LONDON – SoftBank Group Corp. has scaled back ambitions for its second Vision Fund after the failure of big bets, including WeWork, by its first fund rattled partners such as Saudi Arabia, according to the Sunday Telegraph.
The second Vision Fund is expected to fall significantly short of the $108 billion originally planned, the Sunday Telegraph report said, citing unidentified people with knowledge of the matter.
Discussions are continuing with potential partners, including Mubadala Investment Co. and the Public Investment Fund, the sovereign wealth funds of Abu Dhabi and Saudi Arabia, but neither has yet committed to the new fund, the report said. A SoftBank Vision Fund spokesman told the newspaper that fundraising was progressing as expected as external investors assess their potential commitments.
SoftBank’s massive investment in WeWork triggered a multi-billion dollar writedown and a rare apology from founder Masayoshi Son. The Japanese company was forced to provide a $9.5 billion rescue package to the shared-office-space provider in October after it withdrew an initial public offering.