SoftBank Vision Fund Loses Over $17B In June Quarter As Recession Fear Erodes Portfolio Holdings

SoftBank Group Corp. (OTC: SFTBY) on Monday registered a ¥2.33 trillion ($17.23 billion) loss in its vision fund unit during the June quarter, mainly led by a slide in share prices of portfolio companies due to growing fears of an economic recession.

Vision Fund 1: The SoftBank Vision Fund 1’s realized net loss stood at ¥30.5 billion, mainly due to the monetization of investments in public portfolio companies. Unrealized loss on valuation (net) totaled ¥1.2 trillion, mainly due to the decline in share prices of public portfolio companies, the group said in a release.

SVF1 made follow-on investments in existing portfolio companies totaling $0.06 billion in the first quarter and held 80 investments as of the first quarter-end, the firm said.

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Vision Fund 2: The SoftBank Vision Fund 2 recorded a realized gain of ¥3.3 billion. Unrealized loss on valuation (net) totaled ¥1,326 billion, mainly due to declines in the share prices of public portfolio companies and the fair value in a wide range of private portfolio companies. 

That reflects mark-downs of those with recent funding rounds and/or weaker performance, as well as share price declines in market comparable companies, the Masayoshi Son-led group said.

SVF2 made new and follow-on investments totaling $2.11 billion in the first quarter, bringing the fund’s total cost to $49.65 billion. SVF2 held 269 investments as of the first quarter-end.

Stock Updates: SoftBank raised $10.49 billion through prepaid forward contracts using Alibaba Group Holding Ltd. (NYSE: BABA) shares. It sold 21.2 million T-Mobile Us Inc (NASDAQ: TMUS) shares for $2.40 billion.

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