Late Wednesday, Sequoia, a lead investor in FTX, despatched a letter to its restricted companions saying it was going to mark down the worth of its FTX funding to $0. Sequoia owned FTX and FTX.com in its World Progress Fund III, though FTX is just not one of many high 10 holdings within the fund, and its $150 million in value foundation represented lower than 3% of the dedicated capital of the fund, based on the letter.
The $150 million loss on FTX was offset by the fund’s roughly $7.5 billion realized and unrealized beneficial properties, Sequoia mentioned in its letter.
“We’re within the enterprise of taking danger. Some investments will shock to the upside, and a few will shock to the draw back. We don’t take this accountability frivolously and do intensive analysis and thorough due diligence on each funding we make,” the letter mentioned. “On the time of our funding in FTX, we ran a rigorous due diligence course of.”
In 2018, the $81 billion Alaska Everlasting Fund Corp. committed $200 million to Sequoia’s World Progress Fund III, and the $161 billion Washington State Investment Board retirement system authorised an allocation of up to $350 million to the identical fund.
Ontario Academics invested a complete of $75 million in FTX in October final yr, then one other $20 million in January of 2022, the pension fund with C$242.5 billion ($178.2 billion) in property mentioned in an announcement Thursday. The pension plan housed the FTX funding in its Academics’ Enterprise Progress platform. OTTP reported a 1.2% achieve for the six months ended June 30 for the general portfolio.
“Since inception, TVG has delivered solidly on supposed aims. Whereas there’s uncertainty about the way forward for FTX, any monetary loss on this funding could have restricted impression on the Plan, given this funding represents lower than 0.05% of our complete web property,” Ontario Academics mentioned within the assertion.
FTX.com was valued as just lately as January at $32 billion in a fundraising spherical from buyers together with Temasek, Paradigm, Ontario Academics’ Pension Plan Board and SoftBank Imaginative and prescient Fund 2, based on Bloomberg.
FTX founder and CEO Sam Bankman-Fried resigned Friday as CEO, and about 130 firms affiliated with FTX began voluntary chapter proceedings, based on FTX’s web site.