(Bloomberg) -- SoftBank’s Vision Fund is looking to raise a $4 billion bridge loan to make investments more quickly, said a person familiar with the situation. Goldman Sachs Group Inc. and Mizuho International Plc are arranging the debt facility for the massive technology fund, said the person, who asked not to be identified because the deal is private.
A separate credit facility is in the works to raise $9 billion for the Vision Fund, which is backed by about $100 billion primarily from the Saudi Arabian government along with Japan’s SoftBank Group Corp. When investors commit to backing a fund like the Vision Fund, they typically provide the cash for the fund's investments on an ongoing basis as needed, rather than up front. The $4 billion credit aims to cover the gap between when the cash is requested and when the fund investor sends it.
A spokesman for SoftBank declined to comment. Representatives for Goldman Sachs and Mizuho didn’t immediately have comment. The new credit facility was reported earlier Friday by Reuters.
The Vision Fund has stock in companies including Slack Technologies Inc., General Motors Co.’s self-driving car unit, WeWork Cos., Didi Chuxing and ARM Holdings Plc. The fund has already committed $65 billion since it began making investments nearly a year ago. SoftBank Chief Executive Officer Masayoshi Son said in a September interview that he plans to raise a new $100 billion fund every two or three years and will spend around $50 billion annually.
Son’s plans may be derailed by a global controversy surrounding the Vision Fund’s largest investor, Saudi Arabia’s Public Investment Fund. The sovereign wealth fund is overseen by Crown Prince Mohammed bin Salman, who was accused last month of ordering the murder of a journalist. Crown Prince Mohammed has denied involvement, and the Saudi government described the assassination as a rogue operation by government agents.
--With assistance from Alex Barinka and Sally Bakewell.
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