The current interest rate environment could favor Japanese conglomerate SoftBank Group’s strategy of long-term investing as it looks to buy earlier stage tech companies at lower valuations, according to CLSA’s Oliver Matthew.

With prices of potential acquisitions now coming down as investors brace for higher rates, Matthew told CNBC’s “Squawk Box Asia” on Wednesday that SoftBank may end up “getting a better deal.”

Still, he acknowledged that the drop in valuations for listed growth companies this year has also been a clear headwind for the Japanese conglomerate’s stock. Valuations of growth firms in sectors such as tech tend to suffer in a higher interest rate environment as it makes their future earnings look less attractive.

SoftBank’s Vision Fund is a powerhouse in venture capital, investing in everything from Uber to Chinese tech titan Alibaba. Caught in the crossfire of Beijing’s ongoing regulatory crackdown on its domestic tech sector, SoftBank has had to trim its stakes in companies like Uber to cover those losses.