Softbank to buy private equity giant Fortress at huge premium

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.

 

For the most perceptive coverage so far see the New York Times story here and CNBC here

© 2016 Japan Pensions Industry Database/Jo McBride. Reporting on, and analysis of, the secretive business of Japanese institutional investment takes big commitments of money and time. This blog is one of the products of such commitment. It may nonetheless be reproduced or used as a source without charge so long as (but only so long as) the use is credited to www.ijapicap.com and a link provided to the original text on that site.

This blog would not exist without the help and humour of Diane Stormont, 1

This entry was posted in Articles. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *