Venture capital firm Sequoia Capital has dismantled its permanent capital investment structure, closed its London office and reduced its senior investment team as part of a wider restructuring under co-leaders Alfred Lin and Pat Grady, according to a report by the Financial Times.

The changes reportedly reverse several initiatives introduced by former managing partner Roelof Botha, who departed a year ago. Among them is the Sequoia Capital Fund, a permanent capital vehicle designed to allow the firm to retain stakes in portfolio companies after their public listings. The structure has been substantially unwound following concerns among some investors over restrictions and disincentives associated with withdrawing capital.

Sequoia has also halved its number of general partners, consolidated investment teams and discontinued its earliest-stage accelerator programme. The restructuring accompanies a shift towards artificial intelligence investments, including participation in OpenAI's recent $122bn funding round and commitments of more than $2bn to rival Anthropic.

The closure of Sequoia's London office, established in 2020, reflects its increasing concentration on Silicon Valley and the US artificial intelligence sector. The firm maintains that it will continue backing European start-ups from its San Francisco base, despite the withdrawal of its dedicated regional investment presence.