A surprising acquisition that was done at almost the end of the year in 2017 was SoftBank Group Corporation’s acquisition of Fortress Investment Group LLC. The Fortress Investment Group LLC is one of Manhattans key lender, property investor, and asset manager. Although the procurement move may be an ideal one for a financial company or real estate entity, the purpose is quite vague with SoftBank which is a traditional technology conglomerate that is headed by Masayoshi Son.According to Dean Ungar, Moody Investors Service’s Senior Analyst and President, the purchase may seem to be an impulsive move on SoftBank because for a tech company like it, the acquisition of a credit-concentrated private equity company is like shifting in a different route because both companies belong to different industries. And this is based on the other deals made by SoftBank in the past where it focused on investing in newly star-up ventures that are on their way to development.But looking at it in a different perspective, the benefit of acquiring a two-decade old international investment managerial firm that has accumulated over $40 billion assets during its many years of operation, was not given due consideration.
However, in Rajeev Misra’s opinion – having served with Fortress as a partner and senior managing director in 2014, the action taken by SoftBank was a measure taken by the tech-company to form another asset investment division.In the past years, a minor group of investors in SoftBank Group’s London and Tokyo offices have explored numerous prospective deals. And by procuring Fortress, Masayoshi Son’s firm is given the opportunity to have a longstanding organization that already has an investment committee, compliance and trading divisions, and investor partners.In relation to the above, SoftBank is intending to create a London-based organization named SoftBank Financial Services, where Rajeev Misra will oversee the 1000 employee venture.
Misra said that his foresight for the company is to be able to make it among the biggest alternative assets manager around the globe. And he plans to promote Fortress-branded funds for private equity and debt to several Vision Fund leading financiers based in the Middle East.On Fortress Investment Group’s side, reliable informers say that the daily operations did not really change as some would have anticipated after the company was purchased by SoftBank. Although there is no indication yet that SoftBank might likewise benefit from the Fortress Investment Group’s astounding position within the real estate market of New York.