When SoftBank made an offer to acquire the Fortress Investment Group for 3.3 billion dollars they were aware that they would be offering a 40 percent premium on the price per share. The investment bank was, however, willing to spend the said amount to close the deal despite having to make a number of concessions elsewhere. SoftBank has been looking for an investment group to support their expansion in the American market. As the CEO Masayoshi, Son during the president’s inauguration the bank is committed to investing more than 50 billion dollars in the country.
The bank, which started in 1981 as a wholesale software selling company has over the years grown to one of the most prolific investors in the technology sector. This began in 1996 when they acquired a majority share at Yahoo. After this, they focused on technology companies and startups and had seen quite a good return on investment from the same. On the other hand, the Fortress Investment Group was started by three partners Wes Edens, Randal Nardone and Rob Kauffman in 1998 has grown to be one of the biggest alternative investment vehicles. They started the group with approximately 400 million dollars of assets under management, but quickly grew, this amount sixfold within the first five years. Those that witnessed this growth would attest to the efficiency of their investment strategy and how they have been able to build on the same to get to where they are today. It is clear that even after the acquisition by SoftBank they intend to grow on the same. The Fortress Investment Group became among the first company of its kind to be listed on the New York Stock Exchange in 2007. At the time the IPO would be underwritten by Goldman Sachs. Within a year of listing the company had sold eight percent of its stock and the price was on a bullish rally that saw some of its founding members become paper billionaires.
The acquisition of the Fortress Investment Group will see it return to its previous status as a private company. It will, however, maintain its current leadership.