With twenty years of remarkable leadership in the world of investing, Fortress Investment Group was very successful in 2018. Now, it has become part of one of the most prominent financial conglomerates in the world: SoftBank Group Corporation. With this consolidation, Fortress promises to be part of cutting-edge developments in the areas of private equity funds and real estate.
Founded in 1998, Fortress Investment Group has been a bold hedge fund that has grown into a global investor and financier. In 2007, after successful growth in its first decade, Fortress became the first hedge fund to go public, making an initial offering on the New York Stock Exchange. In 2017, a Japanese multinational holding conglomerate named Softbank purchased Fortress and integrated it into the global strategies of its company. For instance, Softbank’s Vision Fund provides financial backing for many technologies that are in their initial stages. These technologies include robotics, the Internet of Things (IoT), artificial intelligence and renewable energy. Softbank’s strategies also include large-scale projects, such as constructing the infrastructure for high-tech innovation or a massive solar power project in Saudi Arabia.
The purchase of Fortress Investment Group by SoftBank allows for Fortress to retain the day-to-day control of its operations. Nevertheless, there is a need for adaptation on both sides as Fortress builds its portfolio of infrastructure investments with such affiliates as New Senior Investment Group and the Fortress Transportation and Infrastructure Investors. With its acquisition of Fortress, SoftBank now “leapfrogs into the asset management and private equity business,” states Jesper Koll, CEO of WisdomTree Japan K.K.
Expanded opportunities for both Fortress Investment Group and SoftBank exist in this new merger as they invest in real estate. One high profile project announced in 2018 is the $2.5 billion TSX Broadway development in Times Square of New York. This project will have a luxury hotel, 75,000 square feet of retail, a performance stage and an LED screen covering 18,000 square feet. Other areas of real estate considered are in southern Florida’s Palm Beach and Pompano Beach.
The merger of Fortress and SoftBank expands into areas such as funding legal remedies for violations of intellectual property. Also, there is financial support for iPass, the world’s largest WI-FI network. As more and more regulations are placed upon banks, Fortress is reported to be raising $2 billion for its direct-lending fund.