Relevant:
- SoftBank's Biggest Backers Balk at Planned $16 Billion Acquisition of WeWork
- WeWork Wins $4.4 Billion SoftBank Investment for Expansion (GREATER FOOL?)
- Saudi Arabia, SoftBank plan $100 billion tech fund - one of the world's biggest
- For SoftBank, no majority stake in WeWork as it scales down talks from a new $16 billion investment to $2 billion
- The SoftBank Effect: How $100 Billion Left Workers in a Hole
2018-10-24 — epsilontheory.com
Softbank's Vision Fund is the largest single private equity fund in the world, with about $100 billion in capital commitments, of which about half comes from Saudi Arabia... The Vision Fund, and more generally the Saudi money behind it, is a classic fin de siecle undertaking. It is The Greatest Fool in a private equity world that must find greater and greater fools for their investment funds to work here at the tail end of a very long and very profitable business cycle. The Vision Fund and its Saudi money isn't just a lucky break for both the financiers and the entrepreneurs of Silicon Valley. It is an answered prayer.
And here's the crazy thing ... the Khashoggi murder could blow this all up. Not just the WeWork deal. Not just the next mega-fund that SoftBank puts together. But this fund. The Vision Fund. And if the Vision Fund is no longer viable as a player in Silicon Valley, then I don't think the unicorn valuations are viable, either.
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