Warburg Pincus raises $4.25b for China, Southeast Asia fund

The vehicle launched in January with a target of $3.5 billion. It will invest alongside Warburg Pincus Global Growth, which closed at $14.8 billion in late 2018. The two pools of capital will participate in China and Southeast Asia deals on a 50-50 basis, effectively giving the firm $8.5 billion of dry powder for deployment in the region.

Warburg Pincus raised $2.2 billion for its first China companion fund in 2016. As of December 2018, the fund had invested $1.5 billion across 25 China and Southeast Asia deals, generating a net IRR of 22.5% and a net multiple of 1.22x, according to New Jersey State Investment Council.

The new fund received commitments from public and private pension funds, sovereign wealth funds, insurance firms, endowments, foundations, family offices, and high net worth individuals. It will focus on investments in consumer and services, healthcare, real estate, financial services, and technology, media and telecom (TMT).

The fund will go into certain deals alongside Warburg Pincus’ global sector companion funds as well as the global flagship vehicle. For energy transactions, the China-Southeast Asia fund will take 50% with the rest split between the global growth and energy vehicles. For financial services, China-Southeast Asia and global growth will each get 40%, with 20% going to the sector fund. 

“This year the firm is celebrating the 25^th anniversary of the founding of our business in China and this new fund underlines and reinforces our long and successful presence in China and the expansion of our investment platform into Southeast Asia in recent years. We have now invested more than $11 billion into more than 120 companies in China and Southeast Asia, generating significant returns and distributions for our investors,” Charles Kaye and Joseph Landy, the firm’s co-CEOs, said in a statement.

Current Warburg Pincus portfolio companies in the region include ANE Logistics, Ant Financial, China Kidswant, D&J China, ESR Group, Go-Jek, Hygeia, Jinxin Fertility, Liepin, Mofang, Nio, Vincom Retail, Yuangfudao, and ZTO Express. ESR, which claims to be the largest Asia Pacific-focused real estate logistics platform, recently postponed its Hong Kong IPO. However, Jinxin recently completed an offering on the bourse, raising approximately HK$3 billion ($390 million).

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• Topics
• Greater China
• Southeast Asia
• Fundraising
• Growth
• GPs
• China
• Warburg Pincus Asia