Fortress Investment Group is one of the largest private equity firms in the United States of America. Founded in 1998, the Group in New York started with real estate and hedge funds’ investments. The firm has grown ever since, having assess valued at 70 billion dollars. It mainly manages investments in liquid markets, private equities, traditional asset management, and credits.
Its most significant investment in the recent past is in Morrisons. Morrisons is the fourth largest supermarket in sales after Asda, Tesco, and Sainsbury’s in the United Kingdom. Fortress Investment Group showed interest in May 2021 after Morrisons showed interest in selling out. The Group presented four proposals to the board of directors, which were rejected. The first proposal was pegged at 220 per pence for each share. The directors claimed the price was too low.
The directors of Morrisons finally settled on 254 pence per share. The offer presented a 42% profit based on the closing price of the shares in June 2021. However, when the proposal was sent to the shareholders, they declined the offer stating it was too low.
The Fortress Investment group had to raise the price to 272 pence per share. The firm based in New York bought Morrison at 9.3 billion dollars. Koch Real Estate Investment, Singapore Sovereign Wealth Fund, and Canada Pension Plan Investment Board backed this offer.
As of March 2021, Fortress Investment Group manages assets for various individuals and companies worth 53 billion dollars. The liquidated assets, bonds, stocks, and shares are about 10 billion dollars. The Fortress Investment Group comprises 117 team members and ten group board members. The Group seeks to maintain the managerial team in Morrisons to ensure business continuity and retain its headquarters at Bradford. The directors of Morrisons believe the firm is the best choice they had since they have the best interest for its shareholders. Refer to this article to learn more.