SoftBank Group Corp. is doubling down on its commitment to Latin America.
Today, Japanese investment conglomerate SoftBank is announcing the launch of Latin America Fund II, its second dedicated private investment fund focused on tech companies based in LatM. SoftBank is launching the new fund with an initial commitment of $3 billion.
“Fund II will explore options to raise additional capital,” SoftBank said in a statement.
The new fund builds on SoftBank’s $5 billion Latin America Fund, first announced in March 2019 and previously called the Innovation Fund. Initial $2 billion in committed capital.
According to the firm, that fund has generated a net IRR of 85% — with SoftBank investing $3.5 billion. 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 startups Quintounder, Rappi, Mercado Bitcoin, Gympass and Madeira. Most recently, it co-led a $350 million Series D round in Ula, an Argentine personal finance management app.
The firm also claimed a “significant price uptick” for portfolio companies, including 4.4x each for Kavac and VTEX; 2.6x for QuintoAndar and 3.5x for Banco Inter (as of June 30).
It has supported companies throughout the region, including Brazil, Mexico, Chile, Colombia, Argentina and Ecuador.
Marcelo Clare, executive VP and COO of SoftBank Group, leads SoftBank Latin America Funds. Managing Partners Shu Nyatta and Paulo Pasoni run the area’s investment team. Alex Szapiro, Brazil’s principal operating partner for SoftBank, leads the fund’s operations team.
Joint, Total investment and operations team of over 60 people operating out of Miami, Sao Paulo and Mexico City.
Fund II intends to support technology-enabled companies in countries and industries at every stage of their development across Latin America, with a focus on e-commerce, digital financial services, healthcare, education, blockchain and enterprise software . among others.
SoftBank President and CEO Masayoshi Son described Latin America as “one of the world’s most important economic regions” in a statement.
“SoftBank will continue to embrace technology that will benefit hundreds of millions of people in this part of the world,” he added. “There is a lot of innovation and disruption happening in Latin America, and I believe the business opportunities there have never been stronger. Latin America is an important part of our strategy – that’s why we make our presence felt. And we are redoubled our commitment to Marcelo.”
Clare said the success and returns from the SoftBank Latin America fund are “much higher” than the firm’s expectations. Looking ahead, he expects 2022 to be the “biggest IPO year” in the region’s history.
Earlier this year, Nerdshala looked at why global investors were flocking to Latin America. that time nyata told me That technology is more frequent in LatAm Inclusion instead of this dissolution.
“The vast majority of the population is disadvantaged in almost every category of consumption. Similarly, most businesses are deprived of modern software solutions, ”Nyata explained. “There is so much for so many people and businesses to build on. In San Francisco, the enterprise ecosystem makes life a little better for individuals and businesses who are already living in the future. In LatAm, tech entrepreneurs Building the future for all others.”