SoftBank Group Corp.s Vision Fund injected at least $400 million into Greensill Capital at the end of in 2015, according to people acquainted with the matter, deepening the potential losses the giant tech investor faces in the start-ups collapse.
The infusion of cash was in addition to the $1.5 billion the Vision Fund had purchased Greensill in 2019. The cash, not previously reported, was used as a financial backstop when another Vision Fund company came close to defaulting on a loan to Greensill, individuals stated.
Greensill, which focused on making short-term cash-advance-style loans to companies, applied for insolvency today after regulators took over its banking system and Credit Suisse Group AG froze mutual funds important to the startups operations.
Greensill packaged loans to business into securities, known as notes, that were purchased by the Credit Suisse funds and offered to investors as low-risk, money-market-style investments.
SoftBank, established by billionaire Masayoshi Son, is a giant in the field of investing, with interests spanning microchips, self-driving automobiles, satellites, e-commerce and mobile-phone networks. The Japanese corporations $100 billion Vision Fund, and a smaller sized successor fund, have actually purchased over 80 companies. In addition to Greensill, these include Uber Technologies Inc. and TikTok owner ByteDance Ltd