The SoftBank Vision Fund posted more than $ 12 billion in earnings in the third quarter when a number of its investments went public. This was the result of an investor presentation on Monday.
The SoftBank Vision Fund, which has supported a number of real estate startups including Compass and Opendoor, posted net investment income of approximately $ 12.9 billion in the third quarter of fiscal 2020, which makes up the final three months of the year.
In an investor presentation on Monday, SoftBank CEO and founder Masayoshi Son compared the SoftBank Vision Fund – the Japanese multinational conglomerate’s venture capital investment vehicle – to a golden goose that laid many golden eggs in the third quarter.
“Since the launch of the Vision Fund, the number of golden eggs has actually been increasing at an accelerated rate,” said Son during an investor presentation through a translator. “About a year ago, a lot of the media said we were just laying bad eggs.”
“Now we are in harvest time,” added Son.
It pioneered the company’s investment in DoorDash, which resulted in more than $ 8 billion in capital gains as of December 31.
The company’s only listed US real estate company, Opendoor, went public through a merger with Social Capital Hedosophia Holdings II, a special purpose vehicle. As of December 31, the SoftBank Vision fund had converted a $ 450 million investment to a value north of $ 1.2 billion.
SoftBank also supported Beike, a Chinese real estate brokerage and transaction platform that is publicly traded. SoftBank invested $ 1.3 billion in Beike and that investment was worth more than $ 5 billion as of December 31, 2020.
In total, SoftBank turned a $ 11 billion investment into $ 29.1 billion for the company, which has already gone public. Son also noted that there will be more initial public offerings in the next few months.
Although he didn’t mention it by name, Compass filed the first filings with the US Securities and Exchange Commission to go public. SoftBank has carried out several financing rounds for Compass.
The strong investment gains in the company’s Vision Fund resulted in an overall strong quarter for the company, which routinely posted large losses in 2019 as investments in companies like Uber and WeWork stalled. SoftBank posted net income of $ 11 billion for the third quarter.
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