SoftBank's India investments to be made from $100 tech-focussed Vision Fund

Reported to be the world's largest pool of private equity, Saudi Arabia and SoftBank Group's technology investment fund, called the Vision Fund, was announced in October last year and things have picked up pace since then. 

When the initial announcement was made, SoftBank had explained that the Public Investment Fund (PIF), which is Saudi Arabia's top sovereign wealth fund, would be the lead investment partner and invest up to $45 billion over the next five years, while SoftBank would invest at least $25 billion. The investment fund, according to reports, could swell up to $100 billion. 

Here are 9 things to know about this massive venture:

1) The Vision Fund will be SoftBank's primary investment vehicle for in India, according to the Economic Times. All new investments in the country from Masayoshi Son’s tech-and-telecom conglomerate will now be made from the fund. Further, according to the report, all future investments in the Japanese investor's existing India portfolio, including Snapdeal and Ola, will also be made from the new fund.  

2) As reported earlier by Business Standard, India-born Rajeev Misra will head the fund. Shortly after the creation of the fund was announced, Misra's new role was announced. Misra (54), a veteran banker, is the head of strategic finance at SoftBank Group. He joined SoftBank in October 2014, around the same time when Nikesh Arora joined the Japanese investor. Misra was the global head, credit and emerging markets, Deutsche Bank.

3) At the moment, it is not clear whether the fund will make venture-capital style minority bets on younger companies, or bid for control of bigger groups, like a buyout firm. 

4) PIF's involvement in the fund is part of a series of dramatic business initiatives launched by Riyadh this year as Saudi Arabia, its economy hurt by low oil prices, deploys huge financial reserves in an effort to move into non-oil industries.

5) According to reports, Apple Inc has confirmed that it plans to invest $1 billion in the tech fund. "We believe their new fund will speed the development of technologies which may be strategically important to Apple," company spokesman Josh Rosenstock has said.  

6) According to the Wall Street Journal, US-based chipmaker Qualcomm will also be an investor in the fund. Further, the WSJ report said that the Qatar Investment Authority and the Abu Dhabi's sovereign-wealth fund are also looking to invest in the fund. Another report by WSJ said that Foxconn Technology Group Ltd and the family office of Oracle Corp Chairman Larry Ellison were also expected to take part in the fund.  

7) Following a 45-minute private meeting with President-elect Donald Trump in December last year, Son announced that he would invest $50 billion in the US and create 50,000 new jobs, reported WSJ. Initially, there was no clarity whether the amount would come from SoftBank or the Vision Fund. However, Business Insider reported later that the $50 billion investment would not be coming directly from SoftBank, but rather the Vision Fund. 

8) The fund’s remit is vague. Citi analysts say it will invest in artificial intelligence and the internet of things. But Son’s interests are wide-ranging, so “tech” could also include other fields such as green energy. 

9) This is not the first such joint investment venture entered into by SoftBank. Last year, SoftBank teamed up with Bharti Enterprise and Foxconn to launch $20 billion worth of solar energy projects in India.