SoftBank Group Corp.'s founder Masayoshi Son unveiled a second enormous fund for technology investments, seeking to extend his reign as the most influential investor in the industry. The Japanese conglomerate aims to raise a total of $108 billion for the second Vision Fund, which would make it even larger than the first, unprecedented $100 billion effort. SoftBank is also taking more control this time around, committing $38 billion in capital itself and replacing Saudi Arabia as the largest investor. Saudi Arabia's Public Investment Fund, which chipped in $45 billion for the initial effort, was not mentioned in the announcement Friday. SoftBank said the second fund is expected to collect money from Apple Inc., Microsoft Corp., Foxconn Technology Group and Kazakhstan's sovereign wealth fund.
SoftBank Group Corp. has secured the first capital commitment to a $100 billion fund organized with Saudi Arabia and Abu Dhabi that would eventually put its founder Masayoshi Son in charge of one of technology's biggest investment vehicles. The telecom conglomerate is investing $28 billion and has agreements with Saudi Arabia's Public Investment Fund, Abu Dhabi's Mubadala Investment Co. and Apple Inc. With more than $93 billion committed, the fund -- which includes Qualcomm Inc., Foxconn Technology Group and Sharp Corp. -- aims to reach $100 billion within six months, SoftBank said in a statement Saturday. Mubadala committed $15 billion, according to a separate statement. The Vision Fund will seek long-term investments in businesses aimed at innovation.
SoftBank Group Corp. has quietly completed an initial money-raising push for its second technology fund, at a fraction of its targeted $108 billion. The company has raised roughly $2 billion for the second Vision Fund so it can start backing startups, according to two people familiar with the matter. This stage of the fundraising process is known as a first close, and SoftBank will continue gathering commitments. A Vision Fund spokesman declined to comment. SoftBank said in July that its second Vision Fund would be even larger than the first, which broke records in 2017 by raising almost $100 billion.
The biggest backers of SoftBank Group Corp.'s gargantuan Vision Fund are reconsidering how much to commit to its next investment vehicle as an oversized bet on flexible workspace provider WeWork sours. Saudi Arabia's Public Investment Fund, which contributed $45 billion to the $100 billion Vision Fund, is now only planning to reinvest profits from that vehicle into its successor, according to people familiar with the talks. Abu Dhabi's Mubadala Investment Co., which invested $15 billion, is considering paring its future commitment to below $10 billion, the people said, asking not to be identified in disclosing internal deliberations. A partial retreat of the two anchor investors would complicate fundraising for SoftBank Chief Executive Officer Masayoshi Son, who upended venture capital by making huge bets on promising yet unproven companies and spurring others to follow suit. Perhaps more than any other startup, WeWork has come to symbolize that brash style, and the success or failure of its initial public offering is likely to impact Son's ability to raise cash for future deals.
SoftBank Group Corp. is in discussions with potential investors in Canada and the Middle East to raise $7 billion of additional capital for its giant technology fund, according to people familiar with the matter. The company is in talks with Canadian pension funds, sovereign wealth funds in Kuwait and Qatar and technology companies, the people said, asking not to be identified as the discussions are ongoing. The new commitments would take the total pool to $100 billion, though there's no guarantee that the parties will reach an agreement, they said. The Vision Fund will charge a performance fee of 20 percent and a management fee of 0.5 percent to 1 percent, the people said. That compares to private equity firms, which typically charge 2 percent of the assets they oversee, plus 20 percent of profits.