Fortress Investment Group is an investment fund manager and advisor based in New York. The firm has a bias for asset management solutions and funding of startups. Fortress commands assets to the tune of $36.1. It is highly diverse in terms of its investment portfolio and business focus. Fortress is in control of assets of over 1,750 organizations, investors, and private individuals. The clients span a range of niche areas including private equity strategies for investment, real estate, and credit. Fortress has been acquired by Softbank. Investment pundits and Fortress clients must be scratching their heads about the deal.
The Rationale According to Softbank
According to the management at SoftBank, the acquisition of Fortress Investment Group is a valuable addition to its portfolio. Fortress Investment Group LLC comes with its expertise in investment strategies that work. In the arrangement, it has been disclosed that Fortress will continue to operate semi-independently. SoftBank Group will henceforth own the whole array of the Fortress assets following the successful completion of the acquisition process. It is reported that SBG complied with all the requirements of the acquisition including approval by the shareholders of Fortress. All regulatory requirements and approvals have been met. The purchase of Fortress cost SBG $ 3.3 billion. Now SBG is the owner of the shares of Fortress on NYSE.
The Acquisition Details Revealed
Details of the deal show that each of the Fortress Investment Group Class A shares will be converted to cash at the rate of $8.08 per share. The proceeds of the merger will be spread out based on the payment procedures set out by the Fortress Definitive Proxy and the agreement of the merger. The common stock of Fortress has since been removed from the NYSE. It was pointed out that the financial report of Fortress would be incorporated at the end of December 2017 results. The impact of the acquisition will be revealed to shareholders in due course as the need arises. Further details indicate that although Fortress has been fully bought, it will continue to operate but under the auspices of SBG. It will operate as an independent investment entity owned by SBG. It was also disclosed that the Fortress Chiefs in New York will continue to run the business. They will retain the business model that has made Fortress so attractive.
How Fortress nearly stopped the 2010 Winter Olympics
Like all major events, the Winter Olympics of 2010 held in Canada was driven by some big corporate player’s monies. It came as a surprise as Fortress wrote a demand letter to the Canadian authorities to pay up for the use of the British Columbia Ski Resort owned by Fortress. Fortress wrote a demand letter asking to be paid $ 90 million. It was an interesting turn of events because Fortress was demanding for a settlement of an anticipated debt. Fortress threatened that the Alpine events will not proceed unless the payment is made to their accounts prior to the commencement of the games. Another resort to be used for the Olympics called the Whistler Blackcomb is an Intrawest property but Fortress bought it in a buyout that was leveraged owing to a debt. It was reported that Intrawest had defaulted to the tune of over $500. The fortress was just moving in to rescue Intrawest by paying its debts for the short term. Read More.