Americans might remember when the Japanese Sony started buying up large companies in the United States. Now, the Japanese SoftBank is buying up assets. SoftBank buys Randal Nardone’s Fortress Investment Group – What Is Next?
Cash Rich SoftBank
Fortress Investment Group Co-Founder Randal Nardone has built up a very impressive asset portfolio, including gaming, travel, railways, mortgages and real estate. He had paid his dues at UBS. Randal Nardone also had legal expertise as a member of the Thacher Proffitt & Wood Law Firm Executive Committee.
Mr. Nardone was also listed #557 on Forbes’ list of “World’s Billionaires” for 2007. The Fortress Investment Group was the 1st hedge fund to go public. This IPO made many billionaires.
Enter Softbank – it started up in 1981. This was about the same time that Sony was making its large American investments. Forbes lists SoftBank as the “38th largest public company in the world.”
Rumors abound that SoftBank’s Chief Executive Masayoshi Son met US President Donald Trump to announce the investment of US$50 billion in the US to create 50,000 new jobs.
On February 14, 2017 SoftBank purchased the Fortress Investment Group for $3.3 billion, keeping a portion of promise. In 2016, the Fortress had some $70 billion under management.
Buying American Fortress Infrastructure
SoftBank made many purchases between 2017 and 2018, using its $100 billion Vision Fund. These included $1.4 billion for Indian Paytm, $10 billion in Uber and $150 million in German used car sales portal Auto1. The company seems flush with cash.
There are many American companies that could be attractive to SoftBank, why did they choose to invest in the Fortress Investment Group? Since Fortress was the 1st hedge fund to go public, there is a little symbolic cache in that leadership role. Experts also point to the infrastructure sector of Fortress’ portfolio.
These assets include the Brookdale Senior Living, New Senior Investment Group, Fortress Transportation, RailAmerica, Drive Shack, New Media Investment Group and New Residential Investment. SoftBank’s Chief Executive Masayoshi Son said, “Fortress’s excellent track record speaks for itself, and we look forward to benefitting from its leadership, broad-based expertise and world-class investment platform.”
Randal Nardone has added many assets that could form the infrastructure for a New Age. These might fit in with the SoftBank’s 2.0 Transformation Strategy. World-class execution, expertise and leadership are keys to Fortress and SoftBank success.
For More info: www.directorstats.co.uk/director/randal-nardone/