The fortress investment Group recently made a 20 million investment at iPass. This was through a credit facility that the group will secure through their patents that include the Smartconnect technology that powers their hotspots all over the world.
The fortress investment Group has been diversifying its portfolio for the last few years choosing to invest in the technology sector. This is derived from the fact that this sector is experiencing some of the fastest among all industries in the country. iPass Is one of the world’s largest providers of hotspots. Hotspots help provide WIFI connectivity in commercial and residential areas. This is powered by Smartconnect which, when launch supports the same. iPass was looking for a partner that understood the nature of investment that they required. Over the past few years, Fortress has been able to employ experts in this sector who understand what it entails and were therefore in a place to advise on the same. The deal will see iPass get the first 10 million dollars on the spot, but the remaining ten million dollars will be released gradually. This money will enable iPass to strengthen its balance sheet, and they can now focus on expanding their hotspots as well as increasing profitability. The fortress investment Group was founded in 1998 and has since then endeavored to invest in areas that they understand. This has seen the group grow from a four hu8ndred million asset management group into one of the biggest private asset management groups in the country. In 2017 they were acquired by SoftBank. The Tokyo based Investment bank has had an interest in the group for a number of years. Since announcing that they would be spending more than 50 billion dollars in investments in the United States alone, they had been searching for an investment vehicle that already had a track record as well as a diverse portfolio. From their investments in Media Real estate, transport & infrastructure as well as technology, it was evident to SoftBank that they were the right group to target. The Fortress Investment Group was a public company at the time of purchase having listed on the New York Stock Exchange in 2007. The group has been able to grow since then, but with a certain slowing down within the equity market, they needed a strong backer who had the financial capacity to continue financing their investments. The relationship between Fortress Investment Group and SoftBank is expected to yield results for all.