SoftBank Group, one of the most reputable financial institutions in the world purchased Fortress Investment Group for $3.3 billion. Fortress is one of the world’s largest investment companies, and the deal marked one of the best moments of the investment giant in 2018. The deal added another innovative development of fortress involving its collaboration with private equity companies. The company started operating as a hedge fund in 1998 before rising to a global investment company. Fortress Investment Group made the headlines in 2007 after becoming the first privately owned equity fund to join the NYSE, New York Stock Exchange through an IPO, Initial Public Offering.
The merger between SoftBank Group closed in December 2017, but the transition took place for the better part of 2018 including the integration of Fortress’ global assets into SoftBank’s strategies. The Directors of Fortress Investment Group independently manage the company’s assets as part of the agreement between the two companies. Wes Edens and Randal Nardone operate from New York and Peter Briger from San Francisco. However, the acquisition marked the exit of Fortress from the NYSE back to its private state with the conversion of class A shares at $8.08 per share. Since the closure of the merger, SoftBank Group has started supporting various projects that Fortress had an interest with, an example being, the Vision Fund.
The Fund is investing in real estate companies specialising in construction including real estate brokers Compass, Katerra, Open Door, and WeWork. The merger between the two companies saw Fortress enter in the private credit sector by forming two real estate funds. The two will purchase real estate assets and debts as well as provide customers with direct private-equity funds. Fortress Investment Group continues to leap heavily from the merger with SoftBank Group by investing more in investment products than in the real estate sector. In May 2018, barely a year after the merger, Fortress announced that it would seek $400 million to start Patent Troll Fund. The primary objective of launching the fund is to support the companies protecting their patent portfolios. Additionally, the fund would address the legal solutions for intellectual property violation. Fortress Investment Group also seeks to raise $2 billion to start its first direct-lending fund.