SoftBank's Vision Fund to hire China team, set up mainland office - sources

Ping An Healthcare and Technology Co

05/12/2018 24:08

* Vision Fund to open 1st mainland office in Shanghai -
sources
    * SoftBank plans about 20 hires for fund's China team -
sources
    * China office openings follow those in India, Saudi Arabia 

    By Kane Wu
    HONG KONG, Dec 5 (Reuters) - The SoftBank-led Vision Fund is
hiring an investment team to be based in China as the $100
billion investment giant expands in one of the world's most
vibrant tech markets, two people with direct knowledge of the
move told Reuters.
    The Vision Fund plans to open its first China office in
Shanghai next year, followed by Beijing and Hong Kong.
Altogether it hopes to hire about 20 people, said the people,
who declined to be named as the information was confidential.
    The Vision Fund raised more than $93 billion at its first
close last May with investors including the sovereign wealth
funds of Saudi Arabia and Abu Dhabi, Apple Inc  AAPL.O  and Hon
Hai Precision Industry Co Ltd (Foxconn)  2317.TW .
    In a statement at the time, SoftBank said the fund was
targeting a total of $100 billion within six months.
    Earlier this year, the fund hired Eric Chen, who last worked
as a Hong Kong-based managing director at private equity firm
Silver Lake before setting up his own venture, to head its
upcoming China team, the people added.
    Chen joined SoftBank Investment Advisers, which oversees
Vision Fund, as a partner in March and is based in San
Francisco, according to his LinkedIn profile and confirmation
from the people. He could not be reached for comment.
    A SoftBank spokesman declined to comment.
    Already this year the Vision Fund has moved to open offices
in India, where it has spent $5 billion betting on the future of
technology, and Saudi Arabia, home to its biggest backer -
sovereign wealth fund PIF.
    The openings come as the fund must manage its sprawling web
of portfolio companies covering everything from shared working
space to insurance and healthcare.
    SoftBank is no stranger in China. Founder Masayoshi Son was
an early backer of e-commerce giant Alibaba Group  BABA.N  in
2000. Since 2013, SoftBank has invested over $13 billion in
Chinese companies such as ride-hailing champion Didi Chuxing.
The Vision Fund has made five investments in China, according to
Refinitiv data. 
    Since its first close on May 17 last year, the Vision Fund
has invested in truck-hailing company Man Bang Group, Ping An
Healthcare and Technology Co  1833.HK , a one-stop healthcare
platform backed by Ping An Insurance Group  2318.HK  601388.SS ,
and most recently Beijing Bytedance Technology Co, China's
largest media start-up managing news aggregator Toutiao and
online short-video streaming app TikTok, the data showed.    
    Bytedance is valued at $75 billion in its latest
fundraising, Reuters has reported.  urn:newsml:reuters.com:*:nL4N1UZ3Y8
    The fund has also invested $500 million in the Chinese unit
of U.S.-based shared working space provider WeWork Cos in July,
as part of its support for WeWork's global push.  urn:newsml:reuters.com:*:nL2N1WP213
    
    

 (Reporting by Kane Wu in Hong Kong, adiditonal reporting by Sam
Nussey in Tokyo; Editing by Jennifer Hughes and Stephen Coates)
 ((kane.wu@thomsonreuters.com; +85228436590; Reuters Messaging:
kane.wu.thomsonreuters.com@reuters.net))