Since the foundation of Fortress Investment Group in 1998, Randal Nardone has been able to steer the operations of the company up to the point where the company has experienced maximum success. The organization has been able to become the largest alternative asset investment company in the world in terms of the asset base and the number of customers who associate with the company. However, recent reports indicate that the company will be acquired by a Japanese Investor, Soft Bank.
A significant number of people did not understand why the organization accepted the bid from the foreign investor given that the entity was not experiencing any financial distress and did not need financial support. However, there are various benefits that could have triggered the acceptance of the bid by Randal Nardone and other executive members of the board of the Fortress Investment Group.
One of the main reasons as to why Randal Nardone and other members of the Fortress Investment Group accepted the bid is that the organization did not change its board of directors. The regulatory authority of United States highlighted that the management of the organization had to be maintained for the deal to go through. This means that, despite the acquisition process being complete, the company is still under the control and management of Randal Nardone, Wes Edens, and Peter Briger.
The company received a good offer that any other organization willing to expand its operations could not have resisted. Additionally, the money provided by the Japanese investor was under the control of the management of the company such that it had to decide what to do with the money. Given that the main executive members and founders of the organization owned some shares in the company, there was no need of leaving the company.
Lastly, Randal Nardone could have accepted the bid to sell his company due to the probability and the opportunity of expanding the firm to Asia. The Japanese investor is supposed to create an opportunity where the company will easily move its operations to the Asian region where there are few number of asset management entities.
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