SoftBank Vision Fund records loss of $3.86 b in H1

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SoftBank Group Corp’s flagship Vision Fund has suffered an investment loss of $3.86 billion (excluding gains on bets in subsidiaries) in the six months ended September due to lower share prices of its listed portfolio companies and a decrease in the fair values of its private portfolio companies.

SVF registered an investment loss of $3.7 billion in the September quarter as against $9.5 billion loss in the corresponding quarter of last year. However, substantially it grew from $86 million in the June quarter.

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At a segmental level, SVF recorded a $1.2 billion gain on investments which included gains associated with SVF’s investments in arm and other subsidiaries of the SoftBank group. The Japanese tech investor said that it received proceeds of $5.12 billion in the recent initial public offering of a chip major arm as it sold a 10 per cent stake in the company.

However, in the consolidated statement of financial position, ¥674.4 billion ($4.65 billion), which represents the gain on disposal, was recorded as a capital surplus. It also received proceeds totalling $1.97 billion from sales of investments by SVF in portfolio companies and raised $4.39 billion through prepaid forward contracts using Alibaba shares during the period.

During H1, the fund’s gross performance since inception was $14.8 billion in gains for Vision Fund 1 and $20.7 billion in losses for Vision Fund 2.