Softbank’s Rajeev Misra launches $ 6 billion fund with support from Abu Dhabi Group

Rajeev Misra, a trader who helped transform SoftBank into the world’s largest and most controversial tech investor, is withdrawing from the Japanese group to launch a new $ 6 billion fund backed by Abu Dhabi.

Mr. Misra, who built and operated a record $ 100 billion vision fund, said his involvement with Softbank will continue, but his new venture will pursue investment strategies that transcend start-ups.

Shakeups show the latest signs of anxiety within SoftBank. This has been shaken by the plunge in tech companies’ reputations and the outflow of senior management over the past few months.

The new fund will be supported by Mubadala and ADQ, the Abu Dhabi State Fund, and the Royal Group, a conglomerate chaired by Sheikh Tahunoon bin Zayed al-Nahyan, National Security Adviser of the United Arab Emirates. He said.

Support from Abu Dhabi is this despite the overwhelming performance of the vision fund, best known for its office provider WeWork, China’s Didi, and a disastrous bet on a failed supply chain finance group. Greensill Capital shows how it has succeeded in maintaining the support of local investors.

“We have a strong relationship with Rajiv and will consider investing in his new fund,” said Mbadara, an external investor in the $ 100 billion vision fund after the Saudi Arabia sovereign wealth fund. I am.

Sheikh Tahunoon, brother of President Sheikh Mohammed bin Zayed of the United Arab Emirates, is also the chairman of ADQ, one of Abu Dhabi’s latest and most active means of investment.

Mithra Sheikh Tahunoon, one of the most powerful figures in the United Arab Emirates and also overseeing the vast business empire, has spent more and more time in recent years, people with knowledge of the matter said. .. ADQ declined to comment. The Royal Group did not immediately respond to the request for comment.

Softbank founder Masayoshi Son told staff in a Thursday memo that Deutsche Bank’s former executive and UBS executive Misra had joined. Softbank In 2014, we will leave the company with an important role.

Mr. Son said he would personally take on the day-to-day management of SoftBank’s second vision fund, which could not attract outside support and had problems with start-ups such as Klarna in Sweden. I made a bet.

He added that Rajiv will continue to oversee the $ 100 billion Vision Fund and remain a “trustworthy senior advisor and an integral part of the SoftBank family.”

For eight years at Softbank, Mithra has repeatedly clashed with seniors such as former Google executive Nikesh Arora, who retired in 2016, and former Sprint CEO Marcelo Claure, who retired earlier this year.

According to people familiar with the issue, such as Munish Varma, Yanni Pipilis, and Akshay Naheta, several SoftBank executives who previously worked for Deutsche Bank, such as Misra, are discussing to join Misra’s new venture.

Another split within SoftBank, Naheta, presided over the group’s short-term internal hedge fund SB Northstar. The fund was virtually closed earlier this year after losing $ 5.75 billion. The 40-year-old left Softbank in April and is based in Abu Dhabi, where the main supporters of the new fund are based.

At SoftBank, Naheta has built a reputation for engineering controversial transactions, including derivatives, such as SoftBank’s complex $ 1 billion bet on the shares of fraudulent settlement company Wirecard.

Softbank’s Rajeev Misra launches $ 6 billion fund with support from Abu Dhabi Group

Source link Softbank’s Rajeev Misra launches $ 6 billion fund with support from Abu Dhabi Group

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