FTX’s investment arm, Alameda Research, has agreed to sell its interest in Sequoia Capital to Abu Dhabi sovereign wealth fund Al Nawwar Investments RSC Limited in a $45 million cash deal, according to court documents filed on Wednesday.
The deal is subject to approval by Delaware bankruptcy judge John Dorsey and is part of FTX’s efforts to sell its investments in early-stage crypto and tech ventures to repay creditors.
FTX received indications of interest from four parties and entered into negotiations with two for the sale of assets in the Sequoia Capital Fund, according to the documents. FTX ultimately decided to sell to Al Nawwar Investments based on its superior offer and ability to execute the sale transaction quickly.
The deal could be finalized as early as March 31, but bankrupt companies are subject to close judicial scrutiny. Al Nawwar Investments is owned by the government of Abu Dhabi and already invests in Sequoia, the document said.
FTX filed for bankruptcy in November and was granted permission in January by Dorsey to offer some of its more easily separable assets for sale, including derivative arm LedgerX, stock-clearing platform Embed, and Japanese and European units.
FTX management has acknowledged a significant balance-sheet shortfall, which has not been helped by poor record keeping at the company.