The investment management firm has been operational for almost four decades. It was recently acquired by a Japanese-based company known as SoftBank. The Japanese firm has diversified its portfolios over the years, and that has led to a positive trend in its revenue. The acquisition came as a surprise to many players in the business world. SoftBank’s management seeks to become one of the best investment firms around the globe. The acquisition deal was valued at $3.3 billion. Due to the regulatory changes in the U.S, the management of Fortress Investment Group (FIG) was to remain intact. One of the reasons why SoftBank decided to acquire the investment management firm is that the current management had proven to be good in making informed business decisions. View pitchbook.com to learn more about Fortress Investment Group.
SoftBank was started in 1981 by Masayoshi Son. It specialized in wholesale trading of PC software. In the next decade, it expanded its portfolio and started organizing computer trade shows and the publication of magazines. As it continued to grow, it invested in Yahoo and acquired majority ownership in the organization in 1996. Currently, it has a stake in over 400 internet firms. The management of SoftBank has shown interest in investing in tech start-ups. Fortress Investment Group was founded by Randy Nardone who currently serves as its Chief Executive Officer and Wes Edens in 1998.
The clients of the investment management firm include individual investors and institutions who are estimated to be over 1,750. FIG is headquartered in New York City. According to the acquisition deal, all the outstanding shares at Fortress would be owned by the SoftBank Group. The decision was also approved by the shareholders of FIG.
To yield more returns for the investors, Fortress Investment Group partnered with a connectivity company called iPass. The organization offered to fund FIG with $20 million. The president of IPass, Gary Griffiths, expressed his optimism that the partnership would benefit both firms in the long run. The security of the loan was iPass’s assets which include the SmartConnect and its patents. The deal between iPass and Fortress Investment Group was facilitated by a brokerage firm called Riley Financial, Inc.