Fortress Investment Group Service Portfolio and Recent Acquisition

Fortress Investment Group is a New York based investment management company whose core competencies include the management of credit funds, liquid hedge funds and alternative assets held in private equity. According to Crunchbase, the company was established in 1998 as a private equity firm that today serves over 1700 private clients and institutional investors around the globe. Fortress has had a total of 9 exits involving entities from diverse backgrounds. The listing includes Small Bone Innovation, Netlist, Layered Technologies, Marathon Patent Group and GTS Central Europe, which offers telecommunication services to businesses and institutions in Central Europe. As of September 2017, Fortress had over $36 billion assets under its management and close to 1,000 employees working under the asset management segment.

Fortress also has 200 investment professionals working across the company. In management matters, the CEO of Fortress Investment Group is Adam Levinson. Matthias Moser and Andrew Berman serve as the company’s MDs while Peter Briger is the Principal and the Co-Chairman of the Board of Directors. The company’s investments are mostly targeted at real estate, energy, telecommunication, gaming and consumer finance sectors. In February 2017, Fortress Investment Group was acquired by a Japanese multi-national telecommunication and internet conglomerate, Softbank Group Corp. According to Bloomberg, the much talked about deal was worth $3.3 billion, and saw the co-opting of another Japanese technology oriented investment fund. SoftBank operates five company segments, including Sprint, ARM and Domestic Telecommunications.

The Domestic Telecommunication split offers a host of services including mobile communication and broadband services. Sprint on its part engages in selling and leasing of mobile devices as well as offering mobile communication services. Sprint is also in the business of providing fixed line telecommunication services at the corporate level. In the next 4 to 5 years, Softbank is looking to create a $300 billion asset management firm that will comprise its $90 billion Vision Fund that targets investments in the tech sector. The SoftBank conglomerate was founded by Masayoshi Son, who is also the company’s Board Chairman and Chief Executive Officer. Ken Miyauchi is the President, Representative Director and Chief Operating Officer while Nikesh Arora is SoftBank’s advisor. In November 2017, Fortress released its 3Q results showing stable outlook.

According to Fortress, the company had Assets Under Management (AUM) standing at $36.1 billion and GAAP net income of $190 million. The report indicated that a massive 85% of the AUM was held in long term investment structures. He company’s pretax distributable earnings stood at $291 million. During the period under review, Fortress completed the sale of Logan Circle Partners to MetLife and raised a capital totaling $1.8 billion from alternative investment businesses. Before the acquisition by SoftBank, Fortress shareholders met in July 2017, and voted overwhelmingly in favor of the proposed meager. Over 99% of the shareholders voted for the deal. Under the terms of the arrangement, Fortress continues to operate as an independent entity within the parent company. It was also agreed that the principals, Pete Briger, Randy Nardone and Wes Edens retain their executive portfolios, and https://www.reuters.com/article/us-fortress-inv-glo-m-a-softbank-group/softbank-to-buy-fortress-investment-for-3-3-billion-idUSKBN15T333.