Current interest rates could be favorable to Japanese conglomerates SoftBank Group’sCLSA’s Oliver Matthew explains that this strategy is long-term investment and aims to purchase earlier stages of tech companies for lower valuations.

Matthew stated that SoftBank could end up “getting better deals” with the prices for potential acquisitions falling as investors fear higher rates.

He acknowledged, however that this year’s drop in the valuations of listed growth companies has been a major headwind to the stock. Higher interest rates can cause growth companies in tech to lose value, making their earnings less appealing.

SoftBank Vision Fund, a strong source of venture capital that invests in all areas, is an impressive powerhouse. UberChinese tech giant Alibaba. SoftBank was caught in the middle of Beijing’s regulatory crackdown on its tech sector. trim its stakes in companies like UberThese losses can be covered.

It planned IPO of ArmSoftBank Group’s shares will also be boosted, Matthew said, the head of Asia consumer for CLSA.

SoftBank Group Japan shares rose by nearly 6% after the company revealed it plans to seek listing for the Arm division. However, some gains were later reduced and the stock dropped about 3% during Thursday morning trade.

The Japanese conglomerate originally intended to sell Arm to Nvidia. However, the sale was halted by regulatory scrutiny.

This deal, valued at $40B in Nvidia stock cash and Nvidia stock was made public in 2020. Arm will now prepare to make a public appearance in the financial year that ends March 31, 2023, with the sale off the table.

“When they did the deal with Nvidia, it was a little bit complicated because they were taking two-thirds of the price in Nvidia stock — Matthew stated that SoftBank has been very, very bullish in this area. Therefore, it is possible that the Japanese conglomerate would like to see Arm listed at a more reasonable price and seek out a better valuation.

SoftBank purchased Arm for $32 Billion in 2016.