Noah Holdings (NOAH) Announces RMB348M Investment From Sequoia Capital China

October 24, 2016 5:10 PM EDT

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Noah Holdings Limited (NYSE: NOAH), a leading wealth and asset management service provider with a focus on global services for high net worth individuals and enterprises in China, today announced that Noah, Gopher Asset Management Co., Ltd. ("Gopher"), a consolidated affiliated entity of Noah, and certain other affiliated entities of Noah have entered into an Investment and Cooperation Agreement (the "Agreement") with an affiliate of Sequoia Capital China ("Sequoia"), a preeminent private equity firm and an existing shareholder of Noah. Subject to certain terms and conditions set forth in the Agreement, Sequoia will make a RMB348 million (approximately US$51.7 million) strategic investment in Noah's asset management business by acquiring equity interests in an entity that will, through itself and/or its affiliates, hold all equity interests and asset management assets of Gopher.

Gopher was founded in March 2010 and has become one of the leading alternative asset managers in China, specializing in fund-of-funds management in the private equity, real estate, hedge funds, credit products and family office businesses. As of June 30, 2016, Gopher's total assets under management, or AUM, reached RMB101.2 billion.

"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. We also view Sequoia's continuous investment as a strong vote of confidence in Noah's long-term growth prospects. We believe the deeper strategic cooperation will ultimately benefit our clients and shareholders," commented Ms. Jingbo Wang, Co-founder, Chairman of the Board of Directors and Chief Executive Officer of Noah.

"The new strategic relationship with Sequoia will provide a strong foundation to our further development," added Mr. Zhe Yin, Co-founder of Noah and Chief Executive Officer of Gopher. "Sequoia's valuable expertise in global private equity investments will help us strengthen our investment capabilities, expand our presence in Hong Kong and the United States, and further solidify our leading position in the asset management industry."

"Noah is a great institutional partner for Sequoia and its asset management business has significant potential for accelerated growth. We see tremendous synergies between Gopher and us. Our investment and cooperation will help Gopher extend its product capabilities both domestically and internationally to better serve Chinese high net worth as well as institutional clients," commented Neil Shen, Founding and Managing Partner of Sequoia Capital China and a Board Director of Noah.

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