Sequoia Capital announces its split into 3 separate entities

June 6 (UPI) -- Sequoia Capital announced on Tuesday it will separate its global venture firm into three independent units, calling its current operations "increasingly complex."

Sequoia, one of the world's largest venture capital firms, said in a message to investors it will split its units for customers into one in China, one for the United States and Europe, and a third for Southeast Asia and India.

Sequoia partners Roelof Botha, Neil Shen, and Shailendra Singh said the move will help them serve customers at their "local-first approach."

"Each entity is now a market leader," the three said in a statement. "To deliver on our mission, we have to decide to embrace our local-first approach. We will move to completely independent partnerships and become distinct firms with separate brands no later than March 31, 2024."

"Each business will continue to serve the founders and ecosystems where they operate with the flexibility that comes with an independent brand."

The firm in the United States will keep the Sequoia branding. The Chinese fund will operate under the new name HongShan. The Indian unit will be named Peak XV Partners.

"It has become increasingly complex to run a decentralized investment business," the executives wrote in their message to investors. "We've seen growing market confusion due to the shared Sequoia brand as well as portfolio conflicts across entities."