Fortress Investment Group Reaps the Benefits of its Acquisition by SoftBank
A lot of people have been wondering what has made Fortress Investment Group the kind of industry leader that it is; well, their solution is here today. Fortress Group has been a project of real leadership and adherence to the core principles that the company has set in its strategic plan. This has enabled the firm to keep moving even during the difficult moments of economic crisis that have led to the collapse of many other investment firms. The leadership of the firm have been quite strong and supportive of its junior staff and hence creating a very conducive environment for innovation and subsequent growth of the firm.
Among the principles and competencies that have been fundamental to the growth of Fortress Investment Group is its ability to manage mergers and acquisitions competently. This was unique expertise that was introduced to the company by Peter Briger when he joined the company in 2002 from Goldman Sachs. Peter made all the personnel in Fortress Group learn the essential art of establishing and maintaining strong and professional relationships with stakeholders of big organizations in the investment and even other industries. Lucky enough, the strategy has been so fruitful for Fortress that it has been able to engage in high profile business deals with other organizations, which involve mergers, acquisitions, and partnerships.
One of the companies that were successfully acquired by was the Intrawest. This was a Canadian company which was the largest ski resort operator in the whole of North America. Other companies that were acquired in the period were RailAmerica and AIG’s American General Financial Services. However, the latter would the change its name to be called Springleaf Financial Services. One thing worth noting is that while Springleaf was under the management of Fortress Investment Group, its value increased rapidly to over $3.5 billion, which was more than 27 times the value of its original purchase price.
Later in 2017, an international company that specializes in technology and telecommunications, SoftBank Group, purchased Fortress Investment Group in a cash-based transaction that cost them $3.3 billion. This was a very bold move by Fortress Group because they are going to enjoy the advantage of indulging in new economic markets.