SoftBank Group announced on Friday a second Vision Fund aimed at investing in technology firms, saying it has secured pledges totalling about $108 billion from companies including Microsoft.
The Japanese conglomerate itself plans to invest $38 billion in the fund, it said in a statement. Others set to join include Apple and Taiwan's Hon Hai Precision Industry (Foxconn) - both investors in the first fund.
The second fund's investor base reflects diversification beyond the Middle East that provided most of the first $100 billion fund's outside capital as SoftBank touts industry-beating returns, with joiners including cash-rich Japanese financial institutions and a Kazakh sovereign wealth fund.
"Those investing two years ago were investing in the vision, there was no proof the concept was going to succeed," said Sanford C Bernstein analyst Chris Lane.
"Given the track record achieved over the last two years Vision Fund 2 has been substantially de-risked," Lane said.
SoftBank in May said the first fund had generated a 45 per cent internal rate of return for investors in its common shares, or 29 per cent when debt-like preferred shares are included - though the gains still exist mostly on paper.
On Friday, it said other participants in the second fund would include the National Investment Corporation of National Bank of Kazakhstan, Standard Chartered Bank, undisclosed parties from Taiwan and the fund's own managers.
The new fund has broad backing from Japan's financial industry including units of the three mega banks, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group, SoftBank's statement showed.
It said Daiwa Securities Group Inc, Dai-ichi Life Holdings Inc and Sumitomo Mitsui Trust Holdings have also signed memoranda of understanding (MOU).
"The objective of the fund is to facilitate the continued acceleration of the AI revolution through investment in market-leading, tech-enabled growth companies," SoftBank said in its statement.
Founder and chief executive Masayoshi Son uses artificial intelligence (AI) as a catch-all term to characterise SoftBank's investment portfolio, which features businesses as varied as ride-hailing and autonomous driving, insurance and healthcare.
SoftBank has not provided concrete details on the kind of investments it is targeting, said a senior executive at one Japanese bank listed as a participant in the new fund.
"The fund itself is of course attractive, but what matters is the overall balance of the portfolio," the banker said, declining to be identified further.
The first Vision Fund launched two years ago with $60 billion in backing from the sovereign wealth funds of Saudi Arabia and Abu Dhabi. It has already burned through much of its capital with investments in over 80 late-stage tech start-ups.
Bets included Uber Technologies and WeWork parent The We Company in a spending spree that has reshaped the venture capital industry as SoftBank outguns less-capitalised rivals.
"We've seen several start-ups start to beat their rivals and push them out of the market, mainly because - and only after - they receive investment and backing from SoftBank," said one Hong Kong-based senior investor at a large venture capital firm.
SoftBank did not provide details on how it would fund its $38bn contribution to the new fund. With the conglomerate not needing to put up all the money at once, proceeds from the first Vision Fund can potentially be recycled, said analyst Dan Baker at Morningstar.
Such a strategy would rely on the first fund continuing to provide blistering returns, as it transitions beyond identifying and investing in promising start-ups to managing a portfolio of companies that are listed or heading toward public markets.
Absent from SoftBank's list of participants in the new fund was Goldman Sachs Group. The Wall Street Journal on Wednesday reported the US bank would invest in the fund.
SoftBank said it was still talking to potential investors and that it expected the fund's anticipated capital to grow.
Also absent were Abu Dhabi and Saudi Arabia, whose Crown Prince Mohammed bin Salman in October told Bloomberg his country was ready to commit a further $45 billion.
"Without the PIF, there will be no SoftBank Vision Fund," he said, referring to the Public Investment Fund of Saudi Arabia.
Mr Son was later compelled to defend the kingdom's backing of the Vision Fund after Saudi security personnel were accused of murdering local journalist and critic Jamal Khashoggi.
SoftBank Group's share price was little changed in morning Tokyo trade following the widely anticipated announcement. The benchmark share price index was down 0.5 per cent.
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Profile
Company name: Jaib
Started: January 2018
Co-founders: Fouad Jeryes and Sinan Taifour
Based: Jordan
Sector: FinTech
Total transactions: over $800,000 since January, 2018
Investors in Jaib's mother company Alpha Apps: Aramex and 500 Startups
'Unrivaled: Why America Will Remain the World’s Sole Superpower'
Michael Beckley, Cornell Press
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
The specs: 2018 Honda City
Price, base: From Dh57,000
Engine: 1.5L, in-line four-cylinder
Transmission: Continuously variable transmission
Power: 118hp @ 6,600rpm
Torque: 146Nm @ 4,600rpm
Fuel economy, combined: 5.8L / 100km
Green ambitions
- Trees: 1,500 to be planted, replacing 300 felled ones, with veteran oaks protected
- Lake: Brown's centrepiece to be cleaned of silt that makes it as shallow as 2.5cm
- Biodiversity: Bat cave to be added and habitats designed for kingfishers and little grebes
- Flood risk: Longer grass, deeper lake, restored ponds and absorbent paths all meant to siphon off water
Like a Fading Shadow
Antonio Muñoz Molina
Translated from the Spanish by Camilo A. Ramirez
Tuskar Rock Press (pp. 310)
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
'The worst thing you can eat'
Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.
Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:
Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.
Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.
Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.
Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.
Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
Mohammed bin Zayed Majlis
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MATCH INFO
Uefa Champions League, Group C
Liverpool v Red Star Belgrade
Anfield, Liverpool
Wednesday, 11pm (UAE)
Sri Lanka-India Test series schedule
- 1st Test India won by 304 runs at Galle
- 2nd Test Thursday-Monday at Colombo
- 3rd Test August 12-16 at Pallekele
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
UAE currency: the story behind the money in your pockets
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
The chef's advice
Troy Payne, head chef at Abu Dhabi’s newest healthy eatery Sanderson’s in Al Seef Resort & Spa, says singles need to change their mindset about how they approach the supermarket.
“They feel like they can’t buy one cucumber,” he says. “But I can walk into a shop – I feed two people at home – and I’ll walk into a shop and I buy one cucumber, I’ll buy one onion.”
Mr Payne asks for the sticker to be placed directly on each item, rather than face the temptation of filling one of the two-kilogram capacity plastic bags on offer.
The chef also advises singletons not get too hung up on “organic”, particularly high-priced varieties that have been flown in from far-flung locales. Local produce is often grown sustainably, and far cheaper, he says.
Abramovich London
A Kensington Palace Gardens house with 15 bedrooms is valued at more than £150 million.
A three-storey penthouse at Chelsea Waterfront bought for £22 million.
Steel company Evraz drops more than 10 per cent in trading after UK officials said it was potentially supplying the Russian military.
Sale of Chelsea Football Club is now impossible.
