TOKYO (Reuters) – SoftBank Group Corp (9984.(T) will be announced on Friday, with a second Vision of a Fund focused on investing in technology companies, says that it has secured memorandums of understanding (MOU) for the roughly $108 billion, as companies such as Apple Inc’s (AAPL.(O) and Microsoft Corp (MSFT.D).
FILE PHOTO: The logo of SoftBank Group, Corp, is displayed at the SoftBank World in 2017 conference to be held in Tokyo, Japan, on July 20, 2017. (REUTERS photo/Issei Kato/File Photo
The Japanese group plans to invest $38 billion into the fund, it said in a statement. Others include taiwan’s Foxconn, formally Hon Hai Precision Industry Co Ltd (2317.T), as well as the units of Japan’s three largest banks, MUFG (8306.T) SMFG (8316.T) Mizuho (8411.(T), SoftBank said.
The second fund is the investor base reflects a variety of than that of the Middle East’s oil money, most of the initial $100-billion fund, from all over the world, as it touts industry-beating returns.
“That is, invest in two years ago to invest in the vision, there was no evidence to show that the concept is going to succeed,” says Sanford C. Bernstein analyst Chris Lane.
“Given the track record of the past two years, the Vision Fund and 2 has been significantly de-risked,” he said.
SoftBank, said in May its first fund, it has resulted in a 45% internal rate of return to investors in its common stock, or 29% if the debt-like preference shares listed, although the gains are usually not realized.
Other investors in the fund, and the National investment corporation of National Bank of Kazakhstan Standard Chartered Bank PLC (STAN.(L), and a private investor from Taiwan.
“The objective of the fund is to facilitate the continued acceleration of the AI revolution is on by investing in industry-leading, tech-enabled growth companies,” and the Japanese conglomerate, said in a statement.
They turned, not to the name of the Goldman Sachs Group Inc’s (GS.(N) if the investor is. The Wall Street Journal on Wednesday, said the U.S. investment bank that would invest in the fund.
The first Vision is a Fund launched two years ago with $60 billion in support from the sovereign wealth fund of the kingdom of Saudi Arabia and Abu Dhabi, and has already burned through a large portion of its share capital, with investments in more than 80 late-stage tech start-ups.
Next, betting on start-ups include Uber Technologies Inc. UBER.And WeWork, We, the parents, The Company, through its first fund, the new fund will make it possible for SoftBank to continue with the spending spree that has transformed it from the venture capital industry as well as outguns less-capitalized competitors.
Kingdom of saudi Arabia and Abu Dhabi were all but absent from the list for the second fund’s investor. SoftBank said that it is talking with potential investors and that the fund expects the capital to continue to grow.
Reporting by Chang-Ran Kim and Sam Nussey; Editing by David Dolan and Christopher Cushing