Warburg Pincus - Wikipedia, the free encyclopedia

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Warburg Pincus
From Wikipedia, the free encyclopedia

Warburg Pincus, LLC is an American global private equity firm with offices in the United States, Europe, Brazil, China and India. It has been a private equity investor since 1966. The firm currently has approximately $30 billion[1] in assets under management and invests in a range of sectors including consumer, industrial and services (CIS), energy, financial services, health care, technology, media and telecommunication TMT and real estate. Warburg Pincus is a growth investor[2] and its active portfolio of more than 125 companies is highly diversified by stage, sector and geography. Warburg Pincus has raised 13 private equity funds which have invested more than $40 billion in over 650 companies in more than 30 countries.[1] Warburg Pincus also has a long history as a leading investor in the information and communication technology sectors, including investments in Avaya, BEA Systems, Bharti Tele-Ventures, Cassatt, Harbour Networks, NeuStar, Systinet, Telcordia and VERITAS Software.[3][4]

Warburg Pincus

Type Industry Founded Founder(s)

Limited liability company Private Equity 1966 Eric Warburg Lionel Pincus

Headquarters 450 Lexington Avenue New York City, New York, United States Key people Charles R. Kaye Joseph P. Landy Timothy F. Geithner

Contents
Products

Co-Presidents

Investments, private equity funds $30 billion www.warburgpincus.com (http://www.warburgpincus.com/)

1 History 1.1 Founding and early history 1.2 Initial public offerings 1.3 Venture capital 1.4 Growth capital 1.5 Late-stage and special situations 1.6 Fight over the Warburg name 2 See also 3 References 4 External links

Total assets Website

History
Founding and early history
The firm traces its history to 1939, when 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 postwar period, the firm remained a small office of not more than 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.[5] 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. Lionel ran the company from 1966 to 2002, and died in 2009. [6] 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 [7] and more than $3.3 billion in China. The firm is headquartered in New York and has offices in Beijing, Frankfurt, Hong Kong, London, Mumbai, San Francisco, So Paulo and Shanghai, with administrative offices in Amsterdam, Luxembourg and Mauritius.[8] History of private equity and venture capital

The firm is structured as a global partnership led by co-presidents Charles Kaye and Joseph Landy.[9] Kaye has been with Warburg Pincus since 1986 and worked to launch the Asian operations. Landy has been with the firm since 1985, focusing on investments in information technology, communications applications and structured investments. Approximately 40% of the firms investments are outside of the U.S.

Early history (Origins of modern private equity) The 1980s (Leveraged buyout boom) The 1990s (Leveraged buyout and the venture capital bubble) The 2000s (Dot-com bubble to the credit crunch)

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Initial public offerings

Warburg Pincus has completed more initial public offerings with its companies than [clarify] any other global private equity firm.[10] More than 120 Warburg Pincus companies have listed on exchanges, raising approximately $15 billion in public markets. In each of these IPOs, the firm was the principal financial investor in the portfolio company. The companies have listed on 12 exchanges, including more than 20 IPOs outside the U.S. In August 2010, a six-year partnership between management and Warburg Pincus led to MEG Energys successful IPO.[11]

Venture capital
Warburg Pincus has a long history of successful venture capital investing, including the firms historic investment in the founding of BEA Systems[12] in 1995, partnerships with Kosmos Energy[1] and Bridgepoint Education in 2004 and Lepu Medical in 2007. 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 nurture innovation and help start up new businesses. Warburg Pincus participates in the creation of companies with high growth potential by combining the firms capital with managerial and technical expertise in sectors such as energy, technology and healthcare.

Growth capital
Growth capital can enable transformational events, such as funding acquisitions or driving organic growth by expanding geographically or bringing new products and services to market. Investments by Warburg Pincus have fostered growth around the world in companies such as Harbin Pharmaceutical in China,[13] Bharti Telecommunications in India, AmRest in Poland[14] and Nuance Communications in the U.S.[15]

Late-stage and special situations

Warburg Pincus has used its global capabilities to invest in companies with market-leading positions such as Aramark,[16] Bausch + Lomb,[17] Neiman Marcus, Scotsman Industries and Ziggo.

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."[18] 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."[18] In 1999, they attempted to purchase English Premier League football (soccer) team Everton.[19]

See also
M. M. Warburg & Co. S. G. Warburg & Co.

References
1. ^ a b c Michael J. De La Merced and Peter Lattman (August 17, 2011). "Warburg Stays in the Fray, but Off the Public Market" (http://dealbook.nytimes.com/2011/08/17/warburgstays-in-fray-but-off-public-market/). The New York Times. 2. ^ Michael J. De La Merced (May 10, 2013). "Warburg Pincus Closes Latest Fund at $11.2 Billion" (http://dealbook.nytimes.com/2013/05/10/warburgpincus-closes-latest-fund-at-11-2-billion/). The New York Times. 3. ^ "Telcordia Ericsson closes Telcordia acquisition" (http://www.reuters.com/article/2012/01/12/idUS5962 Jan-2012+HUG20120112). Reuters. January 12, 2012. 4. ^ "Warburg Pincus Investments" (http://www.warburgpincus.com/portfolio/Default.as Warburg Pincus LLC. 5. ^ Bansal, Paritosh (2009-10-11). "Warburg Pincus founder Lionel Pincus dies" (http://www.reuters.com/article/2009/10/11/warburgpincusfounder-idUSN117231520091011). Reuters. 6. ^ Fabrikant, Geraldine (2009-10-12). "Lionel Pincus, Who Helped Bring Investors to Private Equity, Dies at 78" (http://www.nytimes.com/2009/10/12/business/12pincus.htm The New York Times. 7. ^ Shraddha Nair (December 4, 2011). "Niten Malhan & Vishal Mahadevia - We would like to be specialists" (http://www.livemint.com/2011/12/04230111/NitenMalhan-amp-Vishal-Maha.html). LiveMint.com. 8. ^ "Warburg Pincus Locations" (http://www.warburgpincus.com/contact/Default.aspx Warburg Pincus LLC.

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9. ^ "Warburg Pincus Executive Management Group" (http://www.warburgpincus.com/people/executive_manag Warburg Pincus LLC. 10. ^ Steve Gelsi (December 15, 2011). "Laredo Petroleum leads trio of energy IPOs" (http://www.marketwatch.com/story/laredo-petroleumleads-trio-of-energy-ipos-2011-12-15). Market Watch. 11. ^ Andrew Willis (June 14, 2010). "MEG Energy launches massive IPO" (http://www.theglobeandmail.com/globeinvestor/investment-ideas/streetwise/meg-energy-launchesmassive-ipo/article1604238/). The Globe and Mail. 12. ^ "BEA-Warburg Venture Formed" (http://www.nytimes.com/1999/12/14/business/beawarburg-venture-formed.html). The New York Times. December 14, 1999. 13. ^ "Warburg Pincus takes 22.5 pct stake in China's Harbin Pharmaceutical report" (http://silicastar.com/news/press/1105/CITIC_% 20Harbin_Pharma.pdf). Forbes.com. November 6, 2005.

14. ^ "Warburg Pincus in PLN 307.2m PIPE for AmRest" (http://www.unquote.com/cee/officialrecord/1602727/warburg-pincus-supports-growth-amrest-pln307-capital-increase). Unquote.com. April 26, 2010. 15. ^ "Warburg Pincus invests $175m in Nuance" (http://www.boston.com/business/ticker/2009/01/warbu Boston.com. January 15, 2009. 16. ^ "ARAMARK Completes Merger" (http://www.americanlaundrynews.com/article/aramarkcompletes-merger-investor-group-led-ceo). American Laundry News. February 20, 2007. 17. ^ "Warburg Pincus to buy Bausch & Lomb" (http://www.reuters.com/article/2007/05/16/us-bauschidUSWNAS167220070516). Reuters. May 16, 2007. 18. ^ a b Ron Chernow (1994). The Warburgs: The TwentiethCentury Odyssey of a Remarkable Jewish Family. Knopf Doubleday Publishing Group. ISBN 978-0-679-74359-0. 19. ^ "Everton takeover bid accepted" (http://news.bbc.co.uk/1/hi/sport/football/476619.stm). BBC News. 1999-10-16. Retrieved 2010-01-06.

External links
Official website (http://www.warburgpincus.com) Retrieved from "http://en.wikipedia.org/w/index.php?title=Warburg_Pincus&oldid=582529910" Categories: Warburg Pincus Private equity firms of the United States Warburg family Companies established in 1939 Companies based in New York City Warburg Pincus companies 1939 establishments in New York This page was last modified on 20 November 2013 at 14:46. Text is available under the Creative Commons Attribution-ShareAlike License; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization.

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