SoftBank and Saudi Arabia are to make one of the world’s largest private equity funds. These two parties are creating the historically large fund of $100 billion dollars. The purpose of establishing this fund is to make a grandiose investment in tech sectors.
By this initiative, king Salman is attempting to recover Kingdom of Saudi Arabia’s sloppy economic performance. As of late, the country is experiencing a sluggish economy due to low oil price.
Saudi took some business initiatives in order to decentralize and diversify its economy. The business plan will balance Riyadh’s oil-economy dependency.
On the other hand, Masayoshi Son who is founder and chairman of SoftBank is trying to enlarge its businesses in new areas.
Saudi Arabia has the world’s largest SWF (Sovereign Wealth Fund). Moreover, to utilize the Public Investment Fund the government is set to lead the investment partnership with SoftBank. The Japanese company, SoftBank stated that Saudi may invest about $45 billion over the next five years whereas SoftBank aims to invest minimum $25 billion.
The largest equity fund drew other investors’ attention. Apart from the $70 billion fund from KSA and SoftBank’s, some other investors want to put about $30 billion in the fund. Consequently, it will be a $100 billion investment fund led by Saudi.
Though KSA is leading the fund by investing but SoftBank will indirectly supervise the fund. In fact, Britain, a subsidiary of SoftBank will manage the $100 billion dollars.