SoftBank Investor Presentation Deck
SoftBank Vision Fund
(March 2019)
LP Net Equity
IRR
45%
LP Net Blended
IRR
29%
(To be updated at earnings results annually)
Valuation Process
SBIA is responsible for determining fair values on a quarterly basis in line with the requirements of the AIFM Directive (as issued by the FCA) The SBIA Valuation team is functionally independent from portfolio management and may engage external specialists with a high level of knowledge and experience as needed in determining the fair value of certain complex
financial Instruments. In parallel t or Advisory Boan
ion Fund has appointed certain external firms as independent valuers to perform semi-annual independent valuation. Valuation results as determined by the SBIA Valuation team, with due consideration of the Independent Valuer's reports, are reviewed and approved by the SBIA Valuation and Finansial
Risk Committee VFRC"). The VFRC comprises the SBLA CEO, CFO, CRO, General Counsel and senior Investment Professionals. Once approved by the VFRC, valuation results are subject to a financial statement audit by the Vision Fund's independent auditors (Deloitte)
<Valuation Methodology
The applicable reporting framework of the Vision Fund is FRS the "Standards" Specifically, FRS 13 (Fair Valbe Measurement) outlines the general framework for measuring fair values. The Vision Fund is also compliant with the International Private Equity and Venture Capital (IPEV) valuation guidelines, In line with the standards, the Vision Fund uses valuation
techniques that are appropriate in the sircumstances and for which sufficient/data are available to measure fair value maximising the use of relevant observable inputs (market share price, etc.) and minimising the use of unobservable inputs. For companies that are publicly listed in an active market, quoted prices are used without adjustment to measure fair value For
companies that are privately held, the market and income approaches are widely used valuation techniques. The market approach includes the use of Guideline Public Company multiples, industry valuation benchmarks and available market prices. The income approach otherwise known as the Discounted Cash Flows method, depives the value of business by
calculating the present value of expected future cash flows. The price of a recent transaction if resulting from an orderly transaction, generally represents fair value as of the transaction date. In applying the recent transaction method, we consider relevant factors including, but not limited to, the participation of new outside investors, the level of sophistication of investors
and the size of the investment round. Further, we recognize the senior-subordinate structure of the companies we invest in i.e. senior shares are worth more than junior ranking shares.
Performance>
<Batinitions of meanal rate of return of Clar
Net the A Equity Interests after management fees performance fees, Preferred Equity Coupon and other expenses. It is based on the limited partners' equity cash outflows (capital contributions), inflows (distributions) and share of the subscription line of credit activities, net of investment related financing, and the Net Asset
Net Blended IRR reflects the combined net performance of Class A Equity Interests and Class B Preferred Equity Interests and includes Preferred Equity Coupon distributions as well as accrued Preferred Equity Coupon.
"Equity" IRRS:
Results for individuaNimi putery strative purposes, a
as the timing of their specifio cash flows.
und's overall performance, do not reflect the return on Preferred Equity Commitments (which will have a material impact on the Vision Fund's performance in the aggregate, which could be significantly lower), and may not reflect the experience of any limited partner.
The Vision Fund has a limited operating history and accordingly, performance Information may not be representative and actual realized return on these unrealized investments may differ materially from the performance information indicated herein. The Vision Fund performance is based in part of valuations of certain investments that were collectively acquired recently
by the Vision Fund from SoftBank Group Corp.; accordingly, the performance information herein is based in part on valuations of unrealized investments and is not indicative of future results. Such investments and the subsequent performance thereof had a positive impact on the performance of the Vision Fund. SoftBank Group Corp. is under no obligation to collectively
offer
Past performance is not indicative of future results. P
is not indicative of future results. Please refer to the disclaimers at the front of this presentation for more important qualifying information about the performance information herein.
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