Fortress Investment Group was founded as a private equity firm in 1998, and since that time has grown into a global firm which manages over forty-three billion dollars of assets. Over nine hundred employees work for Fortress. Headquarters are in New York along with principals Randal Nardone and Wes Edens. The third principal, Peter Briger is based in San Francisco.
Back in 2007, Fortress made headlines when It became publicly traded, the first United States private equity firm to do so. Ten years later, Fortress Investment Group was again a topic of interest after a 3.3 billion dollar acquisition of the company was announced by Softbank, a Japanese company. Founded in 1981, SoftBank was a wholesale software company, but continued to grow and expand focus. Gaining a controlling interest in Yahoo in 1996 was a major boost for the company. Since that time, SoftBank has shown considerable growth and expansion, and is now involved with over four hundred internet companies.
Softbank recently developed the Vision Fund, the largest investment fund for technology ever developed. The fund is valued at around ninety-three billion dollars. In response to the involvement of Fortress Investment Group in the fund, both companies agree that Fortress will not have direct involvement.
Despite the acquisition, not much changed in the daily operations of Fortress Investment Group, although it operates within SoftBank. Headquarters remained in New York, and all three principals stayed on in their positions. Recognizing the success that Fortress has had, SoftBank plans to maintain the business model and leadership that have led to that success. The established work culture and current personnel of Fortress will continue normal operations.
The question that many have is the reasoning for an acquisition if Fortress Investment Group is to continue independent operations with few changes. Actually, both sides benefit from the new arrangement. SoftBank gets an opening into investment services, and thus opportunities for expansion. On the other hand, Fortress benefits by no longer being publicly traded, and by acquiring new Asian connections. The acquisition gives both companies opportunities to move in new directions, and opportunities for continued success.