SoftBank posts $17 bln Vision Fund loss on tech slump

TOKYO, Aug. 8 (BNA): SoftBank Group Corp. (9984.T) Monday posted a loss of 2.33 trillion yen ($17.23 billion) in its Vision Fund unit in the April-June quarter as the value of its technology portfolio declined.

According to Reuters, SoftBank posted a record loss for its Vision Fund unit in May, as the tech investor was hit by market turmoil driven by high interest rates and political instability.

The group’s tiered portfolio drove a net loss of 3.16 trillion yen in the last quarter. That compares with a profit of 761.5 billion yen in the same period a year earlier.

Masayoshi Son, founder and CEO of SoftBank, who will speak at an earnings conference at 4:30 p.m. (0730 GMT), has pledged to tighten investment standards and maintain liquidity in the face of the economic crisis.

In the quarter ending June, declining listed investments included robotics company AutoStore Holdings Ltd (AUTO.OL) and artificial intelligence company SenseTime Group Inc (0020.HK).

SoftBank said it posted a loss of 296 billion yen from the value of Vision Fund’s private investments. Analysts said the writedowns of private assets are unlikely to reflect the extent of the current weakness in the market.

Low IPO volumes and market skepticism toward losing startups have put pressure on an important source of capital for SoftBank, which is hoping to list chip designer Arm after the collapse of its Nvidia sale.

The sell-off weighed on hedge fund Tiger Global, which is competing with unicorn hunter Son for deals and saw its flagship fund plunge 50% in the first half of the year after it underestimated the impact of higher inflation on the markets.

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