Go-Jek investor Warburg Pincus sets up new US$4.25B fund for China, Southeast Asia
Warburg Pincus, a leading global private equity firm focused on growth investing, has made the final close of its second fund targeting Southeast Asia and China.
A US$4.25 billion companion fund,Warburg Pincus China-SEA II will invest in its portfolio companies in these regions alongside Warburg Pincus Global Growth — a US$14.8 billion global, growth-focused private equity fund that closed in late 2018.
Warburg Pincus China-SEA II is also the successor to Warburg Pincus China, a US$2.2 billion companion fund that closed in December 2016. Within China, Warburg Pincus is known as Hua Ping.
The Warburg Pincus China-SEA II fund was launched in January 2019, targeting a fund size of US$3.5 billion, and received commitments in excess of the US$4.25 billion.
Warburg Pincus China-Southeast Asia’s Limited Partners include existing investors in Warburg Pincus’s current funds as well as new investors to the firm. The investors represent a diversified mix of leading public and private pension funds, sovereign wealth funds, insurance companies, endowments, foundations, fund of funds, family offices and high-net-worth individuals.
This new fund will continue Warburg Pincus’ thesis-driven, sector-focused approach to growth investing in China and Southeast Asia, partnering with entrepreneurs and management teams to build companies of scale and sustainable value. It will focus on investing across five sectors — consumer and services, healthcare, real estate, financial services, and technology, media and telecommunications (TMT).
Charles R. Kaye and Joseph P. Landy, Co-CEOs of Warburg Pincus, said in a joint statement: “We have now invested more than US$11 billion into more than 120 companies in China and Southeast Asia, generating significant returns and distributions for our investors. The strong demand for Warburg Pincus China-Southeast Asia II reflects our established track record, our talented investment team, and the opportunities our Limited Partners see for growth investing in China and Southeast Asia.”
Warburg Pincus’s select current investments in China and Southeast Asia include Amcare, ANE Logistics, Ant Financial, ARA, China Kidswant, D&J China, ESR Group, Go-Jek, Hygeia, Jinxin Fertility, Liepin, Mofang, NIO, Vincom Retail, Yuanfudao, and ZTO Express.
Jeff Perlman, Managing Director and Head of Southeast Asia, added: “In recent years, from our Singapore base, Warburg Pincus has become one of the largest and most active investors in Southeast Asia, with a particular emphasis on Vietnam, Indonesia and Singapore. Southeast Asia is a large and growing market for us, exhibiting many of the strong investment themes and trends which have driven our China business over the last 25 years. This new fund, along with our growing team in Singapore and our recent successes in the region, will allow us to build our franchise further in Southeast Asia.”