Business Wealth Management

SoftBank to lend employees up to $20 billion for its second Vision Fund

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Sunday 18, August 2019 BY Kuda Muzoriwa

In addition to its employees, it’s also expected to collect money from Apple, Microsoft as well as Foxconn Technology Group and the sovereign wealth fund of Kazakhstan.

Saudi Arabia-backed SoftBank Group plan to lend as much as $20 billion to its employees to buy stakes in its second venture capital fund following the success of an earlier $100 billion fund to invest in tech start-ups, reported Bloomberg.

The second Vision Fund aims to raise $108 billion. SoftBank also won support from Japanese financial institutions, with seven identified as signing memorandums of understanding to participate.

Founder and Chief Executive Officer Masayoshi Son may account for half of the employee investment pool.

According to the Bloomberg Billionaires Index, Son has a net worth of $16.9 billion, making him Japan’s second-richest person, SoftBank also said earlier it’s committing $38 billion in capital itself to the fund.

Earlier this month, SoftBank reported first-quarter profit that beat the highest analyst estimate with valuation gains from Vision Fund investments such as Slack Technologies, which went public in June, hotel chain OYO Rooms and food-delivery app DoorDash. The gains were offset by a JPY 195.3 billion ($1.8 billion) decline in the fair value of holdings including Uber Technologies.

SoftBank also said the Vision Fund held 81 investments worth about $66.3 billion. SoftBank in June disclosed the first fund had earned 62 per cent returns so far.

Last month, Saudi Arabia’s Public Investment Fund (PIF) and Abu Dhabi’s Mubadala Investment Company, both key partners in the first fund, were said to be still in talks about possible investments in the second Vision Fund.

 

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