SoftBank’s Turnaround Efforts Led by Alex Clavel, Co-CEO of SoftBank Investment Advisers

When Alex Clavel left Morgan Stanley to join SoftBank in Tokyo in 2015, he stood in stark contrast to the flamboyant dealmakers surrounding SoftBank’s CEO, Masayoshi Son. Over the years, amidst executive departures and failed investments, including a $16 billion bet on WeWork, Clavel has emerged as a pivotal figure in SoftBank’s attempts at a turnaround. As the Co-CEO of SoftBank Investment Advisers, he oversees investments for the firm’s $160 billion Vision Funds and an additional $35 billion on the group’s balance sheet.

Clavel’s journey to the top involved gaining Son’s trust through his adept management and resolution of SoftBank’s complex or troubled transactions. While his predecessors focused on mega deals and fundraising, Clavel won Son over as a steady hand, adept at managing SoftBank’s intricate transactions. In the face of a cooling global tech investment environment due to higher interest rates, SoftBank is counting on Clavel’s skills to navigate these challenges.

Rajeev Misra, the other Co-CEO of the Vision Funds business, mentioned that Son decided to streamline decision-making by elevating Clavel above an executive committee last July. Misra, who remains at SoftBank despite launching his own investment firm, groomed Clavel as his successor, emphasizing his steady and problem-solving approach.

Clavel has played a crucial role in the turnaround of SoftBank’s troubled investments, including WeWork and OneWeb. Recent successes, such as the $4.87 billion IPO of chip designer Arm Holdings and a $7.6 billion windfall from its stake in U.S. wireless maker T-Mobile, showcase Clavel’s impact.

Trained as a technology, media, and telecommunications banker at Morgan Stanley, Clavel first established ties with Asian investors in 1996. His Mandarin proficiency helped him win Chinese clients, and he later played a key role in bringing SoftBank as a client to Morgan Stanley. His unassuming and direct manner, coupled with loyalty and trustworthiness, endeared him to colleagues and mentors.

Clavel’s transition from Morgan Stanley to SoftBank in 2015 was smooth, leveraging his success in advisory work for SoftBank on telecommunications deals, including the acquisition of U.S. wireless carrier Sprint. His Mandarin skills and experience in Asian markets were valuable assets.

SoftBank, facing challenges amid losses and a cooling tech investment environment, looks to Clavel to deploy its billions strategically. The success of SoftBank’s investments will influence the fate of many technology startups and the fortunes of its shareholders. Clavel’s conservative approach to investments has been evident, with the second Vision Fund focusing on smaller, spread-out bets in AI and robotics.

While Clavel still has a journey ahead to establish himself as a major investor in the tech community, his management of SoftBank’s complex transactions and successful turnarounds indicate a promising trajectory. SoftBank’s future, under the leadership of figures like Clavel, hinges on navigating challenges in the evolving tech landscape and making strategic investments that yield positive returns.