Softbank's Vision Fund 2 stalls as key backers opt out - Reuters

Softbank's Vision Fund 2 stalls as key backers opt out - Reuters:

Big investors who are critical to SoftBank Group’s plans for a second massive technology investment fund are refusing to take part unless the first $100 billion Vision Fund can turn around its performance, sources familiar with the talks told Reuters.

SoftBank chairman Masayoshi Son on Wednesday acknowledged the lack of commitments for Vision Fund 2, but vowed to forge ahead with his investment strategy using SoftBank money.

That approach could prove difficult in the wake of news last week that activist investor Elliott Management has built up a stake of nearly 3% in SoftBank and will pressure the company to spend its cash on share buybacks.

The first Vision Fund lost $2.5 billion in the quarter ended December, SoftBank reported Wednesday, largely as a result of a disastrous bet on office-sharing company WeWork.