As expected, SoftBank Group filed to launch a special-purpose acquisition company today, saying it plans to raise $525 million to invest in an unnamed technology company.

The Japanese investment giant, which is known for backing promising technology startups, said the new company is called SVF Investment. Rajeev Misra, who leads SoftBank’s investment unit and its $100 billion Vision Fund, will serve as its chief executive officer.

SPACs, also known as “blank-check” companies, essentially serve as investment vehicles that enter public markets then use that money to merge with a private company. The SPAC itself has no business operations. The model is an alternative to the traditional initial public offering route that most companies take to go public.

SPACs can be controversial, though, as the investors ostensibly don’t know what business the funds they contribute will be used to acquire. It’s not clear if SVF Investment currently has an acquisition target.

“Our SPAC will bridge SoftBank’s private and public investing strategies by enabling us to partner with a fast-growing, IPO-ready technology company,” the company said in its filing. “We believe that we have access to a wide range of compelling investment opportunities through our broad international presence and deep local networks.”

SoftBank is one of the world’s biggest investors in private technology firms through its Vision Fund, but it has had mixed success with prior investments such as Uber Technologies Inc., ByteDance Ltd., Slack Technologies Inc. and WeWork Cos. Inc.

Some of the startups SoftBank invested in, such as Opendoor Inc., have themselves gone public via SPACs earlier this year, while others, such as DoorDash Inc., have held a traditional IPO.

Barron’s said that by sponsoring a SPAC, SoftBank is looking to diversify its sources of funding. Lately, the Japanese firm has been in divestment mode, tendering its stakes in companies such as the chip designer Arm Holdings Ltd. and wireless operator T-Mobile US Inc., using the proceeds of those deals to buy back stock and pay down debt.

SoftBank is said to be preparing at least two more SPACs, which will also be used to acquire private companies and take them public.

Photo: Duncan Riley