Sequoia Capital’s U.S. Partners May Reap China Gains Even After Split

Sequoia Capital on Tuesday told investors that by the first quarter of next year it would fully separate its U.S. and China venture capital operations, ending an 18-year run during which Sequoia Capital China became China’s most successful VC firm and drove outsize returns for Sequoia’s global investors.

But the separation, anticipated for years and related to a growing geopolitical conflict between the U.S. and China, won’t stop Sequoia’s U.S.-based investment partners and institutional investors from reaping rewards from stakes in high-profile Chinese startups such as TikTok’s owner, ByteDance.