Lionel Pincus
Encyclopedia
Lionel I. Pincus was an American finance
executive, venture capitalist, and entrepreneur
. He was the founder of the private equity
firm Warburg Pincus
, running it from 1966 to 2002, and later became the chairman emeritus of the company.
, the son of Henry (d. 1949) and Theresa Celia (née
Levit, d.1982) Pincus. His grandparents were Jewish immigrants from Russia and Poland. He graduated from the University of Pennsylvania
with a Bachelor of Arts
degree in English
in 1953. His family had apparel retailing
and real estate
businesses; rather than join those businesses, he pursued an MBA
at Columbia Business School
, graduating in 1956.
, an investment banking
firm, in 1955, and became a partner in the firm at age 29. He formed Lionel I. Pincus & Co., Inc., a financial consultancy, in 1964. The following year, he joined the board of directors of E.M. Warburg & Co., founded in 1939 by Eric Warburg, and in 1966, the two firms merged. The company was renamed to E.M. Warburg Pincus in 1970, and to Warburg Pincus LLC
in 2001.
Pincus is a "pioneer of the venture capital megafund", raising billions of dollars to invest in companies across industries. The money he raised came from, among other sources, blue chip pension fund
s, such as AT&T
, IBM
, GE
, Pacific Telesis
, and GM
, state pension funds, and college endowments
.
An early venture capital
fund, EMW Associates, was organized by Pincus in 1970, with $20 million in capital, about half of which came from officers of the company. This was followed by successively larger funds; a $2 billion fund organized by Warburg Pincus in 1989 was described as "five times larger than any other venture partnership". A later fund, closed in 2000, raised $2.5 billion, and was then described as the "biggest so far in the private-equity industry". The tenth and final fund raised while Pincus headed the company raised over $5.3 billion, closing in 2002.
Early investments included 20th Century Fox
, Humana
, and Warner, a company later acquired by Waste Management, Inc. In 1984, Warburg Pincus invested in Mattel
, and Pincus joined its board of directors. By 2002, when Pincus ended his tenure as the hands-on leader of the company, it had overseen investments of more than $13 billion in over 450 companies in 29 countries.
In 1999, Warburg Pincus sold its asset management division to Credit Suisse
for $650 million, which also acquired an interest in the private equity division of Warburg Pincus.
Pincus supported several philanthropic activities, including a $10 million donation to Columbia in 1995. He was a trustee of the university at the time. In 2005, the New York Public Library
renovated its main map room, principally financed and endowed by Pincus and Princess Firyal of Jordan
. The renovation cost $5 million and was also financially supported by the City of New York and the U.S. Government. The division was renamed The Lionel Pincus and Princess Firyal Map Division. He was recognized in 2002 for having donated more than $5 million to the Library.
, a former Miss Utah
winner and actress, in 1967. They had two sons, Henry and Matthew. She died in 1995 at the age of 60, after a long illness.
Following cancer
surgery in 2006, Pincus was declared mentally and physically incompetent, and his sons became his guardians. In 2008, his 14-room, 7000 square feet (650.3 m²) apartment at The Pierre hotel was offered for sale, over the objections of Princess Firyal, his long-time companion. The asking price at the time was $50 million.
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
executive, venture capitalist, and entrepreneur
Entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...
. He was the founder of the private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm Warburg Pincus
Warburg Pincus
Warburg Pincus, LLC is an American private equity firm with offices in the United States, Europe, Brazil and Asia. It has been a private equity investor since 1966...
, running it from 1966 to 2002, and later became the chairman emeritus of the company.
Early life
Pincus was born 2 March 1931 in Philadelphia, PennsylvaniaPennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
, the son of Henry (d. 1949) and Theresa Celia (née
Married and maiden names
A married name is the family name adopted by a person upon marriage. When a person assumes the family name of her spouse, the new name replaces the maiden name....
Levit, d.1982) Pincus. His grandparents were Jewish immigrants from Russia and Poland. He graduated from the University of Pennsylvania
University of Pennsylvania
The University of Pennsylvania is a private, Ivy League university located in Philadelphia, Pennsylvania, United States. Penn is the fourth-oldest institution of higher education in the United States,Penn is the fourth-oldest using the founding dates claimed by each institution...
with a Bachelor of Arts
Bachelor of Arts
A Bachelor of Arts , from the Latin artium baccalaureus, is a bachelor's degree awarded for an undergraduate course or program in either the liberal arts, the sciences, or both...
degree in English
English literature
English literature is the literature written in the English language, including literature composed in English by writers not necessarily from England; for example, Robert Burns was Scottish, James Joyce was Irish, Joseph Conrad was Polish, Dylan Thomas was Welsh, Edgar Allan Poe was American, J....
in 1953. His family had apparel retailing
Retailing
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
and real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "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; an item of real property; buildings or...
businesses; rather than join those businesses, he pursued an MBA
Master of Business Administration
The Master of Business Administration is a :master's degree in business administration, which attracts people from a wide range of academic disciplines. The MBA designation originated in the United States, emerging from the late 19th century as the country industrialized and companies sought out...
at Columbia Business School
Columbia Business School
Columbia Business School is the business school of Columbia University in Manhattan, New York City. It was established in 1916 to provide business training and professional preparation for undergraduate and graduate Columbia University students...
, graduating in 1956.
Career
Pincus joined Ladenburg ThalmannLadenburg Thalmann
Ladenburg Thalmann Financial Services, a NYSE Amex-listed company , is a diversified financial services company with two primary business lines: independent brokerage and advisory, and investment banking and capital markets...
, an investment banking
Investment banking
An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities...
firm, in 1955, and became a partner in the firm at age 29. He formed Lionel I. Pincus & Co., Inc., a financial consultancy, in 1964. The following year, he joined the board of directors of E.M. Warburg & Co., founded in 1939 by Eric Warburg, and in 1966, the two firms merged. The company was renamed to E.M. Warburg Pincus in 1970, and to Warburg Pincus LLC
Warburg Pincus
Warburg Pincus, LLC is an American private equity firm with offices in the United States, Europe, Brazil and Asia. It has been a private equity investor since 1966...
in 2001.
Pincus is a "pioneer of the venture capital megafund", raising billions of dollars to invest in companies across industries. The money he raised came from, among other sources, blue chip pension fund
Pension fund
A pension fund is any plan, fund, or scheme which provides retirement income.Pension funds are important shareholders of listed and private companies. They are especially important to the stock market where large institutional investors dominate. The largest 300 pension funds collectively hold...
s, such as AT&T
AT&T
AT&T Inc. is an American multinational telecommunications corporation headquartered in Whitacre Tower, Dallas, Texas, United States. It is the largest provider of mobile telephony and fixed telephony in the United States, and is also a provider of broadband and subscription television services...
, IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
, GE
Gê
Gê are the people who spoke Ge languages of the northern South American Caribbean coast and Brazil. In Brazil the Gê were found in Rio de Janeiro, Minas Gerais, Bahia, Piaui, Mato Grosso, Goias, Tocantins, Maranhão, and as far south as Paraguay....
, Pacific Telesis
Pacific Telesis
Pacific Telesis Group was one of the seven Regional Bell Operating Companies, sometimes also referred to as "RBOCs" or "Baby Bells", created in 1983 in preparation of the breakup of AT&T as a holding company for Pacific Bell and Nevada Bell, Pacific Telesis International and several other...
, and GM
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
, state pension funds, and college endowments
Financial endowment
A financial endowment is a transfer of money or property donated to an institution. The total value of an institution's investments is often referred to as the institution's endowment and is typically organized as a public charity, private foundation, or trust....
.
An early venture capital
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
fund, EMW Associates, was organized by Pincus in 1970, with $20 million in capital, about half of which came from officers of the company. This was followed by successively larger funds; a $2 billion fund organized by Warburg Pincus in 1989 was described as "five times larger than any other venture partnership". A later fund, closed in 2000, raised $2.5 billion, and was then described as the "biggest so far in the private-equity industry". The tenth and final fund raised while Pincus headed the company raised over $5.3 billion, closing in 2002.
Early investments included 20th Century Fox
20th Century Fox
Twentieth Century Fox Film Corporation — also known as 20th Century Fox, or simply 20th or Fox — is one of the six major American film studios...
, Humana
Humana
Humana Inc. , founded in 1961 in Louisville, Kentucky, is a Fortune 100 company that markets and administers health insurance. With a customer base of over 11.5 million in the United States, the company is the largest Fortune 100 company headquartered in the Commonwealth of Kentucky, and has a...
, and Warner, a company later acquired by Waste Management, Inc. In 1984, Warburg Pincus invested in Mattel
Mattel
Mattel, Inc. is the world's largest toy company based on revenue. The products it produces include Fisher Price, Barbie dolls, Hot Wheels and Matchbox toys, Masters of the Universe, American Girl dolls, board games, and, in the early 1980s, video game consoles. The company's name is derived from...
, and Pincus joined its board of directors. By 2002, when Pincus ended his tenure as the hands-on leader of the company, it had overseen investments of more than $13 billion in over 450 companies in 29 countries.
In 1999, Warburg Pincus sold its asset management division to Credit Suisse
Credit Suisse
The Credit Suisse Group AG is a Swiss multinational financial services company headquartered in Zurich, with more than 250 branches in Switzerland and operations in more than 50 countries.-History:...
for $650 million, which also acquired an interest in the private equity division of Warburg Pincus.
Philanthropy
New York Public Library
The New York Public Library is the largest public library in North America and is one of the United States' most significant research libraries...
renovated its main map room, principally financed and endowed by Pincus and Princess Firyal of Jordan
Princess Firyal of Jordan
H.R.H. Princess Firyal is a Jordanian princess. Married to Prince Muhammad bin Talal from 1964 to 1978, she is the mother of Prince Talal Prince Ghazi and Princess Mia bin Muhammad. Princess Firyal is known as a socialite and philanthropist...
. The renovation cost $5 million and was also financially supported by the City of New York and the U.S. Government. The division was renamed The Lionel Pincus and Princess Firyal Map Division. He was recognized in 2002 for having donated more than $5 million to the Library.
Personal
Pincus married the former Suzanne StorrsSuzanne Storrs
Suzanne Storrs was a former Miss Utah and an American television actress who appeared in sixteen different television series between 1954 and 1961, usually as the beautiful leading lady, including Maverick with James Garner , Wanted Dead or Alive with Steve McQueen , Sugarfoot Suzanne Storrs...
, a former Miss Utah
Miss Utah
The Miss Utah competition is the pageant that selects the representative for the state of Utah in the Miss America pageant. Utah has twice won the Miss America crown.- Winners :- External links :**...
winner and actress, in 1967. They had two sons, Henry and Matthew. She died in 1995 at the age of 60, after a long illness.
Following cancer
Cancer
Cancer , known medically as a malignant neoplasm, is a large group of different diseases, all involving unregulated cell growth. In cancer, cells divide and grow uncontrollably, forming malignant tumors, and invade nearby parts of the body. The cancer may also spread to more distant parts of the...
surgery in 2006, Pincus was declared mentally and physically incompetent, and his sons became his guardians. In 2008, his 14-room, 7000 square feet (650.3 m²) apartment at The Pierre hotel was offered for sale, over the objections of Princess Firyal, his long-time companion. The asking price at the time was $50 million.