SoftBank Group has announced plans to establish the SoftBank Vision Fund to make investments in the technology sector globally.
The fund will be managed in the United Kingdom by a subsidiary of SoftBank and will deploy capital from SoftBank and investment partners. The fund will aim to be one of the world’s largest of its kind.
SoftBank expects to invest at least $25 billion over the next five years. The company has concluded a non-binding memorandum of understanding (MoU) with the Public Investment Fund of the Kingdom of Saudi Arabia (PIF).
Under the MoU, PIF will consider investing in the fund and becoming the lead investment partner, with the potential investment size of up to $45 billion over the next five years.
In addition, a few large global investors are in active dialogue to join SoftBank and PIF to participate in this investment fund. The overall potential size of the fund can go up to $100 billion.
SoftBank will use its operational expertise and network of portfolio companies in order to add value to the fund’s investments.
Deputy Crown Prince Mohammed Bin Salman, chairman of PIF, said the PIF is focused on achieving attractive long-term financial returns from its investments at home and abroad, as well as supporting the Kingdom’s Vision 2030 strategy to develop a diversified economy.
“With the establishment of the SoftBank Vision Fund, we will be able to step up investments in technology companies globally,” said Masayoshi Son, chairman and CEO of SoftBank Group.
“Over the next decade, the SoftBank Vision Fund will be the biggest investor in the technology sector,” said Son. “We will further accelerate the Information Revolution by contributing to its development.”
SoftBank Group's head of strategic finance Rajeev Misra is leading the Fund. SoftBank has engaged former Deutsche banker Nizar Al-Bassam and ex-Goldman partner Dalinc Ariburnu for the project. PIF also had its own team of experts engaged.