Saudi to invest another $45 billion in the second Softbank fund: Prince Mohammed bin Salman

Saudi Arabia’s Crown Prince Mohammed bin Salman has said that the Kingdom will invest another $45 billion in the next $100 billion that Softbank plans to launch. The prince said this speaking to Bloomberg in an exclusive interview that took place last Wednesday at a royal compound in Riyadh.

If the deal eventually materializes, it would take Saudi investment in the Softbank Vision Fund (1 & 2) to $90 billion. Saudi Arabia’s Public Investment Fund has invested $45 billion in the first Vision Fund that has been investing crazy amounts of capital in startups all around the world.

Saudi to invest another $45 billion the second Softbank fund: Prince Mohammed bin SalmanClick To Tweet

Last month, Masayoshi Son, the CEO of Softbank, also speaking to Bloomberg in an interview had said that Softbank plans to create a $100 billion fund every two-three years with an aim to spend $50 billion every year.

Saudi Crown Prince is expecting big returns from their first investment, “We would not put, as PIF, another $45 billion if we didn’t see huge income in the first year with the first $45 billion.”

Here is that part of the transcript when Prince Mohammed bin Salman (aka as MbS) talks about Softbank.

BLOOMBERG: One of the places you invested in was SoftBank. Will you be a part of the other $100 billion they’re seeking?

MBS: Of course. Definitely. We are the creators of SoftBank vision fund. We have 45 percent. Without the PIF, there will be no SoftBank vision fund.

Bloomberg: How much of the new $100 billion?

MBS: Same amount mostly.

Bloomberg: Another $45 billion?

MBS: That’s right.

Bloomberg: So a total of $90 billion.

MBS: That’s right. That means we have a huge benefit from the first one. We would not put, as PIF, another $45 billion if we didn’t see huge income in the first year with the first $45 billion.

BLOOMBERG: How much?

MBS: Masa once announced the number in the last FII that we did more than 20 percent in the first five months, so you can imagine!

BLOOMBERG: You’re happy?

MBS: Of course!

Featured image via Financial Times.