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According to the Financial Times. Hongshanthe Chinese investment firm that was spun off from Sequoia Capital in 2023, is aggressively expanding in… Europe and North Asia This is due to “shrinking options” in China and to limited partners who have become frustrated with how slowly Hongshan is distributing the $9 billion capital commitments it secured two years ago. (As the Financial Times notes, LLCs typically have to pay a management fee on the capital even if it is not called for use.)
Based in Hong Kong, the nearly 20-year-old company has taken a larger share of existing Chinese portfolio companies such as TikTok parent ByteDance and an Instagram clone called Xiaohongshu. It also invests in robotics and artificial intelligence startups in China.
However, a raft of new bets in new regions, coupled with announced plans to open an office in Tokyo, suggest Hongshan is looking further afield for returns. In fact, having recently opened an office in London, it may increasingly clash with its former partner, Sequoia, which now also has an office in London, according to the Financial Times.
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