Mubadala will dump $15billion into SoftBank Tech Fund

Abu Dhabi based Mubadala Investment Co. is scheduled to invest $15 billion in Vision Fund and initiate two new experiment capital funds to rise its technology holdings.
14 May 2017 – Bloomberg

The SoftBank fund will be “wrapped up” in two to three weeks with about $95 billion of commitments, according to Ibrahim Ajami, head of venture capital at Mubadala Capital, the sovereign wealth fund’s investment arm. Mubadala plans to make its investment over the next five years, he said.

“This is a significant opportunity for good financial returns,” Ajami said in an interview in Abu Dhabi on Sunday. “Our priority is financial return, if you look at his track record over the past 30 years, what he’s been able to achieve in technology, no other investor has,” Ajami said, referring to SoftBank Chief Executive Officer Masayoshi Son.

Sovereign wealth funds in Gulf Arab states are looking at opportunities in new areas, such as technology, to lessen their reliance on volatile oil markets. Saudi Arabia’s Public Investment Fund is said to be committing as much as $45 billion to partner with SoftBank to set up its fund after funneling about $50 billion of the kingdom’s reserves into investments abroad — almost all in technology — over the past year.

SoftBank plans to contribute at least $25 billion of its own capital to the fund in the next five years. The Japanese company announced plans for the Vision Fund last year, aiming to create a vehicle that would become one of the biggest technology investors over the next decade.

“Technology impacts everything, it has become foundational to every sector around the world,” Ajami said. “The amount of change that’s happening really provide an opportunity to generate some good return– with the right investment, the right approach and the right thesis.”

Mubadala already fully owns Globalfoundries Inc., the California-based maker of semiconductors and holds a stake in Advanced Micro Devices Inc. In the United Arab Emirates, it has a holding in telecommunication services provider Emirates Integrated Telecommunications Co., known as du, and owns satellite operator Al Yah Satellite Communications Co.