Softbank Group Corp., a multinational Japanese conglomerate, has formed an executive committee with supervisory power to its Second Vision Fund and Latin America (Latam) funds as well, a top official announced
In a staff memo seen by Bloomberg News, company chairman Masayoshi Son appointed Alex Clavel to supervise investing teams in Latin America and the US.
Greg Moon was also appointed to manage the teams in Asia and Europe, while Navneet Govil will take the lead role in finance and compliance, considered as non-investment teams.
'More Excited'
Son expressed optimism about the future of Softbank Group, saying he is "more excited" about the conglomerate's future.
The Softbank chairman, in the staff memo, pledged to "harness the power of AI" that will promote a world of greater connectivity, empowerment, and joy.
The decision to form the executive committee came after Softbank recently laid off some employees working for its Vision Fund following a record loss.
Softbank lost $23 billion after the value of portfolio companies - South Korea's Coupang Inc. and DoorDash Inc. - plunged.
The conglomerate has pledged $160 billion to over 400 companies through the first and second Vision Funds and also for its Latam funds.
Son said, "all eyes are on us, as the world's leading tech investor."
New Firm
The decision also came on the heels of a new firm, One Investment Management, established by SoftBank Investment Advisers CEO Rajeev Misra. While Misra retains his role as CEO, he will relinquish some of his responsibilities.
In retaining his CEO role, Misra will continue to focus on the first Vision Fund. He will be the vice chairman of SB Global Advisers Ltd. that runs both the second Vision Fund and Latam.
Son considered Misra the chief architect of the Vision Funds.
The second Vision Fund has supported WeWork Inc., Exscientia Plc, and Qualtrics International Inc.
Latam, on the other hand, has investments in Banco Inter, Satellogic Inc., and others.
Winning Back Investors Confidence
The Japanese conglomerate suffered tremendous losses early this year. In May, The Wall Street Journal said Softbank had lost $13.2 billion on tech investments.
A month after the staggering loss Softbank CEO Michel Combes resigned barely five months into office. Combes, a French businessman, took on the role in January after Marcelo Claure, who helmed the SoftBank-controlled Sprint, resigned because of a pay dispute.
Combes had previously served as the CEO of Vodafone Europe. Altice, and Alcatel-Lucent.
After the Japanese conglomerate raked in profits in 2021, its boom year, Softbank reported a not-so-rosy financial picture posting a net loss of ¥3.16 trillion ($32 billion) in the second quarter of 2022.
Softbank was forced to sell its premium Alibaba investments to recoup the losses, but it did not work well either.
The sale of its stock in Alibaba was perceived by many in the investment circle as a desperate move. When SoftBank sold its Alibaba stock, it was like losing a proverbial goose that lays golden eggs at the very least.
That's why the latest decision to create a new executive committee after the exodus of the group's top lieutenants was seen as a step towards winning back the confidence of its investors.
