Sequoia is well-known for early stage investments in tech companies such as Alibaba. However, its stake in Hong Kong-based Income Partners, which specialises in Asia fixed income, does not signal an entry into venture capital funds, a spokeswoman for Income Partners told FSA.
The partnership aims to enable the firm to develop investment tools, such as artificial intelligence and big data technology in the fixed income space.
Technology investment is gaining momentum among asset managers as they try to lower fees and remain competitive while fintech developments race ahead. Last week, FSA Spy reported that China’s Noah Holdings is about to hire a chief technology officer from an undisclosed major US tech giant.
The minority stake will not involve any management change, the spokeswoman added. The asset manager will remain privately managed and led by its co-founder and chief investment officer Emil Nguy.
The hope is that the partnership will also expand the asset manager’s investor base.
Neil Shen, founding partner at Sequoia, in a statement said he sees a broader, more mature, and rapidly-growing Chinese fixed income market as regulations on foreign investment relax and the market becomes institutionalised.
“Sequoia is excited to be assisting Income Partners as the go-to manager for managing Asia and onshore or offshore Chinese credit.”
Separately, Income Partners is rolling out its Managed Volatility High Yield Bond Fund for retail investors in Hong Kong on December 5th. The fund was previously available for sale only to private investors.
The fund, with an AUM of $24m, is managed by Raymond Gui, according to FE data.
