United Arab Emirates-based sovereign wealth fund Mubadala Development Co is mulling an investment of between $10bn and $15bn in telecommunications group SoftBank’s $100bn Vision Fund, Bloomberg has reported.
SoftBank will invest in late-stage advanced technology developers through the fund, which was originally announced in October 2016. The firm is putting $25bn of its own money into the initiative and sourcing the rest from state-owned funds and other corporates.
Between $10bn and $15bn of SoftBank’s provision will consist of financing supplied by Japan-based banks and the rest will be made up of future asset disposals, people familiar with the matter told Bloomberg.
Vision Fund is set to close by the end of this month and will be capped at $100bn, the sources added. SoftBank chief executive Masayoshi Son had said last month the fund would be oversubscribed.
The involvement of Mubadala, which invests on behalf of emirate Abu Dhabi, was first reported in November. Another sovereign wealth fund, the Saudi Arabia-based Public Investment Fund, is expected to provide $45bn for the initiative.
Hardware producer Apple will provide $1bn for Vision Fund, while additional capital will come from manufacturing services provider Foxconn, mobile semiconductor maker Qualcomm and the family office of Larry Ellison, co-founder of computing company Oracle.