Fortress Investment Group is one of the largest asset management firm internationally today. The company was founded by Wes Edens, Rob Kauffman, and Randal Nardone back in 1998. The company saw tremendous growth and in 2007 was the first firm of its kind to have an IPO.
Today the company has 3 divisions that are Permanent Capital Vehicles, Credit and the Private Equity. The Credit Division was created in 2002 when Peter Briger joined the company from Goldman and Sachs. It runs funds such as Fortress Credit Opportunities Fund, Drawbridge Real Assets Funds, Fortress Japan Opportunity Funds among others.
Wes Edens and Randal Nardone manage the Private Equity Division which manages assets in transportation and infrastructure. In their first major foray into asset management, Softbank acquired FIG for $3.3 billion. Softbank looks at the acquisition as a way to grow their expertise in the investment world. The company which has interests in companies involved in research and development of telecommunications, robotics, artificial intelligence, clean-energy technologies among others.
Softbank aims at making profits by investing in the upcoming information revolution. The addition of FIG will boost their knowledge on investment especially with their new investment fund. A former executive at Fortress investment Group works heads the strategic finance department at Softbank and is in charge of the Vision Fund which backs a solar power generation project in Saudi Arabia. The project is expected to build a facility that is expected to generate 200 gigawatts of power.
The fact that FIG has been investing in Japan is one of the things that made the acquisitions possible. Speaking on the deal the principals at Fortress Investment Group were positive about the acquisition and felt that it would give the firm a greater global reach. They added that they were looking forward to the challenges the global market involved. Fortress Investment Group was advised by Morgan Stanley and JP Morgan Securities while the company’s Board of Directors was advised by Evercore.
About Fortress Investment Group
FIG was established in 1998. It had its IPO in 2007 and ten years later it was acquired by Softbank. It has assets in the transportation sector, energy sector as well as in real estate.
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