SoftBank Group Corp. is doubling down on its commitment to Latin America.
Today, the Japanese investment conglomerate is announcing the launch of the SoftBank Latin America Fund II, its second dedicated private investment fund focused on tech companies located in LatAm. SoftBank is launching the new fund with an initial $3 billion commitment.
“Fund II will explore options to raise additional capital,” SoftBank said in a statement.
The new fund builds upon SoftBank’s $5 billion Latin America Fund, which was first announced in March 2019 and was formerly called the Innovation Fund with an initial $2 billion in committed capital.
According to the firm, that fund has generated a net IRR of 85% — with SoftBank having invested $3.5 billion in 48 companies with a fair value of $6.9 billion as of June 30. SoftBank has invested in 15 unicorns out of that fund, including proptech startup QuintoAndar, Rappi, Mercado Bitcoin, Gympass and MadeiraMadeira. Recently, it co-led a $350 million Series D round in Argentine personal finance management app Ualá.
The firm also claims to have “created significant value uplift” for portfolio companies, including 4.4x each for Kavak and VTEX; 2.6x for QuintoAndar and 3.5x for Banco Inter (as of June 30).
It has backed companies across the region including in Brazil, Mexico, Chile, Colombia, Argentina and Ecuador.
Marcelo Claure, Executive VP and COO of SoftBank Group, leads the SoftBank Latin America Funds. Managing Partners (Read more...)