The US venture capital giant Sequoia is splitting its China business into a separate entity, it said on Tuesday.

“It has become increasingly complex to run a decentralised global investment business,” the group told investors.

“We will move to completely independent partnerships and become distinct firms with separate brands no later than March 31 2024.”

Sequoia will also separate its Indian and south-east Asian business into a third entity.

Sequoia China is run independently to the US business but passes some of its carried interest — a share of its profits on successful deals — up to the global group, the FT reported last year. 

Sequoia China made large profits on investments in ByteDance, TikTok’s parent company, and ecommerce companies Alibaba and Meituan, but was also exposed to Beijing’s tech crackdown with stakes in ride-hailing group Didi and online education companies. 

This is a developing story