Tentatively named the “SoftBank Vision Fund”, the fund will aim to be one of the world’s largest – some sort of super-fund – of its kind.
SBG will invest at least US$25 billion in the fund over the next 5 years while the Public Investment Fund of the Kingdom of Saudi Arabia (“PIF”), which SBG has signed a MOU with, will consider investing US$45 billion, and becoming the lead investment partner, over the same period.
“With the establishment of the SoftBank Vision Fund, we will be able to step up investments in technology companies globally. Over the next decade, the SoftBank Vision Fund will be the biggest investor in the technology sector. We will further accelerate the Information Revolution by contributing to its development,” said Masayoshi Son, Chairman & CEO of SoftBank Group Corp.
SBG and PIF are currently in active dialogue with a few large global investors to join to participate in the Fund, which has an overall potential size of up to US$100 billion.
Also, SBG will use its deep operational expertise and network of portfolio companies in order to add value to the Fund’s investments.
The Fund will be managed in the United Kingdom by a subsidiary of SBG and will deploy capital from SBG and investment partners.
His Royal Highness and Chairman of PIF, Deputy Crown Prince Mohammed Bin Salman said, “The Public Investment Fund 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.”