SoftBank will launch its second private investment fund, which will be dedicated exclusively to technology companies in Latin America, with an initial commitment of $ 3 billion, although it will explore options to raise additional capital.
The previous fund of the financial institution for Latin America was launched in March 2019, with a commitment of 5 billion dollars, and generated a gross internal rate of return (IRR) of 103% in local currency and of 90% in dollars and a net IRR in dollars of 85%. The fund invested 3.5 billion in more than 48 companies in the region, with a combined market value of 6.9 billion as of June 30, including 15 of the 25 Latin American unicorns, including Quinto Andar, Rappi, Mercado Bitcoin, Gympass, MadeiraMadeira o Kavak, Softbank said in a statement.
Fund II intends to invest in technology companies in all countries of the region and industries at all stages of their development, from inception to the public, identifying potential investments that are using emerging technologies and artificial intelligence. to define and reshape new industries, with a focus on e-commerce, digital financial services, healthcare, education, blockchain or insurance, among others.
“In the past two years, we have seen tremendous success and returns from the SoftBank Fund for Latin America that far exceeded our expectations. The incredible work and vision that Latin American entrepreneurs have demonstrated in the region gives us confidence that their digital transformation it will continue to accelerate, “Marcelo Claure, SoftBank corporate director and executive vice president and CEO of SoftBank Group International, which leads the SoftBank Latin America Funds, said in the statement. “In fact, we expect 2022 to be the largest IPO year in Latin American history. Now is the time to redouble our commitment to the region.”