A journey through the life of Fortress Investment Group
Softbank Group recently acquired the Fortress Investment Group. Softbank had been looking for an asset management firm to help grow its presence in the country as well as gain expertise in the asset management business which would enable it to tap into the whole new world of asset management as well as mergers and acquisitions both with the American market as well as the Asian market. This acquisition request had been brought before its shareholders in July 2017 with an offer of approximately 3.3 billion for which the company would become wholly owned by Softbank. The shareholders approved the same and had received all the necessary green lights from the government the acquisition was made.
Fortress Investment Group was founded in 1998 by three partners who had quite the experience in asset management and other financial matters.They had seen a gap in the market that they believed they had the skills and capabilities to fill and achieve a certain amount of success from it. This would be driven by an initial investment of approximately 400 million dollars as assets under management at the time. Growing this into a few billions was the next goal, and within five years they had hit the 3 billion mark. This would become one of the fastest recorded growths at the time with a return on equity hitting thirty-nine percent for a few consecutive years.
Fortress Investment Group management understood that despite relying heavily on private equity funds, they needed to venture into credit financing, which they did, leading to an improved ability to make more acquisitions.At this time the group was also focused on capital markets as well as mergers. These two areas required some form of expertise and would come in the form of Peter Briger who is the current CO-CEO and is based in San Francisco. He brought in a wealth of experience, having been a partner at Goldman Sachs with over fifteen years’ experience working in various capacities. Today the fortress investment group manages assets worth more than 40 billion dollars and is poised to grow given the new financial muscle brought in by Softbank.