Tech

SoftBank chief executive Rajiv Misra is stepping down from his role at Vision Fund

Rajiv Misra will step down as CEO of SoftBank Global Advisors, which runs Vision Fund 2. The move comes as pressure on SoftBank’s investment strategy has mounted amid a string of failed bids and a slump in tech stocks this year.

Patrick T. Fallon | Bloomberg | Getty Images

Rajiv Misra, who runs SoftBank’s massive technology investment arm, will step down from one of his positions, the Japanese conglomerate confirmed to CNBC on Thursday.

Misra will build an external multi-asset investment fund.

He will remain CEO of SoftBank Investment Advisors, the entity responsible for the $100 billion Vision Fund, which has taken big bets on companies such as Uber and Chinese giant DiDi. Vision Fund was founded in 2017.

Misra will also remain executive vice president of SoftBank Group, the parent company.

However, the executive will step down as CEO of SoftBank Global Advisors, which manages a second Vision Fund called Vision Fund 2. Instead, he will become vice chairman and take on a smaller role. Vision Fund 2 was founded in 2019.

But SoftBank’s investment strategy has come under severe criticism and pressure from a series of failed bets and a collapse in tech stocks this year.

One of the most high-profile issues came with co-working company WeWork, which failed to go public in 2019 after concerns were raised about its business model and corporate governance. WeWork eventually went public last year through a special takeover campaign.

The Vision Fund posted a record loss of 3.5 trillion yen ($25.7 billion) for the fiscal year ended March 31 as technology stocks continued to tumble.

The Japanese giant’s outspoken founder, Masayoshi Son, will take a more direct leadership role at Vision Fund 2, supported by the existing management team.

The Financial Times reported on Thursday that Misra’s new fund will be worth about $6 billion and will be backed by Abu Dhabi’s state investment funds Mubadala and ADQ, as well as Royal Group.

SoftBank chief executive Rajiv Misra is stepping down from his role at Vision Fund

Source link SoftBank chief executive Rajiv Misra is stepping down from his role at Vision Fund

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