SoftBank Group Corp. founder Masayoshi Son has made a name for himself building a telecommunications and technology empire. He’s now planning an expansion in asset management.
The Japanese firm is eyeing further acquisitions in the financial sector in order to potentially create a $300 billion asset management arm that would also house its $93 billion Vision Fund for technology investments, according to people familiar with the matter.
SoftBank agreed to acquire alternative-asset manager Fortress Investment Group LLC for $3.3 billion in February. Since then, SoftBank executives have discussed various investments in the financial sector, from acquiring traditional investment firms to more surprising moves including stakes in major private equity shops such as KKR & Co., said the people, who declined to comment because the plans are private.
The scale of the plans reveals how the Vision Fund will be just one arm of SoftBank’s push into asset management. SoftBank — which had no assets under management 12 months ago, and has never before managed third-party assets — is targeting more than $300 billion across its businesses over the next four to five years, one of the people said.
SoftBank may end up with much less or much more money in the asset management business depending on market opportunities, a different person said.
Besides the tech fund, SoftBank’s assets under management also include $40 billion with Fortress, following the U.S. firm’s sale of fixed-income arm Logan Circle Partners.
In comparison Blackstone Group LP, the world’s largest alternative-asset manager, has taken 32 years to grow to $371.1 billion under management, as of June 30.
SoftBank is considering a range of targets. A small group of senior executives informally discussed taking a stake in KKR this year, the people said. It is not known how far these discussions went.