Just recently a Japanese technology company, the Softbank Group completed its acquisition of Fortress Investment Group, an American alternative investment firm. Fortress was acquired in an all-cash deal of $3.3 Billion. A significant part of this settlement was used to buy off the investor’s shares, an action that saw them de-list from the New York Stock exchange.
With the uptake of the global investment firm by the Japanese bank, attention now turns to the operational and managerial state of the company going forward. For instance, has Softbank proposed any changes in the leadership of the investment firm? Are they looking forward to continuing Fortress operations or do they have a new plan for the firm? Here are some answers to some of these questions.
Fortress leadership going forward
In a press release issued shortly after the confirmation of the acquisition, Softbank Group expressed its desire to maintain Fortress Investment Group’s management team. The presser went ahead to commend the founders Randy Nardone and Wes Edens as well as its current chairman Peter Briger for what they have managed to achieve in the two decades that the firm has been operational.
The effect of the acquisition on company operations
Softbank’s acquisition of Fortress Investment Group came at a time when the company was speedily expanding its investment portfolio. For instance, earlier in the year, Fortress’ subsidiary, New Residential investment bought the entire mortgage servicing rights from PPH and CitiMortgage. It also acquired $117 Billion worth of mortgage servicing rights from Ocwen financial, effectively making it a 4.9% owner of the alternative investment company. These real estate acquisitions add up to the investment firm’s 70% ownership of the Nationstar Mortgage, and learn more about Fortress Investment Group.
According to the press release, the Japanese financier further expressed their intention of carrying on and even furthering Fortress operations. This may in effect be seen as the primary reason the new owners intend to maintain the founders and the current leadership within the firm as they are best suited in realizing the company’s objectives.
Ideally, Fortress is a highly diversified global capital management firm with several subsidiaries managing specific investment fronts. These include interests in real estate, credit lines, and private equity funds as well as permanent capital investments. It is also important to note that by the end of the fourth quarter of the 2017 financial year, Fortress investment group was managing over $36.1 Billion in assets on behalf of over 1,750 private investors and institutional clients, and http://www.vault.com/company-profiles/investment-management/fortress-investments/company-overview.
Asked about the future of the company, Fortress co-chairman said that one should not expect significant changes within the company, safe for the fact that they will no longer hold earning calls. His arguments, echo Softbank’s presser that dispels fears of any restructuring or change of guard within the firm, at least in the short run.
The acquisition of Fortress investment group by the Japanese Softbank will have little to no impact on its operations. Gauging by the recent communications by the new owners as well as its founders, it is also apparent that Softbank isn’t keen on instituting any significant changes to the company management or clientele, and read full article.