selling its stake in Boston Dynamics, maker of military robots such as BigDog, for $325 million. And it sold its stake in Brightstar, a provider of wireless distribution networks, for about $1 billion. So far, SoftBank has sold off $12.5 billion worth of assets. But there are still many assets left to sell. Go Here for related Information.