A detailed analysis with lots of background infos.7 Global Capital GP S.à.r.l.
On May 18th, 2020, SoftBank announced that it recorded losses of more than $17 Bn in the Vision Fund for the fiscal year that ended on March 31st, representing one of the largest write-downs in private equity fund history. An incredible 47 investments, representing 64% of the portfolio, were written down. The SoftBank Group (TopCo) in itself suffered a net loss of $9 Bn due to poor performance of the fund, the first quarterly loss in the company’s 14-year history.
While a certain portion of the losses can be attributed to the ongoing pandemic; most of it cannot. Masa Son’s ambitions, the Vision Fund’s capital structure, poor governance and the inexperience of the investment team are contributing factors to the current situation in some way or another.