How Being Purchased By SoftBank has Affected Fortress Investment Group

Fortress Investment Group is a New York City-based investment management firm. They specialize in assets such as private equity, distressed debt, and real estate. This company is led by its three partners, Wes Edens, Peter Briger, and Randal Nardone. Both Randal Nardone and Wes Edens were co-founders of this company in 1998 while Peter Briger joined in 1992.

SoftBank is a Japanese company that owns businesses in the technology industry. It was founded in 1981 by Masayoshi Son and today has invested in over 400 internet businesses, starting with Yahoo!. SoftBank moved into the financial industry in 2018 when they acquired Fortress Investment Group for $3.3 billion. Even though SoftBank now completely owns this company they are not managing it or directing its investments. As a condition of Softbank buying this company they have to remain largely hands-off or else the US government would not have approved the deal.

When SoftBank acquired Fortress Investment Group they acquired one of the biggest global asset managers there is. This company has institutional clients and private investors totaling over 1,750 entities. The management team of Fortress Investment Group continues to manage its $40 billion in assets. One of the ways that this company benefited from being bought by SoftBank is that it is no longer a publically traded company and so doesn’t have to issue quarterly reports any longer. They also gained access to SoftBank’s huge network of Asian partners which will open up an array of investment opportunities.

One of Fortress Investment Group’s latest financial transactions was lending money to iPass. They lent a total of $20 million with half of that being immediately accessible. The money is being used to beef up iPass’ global network of Wi-Fi hotspots. Right now they have 64 million hotspots around the world located in places that people congregate such as subway stations, airports, hotels, and sports stadiums. They will be using Fortress Investment Group’s loan to expand this out to 340 million hotspots, a project that is expected to be completed by the end of 2018. Beyond Fortress Investment Group other investors in iPass include Microsoft and HP.