Warburg Pincus in $650m mutual fund sale
Tuesday 16 February 1999
The Swiss are also buying a 19.9 per cent stake in the firm's private equity business, although the chairman and chief executive, Lionel Pincus, insisted it will still be "owned and managed by its partners".
Warburg Pincus - an original investor alongside United News & Media and Pearson in Channel Five television - has been aggressively targeting Britain for expansion. It has funded a string of UK public-to-private deals, including last week's buyout of software group Rebus. Proceeds of yesterday's deal will be split between the firm's partners.
Warburg Pincus denied that the firm was in financial difficulty or under any pressure to sell. The mutual fund management business grew up as a result of Warburg Pincus's strong relationships with wealthy individuals but was not integral to main activities, the firm said.
Mr Pincus said the business, which signed a marketing agreement with Credit Suisse last year, had reached the point where being part of a larger group was necessary. "This linkage combines our strengths in the US with those of Credit Suisse Group around the world, in line with our belief that scale and global reach are critical strategic requirements for financial services firms," he said.
Warburg Pincus Asset Management employs 260 people and manages $22bn of assets. The deal will boost Credit Suisse's funds under management to more than $230bn.
It leaves Warburg Pincus with a rather smaller operation made up of 61 professionals, of which 10 are employed in London, $7bn in private equity, and a further $5bn of committed capital available for investment.
Bill Priest, chief executive of Credit Suisse Asset Management Americas, said the business was a very good fit. "We have been determined to increase both our retail and institutional distribution in the US. We also wanted to expand our business with high net worth individuals. This helps with all three."
- 1 Which country would be hardest to invade?
- 2 The man who filmed the Freddie Gray video has been arrested at gunpoint
- 3 Floyd Mayweather vs Manny Pacquiao live: Mayweather puts on defensive masterclass to win by unanimous decision
- 4 Floyd Mayweather's mouthguard costs $25,000 - enough to fly to Las Vegas and back 18 times
- 5 Royal baby girl born: Duchess of Cambridge's second child will be a princess thanks to Queen
Which country would be hardest to invade?
Morgan Freeman on the riot-focused coverage of the Baltimore protests: 'F**k the media'
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
The man who filmed the Freddie Gray video has been arrested at gunpoint
Nepal earthquake: Many survivors receiving no help despite relief effort
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
Indonesia executions live: 'Hysterical' families heard prisoners being shot dead by firing squad
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
EU exit would hit UK economy much harder than neighbouring countries, study finds
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
iJobs Money & Business
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...