Fortress Investment Group has bought into the purchase of Vivint Smart Home by Mosaic Acquisition Group to the tune of $125 million dollars. The contribution coincides with Fortress’s existing stake in Mosaic through some of its affiliates. It is also part of a combined investment between Fortress and its new owner Softbank which is also investing $125 million into the acquisition. Softbank’s Vision Fund will gain a representative in the Board of Directors as well as access to Vivint’s innovative catalog of smart home products. The move is another in a list of investments made to advancing technology by both Fortress and Softbank. In the wake of Softbank’s purchase of Fortress it seems the two are linked in their overall goals.
Last year was kind of a big deal for Fortress. The New York-based hedge fund is famous for expanding into a worldwide asset management force, as well as being one of the first hedge funds to go public. Now, Fortress Investment Group is private again and its new owner Softbank has begun to settle in. The purchase finalized back in 2017 but took the next year to integrate. Softbank is a Japanese conglomerate most known for investing in telecom services. Its vision fund is an overall goal to invest in innovation and as Fortress Investment Group is no stranger to advancing tech investments the two share a common goal. The parameters of Softbank’s acquisition allow Fortress to continue business as usual. Softbank simply gets a seat at the directors table, much like their incoming arrangement with Mosaic, and access to Fortress’s huge list of affiliates.
So far Fortress has continued its normal range of investments but Softbank has not hesitated to dip its toe into the water. It has also proven that the purchase of Fortress Investment Group was directly attached to its vision fund. This was most evident in its $2.5 billion dollar development in Times Square called TSK Broadway. The Fortress-backed real estate mega-development is an experiment in innovative real estate. The end result being a hybrid dining/retail/hotel/entertainment experience all rolled into one building.