Silicon Republic, a leading technology company, says there is concern that Japanese softbank investment group loans to its executives to contribute to its "Vision 2" investment portfolio.
This comes as Softbank began negotiations with its subsidiary, WeWork, to postpone its subscription for fear that it would negatively impact investor appetite for Vision 2.
Softbank's management has encouraged its top executives to borrow ten times their salaries by up to $ 20 billion to invest in the fund.
Meanwhile, the Financial Times reported that Softbank Group plans to inject an additional $ 1 billion or more into WeiWork by renegotiating a security agreement concluded before a valuation decline that delayed the initial public offering of the US start-up, an office space provider.
Saudi Arabia is investing $ 45 billion in the $ 100 billion Ruya Fund, and Abu Dhabi has invested $ 15 billion, making Riyadh and Abu Dhabi hold 60% of the portfolio.
Experts said the portfolio had invested in several companies with a much larger paper value than their real market value and predicted the portfolio would collapse within 12 months.