China’s Noah Holdings repurchases Sequoia’s stake in asset management unit

Photo from Noah Holdings website.

Chinese wealth management firm Noah Holdings Limited has entered into an agreement to repurchase Sequoia Capital China‘s stake in its asset management business, Gopher Asset Management Co Ltd.

The Shanghai-headquartered, NYSE-listed company said it will spend RMB356 million ($53.9 million) on the deal.

Following the completion of the transaction, Sequoia will remain a shareholder of Noah.

In October 2016, Beijing Sequoia Mingde Equity Investment Center had agreed to acquire a certain equity stake in Gopher for RMB348 million. However, the companies have come to an agreement that the investment would be canceled with Noah repurchasing the entire stake held by Sequoia in the asset management unit as a result of some regulatory difficulties in China.

“Regulatory changes have lengthened Gopher’s restructuring process substantially. Given such changes, the company and Sequoia both believe that it would decrease uncertainties and serve the company’s long-term strategies better for the company to repurchase Sequoia’s stake in Gopher and allow Gopher to be wholly-owned by the company,” said Noah’s president Kenny Lam.

Sequoia, as an existing investor at Noah, will continue to partner with the company’s wealth management, asset management and online businesses.

In the first half of 2017, Noah distributed RMB65.6 billion ($9.7 billion) of wealth management products. Through Gopher, it had assets under management of RMB138.7 billion ($20.5 billion) as of June 30, 2017.

Gopher manages private equity, real estate, secondary market, credit and other investments denominated in both Renminbi and foreign currencies. The subsidiary also provides internet financial services, including online wealth management, micro-lending and payment processing services.

Also Read:

Sequoia Capital China invests $51.7m in Gopher Asset Management

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.