SoftBank reports Q3 profits of $8 billion as Vision Fund recovers

SoftBank corporate, a Japanese multinational conglomerate has reported a profit of 844 billion yen ($8 billion) at its Vision Fund department, on Monday 8th February 2021. This was in the three months till 31st December 2020. They witnessed a loss in the previous year but their gain can be credited to investments in Uber Technology and other companies.

The rise in profit has been a great altercation as in the earlier year there were high-profile misses such as collapsed IPO of shared workplace company, WeWork and the global pandemic of COVID-19 prompted the CEO Masayoshi Son to sell assets and stabilize his firm.

Interest rates are at the lowest have led to an elated market driven by tech stock gains and a turn around at the Vision Fund unit. During the quarter Softbank-backed food delivery app operator DoorDash and home selling platform Opendoor went public.

Near to half of Vision Fund’s portfolio was exited or listed at the end of December, offering liquidity to the fund whose investors include the sovereign wealth funds of Saudi Arabia and Abu Dhabi.

The $100 billion Vision Fund’s 82 investments were valued at $90 billion against their purchase price of $76.3 billion. The fund has also reported $20.4 billion in gross gains after inception. Vision Fund 2’s 26 investments were priced at $9.3 billion compared with the acquired price of $4.3 billion.

In the third quarter ended 31st December, the net profit spiralled more than 20 times to 1.17 trillion yen ($11.09 billion). In comparison to an approximate of 171 billion yen from four analysts polled by Refinitiv Smart Estimate.

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