SoftBank Buys Randal Nardone’s Fortress Investment Group – What Is Next?

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.

Why Fortress?

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.

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Laidlaw and Company

Laidlaw and Company’s genesis can be traced back to the year 1924, according to a Wall Street Journal report, when Robert Laidlaw formed a trucking service company known as Laidlaw Transit. Laidlaw grew over the years through acquiring other companies such as Charter Bus Company in 1972. In the following years, Laidlaw, Inc entered the Contract School Bus Business and later U.S Solid Waste Industry. Laidlaw left the trucking business in 1984 to deal with consolidation of Small School Bus Contracting Companies. Over the years, Laidlaw has acquired various transformations from its initial object formation.

The company has its headquarters in New York. Laidlaw company provides various services including investment banking and personalized wealth management advice to both institutions and individuals and advisory services. On investment banking the company offers various services including; Capital raising, Placement of debts and mezzanine capital with institutional investors, Acquisition financing, national exchange list organization among others. Advisory services include skilful execution of investments, acquisition, divestitures, fairness opinions and financial restructurings. Laidlaw provides wealth management services which include; financial planning, portfolio management.

Laidlaw has spread further since its establishment to the recent London office expansion through addition of Richard Michalski and Bryan Kobel. The two joined Laidlaw in the years 2010 and 2012 respectively. Richard Michalski is the senior managing director in wealth management. Bryan Kobel is the managing director Equity and capital Markets.

However, the company has been accused o violating U.S financial regulations. This has led to increased number of customer complains among the RelmadaTherapeutics, Inc. Relmada accuses Laidlaw of attempting to taking control of the company using the shares and information it has gained from being their investment banker. Relmada claims that Laidlaw & Company failed to comply with the Securities and Exchange Commission (SEC) regulations. The matter has been at the court for the lawsuit of the companies rights.