Venture capital powerhouse Sequoia Capital is breaking up into three entities around the world, splitting the Chinese and U.S. operations as tensions grow between the world’s two largest economies.

The firm, known for its early backing of Google, Instagram and some of China’s biggest internet companies, will separate into independent partnerships and separate firms, operating under different brands, no later than at the end of March next year, the company said.

"It has become increasingly complex to run a decentralized global investment business,” Sequoia said in a press release signed by regional heads Roelof Botha, Neil Shen and Shailendra Singh. "This has made using centralized back-office functions more of a hindrance than an advantage.”