Warburg Pincus LLC is a global
private equity
In the field of finance, the term private equity (PE) refers to investment funds, usually limited partnerships (LP), which buy and restructure financially weak companies that produce goods and provide services. A private-equity fund is both a t ...
firm, headquartered in New York, with offices in the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...
,
Europe
Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a subcontinent of Eurasia and it is located entirel ...
,
Brazil
Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
,
China,
Southeast Asia
Southeast Asia, also spelled South East Asia and South-East Asia, and also known as Southeastern Asia, South-eastern Asia or SEA, is the geographical south-eastern region of Asia, consisting of the regions that are situated south of mainlan ...
and
India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
.
[ Warburg has been a private equity investor since 1966. The firm currently has over $80 billion in assets under management and invests in a range of sectors including retail, industrial manufacturing, ]energy
In physics, energy (from Ancient Greek: ἐνέργεια, ''enérgeia'', “activity”) is the quantitative property that is transferred to a body or to a physical system, recognizable in the performance of work and in the form of hea ...
, financial services, health care, technology
Technology is the application of knowledge to reach practical goals in a specifiable and Reproducibility, reproducible way. The word ''technology'' may also mean the product of such an endeavor. The use of technology is widely prevalent in me ...
, media
Media may refer to:
Communication
* Media (communication), tools used to deliver information or data
** Advertising media, various media, content, buying and placement for advertising
** Broadcast media, communications delivered over mass e ...
, and real estate
Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more general ...
. Warburg Pincus is a growth investor. Warburg Pincus has raised 21 private equity funds which have invested over $100 billion in over 1,000 companies in 40 countries.
Warburg Pincus invested in the information and communication technology sectors, including investments in Avaya
Avaya Holdings Corp., often shortened to Avaya (), is an American multinational technology company headquartered in Durham, North Carolina, that provides cloud communications and workstream collaboration services. The company's platform inclu ...
, Bharti Tele-Ventures, Harbour Networks, NeuStar, PayScale, and Telcordia
iconectiv is a supplier of network planning and network management services to telecommunications providers. Known as Bellcore after its establishment in the United States in 1983 as part of the break-up of the Bell System, the company's name ...
.
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. In 1965, when Eric Warburg retired to Germany
Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...
, 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. Together they developed a strategy of investing in diversified companies of various sizes rather than focusing on start-ups. Pincus was the founder and chairman while Vogelstein was vice chairman and then president. Pincus and Vogelstein ran the company until 2002, when they stepped down and appointed Charles Kaye and Joseph P. Landy as co-presidents. Pincus died in 2009.
Warburg Pincus began investing in Europe in 1983 and opened its first office in Asia
Asia (, ) is one of the world's most notable geographical regions, which is either considered a continent in its own right or a subcontinent of Eurasia, which shares the continental landmass of Afro-Eurasia with Africa. Asia covers an are ...
in 1994. It has invested more than $5 billion in Europe
Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a subcontinent of Eurasia and it is located entirel ...
; more than $3 billion in India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
and more than $3.3 billion in China. The firm is headquartered in New York and has offices in Beijing
}
Beijing ( ; ; ), alternatively romanized as Peking ( ), is the capital of the People's Republic of China. It is the center of power and development of the country. Beijing is the world's most populous national capital city, with over 21 ...
, Berlin
Berlin ( , ) is the capital and List of cities in Germany by population, largest city of Germany by both area and population. Its 3.7 million inhabitants make it the European Union's List of cities in the European Union by population within ci ...
, Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China (abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delta i ...
, Houston
Houston (; ) is the most populous city in Texas, the most populous city in the Southern United States, the fourth-most populous city in the United States, and the sixth-most populous city in North America, with a population of 2,304,580 i ...
, London
London is the capital and List of urban areas in the United Kingdom, largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary dow ...
, Mumbai
Mumbai (, ; also known as Bombay — List of renamed Indian cities and states#Maharashtra, the official name until 1995) is the capital city of the Indian States and union territories of India, state of Maharashtra and the ''de facto'' fin ...
, San Francisco
San Francisco (; Spanish for " Saint Francis"), officially the City and County of San Francisco, is the commercial, financial, and cultural center of Northern California. The city proper is the fourth most populous in California and 17th ...
, São Paulo
São Paulo (, ; Portuguese for ' Saint Paul') is the most populous city in Brazil, and is the capital of the state of São Paulo, the most populous and wealthiest Brazilian state, located in the country's Southeast Region. Listed by the Ga ...
, Shanghai
Shanghai (; , , Standard Mandarin pronunciation: ) is one of the four direct-administered municipalities of the People's Republic of China (PRC). The city is located on the southern estuary of the Yangtze River, with the Huangpu River flowin ...
and Singapore
Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, bor ...
, with administrative offices in Amsterdam
Amsterdam ( , , , lit. ''The Dam on the River Amstel'') is the capital and most populous city of the Netherlands, with The Hague being the seat of government. It has a population of 907,976 within the city proper, 1,558,755 in the urban ar ...
, Luxembourg
Luxembourg ( ; lb, Lëtzebuerg ; french: link=no, Luxembourg; german: link=no, Luxemburg), officially the Grand Duchy of Luxembourg, ; french: link=no, Grand-Duché de Luxembourg ; german: link=no, Großherzogtum Luxemburg is a small lan ...
and Mauritius
Mauritius ( ; french: Maurice, link=no ; mfe, label= Mauritian Creole, Moris ), officially the Republic of Mauritius, is an island nation in the Indian Ocean about off the southeast coast of the African continent, east of Madagascar. It ...
.
The firm is structured as a global partnership led by CEO, Charles Kaye, and President, Timothy Geithner.
Initial public offerings
More than 140 Warburg Pincus companies have listed on exchanges, raising approximately $30 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 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.
In October 2014, ''Reuters'' reported that Warburg Pincus had raised $4 billion for its first energy-focused private equity fund. 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.
Warburg Pincus has invested in companies such as ityMD &!The Summit Medical Group Harbin Pharmaceutical, NIO, ZTO Express in China and South East Asia, Bharti Telecommunications, Apollo Tyres Ltd, Ecom Express, SBI General Insurance in India, AmRest in Poland and Nuance Communications
Nuance Communications, Inc. is an American multinational computer software technology corporation, headquartered in Burlington, Massachusetts, that markets speech recognition and artificial intelligence software.
Nuance merged with its compe ...
in the U.S. In 2019, the firm acquired a majority stake in healthcare tech company WebPT from Battery Ventures.
Fight over the Warburg name
During the post-war period, Eric Warburg vied with his cousin Siegmund Warburg
Sir Siegmund George Warburg (30 September 1902 – 18 October 1982) was a German-born English banker. He was a member of the prominent Warburg family. He played a prominent role in the development of merchant banking.S.G. Warburg
S. G. Warburg & Co. was a London-based investment bank. It was listed on the London Stock Exchange and was once a constituent of the FTSE 100 Index. The firm was acquired by the Swiss Bank Corporation in 1995 and ultimately became a part of UB ...
, 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."
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."
In 1999, they attempted to purchase English Premier League association football club Everton F.C.
See also
* M. M. Warburg & Co.
* S. G. Warburg & Co.
References
External links
*
Stocks held by Warburg Pincus LLC
{{Largest private equity firms
1939 establishments in New York City
Companies based in New York City
Financial services companies established in 1939
Private equity firms of the United States
Warburg family
Warburg Pincus companies