Japanese conglomerate Softbank is set to buy America’s Fortress Investment Group for US$3.3 billion – a $1 billion premium over the company’s stockmarket value.
The extent to which the deal will help domestic institutions invest in non-public assets held outside Japan can only be guessed at for the time being but interest in acquiring such holdings is high among pension funds.
Fortress manages around $70bn in private equity assets which, added to the around $170bn Softbank already has under management (including $100bn in a technology development fund), will make the acquirer the world’s second largest private equity investment firm behind Blackstone with $330bn.
Fortress has acknowledged strengths in real estate which the most recent Nomura Research Institute study of demand for asset management products showed (see below) were relatively under-supplied.
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