Softbank Group Vision 2, $ 108 Billion, Attracts Microsoft and Apple

TOKYO (Reuters) – Softbank on Friday announced the creation of a second vision fund to invest in technology companies, saying pledges totaling $ 108 billion had been announced. by companies such as Microsoft.

The Japanese group said in a statement that it planned to invest $ 38 billion in the fund. Apple and Hun Hai from the Taiwanese precision sector (Foxconn) are also part of the fund. Both companies invested in the first fund.

Investors in the second fund are diversifying away from the Middle East, which has provided most of the external capital of the first fund of $ 100 billion, while Softbank is booming in the sector, with Japanese financial institutions rich in cash and a sovereign wealth fund for Kazakhstan. Among the participants.

Softbank said in May that the first fund had an internal yield of 45% for investors in its common stock, or 29% when preferred shares of debt were included, although earnings remain largely theoretical.

Softbank announced Friday that other participants in the second fund would include the National Investment Corporation of the National Bank of Kazakhstan, Standard Chartered Bank, unrevealed parts of Taiwan and the fund's own managers.

Softbank's statement shows that the fund is generally supported by the Japanese financial sector, including shares of three major banks, namely Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group.

Softbank said Daiwa Securities, Dai-Ichi Life Holdings and Sumitomo Mitsui Trust Holdings had also signed a memorandum of understanding.

"The fund's goal is to facilitate the continued acceleration of the industrial intelligence revolution by investing in market leaders and achieving growth based on technology," Softbank said in a statement. communicated.

Masayoshi Son, founder and CEO of Softbank, uses the term artificial intelligence to refer to a wide range of industries to describe Softbank's investment portfolio, which offers a variety of applications ranging from taxi booking to autonomous driving. to insurance and health care.

The Vision First Fund was launched two years ago with $ 60 billion in support from sovereign wealth funds in Saudi Arabia and Abu Dhabi. The fund has already invested the majority of its capital through investments in more than 80 emerging technology companies in the final stages of product development.

Softbank did not say how it would fund its $ 38 billion contribution to the new fund.

The Goldman Sachs Group missed the list of new participants in the Softbank fund. The Wall Street Journal reported Wednesday that the US bank would invest in the fund.

Softbank said it is still in talks with potential investors and expects the expected capital growth of the fund.

Saudi Arabia and Saudi Arabia were also absent from the fund. Saudi Crown Prince Mohammed bin Salman told Bloomberg in October that his country was ready to pledge another $ 45 billion.

"Without the Public Investment Fund, there would have been no vision funds for Softbank," he said, referring to the Saudi Public Investment Fund.

Sun was then forced to defend Saudi Arabia's support for Vision Fund after Saudi nationals were accused of killing Saudi journalist Jamal Khashoggi.