What Was Peter Briger’s To Fortress Investment Group’s AcquisitionBy Softbank?
Established in 1998, Fortress investment group has had a successful run in the alternative investment world. During this time, it became the first private equity firm to trade publicly and also had one of the biggest pool of funds under management. Most recently, the investment was acquired by the Japan-based Softbank and the principals, led by Peter Briger, couldn’t be happier. Here are some of the reasons they were rooting for the acquisition and privatization of one of the most successful hedge funds:
More expertise and experience
Peter Briger welcomes the acquisition of Fortress Investment Group by Softbank. The experienced debt and credit investment professional holds the opinion that Fortress stands to benefit immensely from sharing in Softbank’s industry experience.
Peter also believes that having been actively involved in the investment world for the past three decades, Softbank has accumulated the necessary industry experience and built up enough expertise. Sharing these with the newly acquired Fortress would go a long way in streamlining their operations and boosting their productivity.
No more earnings calls
While the Fortress investment group principals were quick to list with the NYSE, it wasn’t long before they started exploring ways out. Peter Briger and Wes Edens have particularly mentioned that the regular earnings calls may have derailed them from accomplishing key objectives.
Briger argues that having to chase after short-term investments in order to match investors expectations affected their overall performance. It made the principals lose focus on more rewarding but long-term investment opportunities. The acquisition and subsequent privatization will, therefore, go a long way in helping Fortress get back to its profitable ways.
Softbank started out by investing in the technological startups. In recent years, however, it has adopted a more diversified investment approach that saw it embrace more investment vehicles. Fortress has, on the other hand, been looking to diversify its portfolio and reduce its overreliance on such high-risk ventures as real estate and distressed debts.
According to Peter Briger, the timing of the acquisition plays well in the Fortress goals. He expresses confidence in the leadership of Masayoshi Son and his ability to inject new investment ideas that align with Fortress investment history.
Read more: https://www.cnas.org/people/pete-briger