Softbank Investment Co. announced Monday it has set up a fund to invest in companies that are trying to restructure under the Civil Rehabilitation Law.
Softbank subsidiary SBI Corp., which manages the fund, has already raised 10 billion yen from major financial institutions and firms and hopes to collect more in the future, a company spokesman said.
The fund, called the Restructuring Fund No. 1, will acquire the managing rights of ailing companies and then attempt to rebuild them through business tieups with other companies, including those within the Softbank Investment group, the spokesman said.
The fund expects to make a profit by later offering stock in the firms to the public or other companies, he said.
A fund of around 5 billion yen was launched last May on a trial basis and has already invested in switchboard-maker Kawaden Corp., and construction company Sawako Corp.
Softbank Investment is a venture capital unit of Internet investor Softbank Corp.