Sequoia China has made a strategic investment of an undisclosed sum in Hong Kong-based asset manager Income Partners, according to a statement. Income Partners primarily manages single issuer and sovereign bonds across both US dollar and Asian local currencies, with a focus on offshore and onshore Renminbi.
Upon investment, Income Partners co-founder and chief investment officer Emil Nguy will continue to lead the company.
With Sequoia’s backing, Income Partners aims to further expand its investor base, strengthen its brand position in China, and adopt leading AI and Big Data technology in fixed income investment, it said.
Nguy said the new partnership will bring the company closer to the goal of becoming the pre-eminent fixed income manager in Asia, at a time when global institutions will be required to allocate to RMB. He said that “the real game changer” in the financial markets is the opening up of China’s fixed income markets, and the gradual inclusion of RMB in the world bond indices.
“The ecosystem that Sequoia China has built will greatly assist Income Partners’ onshore fund management as well as overall business, as we look to enhance our existing research with big data and expanding our research capability,” Nguy stated.
Founded in 1993, Income Partners’ institutional clients include insurance, financial institutions (including private banks), corporates and family offices.
Meanwhile, Neil Shen, Founding and Managing Partner of Sequoia China, commented on the investment: “Traditionally, investors have thought of investing in China in terms of investing in listed or private equity. With China opening and institutionalizing its fixed income markets, we believe the Chinese fixed income asset management market is prone to disruption as the broader Chinese fixed income market continues to mature and grow rapidly. We are excited to be assisting Emil and his team to establish Income Partners as the go-to manager for managing Asia and onshore/offshore Chinese credit.”
Sequoia China focuses on investments in media, healthcare, consumer service and industrial technology. The firm has backed more than 300 Chinese businesses, including Alibaba, Dianping, Didi, JD.com, Sina.com and Noah Holdings, since its establishment in the country in 2005.
It recently raised nearly $50.2 million for its China-focused fund, with 86 investors’ backing so far.
Sequoia’s China-based investments range from $100,000 to $1 million in seed companies, $1 million to $10 million in early venture, and between $10 million and $50 million in growth companies.