SoftBank Mulling Sale Of Fortress Investment Group

Fortress Investment Group is a company based in New York City that is owned by SoftBank Group Corp. of Japan. It was acquired by SoftBank in 2017. SoftBank is reportedly considering selling it according to insiders. The sale is being considered in large part because SoftBank can’t integrate Fortress’ operation into its own.

SoftBank acquired Fortress Investment Group with the intent of it managing SoftBank’s mammoth Vision Fund. However, the deal needed the approval of the Committee on Foreign Investment in the US. The committee members ruled they would only approve the deal if SoftBank had no control over the day-to-day operations of Fortress. This meant Fortress is operated independently and can’t manage Vision Fund.

SoftBank is a conglomerate that has an ownership interest in many technology firms around the world. Its holdings haven’t done well this year. While the Nikkei 225 Index has risen by 8% in 2021, SoftBank shares have fallen by 21%. It has been selling non-core holding throughout 2021. This includes shares in Boston Dynamics Inc., Arm Ltd. and Brightstar Corp. It’s also sold much of its stake in T-Mobile US Inc.

Fortress Investment Group was founded in 1998 by Randy Nardone, Pete Briger and Wes Edens. It had $53.9 billion in assets under management on June 30. It invests in private equity, permanent capital vehicles and credit. Fortress has offices in New York City and San Francisco.

Many alternative asset managers have been diversifying their holdings lately for their clients. Clients of Fortress include sovereign wealth funds, pension funds and endowments. Franklin Templeton acquired Lexington Partners recently, while Blue Owl Capital Inc. purchased Oak Street Real Estate Capital. To know more click: here.