Warburg Pincus raises $2b fund
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.
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.