Sequoia China backs fixed income manager Income Partners

Financial terms were not disclosed. Co-founder Emil Nguy will continue to lead the company as CEO. Income Partners hopes to expand its client base by tapping into Sequoia’s global institutional investor networks and developing its reputation as a China expert. The firm also wants to introduce artificial intelligence and big data technology to its investment process.

Founded in 1993, Income Partners offers a wide range of fixed income funds, such as onshore renminbi-denominated bond funds and Asia-focused high-yield bond funds in US dollars. Its clients include insurance companies, private banks, corporates, and family offices across Asia. 

Overseas institutional investors are becoming more interested in renminbi bonds as the Chinese bond market gradually opens up, Nguy said in a statement. 

Neil Shen, founding and managing partner at Sequoia, added: “In the past, overseas investors would think there were only two choices – either investing in public equities or private equity – when they wanted to invest in China. With the opening up of the fixed-income market, in addition to the institutionalization of Chinese investors, the investment opportunity in China is becoming broader."  

Sequoia previously invested in Noah Holdings, a US-listed Chinese company that distributes wealth management products, including fixed income products, private equity funds, and insurance products to Chinese high net worth individuals and institutions.

Last year, Sequoia proposed to re-up its investment in the firm, with a view to helping the business extend its products capabilities both domestically and internationally. However, the transaction was abandoned due to the difficulty in winning Chinese regulatory approval. Noah then bought back Sequoia’s entire stake.   

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• Topics
• Greater China
• Financials
• Expansion
• China
• Sequoia Capital
• Financial Services
• Growth capital