Fortress Management, Mubadala To Buy Fortress Investment Group

KUALA LUMPUR, May 23 (Bernama) -- Fortress Investment Group (Fortress) and Mubadala Investment Company, via its wholly owned asset management subsidiary Mubadala Capital (Mubadala Capital) announced they have entered into definitive agreements to acquire 90.01 per cent of the equity of Fortress.

According to a statement, the equity of Fortress is currently held by SoftBank Group Corp (SoftBank), who have been the owners of Fortress since 2017.

After the transaction closes, Fortress management is expected to own a 30 per cent equity interest in the company and will hold a class of equity entitling Fortress management to appoint a majority of seats on the board.

Meanwhile, Mubadala Capital which currently holds a 9.99 per cent stake in Fortress through its Private Equity Funds II and III, will own 70 per cent of Fortress equity.

After the closing, Fortress will continue to operate as an independent investment manager under the Fortress brand, with full autonomy over investment processes and decision making, personnel and operations.

Drew McKnight and Joshua Pack will be appointed co-Chief Executive Officers (CEOs) of Fortress, along with the appointment of Pete Briger as Chairman, while Mubadala Capital’s CEO and Managing Director, Hani Barhoush, who has served on Fortress’ board since 2019, will continue to serve on the board.

Furthermore, Dean Dakolias will continue in his role as Managing Partner and Tom Pulley will continue as the CEO of the global Fortress Real Estate business.

Jack Neumark has been appointed as Managing Partner continuing to lead the Legal Assets business and co-head the Specialty Finance business, and Marc Furstein will continue in his role as President.

In addition, Fortress co-Founders Wes Edens and Randy Nardone will continue to oversee the permanent capital vehicle (PCV) business and remaining private equity (PE) investments, including Brightline.

Under the new joint ownership, Fortress is expected to generate significant value for its stakeholders by further establishing itself in the alternative investment space, particularly in credit and real estate across public and private markets.

The transaction is expected to close in the first quarter of 2024, subject to regulatory approvals.

-- BERNAMA