Japan's SoftBank signs MoU with Public Investment Fund of Saudi Arabia

Japan’s SoftBank Group Corp. (SBG) on Friday said it has concluded a non-binding memorandum of understanding (MOU) with the Public Investment Fund of Saudi Arabia (PIF), under which the PIF will consider investing in a fund that Softbank will organize.

In a statement, SBG said the fund it is forming, tentatively called SoftBank Vision Fund, is meant to make investments in the technology sector globally. The fund will be managed in the United Kingdom by a subsidiary of SBG and will deploy capital from SBG and investment partners, it said.

SBG said it expects to invest at least $25 billion over the next 5 years, and that PIF will consider investing in it and becoming the lead investment partner, with the potential investment size of up to $45 billion over the next five years. 

“In addition, a few large global investors are in active dialogue to join SBG and PIF to participate in this fund. The overall potential size of the Fund can go up to $100 billion,” the statement said.

The statement said SBG and the PIF signed the non-binding MOU on Oct. 12, 2016.

It quoted Deputy Crown



Prince Mohammed Bin Salman, chairman of PIF, as saying, “The Public Investment Fund is focused on achieving attractive long-term financial returns from its investments at home and abroad, as well as supporting the Kingdom’s Vision 2030 strategy to develop a diversified economy. We are delighted to sign this MOU with SBG given the long history, established industry relationships and strong investment performance of SBG and Masayoshi Son.” 

For his part, Masayoshi Son, chairman & CEO of SoftBank Group Corp., said: “With the establishment of the SoftBank Vision Fund, we will be able to step up investments in technology companies globally. Over the next decade, the SoftBank Vision Fund will be the biggest investor in the technology sector. We will further accelerate the Information Revolution by contributing to its development.” 

Rajeev Misra, head of Strategic Finance, SoftBank Group, is leading the Fund project for SBG. SBG has engaged former Deutsche banker Nizar Al-Bassam and ex-Goldman partner Dalinc Ariburnu for the project. PIF also had its own team of experts engaged, the statement said.