Softbank's Rajeev Misra steps down as corporate officer and exec VP

• Image Credit: Google

• Aug 31, 2022 | Guriya Khatun

According to media reports, Misra will shortly reveal his own fund, for which he has already raised $6 billion. Misra was a crucial figure who collaborated closely with Son to establish the $100 billion Vision Fund I.

Digital Desk: Rajeev Misra will resign as Corporate Officer and Executive Vice President of SBG, effective August 31, 2022, according to a statement from SoftBank Group Corp. He will continue to lead SB Investment Advisers, which is in charge of running SoftBank Vision Fund 1, as CEO.

The change occurs at a time when the Japanese investment firm suffered unprecedented losses as a result of a decline in its tech holdings. Softbank's founder Masayoshi Son has declared that he will take over the second Vision Fund's management.

According to media reports, Misra will shortly reveal his own fund, for which he has already raised $6 billion. Misra was a crucial figure who collaborated closely with Son to establish the $100 billion Vision Fund I.

However, Softbank's investments have been hurt by the recent collapse in IT stocks. A record $23.4 billion was lost by the Tokyo-based company due to declining portfolio prices. When it marked down the value of its holdings, including DoorDash, Coupang, and SenseTime Group, it could have lost as much as $17.3 billion in the VF. Due to a weak yen, the company also disclosed a $6.1 billion foreign exchange loss.

At a news conference held in response to the results, Son stated, "The loss is the largest in our corporate history, and we take it very seriously. He claimed that the company must turn to significant cost-cutting measures at VF, which will need a personnel decrease.

Son investigated the errors and issues in his portfolio. He said that only 35 of the 284 companies in SoftBank's portfolio saw a value increase during the most recent quarter. The markdowns included numerous private companies and publicly traded portfolio companies whose projected valuations had decreased as a result of weaker comparisons or underwhelming performance.