SoftBank set to invest in the UK-based financing group Greensill

Softbank Vision Fund, the subsidiary of SoftBank Group Corp, is reportedly planning to invest in Greensill Capital, a UK based firm that specializes in supply chain finance.

As per reliable sources, the investment will value Greensill at $3 billion, which would be nearly double the company’s current valuation and will give Vision Fund a 15% to 20% stake in the company.

Both SoftBank and Greensill have declined to comment on the prospective deal.

For the record, Greensill, a UK-based financing group, was established by Lex Greensill, former banking executive, in the year 2011. The company specializes in supply chain finance, working capital optimization, structured trade finance and, specialty financing and contract monetization. It offers alternative working capital finance solutions for corporations worldwide.  

For the uninitiated, Vision Fund, the world’s largest technology investment fund, is operated by Japan’s SoftBank Group Corp, the telecom to technology conglomerate. The near $100 billion fund is reportedly supported by UAE and Saudi Arabian state funds. In February, Vision Fund announced an investment in OakNorth, the British bank startup. Its investments include chip designer ARM, shared workspace firm WeWork and ride-hailing pioneer Uber. The fund is led by former Deutsche Bank and UBS debt trader, Rajeev Misra who apparently reports to Masayoshi Son, the founder of SoftBank.

Sources close to the matter report that Mr. Greensill has close connections with the UK government. In fact, the former UK Prime Minister David Cameron has worked as an adviser with Greensill since his departure from government. While Mr. Cameron held the position of PM, Mr. Greensill had an office in Downing Street. In 2012, he helped in setting up of a government- sponsored supply chain finance scheme.

Mr. Greensill has been reported to describe his company as an agent to technological disruption and added that Greensill Capital believes in the democratic access to capital utilizing technology and financial markets.

Source credit : https://www.ft.com/content/32df7996-74bf-11e9-bbad-7c18c0ea0201