Warburg Pincus in $650m mutual fund sale

WARBURG PINCUS, the venture capital firm, is retrenching back to its core private equity business with a $650m deal to sell its mutual fund operations to Swiss banking group Credit Suisse.

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."

Start your day with The Independent, sign up for daily news emails
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Claims Administrator

£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...

Recruitment Genius: Senior SEO Executive

£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...

Recruitment Genius: Online Customer Service Administrator

£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...

Recruitment Genius: Digital Marketing Executive

£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...

Day In a Page

'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power
Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

The price to be paid for challenging the rule of extremists

A revolution now 'consuming its own children'
Welcome to the world of Megagames

Welcome to the world of Megagames

300 players take part in Watch the Skies! board game in London
'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

Charlotte Gainsbourg on 'Nymphomaniac'

Starring in one of the most explicit films ever
Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

Robert Fisk in Abu Dhabi

The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

Vince Cable exclusive interview

Charging fees for employment tribunals was 'a very bad move'
Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

Iwan Rheon is returning to his Welsh roots

Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
Russell Brand's interview with Ed Miliband has got everyone talking about The Trews

Everyone is talking about The Trews

Russell Brand's 'true news' videos attract millions of viewers. But today's 'Milibrand' interview introduced his resolutely amateurish style to a whole new crowd
Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

It's time for my close-up

Meet the man who films great whites for a living
Increasing numbers of homeless people in America keep their mobile phones on the streets

Homeless people keep mobile phones

A homeless person with a smartphone is a common sight in the US. And that's creating a network where the 'hobo' community can share information - and fight stigma - like never before
'Queer saint' Peter Watson left his mark on British culture by bankrolling artworld giants

'Queer saint' who bankrolled artworld giants

British culture owes a huge debt to Peter Watson, says Michael Prodger
Pushkin Prizes: Unusual exchange programme aims to bring countries together through culture

Pushkin Prizes brings countries together

Ten Scottish schoolchildren and their Russian peers attended a creative writing workshop in the Highlands this week
14 best kids' hoodies

14 best kids' hoodies

Don't get caught out by that wind on the beach. Zip them up in a lightweight top to see them through summer to autumn
Robert Fisk in Abu Dhabi: The acceptable face of the Emirates

The acceptable face of the Emirates

Has Abu Dhabi found a way to blend petrodollars with principles, asks Robert Fisk