The second SoftBank Vision Fund could bring in less than half of its US$108 billion goal, according to people familiar with the matter. Elliott Management has purchased a three per cent stake in SoftBank and is calling for US$20 billion in share buybacks. (Wall Street Journal, Financial Times)

Talking point: These challenges add to SoftBank’s growing list of problems. Head of U.S. investments Michael Ronen is negotiating his departure, and two partners and around ten mid-level staff have left in recent months. SoftBank’s first Vision Fund attracted significant commitments from sovereign wealth funds from Saudi Arabia and Abu Dhabi, but both firms said new money for this fund would need to come from profits from the last one. SoftBank initially said it had secured money from Goldman Sachs, Standard Chartered and Taiwanese and Japanese insurers but all appear set to pass on investments. SoftBank is also facing a host of internal problems including compensation structures that incentivize making new deals over long-term profits.  Elliott’s involvement comes with its own challenges. The fund wants more transparency from SoftBank on its over 80 investments and, due to the size of its stake, Elliott could call an extraordinary shareholders meeting to try and force through changes if SoftBank doesn’t play ball.