TOKYO: SoftBank founder Masayoshi Son (pic) has proposed setting up a US-Japan sovereign wealth fund aimed at making large investments in technology and infrastructure, the Financial Times reported, citing three unidentified people close to the situation.

Son has discussed the plan with US Treasury Secretary Scott Bessent, although it hasn’t been formally proposed, the report said. The joint fund would likely need about US$300 billion in initial capital, with significant leverage, to be effective, one person told the FT.

According to the report, the fund would be jointly owned and run by the US Treasury and Japan’s finance ministry, with each holding a significant stake. The fund could also be opened to limited partner investors, potentially offering retail investors in Japan and the US a chance to participate.

Bessent has been looking for revenue streams for the Treasury that don’t involve raising taxes, and the fund could potentially provide a solution, a person briefed on the situation told the newspaper.

A Treasury spokesperson and Softbank declined to comment to the FT. - Bloomberg