SoftBank Vision Fund Announces First Major Close

20-May-2017 Intellasia | BusinessWire | 9:30 PM Print This Post

In Addition to the Public Investment Fund, SoftBank Group and
Mubadala, Initial Investors in Global Technology Fund include Apple,
Foxconn, Qualcomm and Sharp

SoftBank Vision Fund Seeks to Accelerate Information Revolution

SAINT HELIER, Jersey–(BUSINESS WIRE)–The SoftBank Vision Fund (the “Fund”) today announced its first major
close with over U.S.$93 billion of committed capital. In addition to
SoftBank Group Corp (“SBG”) and the Public Investment Fund of the
Kingdom of Saudi Arabia (“PIF”) as previously announced, investors in
the Fund also include the Mubadala Investment Company of the United Arab
Emirates (“Mubadala”), Apple Inc. (“Apple”), Foxconn Technology Group
(“Foxconn”), Qualcomm Incorporated (“Qualcomm”) and Sharp Corporation
(“Sharp”). The Fund is targeting a total of U.S.$100 billion of
committed capital, with a final close within six months.

SBG created the SoftBank Vision Fund as a result of its strongly held
belief that the next stage of the Information Revolution is underway,
and building the businesses that will make this possible will require
unprecedented large scale long-term investment. Additionally, the Fund’s
portfolio companies are expected to significantly benefit from SBG’s
global scale and operational expertise, as well as its ecosystem of
group portfolio companies (including Sprint and Yahoo Japan); this will
thereby help them to accelerate their own growth profile.

The Fund will be SBG’s primary vehicle to realise its SoftBank 2.0
vision, with preferred access to investments of U.S. $100 million or
more that meet the Fund’s investment strategy.

Masayoshi Son, Chairman & CEO of SoftBank Group Corp. said:

“Technology has the potential to address the biggest challenges and
risks facing humanity today. The businesses working to solve these
problems will require patient long-term capital and visionary strategic
investment partners with the resources to nurture their success.
SoftBank has long made bold investments in transformative technologies
and supported disruptive entrepreneurs. The SoftBank Vision Fund is
consistent with this strategy and will help build and grow businesses
creating the foundational platforms of the next stage of the Information
Revolution.”

H.E. Yasir Al Rumayyan, Managing Director of the Public Investment Fund
of the Kingdom of Saudi Arabia, added:

“Our investment in the SoftBank Vision Fund alongside other sovereign
and corporate investors is an important part of our overall investment
strategy. We are building a portfolio that is diversified across
sectors, asset classes and geographies, and expect the Vision Fund to
act as a platform to access a range of exciting, emerging opportunities
in the technology sector. We expect that this will, in turn, help enable
the Public Investment Fund’s role in supporting the Kingdom of Saudi
Arabia’s Vision 2030 strategy to develop a diversified, knowledge-based
economy.”

Khaldoon Khalifa Al Mubarak, Group CEO of Mubadala Investment Company,
said:

“Our participation in the SoftBank Vision Fund perfectly complements
Mubadala’s strategy as a long-term global investor and partner to the
technology sector’s high-growth companies. Technology and innovation are
central to the UAE’s economic diversification strategy, and we believe
the Vision Fund has the scale to deploy significant capital into these
disruptive industries that are shaping the future.”

Investment Strategy

The Fund will target meaningful, long-term investments in companies and
foundational platform businesses that seek to enable the next age of
innovation.

The Fund will seek to acquire minority and majority interests in both
private and public companies, from emerging technology businesses to
established, multi-billion dollar companies requiring substantial growth
funding.

The Fund is expected to be active across a wide range of technology
sectors, including but not limited to: IoT, artificial intelligence,
robotics, mobile applications and computing, communications
infrastructure and telecoms, computational biology and other data-driven
business models, cloud technologies and software, consumer internet
businesses and financial technology.

The Fund will have the right to acquire certain investments already
acquired (or agreed to be acquired) by the SoftBank Group, including
24.99% of its holding in ARM, and investments in Guardant Health,
Intelsat, NVIDIA, OneWeb and SoFi.

Key Leadership

The Fund will be advised by wholly-owned subsidiaries of SBG, known
collectively as “SB Investment Advisers”.

Rajeev Misra will serve as the CEO of SB Investment Advisers and will be
a member of the Investment Committee. He will play a key role in all
Fund transactions, supported by a highly-experienced global team across
offices in London, San Carlos, and Tokyo.

Nizar Al-Bassam and Dalinc Ariburnu of newly formed Centricus, who
advised on structuring and fund raising efforts for the Vision Fund,
will continue their roles as advisers.

ARM group

  • SBG’s commitment to invest U.S. $28 billion in the Fund will be
    partially satisfied through the in-kind contribution of approximately
    24.99% of the shares in ARM Holdings plc, at a value of approximately
    U.S.$8.2 billion.
  • ARM will continue to be a consolidated subsidiary of SBG. SBG will
    continue to control (directly and indirectly) 100% of the voting
    rights of ARM, through its retained ownership of approximately 75.01%
    of the shares and its ownership of the entities managing and advising
    the Fund.
  • In the course of discussions with certain investors in the Fund, a
    portion of ARM was requested to be transferred into the Fund based on
    the shared vision on the huge growth potential of ARM
  • There will be no change to the Board, governance structure or
    operations of ARM as a result of the transfer.
  • The investors in the Fund will not gain any special commercial
    benefits from ARM’s operating business.

Relationship to SoftBank Group Corp.

  • The Fund’s general partner is a wholly-owned subsidiary of SBG, as are
    each of the SB Investment Advisers, including the Fund’s primary
    investment adviser, SB Investment Advisers (UK) Limited.
  • SBG has subscribed for commitments of U.S. $28 billion to the Fund to
    be contributed through a combination of equity in ARM and cash on
    hand. The Fund will be consolidated by SBG for accounting purposes.
  • While the Fund will be the primary investment vehicle for investments
    in excess of U.S.$100 million consistent with the Fund’s investment
    strategy, SBG (and its subsidiaries) may continue to make certain
    investments outside of the Fund, including (but not limited to)
    investments in early stage VC, strategic investments done at the
    operating company level, and/or other investments which do not fall
    within the Fund’s investment strategy and criteria.

This statement is issued by SVF GP (Jersey) Limited, as general
partner of SoftBank Vision Fund L.P.

ENDS

Advisers

Linklaters LLP acted as fund counsel and provided tax support. Kirkland
& Ellis LLP acted as US regulatory counsel to the Fund, and Carey Olsen
as Jersey fund counsel. Mori Hamada & Matsumoto and Maples & Calder
provided additional legal and regulatory support. PwC provided tax,
operational build and programme delivery support. Aztec Group will
provide ongoing administration services. Goldman Sachs International
acted as financial advisor. Milltown Partners provided strategic
communications support.

Legal disclaimers

THE INFORMATION CONTAINED HEREIN (THE “INFORMATION”) IS SUBJECT
TO THE FOLLOWING DISCLAIMERS, NOTES AND QUALIFICATIONS.

No Offer. The distribution to you of the Information is made for
informational purposes only and does not constitute an offer to sell or
a solicitation of an offer to buy limited partnership interests in
SoftBank Vision Fund L.P. (together with, as the context may require,
any parallel fund, feeder fund, co-investment vehicle or alternative
investment vehicle, the “Fund”). The Information is not intended
to be relied upon as the basis for an investment decision, and is not,
and should not be assumed to be, complete. The contents of the
Information are not to be construed as legal, business or tax advice,
and each prospective investor in the Fund should consult its own
attorney, business advisor and tax advisor as to legal, business and tax
advice.

Forward-Looking Information. To the extent presented herein, any
projections or other estimates included in the Information, including
estimates of returns or performance, are forward-looking statements and
are based upon certain assumptions. Other events which were not taken
into account may occur and may significantly affect the actual returns
or performance of the Fund and/or any of the companies in which the
Fund, SoftBank Group Corp. (together with its subsidiaries, “SoftBank”)
or any of their applicable affiliates have invested or may invest. Any
assumptions should not be construed to be indicative of the actual
events which will occur. Actual events are difficult to project and
depend upon factors that are beyond the control of the Fund, SoftBank,
the manager of the Fund (the “Manager”), the general partner of
the Fund (the “General Partner”) and their respective affiliates,
members, partners, stockholders, other beneficial owners, managers,
directors, officers, employees, representatives, advisers or agents.
Certain assumptions have been made to simplify the presentation and,
accordingly, actual results may differ, perhaps materially, from those
presented herein. There can be no assurance that any specific investment
referenced herein will be profitable, that the Fund will achieve results
comparable to those presented or that investors in the Fund will not
lose any or all of their invested capital.

No Reliance. None of SoftBank, the Fund, the Manager, the General
Partner or any of their applicable affiliates makes any representations
or warranties, express or implied, as to the accuracy or completeness of
the Information. SoftBank, the Fund, the Manager, the General Partner
and their applicable affiliates will not be liable with respect to use
or reliance upon any of the Information in the evaluation of a potential
investment in the Fund or otherwise with the Manager, the General
Partner, SoftBank of any of their applicable affiliates. The Information
speaks as of the date hereof, or where applicable as of the date
indicated herein, and none of SoftBank, the Manager, the General
Partner, the Fund or their respective affiliates, members, partners,
stockholders, managers, directors, officers, employees or agents have
any obligation to update any of the Information.

Certain Estimates. To the extent presented herein, any
projections or estimates regarding the number, size or type of
investments that the Fund may make (or other similar information) are
estimates based only on the Manager’s intent as of the date of such
statements and are subject to change due to market conditions and/or
other factors.

Date and Accuracy of Information. The Information contained
herein speaks as of the date hereof or as of the specific date(s) noted
herein, as applicable. The Fund, the Manager, the General Partner,
SoftBank and their respective affiliates, members, partners,
stockholders, other beneficial owners, managers, directors, officers,
employees, representatives, advisers and agents do not have any
obligation to update any of the Information. . None of the Fund, the
Manager, the General Partner, SoftBank or any of their applicable
affiliates makes any representation or warranty, express or implied, as
to the accuracy or completeness of the information contained herein, and
nothing contained herein should be relied upon as a promise or
representation as to past or future performance of the Fund, any
investment or any other entity. The Fund, the Manager, the General
Partner, SoftBank or any of their applicable subsidiaries or affiliates,
and its and their respective members, partners, stockholders, other
beneficial owners, managers, directors, officers, employees,
representatives, agents and advisors advisers cannot be held liable for
the use of, and reliance upon, such materials and information and any
opinions, estimates, forecasts and findings contained herein.

Suitability. None of SoftBank, the Fund, the Manager, the General
Partner or any of their applicable affiliate represents that the
Information is all-inclusive or that the Information contains all
information that may be desirable, necessary or required to properly
evaluate a potential investment with SoftBank, the Fund, the Manager,
the General Partner and/or their applicable affiliates.

Any investment or investment activity to which this Information relates
is available only to (i) persons falling within any of the categories of
“investment professionals” as defined in Article 14(5) of the Financial
Services and Markets Act 2000 (Promotion of Collective Investment
Schemes) (Exemptions) Order 2001, as amended (the “CIS Order”) and
Article 19(5) of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005, as amended (the “FPO”); (ii) persons falling
within any of the categories of “high-net-worth entities” as described
in Article 22(2) of the CIS Order and Article 49(2) of the FPO; or (iii)
any other person to whom it may otherwise lawfully be communicated (all
such persons together being referred to as “Exempt Persons”) on an
invitation basis and will be engaged in only with such Exempt Persons.
Furthermore, procedures are in place to assess the status of investment
participants. Accordingly, persons who are not Exempt Persons (in
particular, persons who would be classified as “retail clients” under
the FCA rules) must not rely on this Information.

In the case of persons outside the United Kingdom, investments or
investment services referred to in the Information are only available on
an invitation basis and are subject to procedures to assess status and
suitability. For the avoidance of doubt, investments or investment
services referred to in the Information are not available to private or
retail customers.

SoftBank and/or the Manager do not and will not act for you. In
particular, SoftBank and/or the Manager do not and will not advise you
or provide any other investment services to you and will not be
responsible for providing you with any protections. No employee of, or
other person associated with, SoftBank and/or the Manager has the
authority to represent otherwise.

Contacts

USA
Sard Verbinnen & Co
Paul Kranhold / Megan
Bouchier
softbank-svc@sardverb.com
+1
415 618 8750
or
EMEA, MENA, UK
Finsbury
Rollo
Head / Andy Parnis
softbank@finsbury.com
+44
(0) 20 7251 3801
or
JAPAN
SoftBank Media Relations
sbpr@softbank.co.jp
+81
3 6889 2300
or
INDIA
SoftBank
Paroma Roy
Chowdhury
paroma@softbank.com
+91
(124) 4131400
or
Website
More information can be
found at https://softbank-ia.com/

 


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