Japan's SoftBank Group is to acquire the private-equity firm and asset manager Fortress Investment Group for about $3.3 billion in cash. The move into financials is a new one for the Tokyo based firm.
Masayashi Son, the Founder, Chairman and CEO of SoftBank, has made unpredictable moves in the past, not least its decision last October to set up a $100 billion technology investment fund with Saudi Arabia, he has also promised U.S. President Donald Trump support via job creation in the U.S.
The Fortress Investment Group investments are wide ranging covering hedge funds, private equity and real estate. It had $70 billion in investments under management at the end of September 2016.
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In the wake of the global financial crisis, Fortress bought bad loans in Italy and has a track record in Japan, where it bought hotels held by Lehman Brothers after the bank collapsed in 2008. It is one of few global foreign investors with funds that are targeted at Japanese assets.
SoftBank has a connection with Fortress having recruited one of its executives, Rajeev Misra, (pictured above) in 2014. Misra now runs SoftBank's blockbuster fund a fund the Fortress deal is designed to boost.
Fortress will operate within SoftBank as an independent business, based in New York. Senior fund managers would also remain with the group Softbank said in a statement.
