SoftBank Group Corp. (“SBG”) today announced that it will form SoftBank
Vision Fund (tentative name) (the “Fund”). The Fund intends to make
investments in the technology sector globally. The Fund will be managed
in the United Kingdom by a subsidiary of SBG and will deploy capital
from SBG and investment partners. The Fund will aim to be one of the
world’s largest of its kind*.
SBG expects to invest at least USD 25 billion over the next 5 years. SBG
has concluded a non-binding memorandum of understanding (“MOU”) on
October 12, 2016 with the Public Investment Fund of the Kingdom of Saudi
Arabia (“PIF”), under which PIF will consider investing in the Fund and
becoming the lead investment partner, with the potential investment size
of up to USD 45 billion over the next five years. In addition, a few
large global investors are in active dialogue to join SBG and PIF to
participate in this Fund. The overall potential size of the Fund can go
up to USD 100 billion.
SBG will use its deep operational expertise and network of portfolio
companies in order to add value to the Fund’s investments.
His Royal Highness, Deputy Crown Prince Mohammed Bin Salman, Chairman of
PIF, commented as follows:
“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. We are delighted to sign this
MOU with SBG given the long history, established industry relationships
and strong investment performance of SBG and Masayoshi Son.”
Masayoshi Son, Chairman & CEO of SoftBank Group Corp., commented on the
establishment of the Fund as follows:
“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
Rajeev Misra, Head of Strategic Finance, SoftBank Group, is leading the
Fund project for SBG. SBG 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.
About the Public Investment Fund (PIF)
The Saudi Arabian Public Investment Fund was established in 1971 to
provide financing support for projects of strategic significance to the
national economy, and its role has evolved to incorporate a number of
different areas. These include holding and managing the government’s
stakes in some of Saudi Arabia’s largest and most important blue chip
companies. PIF has also set up and managed a number of companies to
support innovation, diversification and non-oil sector development
within the Kingdom. Furthermore, the institution has been responsible
for holding and managing the government’s stake in bilateral and
multilateral companies abroad as well as investing selectively in a
range of other asset classes internationally.
PIF has gone through major restructuring, and had supervision moved from
under the Ministry of Finance to the Council of Economic and Development
Affairs, led by His Royal Highness Prince Mohammed Bin Salman Bin
Abdulaziz, since March 2015. PIF, under the leadership of His Royal
Highness, has revised its long term investment strategy to coincide with
the country’s Vision 2030.
*Based on SBG research (Comparison made with recent funds under
management in the private equity sector that can be confirmed as of
October 12, 2016, based on major private equity fund rankings selected
and made public by Private Equity International).
This press release has been prepared for the purpose of announcing to
the public certain matters relating to the activities of SoftBank
Group Corp. and not for the purpose of soliciting any investment. This
press release does not constitute any offer or solicitation to
purchase or subscribe for the interests in the Fund.
This press release does not constitute or form a part of any offer or
solicitation to purchase or subscribe for securities in the United
States, and interests in the Fund will not be offered or sold in the
United States or to, or for the account or benefit of, any U.S. person
(as such term is defined in Regulation S under the U.S. Securities Act
SoftBank, the SoftBank name and logo are registered trademarks or
trademarks of SoftBank Group Corp. in Japan and other countries.
Other company, product and service names in this press release are
registered trademarks or trademarks of the respective companies.
About the SoftBank Group
The SoftBank Group is a global technology player that aspires to drive
the Information Revolution. The SoftBank Group is comprised of the
holding company SoftBank Group Corp. (TOKYO: 9984) and its global
portfolio of companies, which includes advanced telecommunications,
Internet services, AI, smart robotics, IoT and clean energy technology
providers. In September 2016, ARM Holdings plc, the world’s leading
semiconductor IP company, joined the SoftBank Group. To learn more,
please visit www.softbank.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161013006667/en/