SoftBank is planning to set up a third Vision Fund as per reports. The sources said that details were not yet clear regarding how much capital the CEO, Masayoshi Son would want to inject into a third fund. This news comes just weeks after the company apologized for its disappointing performance of its first two Vision Funds. Investment data firm Preqin notes that the first Vision Fund recorded an internal rate of return (IRR) of 11% for Q1 2022 vs. an industry average of about 38%. The second Vision Fund’s IRR for the same period stood at 0% vs. an industry average of 45%. Besides, the funds have been taking a hit for more than a year due to the plunge in tech stocks which have seen the two funds witness over $40bn in losses in the two prior quarters. Thus, sources note that the third fund would face challenges given the subpar run in addition to an expected 20% staff layoff from its Vision Funds.
SoftBank’s USD 6% Perp was trading stable at 93.875, yielding 14.01%.
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