Sequoia Capital is a pioneer of the venture capital space, having invested in such game-changing companies like Apple (NASDAQ: AAPL), Cisco (NASDAQ: CSCO), and Google (NASDAQ: GOOG). No doubt, they've helped create many millionaires -- and some billionaires.

Well, the same thing is now happening in China, although the wealth management business in the country is still in the early stages.

As a result, Sequoia wants to be a player and has invested several million for a 20% stake in Noah Private Wealth Management Centre, which is headquartered in Shanghai. With the cash infusion, the firm can expand into other cities as well as add new consultants and perhaps some tech systems.

It's a very savvy move. And, yet again, it should result in a big payday for Sequoia.

Visit DealProfiles.com if you want to check out other recent venture capital fundings.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements.

Sequoia Capital wants in on China's wealth explosion originally appeared on BloggingStocks on Tue, 23 Oct 2007 15:02:00 EST. Please see our terms for use of feeds.

In a move to make it one of the largest retail brokerage operations in the country, banking giant Wachovia (NYSE: WB) has bought AG Edwards (NYSE: AGE). The combined operations will become second only to Merrill Lynch (NYSE:MER), and ahead of Citigroup's Smith Barney. The new operation should have about 15,000 brokers.

It is easy to say that the move is simply a cost consolidation play. Wachovia says that it can take out [subscription required] about $400 million in duplicate costs, which should add to the profitability of the acquired assets.

Wachovia, however, is cleverer than simply making the purchase as a simple earnings play. Retail brokers are huge collectors of assets. The new, combined operation will manage $1.1 trillion.

Rival banks, including Bank of America (NYSE: BAC) and JP Morgan (NYSE: JPM) do not have networks of brokers anywhere near this scale. That gives Wachovia an edge in wealth and asset management that Citigroup already has. While Wachovia's stock is flat over the last year, Citi is up about 12% and JP Morgan has climbed well over 20%.

Perhaps Wachovia needs a little edge.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Wachovia buys A.G. Edwards originally appeared on BloggingStocks on Thu, 31 May 2007 08:20:00 EST. Please see our terms for use of feeds.

I'm not surprised. When the deal was struck, several friends of mine from U.S. Trust left to go to other private banks. They told me that there would be a culture clash, so why jeopardize clients?

This was exactly the case with contended issues ranging from serious to funny. For example, one dispute was whether to charge clients ATM fees (to me, if a client has $100 million with your bank, it does sound kind of petty). Another issue was investment selections -- should Bank of America push its own products?

This is not to say that the deal will implode. It's smart that Bank of America is taking quick action, but to get things back on track, it may mean letting U.S. Trust have its own identity - lest more financial advisors and perhaps clients move elsewhere.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Bank of America still not hip with the super wealthy originally appeared on BloggingStocks on Wed, 04 Apr 2007 13:53:00 EST. Please see our terms for use of feeds.