Noah to buy back Sequoia’s stake in asset management unit

Sequoia, already a shareholder in Noah, proposed to invest RMB348 million ($51.7 million) in Gopher in October 2016. This was done with a view to helping the business extend its product capabilities both domestically and internationally to better serve Chinese high net worth individuals and institutional investors.

However, completion of the transaction took longer than expected due to regulatory changes in China, Noah said in a statement. As a result, two parties decided to cancel the deal and Noah will buy back Sequoia’s entire stake in Gopher for RMB356 million.

Founded in 2010, Gopher develops and manages fund-of-funds, which are denominated in both renminbi and US dollars, across private equity, real estate, hedge funds, and credit products. As of the end of June, its total assets under management reached RMB138.7 billion.

Sequoia first invested in Noah in 2007. Listed in the US, the Shanghai-headquartered company that distributes wealth management products, including fixed income products, private equity funds, and insurance products to Chinese high net worth individuals and institutions. It has a network of 205 branches in 76 cities in mainland China, plus subsidiaries in Hong Kong and the US.

“Sequoia remains a strategic, long-term shareholder of Noah. We will continue to work with Sequoia, as before, on multiple fronts - in wealth management, asset management, and our online business,” Kenny Lam, Noah's president, said in the statement.

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• Topics
• Greater China
• Financials
• Buyback
• China
• Noah Holdings
• Sequoia Capital
• Financial Services