Ex-Warburg Pincus China head targets $1b fund

Li has two partners at Centurium: Joseph Chow, who was previously a managing director and head of China deal origination at boutique investment bank Moelis & Co; and Lei Lin, who founded automotive research business Sinotrust Market Research, sold it to Experian Group in 2007, and then engaged in other entrepreneurial activities, some of which are said to have overlapped with Li. The fund is expected to primarily pursue buyout deals with some growth capital exposure.

The launch of Centurium continues a trend of middle-market spin-out GPs in China. David Liu and Julian Wolhardt, who previously held leadership positions with KKR in China, are in the process of raising a fund of at least $1.5 billion at DCP Capital Partners, while ex-MBK Partners executive Kuo-Chan Kung established Nexus Point and is targeting $750 million. Established GPs such as CDH Investments and PAG Asia Capital have also established dedicated China middle market funds, sensing a gap in the space.

Li spent 14 years with Warburg Pincus before departing in early 2016. The private equity firm backed dozens of companies in China during this period – it currently has about 30 investments in the country – but Li has highlighted 12 that he was heavily involved in, according to sources familiar with the situation. They include Lepu Medical, China Biologic Products, Mofang Gongyu, and Beijing Amcare Women's & Children's Hospital. Six of the 12 have been partially or fully realized.

Not long after leaving his previous job, Li was appointed vice chairman of Ucar, a chauffeured car service provider backed by Warburg Pincus that listed on the National Equities Exchange and Quotation (NEEQ) in 2016. Ucar was established by the same team as another portfolio company, China Auto Rental (CAR). Warburg Pincus invested in that business in 2012, took it public in Hong Kong in 2014, and retained a minority stake as of last December.

Chow was previously a non-executive director at CAR and remains on the board at China Biologic and Intime Retail, both of which have been exited by Warburg Pincus. Lin is a current board member at CAR.

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• Topics
• Greater China
• Fundraising
• Buyout
• China
• Warburg Pincus Asia
• Centurium Capital