Warburg Pincus
Encyclopedia
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. The firm currently has approximately $35 billion in assets under management
and invests in a range of sectors including consumer, energy
, financial services
, health care
, industrial
, media
, technology
, telecommunication
and real estate
. Warburg Pincus is a growth investor
and its active portfolio of more than 100 companies is highly diversified by stage, sector and geography.
Warburg Pincus also has a long history as a leading investor in the information and communication technology sectors, including investments in Avaya
, BEA Systems
, Bharti Tele-Ventures, Cassatt, Harbour Networks, NeuStar
, Systinet, Telcordia and VERITAS Software
. Warburg Pincus has an active portfolio of more than 115 companies spanning the entire spectrum of scale and maturity, and employs approximately 160 investment management professionals.
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 remained a small office of not more than 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, 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. Lionel ran the company from 1966 to 2002.
Warburg Pincus began investing in Europe in 1983 and opened its first office in Asia
in 1994. It has invested more than $5 billion in Europe
; more than $2 billion in India
and more than $1 billion in China
. The firm is structured as a global partnership led by co-presidents Charles Kaye and Joseph Landy. Kaye has been with Warburg Pincus since 1986 and worked to launch the Asian operations. Landy has been with the firm since 1985, focusing on investments in information technology, communications applications and structured investments. Approximately 40% of the firm’s investments are outside of the U.S.
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 football (soccer) team Everton
.
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 with offices in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
, Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
and Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
. It has been a private equity investor since 1966. The firm currently has approximately $35 billion in assets under management
Assets under management
Assets under management is a financial term used denote the market value of funds being managed by a financial instutition on behalf of its clients, investors, depositors, etc. This metric is a sign of size and success against competition...
and invests in a range of sectors including consumer, energy
Energy industry
The energy industry is the totality of all of the industries involved in the production and sale of energy, including fuel extraction, manufacturing, refining and distribution...
, financial services
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
, health care
Health care
Health care is the diagnosis, treatment, and prevention of disease, illness, injury, and other physical and mental impairments in humans. Health care is delivered by practitioners in medicine, chiropractic, dentistry, nursing, pharmacy, allied health, and other care providers...
, industrial
Industry
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...
, media
Mass media
Mass media refers collectively to all media technologies which are intended to reach a large audience via mass communication. Broadcast media transmit their information electronically and comprise of television, film and radio, movies, CDs, DVDs and some other gadgets like cameras or video consoles...
, technology
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
, telecommunication
Telecommunication
Telecommunication is the transmission of information over significant distances to communicate. In earlier times, telecommunications involved the use of visual signals, such as beacons, smoke signals, semaphore telegraphs, signal flags, and optical heliographs, or audio messages via coded...
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...
. Warburg Pincus is a growth investor
Growth investing
Growth investing is a style of investment strategy. Those who follow this style, known as growth investors, invest in companies that exhibit signs of above-average growth, even if the share price appears expensive in terms of metrics such as price-to-earnings or price-to-book ratios...
and its active portfolio of more than 100 companies is highly diversified by stage, sector and geography.
Warburg Pincus also has a long history as a leading investor in the information and communication technology sectors, including investments in Avaya
Avaya
Avaya Inc. is a privately held computer networking, information technology and telecommunications company that is a global provider of business communications systems. The international head quarters is in Basking Ridge, New Jersey, United States...
, BEA Systems
BEA Systems
BEA Systems, Inc. specialized in enterprise infrastructure software products known as "middleware", which connect software applications to databases and was acquired by Oracle Corporation on April 29, 2008.- History :...
, Bharti Tele-Ventures, Cassatt, Harbour Networks, NeuStar
NeuStar
Neustar, Inc. is a provider of clearinghouse and directory services to the global communications and Internet industries.-History:Neustar was incorporated in Delaware in 1998. It started as a business unit within Lockheed Martin Corporation...
, Systinet, Telcordia and VERITAS Software
VERITAS Software
Veritas Software Corp. was an international software company that was founded in 1983 as Tolerant Systems, renamed Veritas Software Corp. in 1989, and merged with Symantec in 2005. It was headquartered in Mountain View, California...
. Warburg Pincus has an active portfolio of more than 115 companies spanning the entire spectrum of scale and maturity, and employs approximately 160 investment management professionals.
Founding and early history
The firm traces its history to 1939, when Eric Warburg of the Warburg banking familyWarburg family
The Warburg family is a financial dynasty of German Jewish origin, noted for their accomplishments in physics, classical music, art history, pharmacology, physiology, finance, private equity and philanthropy. They are believed to be descended from the Venetian Jewish del Banco family, in the early...
founded a company under the name E.M. Warburg & Co. Its first address was 52 William Street, New York, the Kuhn Loeb
Kuhn, Loeb & Co.
Kuhn, Loeb & Co. was a bulge bracket, investment bank founded in 1867 by Abraham Kuhn and Solomon Loeb. Under the leadership of Jacob H. Schiff, it grew to be one of the most influential investment banks in the late 19th and early 20th centuries, financing America's expanding railways and growth...
building. Throughout the early post-war period, the firm remained a small office of not more than 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, control was handed to Lionel Pincus
Lionel Pincus
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.-Early life:Pincus was born 2 March 1931 in Philadelphia,...
, a partner in the Ladenburg Thalmann
Ladenburg 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...
investment bank, and the working language of the office switched from German to English. Lionel ran the company from 1966 to 2002.
Warburg Pincus began investing in Europe in 1983 and opened its first office in Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
in 1994. It has invested more than $5 billion in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
; more than $2 billion in India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
and more than $1 billion in China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
. The firm is structured as a global partnership led by co-presidents Charles Kaye and Joseph Landy. Kaye has been with Warburg Pincus since 1986 and worked to launch the Asian operations. Landy has been with the firm since 1985, focusing on investments in information technology, communications applications and structured investments. Approximately 40% of the firm’s investments are outside of the U.S.
Fight over the Warburg name
During the post-war period, Eric Warburg vied with his cousin Siegmund Warburg, founder of S.G. Warburg, 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 football (soccer) team Everton
Everton F.C.
Everton Football Club are an English professional association football club from the city of Liverpool. The club competes in the Premier League, the highest level of English football...
.
External links
- Warburg Pincus (link notice: javascript window resize script)
- http://www2.tbo.com/content/2007/sep/23/na-nursing-home-cuts-put-costs-over-care-analysis-/