Fortress Investment Group is one of the world’s top celebrated, highly diversified investment managers. As of 2017, the firm boasted of having $31.6 billion in assets that it was managing for its 1750 institutional and private customers worldwide.
This comprises alternative assets like liquid hedge funds, credit funds, and private equity. In Dec 2017, the investment manager was purchased by the Japanese tech industry investment conglomerate SoftBank for $3.3 billion. Here are insights into how the acquisition of the New York investment manager by the Japanese conglomerate is turning out.
A possible sale?
There is unconfirmed news making rounds in business circles that SoftBank has started considering selling Fortress Investment Group. The secret was let out by inside sources, who stated that the talks to sell the investment manager were in their infancy.
They revealed that the discussions started after four years of the Japanese tech-focused investor unsuccessfully trying to mesh the firm’s operations with its operations. This had made it nearly impossible for SoftBank to release the full potential of the goals it had when it was purchasing Fortress Investment Group four years ago.
This has left the Japanese investment conglomerate in a precarious position over the way forward with the investment manager, and selling it seems to be a good option given the current circumstances.
Thinning out investments
Some business experts believe that SoftBank is considering selling the New York diversified investment manager as part of its strategy to thin out its investments in enterprises that are not in line with its core vision. Some of its previous investments that have already suffered under this thinning strategy are Boston Dynamics Inc. and Brightstar.
The investment conglomerate has sold its majority shares in the two companies and has approved the ARM sale to NVIDIA. Fortress Investment Group might be axed soon to allow SoftBank to free up resources for further investments in upcoming tech companies.