Warburg Pincus

Last updated

Warburg Pincus LLC
Company type Private
Industry Private equity
Founded1966;58 years ago (1966)
Founders
Headquarters 450 Lexington Avenue
New York City, New York, U.S.
Key people
Products
AUM US$90.68 billion (2024) [1]
Number of employees
775 (2024) [1]
Website warburgpincus.com

Warburg Pincus LLC is a global private equity firm, headquartered in New York City, with offices in the United States, Europe, Brazil, China, Southeast Asia and India. [2] [3] Warburg has been a private equity investor since 1966. [4] [5] As of April 2024 the firm had over $90 billion [6] in assets under management and invests in a range of sectors including retail, industrial manufacturing, energy, financial services, health care, technology, media, and real estate. Warburg Pincus is a growth investor. [7] Warburg Pincus has raised 21 private equity funds which have invested over $100 billion in over 1,000 companies in 40 countries. [8]

Contents

In June 2024, Warburg Pincus was ranked ninth in Private Equity International's PEI 300 ranking of the largest private equity firms in the world. [9] [10]

History

Founding and early history

In 1939, Eric Warburg of the Warburg banking family founded a company under the name E.M. Warburg & Co. Its first address was 52 William Street, New York, the Kuhn Loeb building. Throughout the early post-war period, the firm was a small office of 20 employees. In 1966, E.M. Warburg merged with Lionel I. Pincus & Co, forming a new company that eventually became known as E.M. Warburg, Pincus & Co. [11] In 1965, when Eric Warburg retired to Germany, control was handed to Lionel Pincus, a partner in the Ladenburg Thalmann investment bank, and the working language of the office switched from German to English.

In 1967, John Vogelstein, a former partner at Lazard Freres, joined Pincus to build the firm. [12] Together they developed a strategy of investing in diversified companies of various sizes rather than focusing on start-ups. [13] Pincus was the founder and chairman [14] while Vogelstein was vice chairman [15] and then president. [16] [17] Pincus and Vogelstein ran the company until 2002, when they stepped down and appointed Charles Kaye and Joseph P. Landy as co-presidents. [13] [15] Pincus died in 2009. [12]

Warburg Pincus began investing in Europe in 1983 and opened its first office in Asia in 1994. It has invested more than $5 billion in Europe; more than $3 billion in India [18] and more than $3.3 billion in China. The firm is headquartered in New York and has offices in Beijing, Berlin, Hong Kong, Houston, London, Mumbai, San Francisco, São Paulo, Shanghai and Singapore, with administrative offices in Amsterdam, Luxembourg and Mauritius. [19]

The firm is structured as a global partnership led by Chairman, Timothy Geithner, CEO, Charles R. "Chip" Kaye, and President, Jeffrey Perlman. [20] [21]

Initial public offerings

More than 140 Warburg Pincus companies have listed on exchanges, raising approximately $30 billion in public markets. [22] In each of these IPOs, the firm was the principal financial investor in the portfolio company. The companies have listed on 13 exchanges, including at least 30 IPOs outside the U.S. In August 2010, a six-year partnership between management and Warburg Pincus led to MEG Energy's successful IPO.

Funds

Warburg Pincus has a history of venture capital investing. The firm is a founding member of the venture capital associations in the U.S. and China, and offers a global entrepreneur in residence program to help start up new businesses. [23]

In October 2014, Reuters reported that Warburg Pincus had raised $4 billion for its first energy-focused private equity fund. [24] In late 2018, Warburg Pincus closed its Warburg Pincus Global Growth, L.P. fund at $14.8 billion, and in June 2019, closed its Warburg Pincus China-Southeast Asia II, L.P. fund at $4.25 billion. [25]

In April 2023, Warburg Pincus and ArchiMed agreed to sell the France-headquartered business Polyplus to life science group Sartorius for approximately €‎2.4 billion. [26]

Fight over the Warburg name

During the post-war period, Eric Warburg vied with his cousin Siegmund Warburg, founder of S.G. Warburg, over the use of the Warburg name in New York. Siegmund wished to expand the S.G. Warburg franchise into New York but was blocked by the existence of E.M. Warburg & Co. Following the effective sale of the business to Pincus, Siegmund Warburg accused Eric of prostituting the Warburg name. "Complicating matters was that Siegmund thought Pincus the wrong kind of Jew—of Eastern European ancestry, with a garment-district background. Professionally, he thought Pincus well below haute banque stature in the venture capital world." [27]

In January 1970, Siegmund finally got the name changed to E.M. Warburg, Pincus & Company to differentiate it from S.G. Warburg & Company. "In the end, however, Lionel Pincus had the last laugh on Siegmund. He expanded Eric's tiny firm into a giant, thriving business, with three and a half billion dollars of venture capital partnerships." [27]

In 1999, they attempted to purchase English Premier League association football club Everton. [28]

Investment funds

FundVintage YearCapital ($m)
Warburg Pincus Ventures International, L.P. [29] [30] 1997$800
Warburg Pincus International Partners, L.P. [29] 2000$2,500
EMW Ventures Inc. [31] [29] 1971$41
Warburg Pincus Private Equity VIII, L.P. [32] [29] 2001$5,300
Warburg Pincus Private Equity IX, L.P. [33] [34] 2005$8,000
Warburg Pincus Real Estate I, L.P. [35] [36] 2006$1,200
Warburg Pincus Private Equity X, L. P. [37] 2007$15,100
Warburg Pincus Private Equity XI, L.P. [38] 2012$11,200
Warburg Pincus Energy, L.P. [39] 2014$4,000
Warburg Pincus Private Equity XII, L.P. [40] [41] 2015$13,400
Warburg Pincus China, L.P. [42] 2016$2,000
Warburg Pincus Financial Sector, L.P. [40] 2017$2,300
Warburg Pincus Global Growth, L.P. [43] [44] 2018$14,800
Warburg Pincus China-Southeast Asia II L.P. [45] 2019$4,250
Warburg Pincus Asia Real Estate Fund, L.P. [46] 2021$2,800
Warburg Pincus Financial Sector II, L.P. [47] [48] 2021$2,600
Warburg Pincus Global Growth 14, L.P. [49] [50] 2023$17,300

Acquisition, partnership and merger

Warburg Pincus invested in the information and communication technology sectors, including investments in Avaya, Bharti Tele-Ventures, Harbour Networks, NeuStar, PayScale, and Telcordia. [51] [52] [53] [54] [55] [56]

Warburg Pincus has invested in companies such as CityMD, The Summit Medical Group, Harbin Pharmaceutical, [57] Venari Resources, NIO, ZTO Express [58] in China and South East Asia, Bharti Telecommunications, Apollo Tyres Ltd, [59] Ecom Express, [60] SBI General Insurance [61] in India, AmRest in Poland [62] and Nuance Communications in the U.S. [63] In 2019, the firm acquired a majority stake in healthcare tech company WebPT from Battery Ventures. [64]

In May 2024, Warburg Pincus acquired Shriram Housing Finance at Rs 4,630 crore. [65]

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References

  1. 1 2 "Warburg Pincus Schedule 13F (Form ADv)" (PDF). U.S. Securities and Exchange Commission. March 28, 2024. pp. 21, 23.
  2. ↑ Appell, Douglas. "Warburg Pincus closes China-Southeast Asia companion fund at $4.25 billion". PIOnline.com. Retrieved October 27, 2019.
  3. ↑ Raghuvanshi, Gurav (May 17, 2016). "Warburg Pincus Opens Office in Singapore". WSJ.com. Retrieved October 27, 2019.
  4. ↑ "PEI 300 | Top private equity firms". Private Equity International. Retrieved June 24, 2022.
  5. ↑ Daniel Fisher (September 4, 2013). "Warburg Pincus: The Merchant Of Modest". Forbes .
  6. ↑ "WARBURG PINCUS CLOSES ON $17.3 BILLION GLOBAL PRIVATE EQUITY FUND". prnewswire.com. October 10, 2023. Retrieved December 17, 2023.
  7. ↑ Michael J. De La Merced (May 10, 2013). "Warburg Pincus Closes Latest Fund at $11.2 Billion". The New York Times .
  8. ↑ "Pharma Intelligence Unveils Its Rebrand to Citeline Following Transition to Independent Company". Globe Newswire (Press release). June 22, 2022. Retrieved June 24, 2022.
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  10. ↑ Beer, Helen de (June 3, 2024). "Blackstone holds PEI 300 top spot". Private Equity International. Retrieved June 4, 2024.
  11. ↑ Bansal, Paritosh (October 11, 2009). "Warburg Pincus founder Lionel Pincus dies". Reuters.
  12. 1 2 Fabrikant, Geraldine (October 11, 2009). "Lionel Pincus, Who Helped Bring Investors to Private Equity, Dies at 78". The New York Times. Retrieved October 3, 2020.
  13. 1 2 "We'll Do It Our Way". Forbes. April 21, 2006. Retrieved October 3, 2020.
  14. ↑ "Lionel Pincus, 78, founder, chairman of Warburg Pincus". Boston Globe. Associated Press. October 13, 2009. Retrieved October 3, 2020.
  15. 1 2 Lattman, Peter; Miller, Stephen (October 13, 2009). "Wall Street Leader Helped Shape Private-Equity Arena". The Wall Street Journal. Retrieved October 3, 2020.
  16. ↑ Harmetz, Aljean (February 10, 1983). "Orion Group Gets Filmways". The New York Times. Retrieved October 3, 2020.
  17. ↑ Janeway, William H. (May 17, 2018). Doing Capitalism in the Innovation Economy (2 ed.). Cambridge University Press. p. 91. ISBN   978-1108471275 . Retrieved October 3, 2020.
  18. ↑ Shraddha Nair (December 4, 2011). "Niten Malhan & Vishal Mahadevia – We would like to be specialists". LiveMint.com.
  19. ↑ "Warburg Pincus Locations". Warburg Pincus LLC.
  20. ↑ Porter, Kiel (July 16, 2019). "Joe Landy Stepping Aside as Warburg Pincus Co-CEO". Bloomberg. Retrieved February 5, 2020.
  21. ↑ "Warburg Pincus Announces that Jeffrey Perlman will become President | Warburg Pincus". July 19, 2023.
  22. ↑ "KKR, Warburg Pincus, Farallon and Capital Group Private Markets Make Substantial Investment in GO-JEK". Business Wire. August 4, 2016.
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  25. ↑ Kreutzer, Laura (June 26, 2019). "Warburg Tilts to Southeast Asia With New $4.25 Billion Fund". WSJ PRO Private Equity. Retrieved October 27, 2019.
  26. ↑ Farman, Madeleine (April 4, 2023). "ArchiMed scores 300x return for debut fund with Polyplus exit". Private Equity International. Retrieved April 6, 2023.
  27. 1 2 Ron Chernow (1994). The Warburgs: The Twentieth-Century Odyssey of a Remarkable Jewish Family. Knopf Doubleday Publishing Group. ISBN   978-0-679-74359-0.
  28. ↑ "Everton takeover bid accepted". BBC News. October 16, 1999. Retrieved January 6, 2010.
  29. 1 2 3 4 "Funds | Warburg Pincus". warburgpincus.com. November 24, 2019. Retrieved August 27, 2024.
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  32. ↑ "Warburg Pincus VIII exceeds target". Private Equity International. December 29, 2012. Retrieved August 27, 2024.
  33. ↑ "Warburg Pincus Closes $8 Billion Global Private Equity Fund - Global Custodian". www.globalcustodian.com. Retrieved August 29, 2024.
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  35. ↑ "Warburg Pincus raises $1.2bn for real estate fund". Real Assets. Retrieved August 23, 2024.
  36. ↑ "Warburg Pincus gets real". Private Equity International. January 3, 2013. Retrieved August 23, 2024.
  37. ↑ "EXCLUSIVE Warburg Pincus seeks $16 billion for private equity fund -sources". Reuters. September 16, 2016. Retrieved August 19, 2024.
  38. ↑ Pincus, Warburg. "Warburg Pincus Closes $11.2 Billion Global Private Equity Fund". www.prnewswire.com (Press release). Retrieved August 16, 2024.
  39. ↑ "Warburg Pincus completes USD4bn global private equity energy fundraise". Private Equity Wire. October 28, 2014. Retrieved August 19, 2024.
  40. 1 2 "Warburg Pincus closes USD2.3bn financial services fund". Private Equity Wire. December 19, 2017. Retrieved August 20, 2024.
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  49. ↑ "Warburg Pincus | Institution Profile | Private Equity International". www.privateequityinternational.com. Retrieved August 16, 2024.
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  51. ↑ Shah, Sneha (July 13, 2017). "Warburg Pincus puts Rs 700 crore in CleanMax". The Economic Times.
  52. ↑ "CleanMax Solar Announces Equity Financing of USD 100 Million from Warburg Pincus" (PDF).
  53. ↑ "Warburg Pincus investing up to $100 mn in CleanMax Solar". VCCircle. July 13, 2017.
  54. ↑ Cook, John (April 24, 2014). "Salary report generator PayScale getting up to $100M in deal led by Warburg Pincus". GeekWire. Retrieved May 7, 2014.
  55. ↑ "Telcordia Ericsson closes Telcordia acquisition". Reuters. January 12, 2012. Archived from the original on January 16, 2012.
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  59. ↑ "Warburg continues to bet big on India". Livemint. March 5, 2020.
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  61. ↑ "CCI nod for Napean, Warburg Pincus stake buy in SBI General Insurance". The Hindu Business Line. December 13, 2019.
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  63. ↑ "Warburg Pincus invests $175m in Nuance". Boston.com. January 15, 2009.
  64. ↑ Warburg Pincus acquires majority stake in WebPT, healthcareitnews.com.
  65. ↑ "Warburg Pincus Makes Landmark Acquisition of Shriram Housing Finance". Bru Times News.
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