Japan-based internet and telecommunications group SoftBank intends to lend up to $20bn to its own employees so they can invest in its latest Vision Fund, the Wall Street Journal has reported.
SoftBank unveiled the second of its Vision Funds last month, with memoranda of understanding from limited partners that, together with its own contribution, would push the size of the vehicle to $108bn.
However, the corporate is willing to lend the capital to make up part of the provision for Vision Fund II, according to people familiar with the matter, $8bn of employee contributions having reportedly made up the $98.6bn closed by the first Vision Fund.
Katsunori Sago, SoftBank’s chief strategy officer, and Rajeev Misra, CEO of SoftBank Investment Advisers, which manages Vision Fund, are among the executives set to invest in Vision Fund II, a person with knowledge of the arrangement told the Financial Times.
Masayoshi Son, SoftBank’s chief executive, is putting up $15bn of the capital for the scheme himself, according to the sources. SoftBank itself has already pledged $38bn for Vision Fund II, meaning that it could be responsible for more than half of its capacity should it close at a similar size to the first fund.
Corporates Apple, Foxconn, Microsoft and Dai-ichi Life are among the prospective LPs, as are banks Mizuho Bank, Sumitomo Mitsui Banking Corporation, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Trust Bank and Standard Chartered, and brokerage Daiwa Securities.
The financial services firms’ contributions to the vehicle are thought to be connected to the large fees SoftBank has paid in connection to its financial deals in recent years, according to the FT, which reported that they are expected to take preferred equity positions in the second fund.
