SoftBank Nears Deal to Buy Fortress Investment Group for More Than $3 Billion

By Liz Hoffman, Jenny Strasburg and Sarah Krouse 

SoftBank Group is nearing a deal to buy asset manager Fortress Investment Group LLC for more than $3 billion, according to people familiar with the matter, in a departure from the Japanese giant's technology-focused strategy.

Fortress, which is listed on the New York Stock Exchange, manages about $70 billion in assets and invests in real estate, credit and private equity. The firm was founded in 1998.

Alternative managers like Fortress with a mix of businesses that span private equity, real estate and hedge funds, have emerged as appealing targets because they are able to charge higher fees and typically require long-term investments. Revenue at traditional money-management firms has been squeezed in recent years by the growing popularity of low-cost index-tracking funds.

Foreign investors, particularly from Asia, have been shopping for financial-services investments in the U.S. in recent years. Singapore-based Shanda Group, which bought a stake in Legg Mason Inc. last year, has said it plans to increase that position from 10% to 15%, for example. Meanwhile, Japan's Dai-ichi Life Insurance Co. invested in Janus Capital Group Inc. for the first time in 2012. After U.K.-based Henderson Group PLC's deal to buy Janus is complete, the firms have said Dai-ichi will own a 9% stake in the combined entity that will increase to 15%.

Write to Liz Hoffman at [e-mail], Jenny Strasburg at [e-mail] and Sarah Krouse at [e-mail]

(END) Dow Jones Newswires

February 14, 2017 18:10 ET (23:10 GMT)

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