SoftBank in talks with investors to add $15B to Vision Fund

They are also considering assembling a second huge fund

TRD NATIONAL /
Apr.April 04, 2019 09:08 AM
Softbank CEO Masayoshi Son (Credit: Getty Images and iStock)

Softbank CEO Masayoshi Son (Credit: Getty Images and iStock)

The biggest backer of unicorn real estate startups on earth is looking to add $15 billion to its pot.

Japanese conglomerate SoftBank is in talks with investors to add another $15 billion to their already huge $100 billion Vision Fund, and are considering raising capital for a second fund, according to Bloomberg.

Since 2017, Masayoshi Son’s SoftBank has used its Vision Fund to invest $70 billion in technology start-ups, including office-leasing giant WeWork — now called the We Companies — and brokerage Compass. Son previously stated that he aims to raise a new $100 billion fund every two or three years.

The sovereign wealth funds of Saudi Arabia and Abu Dhabi have so far provided the main capital backing, and Softbank may ask them to waive their rights to debt repayments going forward, sources told Bloomberg. SoftBank is also considering ways to reinvest profits, raise more capital, or take out loans.

Softbank’s backing of WeWork and Compass has allowed those companies to make significant acquisitions in the last year. WeWork has expanded its suite of office services by buying up smaller startups, while Compass has acquired other resi brokerages, including Pacific Union in California, and Stribling & Associates in New York City. In September, the Vision Fund and the Qatar Investment Authority raised a $400 million round for Compass, giving the brokerage a $4.4 billion valuation.

There has been some tension amongst the Vision Fund’s investors over WeWork, however.

In December, the Wall Street Journal reported that the Vision Fund’s sovereign wealth funds had balked at the prospect of investing another $16 billion in the co-working company, which would have given SoftBank a majority stake, buying out Neumann’s other investors. Son’s SoftBank Group independently deployed $2 billion instead, giving the co-working company a $47 billion valuation. [Bloomberg] – Decca Muldowney

 

Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Softbank CEO Masayoshi Son and former WeWork CEO Adam Neumann (Credit: Getty Images, iStock)

WeWork execs face first lawsuit over botched IPO

195 Broadway and L&L Holding's David Levinson and Robert Lapidus (Credit: Google Maps and L&L Holding)

L&L, Safehold lock in $592M in financing for Downtown building

Tore Steen, CEO of CrowdStreet (Credit: iStock)

CrowdStreet lands $12M in financing, hires execs

SoftBank CEO Masayoshi Son (Credit: Getty Images)

SoftBank’s Masa Son: I ignored WeWork’s problems, made bad investments in US tech firms, and I’m really sorry.

A rendering of the The Epic in Dallas, Texas and Westdale CEO Joe Beard (Credit: Westdale, Wikipedia)

No panic: Westdale mulls $50M Series B bond raise in Tel Aviv

From left: WeWork’s Adam Neumann and SoftBank’s Masayoshi Son (Photo-Illustration by Nazario Graziano)

Piecing together SoftBank’s disruptive real estate bets

arrow_forward_ios