Why SoftBank Acquired Fortress Investment Group

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Many were left perplexed when Japanese SoftBank decided to acquire Fortress Investment Group for about $3.3 billion. The Japanese group of investment has previously been known to be attracted in telecommunications-related firms and the entire industry before changing focus and acquiring an entity in alternative finance and asset management that left many surprised. However, there are several reasons which could have convinced the company that investing in such a tremendous amount of money was worth the effort.One of the reasons which would have persuaded the Asian investors to purchase the company would be its worldwide appeal. Fortress Investment Group is a reputable organization that has been setting the standards for other wealth management organizations around the world. The marketing strategies of the wealth management organization have placed it as one of the most recognized organization not only in the United States but even across the border.

Purchasing an already established organization and a known company would have saved the investors large amounts of money if they would have decided to buy unknown organization and market it across the world.Secondly, Fortress Investment Group is an organization that has a large asset base and a considerable number of clients that it supports. Currently, the entity owns assets in the United States, European countries, and the Caribbean among others. Holding assets in such countries are such a massive milestone that many bodies would struggle to have. The broad asset base is a clear indication of the wealth managed by the organization. Furthermore, the number of clients served by the company means that the organization has already created a brand for itself.

It is worth highlighting that the New York City-based wealth manager has the highest number of clients in wealth management and alternative asset investment.Lastly, Fortress Investment Group is an organization that has significantly diversified its assets in various fields, which makes the entity to remain profitable despite other sectors in finance field experiencing huge losses. Operating in the healthcare industry, real estate investment, transportation, and media would have justified the considerable amount of money that SoftBank paid for the company. Purchasing the shares of the organization means that the new owner sets foot in each of the industry the company has been operating. Besides, the fact that a Japanese company owns Fortress is likely to open up a new market in Asia where the entity can attract a massive number of clients due to the low industrial occupation.

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