SoftBank Group and Public Investment Fund of Saudi Arabia to establish $100 Bn SoftBank Vision Fund

SoftBank Group (SBG) today announced that it will form SoftBank Vision Fund with Public Investment Fund of Saudi Arabia to make investments in 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 $25 billion over the next 5 years. SBG has concluded a non-binding memorandum of understanding with the Public Investment Fund (PIF) of the Kingdom of Saudi Arabia, under which PIF will consider investing in the fund and becoming the lead investment partner, with the potential investment size of up to $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 $100 billion.

SBG will use its deep operational expertise and network of portfolio companies in order to add value to the fund’s investments.

Speaking on the fund, deputy crown prince Mohammed Bin Salman, chairman, PIF 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. 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, SoftBank Group said, "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.”

Rajeev Misra, head, 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.