Fortress Investment Group: The Future Looks Bright Ahead

Financial Investment giant Fortress Investment Group has been the latest billion dollar acquisition of SoftBank. For a company whose focus is mainly geared towards tech and other startups, many wondered about why they would be interested in acquiring Fortress Investment Group.

Fortress shareholders have approved the deal back in July of 2017 with a price tag of $3.3 Billion. The deal then was fully realized in December of the same year. This particular transaction would only make sense upon checking on each of the company’s background history. Both parties have consistently shown the need to expand and rebrand themselves over the years.

SoftBank was engaged in wholesaling of PC Software titles when it first started in the 80s. Now, the firm has stakes in over 400 companies with various services that would include broadband and technical services. Also involved are companies connected with e-commerce and the internet as well as fixed-line communications and much more. As Fortress Investment Group joins SoftBank’s portfolio, the company’s attemt to be one of the biggest investment conglomerates in the world has been further strengthened.

Fortress Investment group has a newer history compared to SoftBank. The firm has started out in 1998 but has grown to be a global leader in alternative asset management. Based in New York City which is known for its fast pace, Fortress now handles assets of about 1750 or more private investors in addition to their institutional clientele. Even with the acquisition, Fortress will operate on their own and will remain in New York. This comes as a surprise that SoftBank will really have no say with regards to how the firm will manage its nearly $40 billion assets. The real reason though stems from the fact that transactions dealing with overseas firms would be subjected to oversight by the US Committee on Foreign Investments. The agency in turn would only be able to sign off the deal if SoftBank would promise to have a limited control of how assests are being managed.

SoftBank also had to deal with another hurdle to fully realize this acquisition as they had to pay the share price with 9 percent premium. The company was also engaged with other transactions that had to be settled prior to acquiring Fortress Investment. But these were still a small price to pay for SoftBank considering Fortess has been enjoying developments for years, including their distinction of being the first private firm in the US to be offered for public trade.

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Investment The Right And Wrong Approach

Warren Buffet recently wagered that he would receive greater returns on a simple investment in an S&P passive index fund than by going to a group of professional hedge fund managers. This seems to be a safe bet. The world of investment has increasingly become flooded with expensive investment funds that feature low returns and high fees.

On the other hand longer term passive funds often do not provide security for investors in the event of the market turning downward. Prominent among all traditional financial wisdom is the idea that people need to invest to secure a comfortable retirement. So what is the average lay investor supposed to do? Find an active investment fund with two features, low fees and a high amount of manager ownership.

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Timothy Armour has 34 long years of experience with Capital Group. Working his way from an equity investment analyst, Tim Armour began as a participant in the Associates Program and now manages an equity portfolio along with his other prominent positions with Capital Group. He is the chairman and chief executive officer of Capital Group while also leading a subsidiary company and being the chairman of an essential committee. He has epitomized the balance of active and passive investment.

One good example of his leadership is the new partnership with Samsung Asset Management in South Korea. The Korean company will benefit from the expertise of Capital Group. Timothy Armour emphasized the long term vision of helping Korean investors as he helped their American counterparts.