Sequoia discloses in filing how much Sequoia Capital Fund is sitting (and it’s a lot).

Nearly a year ago, the 50-year old investing powerhouse Sequoia Capital It had announced that it had reorganized around a unique, permanent structure: Sequoia Capital Fund.

Thanks to an SEC form We know the amount in the fund, $13.6 billion. Filed Friday

This number is a combination of two things. It represents the value Sequoia has rolled in its permanent fund from its legacy accounts. These are shares in publicly traded companies Sequoia supported as startups such as Airbnb, DoorDash and Unity. Sequoia owns some of these shares, while Sequoia’s limited partners have agreed to allow Sequoia to continue managing the shares for them.

$13.6 billion represents additional capital commitments that will be later made called down And invested in traditional funds that are lower than Sequoia’s permanent fund, such as a $195 million seed fund It was announced last month. If all goes according to plan, the money will be invested into startups that eventually go public, and whose shares end up in the Sequoia Capital Fund, in a long, virtuous, lucrative cycle.

Some portfolio companies do not have shares that are eventually swept into the fund. Sequoia, however, stated in a last-year post that the permanent fund is only for “a small number of portfolio companies’ shares.”selection of our enduring” businesses.

When Sequoia’s portfolio company Stripe eventually goes public, for example, rather than distribute the payment company’s shares to its investors, Sequoia — assuming it has the support of its limited partners — is more likely to move Stripe’s shares from the many different vehicles that it has used to back Stripe into its Sequoia Capital Fund with the expectation that those shares will continue to rise in value.

Sequoia’s strategy was announced in fall 2021 but has since been criticized.

According to one of the limited partners, the firm would prefer to handle distributions. However, the institution agreed to Sequoia’s long hold strategy to keep its relationship with Sequoia. Industry watchers note that if Sequoia had distributed shares of the top-flying companies it owned in 2021 instead of holding them until the market crashed last spring, it would have produced more. vastly greater returns Its limited partners

The firm claims it doesn’t regret anything. It is a sit-down Alfred Lin, a long-standing Sequoia partner, stated last month that Sequoia would not do anything different if it could turn back the clock to 2021. He said that investors are for the long-term and added that the only question they ask is “Whether?” [we] Think these companies will be worth much more in the future than they are now. This is not a three-month, one–month or one-year time frame.

Lin said that Sequoia Fund has invested in Sequoia Fund to help companies build for the long term. . . The best advantage is one that you believe in the long term. [in] Temporal arbitrage is the act of holding. People don’t like volatility so you are just arbitraging their nerves.

Although a Sequoia spokesperson declined comment, a source close the firm said that limited partners were locked up until the end this year. Sequoia Capital Fund banned redemptions for the first two years. However, investors will still have two opportunities to request liquidity from Sequoia Capital Fund each year via a combination of shares or cash.

It is not yet clear how much of $13.6 billion is tied up as shares and how much comes out of new capital commitments. This money gets earmarked for Sequoia sub funds with each investor’s blessing. History will show us an even more fascinating number.

Sequoia, which was restructured as an investment advisor when creating its permanent fund had to file an annual form known as an ADV. This forms details investment style, assets under administration, and key officers.

This form was last filed last March 31st and showed that Sequoia managed a remarkable $85 billion as of 12/31/21. Sequoia is required to file this form annually. Therefore, Sequoia plans to share information about its assets under management very soon.