SoftBank<\/a> Group Corp.’s Vision Fund<\/a> is planning deep cuts in staffing after reporting about $18 billion in losses from the declining value of its startups, according to people familiar with the matter.
The reductions could affect about 10% of the fund’s workforce of roughly 500, said two of the people, who asked not to be identified discussing personnel decisions. The Vision Fund’s headquarters are in London, with additional operations in Tokyo and California. The cuts will be across all levels of staff, said one person.
A spokesman for the Vision Fund declined to comment.
SoftBank founder Masayoshi Son and his $100 billion Vision Fund changed the tech industry<\/a> by handing out enormous checks to relatively unproven startups. But the fund went from SoftBank’s main profit contributor a year ago to its biggest drag on earnings. It lost 1.9 trillion yen ($17.7 billion) last fiscal year after writing down the value of investments, including WeWork<\/a> and Uber Technologies Inc<\/a>.
Son originally said he hoped to raise a new Vision Fund every two to three years, but he has conceded he can’t attract moneynow because of the poor performance. The fund, led by Rajeev Misra, operates as a SoftBank affiliate with most of the money coming from limited partners, led by Saudi Arabia’s Public Investment Fund and Abu Dhabi’s Mubadala Investment Co.
“It makes sense that SoftBank is cutting positions at the Vision Fund as they are in an extremely difficult situation, and they may start targeting highly paid workers to cut costs,” said Koji Hirai, head of M&A advisory firm Kachitas Corp. in Tokyo.
The Vision Fund grew rapidly after launch three years ago as Misra recruited scores of people from the finance industry, including many of his former colleagues from Deutsche Bank<\/a>. Among its managing partners are several of the German bank’s ex-employees, including Colin Fan, former co-head of its investment banking division.
The fund also set up an unusual compensation structure that includes a $5 billion loan to employees. The debt is swapped for equity in the fund and generates profit when deals make money -- and losses when they don’t, scaled by seniority, people familiar with the matter have said. The poor performance so far along with the layoffs may prompt some employees to look for other positions.
“One side-effect is that the best people at SoftBank may exit to find better funds,” said Hirai. “If so, their fund business may become even worse, sliding down from a slope.”
The Vision Fund has struggled since WeWork botched its efforts to go public last year and SoftBank stepped in to bail the company out. The Vision Fund currently manages more than 80 portfolio companies, but Son expects about 15 of the fund’s startups will likely go bankrupt while predicting another 15 will thrive.
“Vision Fund’s results are not something to be proud of,” Son said earlier this month as he announced record losses. “If the results are bad, you can’t raise money from investors. Things aren’t good, that’s why we are investing with our own money.”
The fund has already unwound some investments, including selling a nearly 50% stake in dog-walking startup Wag Labs back to the company last year. Son has said he plans to sell off about $42 billion in assets to finance stock buybacks and pay down debt.
SoftBank disclosed it’s selling shares in Alibaba Group Holding Ltd<\/a>. and is in talks to sell about $20 billion of T-Mobile US Inc., Bloomberg News reported. It’s also exploring selling a minority stake in industrial software maker OSIsoft LLC<\/a> that could be worth $1.5 billion.
SoftBank shares, after plummeting in March, have recovered and are little changed for the year. The stock rose just more than 1% in Tokyo trading.
One emerging question is how Alibaba -- SoftBank’s most valuable holding -- will be affected by the clash between the U.S. and China. A bill just approved by the U.S. Senate could force Chinese companies like Alibaba to stop trading their shares on U.S. exchanges.
“The big picture is SoftBank is caught up with U.S.-China conflict right now, and SoftBank may need to conduct a drastic restructuring if Alibaba was delisted from New York,” said Hirai. “Its main banks and the capital markets are anxiously awaiting an outcome for the situation.”
(With assistance from Gillian Tan, Takahiko Hyuga and Vlad Savov.)<\/em>
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软银Group Corp .)视觉基金正计划大幅削减人员报告约180亿美元的损失之后,其公司价值下降,据知情人士透露。
基金的减少会影响大约10%的劳动力约有500,两人说,他不愿透露姓名的人员讨论决定。愿景基金的总部设在伦敦,在东京与额外的操作和加利福尼亚州。削减将在所有级别的员工,一名人士表示。
视觉基金发言人拒绝置评。
软银创始人孙正义和他的1000亿美元的愿景基金改变了科技行业通过发放巨大的检查相对未经证实的初创公司。但该基金从软银的主要利润贡献者一年前其最大拖累业绩。它损失了1.9万亿日元(177亿美元)最近一个会计年度后写下的价值投资,包括WeWork和超级技术公司。
最初的儿子说,他希望提高一个新的视觉基金每两到三年,但他已经承认他不能吸引moneynow因为表现不佳。该基金由Rajeev Misra运作作为软银附属的大部分资金来自有限合伙人,由沙特阿拉伯的公共投资基金和阿布扎比的Mubadala投资有限公司
”是有道理的,软银正在削减在视觉上基金是在极其困难的情况下,他们可能会开始针对高收入工人削减成本,“Koji平井伯昌说,并购咨询公司负责人Kachitas corp .)在东京。
发射后视力基金快速增长三年前从金融业Misra招募了许多人,包括许多他以前的同事德意志银行(Deutsche Bank)。管理合作伙伴中有几个德国银行的前雇员,包括科林粉丝,前其投资银行业务联席主管。
国际货币基金组织还建立了一个不寻常的薪酬结构,包括一个50亿美元的贷款给员工。债务交换股权的基金和交易时产生的利润和损失不赚钱,按比例缩小的资历,知情人士说。到目前为止的表现不佳以及裁员可能会促使一些员工寻找其他职位。
“一个副作用是,最好的人在软银可能退出找到更好的基金,“平井伯昌说。“如果是这样的话,他们的基金业务可能会变得更糟的是,从斜坡滑下来。”
视觉基金一直以来WeWork拙劣努力去年上市,软银介入拯救公司。视觉基金目前管理着80多家投资公司,但儿子预计大约15基金公司可能会破产,而预测另一个15会茁壮成长。
“视觉基金的业绩并不值得骄傲的一件事,”儿子说本月早些时候宣布了创纪录的亏损。“如果结果是坏的,你不能从投资者筹集资金。事情并不好,这就是为什么我们投资与我们自己的钱。”
该基金已经解除了一些投资,包括销售遛狗公司近50%的股份摇实验室去年回到了公司。儿子说,他计划出售约420亿美元的资产,金融股票回购和偿还债务。
软银披露出售股份阿里巴巴集团(Alibaba Group Holding Ltd .)。和正在洽谈出售约200亿美元的t - mobile美国公司,彭博新闻报道。乐动扑克它也是探索工业软件制造商出售少数股权OSIsoft有限责任公司可能价值15亿美元。
软银股票,3月大幅下挫后,已经恢复,变化不大。在东京交易股价仅上涨1%以上。
一个新兴问题是阿里巴巴——软银最有价值的控股,将受到美国和中国之间的冲突。比尔只是美国参议院批准可能会迫使中国企业像阿里巴巴在美国交易所停止交易股票。
“大局是软银赶上美国现在中美冲突,软银可能需要进行大规模重组。如果阿里巴巴退市从纽约,“平井伯昌说。“它的主要银行和资本市场正焦急地等待一个结果。”
(与援助Gillian Tan Takahiko ijichi Hyuga和弗拉德Savov)。
软银Group Corp .)视觉基金正计划大幅削减人员报告约180亿美元的损失之后,其公司价值下降,据知情人士透露。
基金的减少会影响大约10%的劳动力约有500,两人说,他不愿透露姓名的人员讨论决定。愿景基金的总部设在伦敦,在东京与额外的操作和加利福尼亚州。削减将在所有级别的员工,一名人士表示。
视觉基金发言人拒绝置评。
软银创始人孙正义和他的1000亿美元的愿景基金改变了科技行业通过发放巨大的检查相对未经证实的初创公司。但该基金从软银的主要利润贡献者一年前其最大拖累业绩。它损失了1.9万亿日元(177亿美元)最近一个会计年度后写下的价值投资,包括WeWork和超级技术公司。
最初的儿子说,他希望提高一个新的视觉基金每两到三年,但他已经承认他不能吸引moneynow因为表现不佳。该基金由Rajeev Misra运作作为软银附属的大部分资金来自有限合伙人,由沙特阿拉伯的公共投资基金和阿布扎比的Mubadala投资有限公司
”是有道理的,软银正在削减在视觉上基金是在极其困难的情况下,他们可能会开始针对高收入工人削减成本,“Koji平井伯昌说,并购咨询公司负责人Kachitas corp .)在东京。
发射后视力基金快速增长三年前从金融业Misra招募了许多人,包括许多他以前的同事德意志银行(Deutsche Bank)。管理合作伙伴中有几个德国银行的前雇员,包括科林粉丝,前其投资银行业务联席主管。
国际货币基金组织还建立了一个不寻常的薪酬结构,包括一个50亿美元的贷款给员工。债务交换股权的基金和交易时产生的利润和损失不赚钱,按比例缩小的资历,知情人士说。到目前为止的表现不佳以及裁员可能会促使一些员工寻找其他职位。
“一个副作用是,最好的人在软银可能退出找到更好的基金,“平井伯昌说。“如果是这样的话,他们的基金业务可能会变得更糟的是,从斜坡滑下来。”
视觉基金一直以来WeWork拙劣努力去年上市,软银介入拯救公司。视觉基金目前管理着80多家投资公司,但儿子预计大约15基金公司可能会破产,而预测另一个15会茁壮成长。
“视觉基金的业绩并不值得骄傲的一件事,”儿子说本月早些时候宣布了创纪录的亏损。“如果结果是坏的,你不能从投资者筹集资金。事情并不好,这就是为什么我们投资与我们自己的钱。”
该基金已经解除了一些投资,包括销售遛狗公司近50%的股份摇实验室去年回到了公司。儿子说,他计划出售约420亿美元的资产,金融股票回购和偿还债务。
软银披露出售股份阿里巴巴集团(Alibaba Group Holding Ltd .)。和正在洽谈出售约200亿美元的t - mobile美国公司,彭博新闻报道。乐动扑克它也是探索工业软件制造商出售少数股权OSIsoft有限责任公司可能价值15亿美元。
软银股票,3月大幅下挫后,已经恢复,变化不大。在东京交易股价仅上涨1%以上。
一个新兴问题是阿里巴巴——软银最有价值的控股,将受到美国和中国之间的冲突。比尔只是美国参议院批准可能会迫使中国企业像阿里巴巴在美国交易所停止交易股票。
“大局是软银赶上美国现在中美冲突,软银可能需要进行大规模重组。如果阿里巴巴退市从纽约,“平井伯昌说。“它的主要银行和资本市场正焦急地等待一个结果。”
(与援助Gillian Tan Takahiko ijichi Hyuga和弗拉德Savov)。
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