# SoftBank’s Vision Fund posts $2 billion profit, share weakness casts shadow Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-08-10 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: SoftBank's Vision Fund Profits Top $2 Billion Despite Meta Description: SoftBank's Vision Fund unit reported a £2.14 billion profit in the first quarter, despite fluctuations in portfolio company valuations like Coupang Inc. URL: https://financedigest.com/softbanks-vision-fund-posts-2-billion-profit-share-weakness-casts-shadowhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-08-10t081856z1lynxmpeh79092rtroptp3thg-fundraising-softbank-group-1736838033646-compressed.jpg) By Sam Nussey TOKYO (Reuters) – SoftBank Group Corp’s Vision Fund unit on Tuesday posted a 236 billion yen ($2.14 billion) profit in the first quarter after gains from listing portfolio companies were offset by falling shares in firms like e-retailer Coupang Inc. The Japanese conglomerate posted record annual profit in May with executives pointing to further upside from Vision Fund investments such as Chinese ride-hailing firm Didi Global Inc and “Uber for trucks” startup Full Truck Alliance Co Ltd. Those companies listed in New York during the quarter but Chinese regulatory action has subsequently hammered valuations, underscoring SoftBank’s [China risk](https://www.financedigest.com/asia-shares-weigh-china-risks-yen-hits-6-month-high.html "Asia shares weigh China risks, yen hits 6-month high") even as the group seeks to reduce dependence on its largest asset, a stake in Chinese e-commerce giant Alibaba Group Holding Ltd. While the crackdown has affected returns expectations, “our broader thesis in China is unchanged: It’s still a large, [growing and compelling economic opportunity,” said Vision Fund](https://www.financedigest.com/55-of-uk-smes-unable-to-access-all-funding-needed-to-grow.html "55% of UK SMEs unable to access all funding needed to grow") Chief Financial Officer Navneet Govil. The turmoil is clouding the outlook for the group, whose [shares have slipped a third from two-decade highs in March amid the completion of a record 2.5 trillion yen buyback](https://www.financedigest.com/abb-to-launch-1-billion-share-buyback-on-april-3.html "ABB to launch billion share buyback on April 3"). [Shares closed up 0.9% ahead](https://www.financedigest.com/shares-steady-dollar-gains-ahead-of-u-s-inflation-data.html "Shares steady, dollar gains ahead of U.S. inflation data") of earnings. Having a large public portfolio introduces volatility but at the same [time it allows us to continue to monetise](https://www.financedigest.com/monetisation-of-time.html "Monetisation of time") in a very disciplined manner,” said Govil. More than two-thirds of the portfolio of the first $100 [billion Vision Fund](https://www.financedigest.com/uk-investors-add-1-2-billion-to-equity-funds-in-march-calastone.html "UK investors add .2 billion to equity funds in March – Calastone") is listed or exited. SoftBank has distributed $27 billion to its limited partners [since inception](https://www.financedigest.com/dash-unveils-largest-software-upgrade-since-inception.html "Dash unveils largest software upgrade since inception"). Further upside will come from listings by [Indian payments firm Paytm and insurance aggregator Policybazaar as well](https://www.financedigest.com/tennis-panic-attack-ends-tsurenkos-indian-wells-as-raducanu-marches-on.html "Tennis-Panic attack ends Tsurenko’s Indian wells, as Raducanu marches on") as Southeast Asian ridehailer Grab, which is due go public via a blank-cheque company merger, Govil said. SoftBank is also ramping up [investing through Vision Fund](https://www.financedigest.com/norway-wealth-fund-to-consider-investing-in-unlisted-equities.html "Norway wealth fund to consider investing in unlisted equities") 2, to which it has committed $40 billion of capital, with the unit making 47 new investments worth $14.2 billion made in the April-June quarter alone. In the first quarter, Vision [Fund unit gains included 310 billion yen from selling](https://www.financedigest.com/intercos-fund-shareholders-l-catterton-otpp-sell-6-stake-at-7-discount.html "Intercos fund shareholders L Catterton, OTPP sell 6% stake at 7% discount") shares in investments including delivery firm DoorDash Inc and ridehailer Uber Technologies Inc. [First-quarter group net profit](https://www.financedigest.com/ibm-beats-first-quarter-profit-estimates-signals-demand-holding-up.html "IBM beats first-quarter profit estimates, signals demand holding up"), however, fell 39% to 762 billion yen. SoftBank has also been betting on publicly listed [shares through its SB Northstar trading](https://www.financedigest.com/social-trading-is-the-new-way-that-gen-z-are-getting-their-share-of-the-pie.html "Social Trading is The New Way That Gen Z Are Getting Their Share of The Pie") unit. It held [stakes in firms](https://www.financedigest.com/stellantis-to-build-u-s-firm-archers-air-taxi-up-stake.html "Stellantis to build U.S. firm Archer’s air taxi, up stake") worth $13.6 billion at the end of June with the portfolio no longer including Microsoft Corp or Facebook Inc listed three months earlier. [Chief Executive](https://www.financedigest.com/exotix-draws-sberbanks-us-chief-executive-in-triple-hire-to-extend-global-capabilities.html "Exotix Draws Sberbank’s US Chief Executive in Triple Hire to Extend Global Capabilities") Masayoshi Son will speak at a news conference from 07:30 GMT. ($1 = 110.3900 yen) (Reporting by Sam Nussey; Editing by Christopher Cushing) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---