Fortress Investment Group: A Winner For Soft Bank!
Fortress Investment Group, based out of New York, and founded twenty years ago in 1998, is a leading and highly diversified global investment management firm. They focus on private equity, hedge funds, railroads, red it funds, as well as traditional asset management. It’s subsidiaries include New Senior Investment Group, Railroad Acquisition Holdings, Nationstar Mortgage, New Castle Investment Corporation, New Media Investment Group, and a partial holding of Intrawest Aircastle. The firm has a reported revenue of 1.1 billion US dollars as well as a net income of 180 million US Dollars. The leadership of Fortress Investment Group is as follows: Peter L.Briger, Jr.Principal and Co-Chief Executive Officer, Wesley R. Eden Co-Founder, Principal, and Co-Chief Executive Officer, and Randall A. Nardone Co-Founder and Principal. All three of these businessmen have led successful careers both before founding/joining Fortress and certainly have done well in their role as the Management Committee of Fortress Investment Group. Glassdoor.com, an online employment resource, where personnel (both current and former) anonymously review companies they have worked for and their management reported a ninety-two percent approval rating of the chief executive officer(s) of Fortress.
Personnel ranging from interns to analysts who had worked or were currently working for Fortress had many positive things to say about the company including: There were many opportunities available to them and they were able to learn about many different industries. They felt there was good communication and overall collaboration between teams. Many employees also praised the flat management structure also known as the horizontal organisational structure. This type of management style differs from the more traditional hierarchical structure due to its consisting of few if any middle management positions. This type of management style is favored by companies which prefer temployeeshe removal of excess layers of management to promote communication between executives and staff which in turn allows for personnel to be more directly involved in the decision making process. Certainly the Management Committee of Fortress Investment Group has earned the praise and respect of their employees (as shown in the reviews) due to their diligent and direct business model which has been a cornerstone of their past success.
This past year, in December of 2017, Soft Bank Group Corporation, an internet and telecommunications behemoth, based in Japan, purchased Fortress Investment Group for the sum of 3.3 billion US dollars in cash. The acquisition resulted in Soft Bank Group and it’s subsidiaries owning all outstanding Fortress Investment Group shares. Fortress’s common stock was de-listed from the New York Stock Exchange due to the fact that Fortress’s future financial results are to be consolidated and reflected on Softbank’s financial statements. That being said Fortress is still allowed to operate as an independent company under the umbrella of Soft Bank whois committed to maintaining the leadership, personnel, business model, and brand which over a thousand clients, both corporate and private, worldwide have come to trust in for their investments. Will Softbank now with Fortress’s successful firm in its pocket soar? Perhaps it is too early to tell but if Softbanks numbers from 2017 (after announcing their intent to buy Fortress) are any indication, Fortress Investment Group is a solid boone to the company’s ever growing portfolio.