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RIYADH: The world’s largest private equity fund, backed by Japan’s Softbank Group and Saudi Arabia’s main sovereign wealth fund, said on Saturday it had raised over $93 billion to invest in technology sectors such as artificial intelligence and robotics.
“The next stage of the Information Revolution is under way, and building the businesses that will make this possible will require unprecedented large-scale, long-term investment,” the Softbank Vision Fund said in a statement.
Masayoshi Son, Japanese billionaire and chairman of Softbank, revealed plans for the fund last October and since then it has obtained commitments from some of the world’s most deep-pocketed investors.
In addition to Softbank and Saudi Arabia’s Public Investment Fund (PIF), the new fund’s investors include Abu Dhabi’s Mubadala Investment, which has committed $15bn, Apple Inc, Qualcomm, Taiwan’s Foxconn Technology and Japan’s Sharp Corp.
The new fund made its announcement during the visit of President Donald Trump to Riyadh. Son was also in the city on Saturday.
After meeting with Trump last December, Son pledged $50bn of investment in the United States that would create 50,000 jobs, a promise Trump claimed was a direct result of his election win.
The fund may also serve the interests of Saudi Arabia by helping Riyadh obtain access to foreign technology. The Saudi economy has been severely damaged by low oil prices, and policymakers are trying to diversify into new industries.
The PIF signalled an interest in the tech sector last year by investing $3.5bn in US ride-hailing firm Uber. Saturday’s statement did not say how much the PIF had committed to the fund, but previously it has said it would invest up to $45bn over five years. Softbank is investing $28bn.
The new fund said it would seek to buy minority and majority interests in both private and public companies, from emerging businesses to established, multi-billion-dollar firms. It expects to obtain preferred access to long-term investment opportunities worth $100m or more.
Published in Dawn, May 21st, 2017
