SoftBank-backed Fortress Investment’s second SPAC seeks $300m in US IPO

Snow falls in front of the New York Stock Exchange (NYSE) in New York, U.S., on Wednesday, Jan. 30, 2019. Photographer: Michael Nagle/Bloomberg

Fortress Value Acquisition II, a blank check company formed by executives at SoftBank-controlled Fortress Investment Group, has filed to raise up to $300 million in an initial public offering (IPO) in the US.

The special purpose acquisition company (SPAC) is offering 30 million units at $10 apiece. Each unit consists of one share of the company’s Class A common stock and one-fifth of one redeemable warrant, according to a filing with the US Securities and Exchange Commission.

Fortress Value Acquisition II is helmed by CEO Andrew McKnight and chairman Joshua Pack—both are managing partners at Fortress Investment Group—and plans to list on the New York Stock Exchange under the symbol FAII.U.

Fortress’s previous SPAC, Fortress Value Acquisition Corp, raised $300 million by offering 30 million units at $10 in April. The said SPAC listed on the NYSE under the symbol FVAC.U.

Fortress Value Acquisition Corp II’s sponsor, Fortress Acquisition Sponsor II LLC, has committed to purchase up to 5.3 million warrants at a price of $1.50 per warrant in a private placement that will close simultaneously with the closing of the public offering, the filing showed.

The sponsor is an affiliate of Fortress Investment Group, a unit of SoftBank Group Corp.

In 2017, SoftBank acquired Fortress Investment Group, a private equity and asset management firm, for about $3.3 billion in cash. Back then, SoftBank chairman and CEO Masayoshi Son said the acquisition will help the Japanese company expand its capabilities.

As of March 31, 2020, Fortress has approximately $41.7 billion of assets under management. It also has over 1,700 clients and private investors worldwide across a range of credit and real estate, private equity, and permanent capital investment strategies.

Its portfolio includes ride-sharing firm Lyft, finch firm ZestFinance, Hong Kong-based bitcoin wallet provider Xapo, consumer technology and wearable products company Jawbone, and Brazilian neobank Nubank. It acquired 100 per cent of Vannin Capital, a US-headquartered global litigation funder, for an undisclosed amount, last year.

Early this year, Fortress increased its offer to purchase creditor claims from the defunct Mt. Gox cryptocurrency exchange and further sweetened its bid for Unizo Holdings, the Japanese hotel operator.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.