Vision Fund of the SoftBank Group is targeting external funding for a blank-check organization that it has planned to launch. Additionally, SoftBank may put its capital in the company, the size of which is undetermined.
The head of SoftBanks’s $100 million funds, Rajeev Mishra is joining the special purpose acquisition companies (SPAC) race, as he looks forward to capitalizing on the trendy new investment vehicle. The details of the vehicle will be unveiled in the next couple of weeks.
Vehicles like these are used to take a record number of companies’ public, avoiding the traditional IPO, with Opendoor, a home-selling platform backed by SoftBank, announcing plans to list through a merger like this.
The Vision Fund is popular for its investment in start-ups. The organization has funded technology-forward companies like WeWork, Uber, Nvidia, Slack, and ARM.
SoftBank is overflowing with cash as Masayoshi Son, the Chief Executive is selling out core assets, leading to consideration over his future investment strategies.
The group was waiting for an opportunity since its attempts to raise capital for a successor to its $100 billion Vision Fund stranded, after the poor performance at the fund.
SoftBank was investing on a small scale with its own money through a second fund amidst a lack of larger targets and as the funding environment has dampened by the coronavirus pandemic.
The group used its ascending cash resources to make a place in listed U.S. tech companies and has a surging number of portfolio firms that are going public after the IPO window opened again.
There was an extraordinary spell of 144 SPAC IPOs year-to-date raising over $50 billion worldwide as compared to 94 such listings that raised $14 billion last year.
The shares of SoftBank rose by 1.6% in Tokyo trading to reach two-decade highs before closing 1.7%. Buoyed by buybacks. The shares of the company are up over 160% since March lows.