Published by China Money Network – 25th October 2016
Chinese wealth management firm Noah Holdings Ltd said Sequoia Capital China has agreed to make a RMB348 million (US$51.7 million) strategic investment in Noah’s asset management subsidiary, Gopher Asset Management Co., Ltd.
In the transaction, Sequoia Capital China, an existing shareholder of Noah, will acquire an undisclosed stake – less than 10% according to someone familiar with the situation – in an entity that will hold all equity interests of Gopher, which holds all of Noah’s wealth and asset management assets totaling RMB101.2 billion (US$15 billion) as of June 30, 2016.
“Sequoia has been an important existing shareholder and business partner of Noah. We are excited about its decision to participate in our fast-growing asset management business,” said Wang Jingbo, chairman and CEO of Noah.
Sequoia Capital China’s founding managing director Neil Shen said in a statement that he believes there is significant potential for accelerated growth for Gopher and tremendous synergies between Gopher and the venture firm.
Sequoia will help Gopher expand its product domestically and internationally as Chinese high net worth individuals continue to diversify their investments to overseas assets.
Gopher was founded in March 2010 and specializes in fund-of-funds management in the private equity, real estate, hedge funds, credit products and family office businesses.
Founded in 2005, Noah provides wealth and asset management services for high net worth individuals and enterprises in China.
In the second quarter of 2016, Noah distributed over RMB27.7 billion (US$4.2 billion) of wealth management products.
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