Vision Fund to reach $100bn target

The Vision Fund is about to reach its goal of $100 billion, reports the FT, with another $7 billion pledged to add to the $93 billion already raised.

The final $7 billion is coming from Daimler, the sovereign wealth fund of Bahrain, Larry Ellison and three Japanese banks – Mizuho, MUFG and Sumitomo.

When the Vision Fund reaches its $100 billion goal,  $44 billion of the capital contributed by outside investors will be treated as debt on which the holder gets a 7% return over the fund’s 12 year life and the return of the principal sum, while $28 billion will be treated as an equity stake which may or may not deliver a return to the investor.

While outside investors get  62% of their investment treated as debt and the rest treated as equity, Softbank’s contribution of $25 billion is treated as all-equity.

$29.7 billion of the $93 billion raised so far has been invested in 30 companies.

Softbank is now reported to be looking at raising Vision Fund 2.

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