SoftBank tech fund to invest up to US$100 bil with Saudis

SINGAPORE (Oct 14): SoftBank Group Corp. said it will form a new fund to invest as much as US$100 billion ($138 billion) in the global technology industry in the next five years, partnering with Saudi Arabia’s public investment fund to find tech companies that will become influential in the future.

The Saudi government will consider putting money in the fund -- tentatively named SoftBank Vision Fund -- and becoming the lead investment partner, with a potential investment size of as much as US$45 billion over the next five years, SoftBank said in a statement Friday. SoftBank, which will invest as much as US$25 billion, said it signed a non-binding memorandum of understanding with the Saudis. Other large global investors may participate, the Japanese company said, with the total possible size of the fund reaching up to $100 billion.

Softbank Vision will likely back technology companies at all stages -- a strategy SoftBank employed to rack up big returns on deals including Alibaba Group Holding, Yahoo, SuperCell Oy and Didi. The mega-fund, which may target some companies traditionally backed by venture capital firms, comes during a record year for the venture industry. Through a spokesman SoftBank declined further comment, noting the fund had not yet closed.

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