Sequoia Completes Its First VIPE In China
Sequoia got 2.1 million shares in the Beijing-based dairy this week in exchange for $47 million in cash and a $16 million bridge loan. Hedge funds used to be the ones doing deals like this, said American Dairy's attorney, Matt Adler of DLA Piper, but they're harder for hedge funds to afford now, so private equity and venture investors are stepping in. Hence VIPE -- Venture Investment in Private Equity -- a term that Adler expects to hear more as venture investors with big funds like Sequoia's keep looking for new ways to invest capital since so many of their startups can't go public.
28 August 2009•1 min read
