Rajeev Misra, CEO of the SoftBank Funding Advisers.
SoftBank Imaginative and prescient Fund chief Rajeev Misra has made a residing from elevating cash. Now he is leaping on the most recent funding bandwagon.
Talking on the 2020 Milken Institute Global Conference on Monday, Misra mentioned he is making ready a particular function acquisition firm, or SPAC. The fashionable funding automobile will give the Imaginative and prescient Fund a brand new means of investing in non-public firms and provides public buyers entry to SoftBank’s portfolio supervisor picks. Misra mentioned he’ll define extra plans within the subsequent two weeks.
The SPAC can be operated by SoftBank Imaginative and prescient Fund funding advisors and can embody cash from exterior buyers and Imaginative and prescient Fund 2, in accordance with an individual conversant in 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 mentioned 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 buyers. Pandemic shutdowns have additionally accelerated a shift in SoftBank’s technique away from frenetic funding in start-ups, and towards divestment of belongings to shore up money, comparable 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 acceptable goal and purchased it. The Imaginative and prescient Fund has so far solely taken funding from restricted companions and firms.
There was more cash raised through SPAC than ever before this year, in accordance with knowledge from Refinitiv, as buyers have embraced the expedited technique of going public.