SoftBank may be a giant in the tech world, but they are looking into making it big in the financial world as well. One of their most recent moves in this direction was the purchase of Fortress Investment Group for $3.3 billion. While many people may have been confused by the deal, their Chairman Masayoshi Son is known for his bold choices and is expecting big things to come out of the deal. He is a skilled businessman and investors are watching closely as the details of this transaction come to light and the business grow together.
One of the next big projects coming from Son is the SoftBank Vision Fun that is valued at $100 billion. The Vision Fund has investors like the public investment fund from Saudi Arabia which has supplied $45 billion to the project along with companies such as Qualcomm and Apple. With the network of financial experts that Fortress Investment Group has, SoftBank expects this to be important in their efforts because they will not have o build their own network from the group up.
Fortress Investment Group currently manages assets valued around $70 billion. Rajeev Misra of SoftBank used to work for Fortress as a derivatives trader before being hired by Mr. Son. Misra is now running the SoftBank Vision Fund and his knowledge of his former company will prove useful.
The co-chairmen of Fortress Investment Group will be staying on board with the company as it will continue to operate in a similar fashion as it did before the purchase. They will also be seeing some considerable benefits in the deal as they are not as familiar with the world of technology as SoftBank is. They have many investments involving private equity that generate a good deal of stable cash flow. Some of these include golf courses, state of the art railways, and nursing homes. While some believe that SoftBank paid too much for Fortress Investment Group, they believe that the company was undervalued on the private market and will do much better operating privately. This purchase should help their Vision Fund thrive.
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