SoftBank Group Corp. is considering a more cautious approach to investing in companies under its Vision Fund 2, CNBC.com reported, citing sources.
Company CEO Masayoshi Son plans to assume a more active role in the fund's investment strategy by eyeing companies that can achieve quicker profitability and have clearer paths to public offerings. The shift in strategy, however, could change depending on market conditions, the sources said.
The second Vision Fund reportedly may also have a different structure from the first, with SoftBank weighing an evergreen component that would allow limited partners to reinvest part of their profits from exits back into the fund. It targets to release its funding in four to five years.
The plans came amid the market's lukewarm response to previous Vision Fund investments, resulting in an IPO delay for WeWork Cos. Inc.'s parent The We Co. and dull performances for companies such as Uber Technologies Inc. and Slack Technologies Inc., the report said.
SoftBank launched its Vision Fund 2 in late July with an aim to invest in artificial intelligence-driven technology companies. The fund generated total pledged capital of about $108 billion, including commitments from tech giants Apple Inc. and Microsoft Corp. The Japanese conglomerate reportedly aims to close the fund by March 2020.