Rajeev Misra, CEO of the SoftBank Funding Advisers.
SoftBank Imaginative and prescient Fund chief Rajeev Misra has made a dwelling from elevating cash. Now he is leaping on the newest funding bandwagon.
Talking on the 2020 Milken Institute Global Conference on Monday, Misra stated he is making ready a particular goal acquisition firm, or SPAC. The fashionable funding car will give the Imaginative and prescient Fund a brand new method of investing in personal firms and provides public traders entry to SoftBank’s portfolio supervisor picks. Misra stated he’ll define extra plans within the subsequent two weeks.
The SPAC will likely be operated by SoftBank Imaginative and prescient Fund funding advisors and can embrace cash from outdoors traders and Imaginative and prescient Fund 2, in keeping with an individual accustomed to the matter. A SoftBank spokesman declined to remark.
Misra helped increase $100 billion SoftBank’s first Imaginative and prescient Fund, which was invested into greater than 80 firms. SoftBank founder Masayoshi Son beforehand stated he deliberate to lift a second $108 billion for a second Imaginative and prescient Fund.
However Misra has struggled to lift cash for the second fund after a number of Imaginative and prescient Fund 1 investments, together with WeWork and Oyo Hotels, did not generate returns for traders. Pandemic shutdowns have additionally accelerated a shift in SoftBank’s technique away from frenetic funding in start-ups, and towards divestment of property to shore up money, similar to selling Arm to Nvidia and $21 billion of T-Mobile stock.
The primary Imaginative and prescient Fund reported an $18 billion loss final yr. It recorded an funding acquire of $2.8 billion final quarter after publicly traded shares Slack and Uber recovered from pandemic-related lows.
Investing in a SPAC will give Misra entry to public cash as soon as the Imaginative and prescient Fund has chosen an appropriate goal and purchased it. The Imaginative and prescient Fund has so far solely taken funding from restricted companions and companies.
There was extra money raised through SPAC than ever before this year, in keeping with knowledge from Refinitiv, as traders have embraced the expedited means of going public.