Mubadala Development Company, an investment vehicle owned by the Government of Abu Dhabi, has entered talks to invest in telecommunications and internet group SoftBank’s $100bn Vision Fund, Bloomberg has reported.
Japan-headquartered SoftBank announced the formation of the Vision Fund last month. It will invest $25bn in the fund itself and is negotiating with prospective limited partners to possibly increase its size to $100bn.
The United Arab Emirates-based Mubadala could potentially make a “multi-billion dollar” contribution to the fund, according to people familiar with the matter.
Mubadala spokesman Brian Lott told Bloomberg: “We are taking a serious look at a potential investment to the fund as we do with similar, strong investment opportunities.”
SoftBank established the fund to take strategic stakes in technology producers that could form alliances with its group companies. With regards to limited partners, it is targeting wealthy Middle Eastern investors that are looking to diversify their holdings.
The firm is already in talks with Saudi Arabia’s Public Investment Fund, which could reportedly provide up to $45bn in capital, and Qatar Investment Authority over financing.