Why Did Fortress Investment Group Get Bought By SoftBank?

Investments are popular among personal and corporate crowds alike because they generate money for people and businesses without them having to work for it. Most people make money through wages, salaries, commissions, bonuses, and other forms of compensation; to get money without having to put one’s self to work is something that most people and businesses are interested in.

Most investors save their nest eggs for retirement so they can spend the last years of their respective lives without working. Businesses invest excess money they’ve earned that won’t be used to cash flow its operations so they can earn more, ultimately become larger entities, and impress their stakeholders. Either way, individuals and business entities generally store their hard-earned money in traditional investments like stocks and exchange-traded funds.

However, some risky entities – this grouping includes individuals and households – trust their assets under the corporate umbrellas of management with alternative asset management firms. Alternative asset management is the use of off-brand methods – pretty much all methods of investing except for safe means of storing value in financial instruments like stocks with objectively-stable growth and a complete historical absence of volatility.

Fortress Investment Group is an alternative asset manager – and they’re damn good at what they do

Fortress Investment Group is an investment firm that employs the many strategies of alternative asset management businesses to generate high returns for its many clients. Traditionally, Fortress Investment Group has brought positive, double-digit returns for its countless clients – technically, that number of clients isn’t, in fact, “countless; rather, there are about 1,800 clients that trust Fortress Investment Group with their money and other assets.

Not too long ago – just 13 months in the past – Fortress Investment Group was bought by Japan’s premier business conglomerate SoftBank for about $3.5 billion.

SoftBank has stakes of ownership – both partial and total – in 400-odd businesses. Very few of them are financial services industry competitors; SoftBank is typically experienced with Internet and tech companies.

However, SoftBank bought Fortress because it showed tremendous potential and substantial profit margins.

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