War­burg Pin­cus raises $2b fund

China Daily (Hong Kong) - - BUSINESS - By CAI XIAO caix­iao@chi­nadaily.com.cn

Pri­vate eq­uity firm War­burg Pin­cus LLC said on Thursday that it has raised a $2 bil­lion fund es­pe­cially for in­vest­ing in China.

The War­burg Pin­cus China fund closed its fi­nanc­ing af­ter six months and its lim­ited part­ners in­clude pub­lic and pri­vate pen­sion funds, sov­er­eign wealth funds, in­sur­ance com­pa­nies, en­dow­ments, foun­da­tions and high-net­worth in­di­vid­u­als.

The fund is War­burg Pin­cus’ first that is ded­i­cated to China, and will in­vest in sec­tors in­clud­ing health­care, con­sumer goods, en­ergy, real es­tate, fi­nan­cial ser­vices and tech­nol­ogy, said the com­pany.

It said that for ev­ery in­vest­ment deal of War­burg Pin­cus in China in the fu­ture, half of the money will be from the War­burg Pin­cus China fund and the other half from its global fund, which means a to­tal of $4 bil­lion will be in­vested in China.

Since the com­pany’s first in­vest­ment in the Chi­nese main­land in 1994, War­burg Pin­cus had a con­sis­tent pres­ence, and has in­vested more than $7 bil­lion in 90 com­pa­nies, gen­er­at­ing strong re­turns for in­vestors, said Charles Kaye and Joseph Landy, co-chief ex­ec­u­tive of­fi­cers of War­burg Pin­cus.

War­burg Pin­cus’ six in­vest­ments in China in 2016 in­cluded sup­ply chain de­liv­ery provider Bei­jing Yun­niao Tech­nol­ogy Co Ltd, ma­ter­nity care ser­vice com­pany UIB (China) Ltd and bike rideshar­ing plat­form Mo­bike.

In 2016, War­burg Pin­cus’s port­fo­lio com­pany ZTO Ex­press (Cay­man) Inc went pub­lic in the New York Stock Ex­change, raising $1.4 bil­lion.

Ride-hail­ing firm UCAR Tech­nol­ogy Inc, beauty chain op­er­a­tor EverCare (Bei­jing) Hold­ing Group Co Ltd and China Kidswant In­vest­ment Hold­ings Co Ltd, a ma­ter­nity, in­fant and chil­dren spe­cialty re­tailer, all got listed on the Na­tional Equities Ex­change and Quo­ta­tions, bet­ter known as the New Third Board, this year.

“2016 is a year of mile­stone for War­burg Pin­cus in China,” said Frank Wei, man­ag­ing di­rec­tor and co-head of War­burg Pin­cus China.

“Be­sides launch­ing the China fund, we have in­vested in deals with in­vest­ment to­tal­ing $1 bil­lion and brought in­vestors in­vest­ment re­turns of $1.6 bil­lion,” Wei said.

bil­lion

amount of in­vest­ment that War­burg Pin­cus has made in China since 1994

Ju­lian Cheng, man­ag­ing di­rec­tor and co-head of War­burg Pin­cus China, said they are step­ping up their in­vest­ment pace in China, look­ing fa­vor­ably on the na­tion’s prospect.

“We hope to par­tic­i­pate in China’s devel­op­ment through the War­burg Pin­cus China fund,” said Cheng.

Jing Ul­rich, vice-chair­woman of Asia-Pa­cific at JPMor­gan Chase & Co, said ear­lier that while over­seas mar­kets were tur­bu­lent, the Chi­nese economy was very steady, which made China a safe haven for global in­vestors.

Ac­cord­ing to Zero2IPO, there were 2,191 new funds fi­nanc­ing 1.2 tril­lion yuan ($176 bil­lion) in the first 11 months. Yuan-dom­i­nated funds have be­come the main force, with 2,092 funds worth 985.3 bil­lion yuan.

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