Fortress Investment Group is an investment group with a global presence in a wide range of investment niches. The firm has an asset base to the tune of $3.6 billion; according to the financial report released at the end of 2017. Fortress has an advantage over other investment firms because of its business model. For instance, the firm holds trust for over 1750 organizations as their asset manager. It also manages assets for private clients and individuals. Fortress Investment Group ventures in a wide range of investment segments including real estate, private equity, and credit.
Fortress in Softbank Hands
SoftBank Group has announced that it has completed the acquisition of Fortress Investment Group as earlier planned. The financial firm has paid $ 3.3 billion for the new catch. It is now official and that SoftBank now owns all of Fortress’ shares. SBG management says that they have fulfilled all the statutory requirements for the acquisition. Indeed, so far, Fortress shareholders have already approved the change of ownership. It has been reported that Fortress will operate independently but under the umbrella of SoftBank. The SoftBank officials hail the move to acquire Fortress as an advantage in their investment segment strategy.
Winter Olympics 2010
In one of the most intriguing incidents, Fortress Investment Group nearly brought the 2010 Winter Olympics that were to be held in Canada to a halt. They demanded payments owed by the Canadian authorities prior to their allowing the games to proceed. They were in the headlines for a while prior to the games. It was a shock to most Canadians who didn’t quite understand how an American Company could be so deeply involved that it threatened to stop the games from being held in the country. The story has it that Fortress was the owner of a British Columbia Ski resort that the Olympics organizers were to use for Alpine events. Fortress demanded that the authorities responsible for the games pay up over $ 90 million; otherwise, it would sue and stop the games from being held in the first place.
Strategic Move by Fortress
Fortress says that the authorities in Ottawa had promised to settle the debt before the games commenced but they had not yet done it. The saga involves the Whistler Blackcomb resort that is run and owned by Intrawest. The latter company owes Fortress after Fortress bailed it out. The default amount that Intrawest has defaulted on repayments is about $500 million, and what Fortress Investment Group knows.
The creditors of Intrawest had threatened to take action aimed at recovering the debt. They had threatened to sell off the assets that belong to Intrawest. However, Fortress was willing to step in and rescue Intrawest. Fortress had indicated that it would settle the debt owed by Intrawest as Intrawest looked for a way of sorting out its mess. It was a strategic business deal by Fortress because on closer examination it is shown that although they were settling the debt in part, they were simply displacing the original debtors and surcharging Intrawest at a higher rate. In other words, the interest rate of the bailout funds will be much higher; an indication of the likelihood that Intrawest could still default. The firm seems to have seen the benefits that Intrawest would reap if the games were to be held in their premises, and read full article.
Other Reference: https://www.law360.com/companies/fortress-investment-group-llc