2018 was a great year for Fortress Investment Group. It was a year of transition and expansion. The highlight of the asset management firm’s year is its acquisition by the most prominent financial conglomerate, the SoftBank Group Corporation, in the world for $3.3 billion. The purchase has opened more cutting-edge development opportunities in the world of real estate and private equity funds. Fortress Investment Group started in 1998 as an equity firm and grew to become a global financier and investor. It was the first fund to go public in 2007.
Purchase by SoftBank
The take-private transaction came into a close in December, 2017. With over $40 billion inn global assets, the firm’s principles including Wes Edens, Randal Nardone, and Peter Briger helped to integrate the assets to SoftBank’s global strategies. SoftBank is a company that has a strong interest in tech start-ups and it has invested in numerous tech companies. Prior to the deal, Misra was hired by SoftBank in 2014 to head its Vision Fund making him to leave Fortress where he served as head of strategic finance. He is now the executive vice president of the Board of Directors of SoftBank. The SoftBank founder and CEO, Masayoshi Son, said that Fortress is a successful firm with an excellent track record. SoftBank will benefit from the firm’s broad-based expertise, leadership, as well as world-class investment platform. The Japanese company has now managed to incorporate an asset management firm into its holdings. The transition has been smooth with Fortress continuing to build its portfolio of senior housing, real estate, and infrastructure investments. Wes Edens was particularly excited for the opportunity to make the firm private.
Investing in high profile real estate
Under the new owner, Fortress has already started leveraging its interests and experience in the real estate to venture into high profile markets. It is now carrying out the $2.5 billion TSX Broadway development. It has partnered with L&L Holding Company as well as Maefield Development to back a mega-development in Times Square, New York that is going to be a kind of traditional hotel as well as entertainment project in the world’s most famous city that will also be a world-class retail space. Fortress Investment Group also bought Tifany & Co. building for $20 million. Fortress Investment Group also bought SuperValu distribution center located in Pompano Beach, Florida for $66.4 million. The alternative asset manager has continued to grow its broad portfolio of investments.