Deals
How Softbank's Massive Vision Fund Shares Profits—and Losses
- Partners loaned $5 billion of equity in fund with interest
- Compensation scheme includes hefty clawback of 20% or more
Photographer: Yuriko Nakao/Bloomberg
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Partners at SoftBank Group Corp.’s $100 billion Vision Fund will share in the potentially enormous profits from their investments, including on startups like Uber Technologies Inc. They’ll also be on the hook when those bets backfire.
SoftBank has set up an unusual compensation structure for the fund that includes a $5 billion loan to employees. The debt is swapped for equity in the fund and will generate profit when deals make money -- and losses when they don’t, scaled by seniority, according to people with knowledge of the situation.