Mercer's Brendan Foody has accused Sequoia Capital Partners of engaging in a "dual-pricing" valuation trick. As Foody notes, this means that Sequoia is selling the same amount of equity to its investors at different prices. This practice can be misleading and may not accurately reflect the true value of Sequoia's portfolio.
Foody points out that many top firms use similar practices when valuing their investments, including Sequoia Capital Partners. In some cases, these firms sell a portion of the company's equity to investors at a higher price than another portion at a lower price. Foody argues that this dual-pricing strategy can create an inaccurate picture of the company's true value.
Foody claims that he has spoken to several sources who confirm his allegations about Sequoia Capital Partners' dual-pricing valuation trick. He believes that if more firms followed suit, it could have significant implications for investors and the broader financial industry. Foody is calling on regulators to take action against companies like Sequoia that engage in this practice.
