Warburg Pincus to ‘double’ China deals

The global private equity firm reportedly expects to invest as much as $400m in Chinese companies over the next two to three years.

Global private equity firm Warburg Pincus will double its investment in China over the next two to three years, managing director Chang Sun told Reuters.

The firm has invested roughly $400 million (€294 million) in ten Chinese companies to date. Chang said he expects to invest as much as $400 million more in the region in the near term.

“We are very confident and bullish on China,” Chang said in this week’s Reuters report.

Recently, in one of China’s largest-ever private equity transactions, CITIC Capital and Warburg Pincus agreed to acquire 22.5 percent stakes in Hayao Group, a pharmaceutical business. The two private equity firms are paying $100 million each for the stakes as part of a privatisation that values Hayao Group at $450 million. As part of the same transaction, Heilongjiang-based venture capital firm Chenergy is acquiring ten percent of Hayao Group for an undisclosed sum.

In the interview, Chang said China’s “regulatory system is improving every day.”

In January, 2003, Warburg Pincus opened its Beijing office, the firm’s first in the People’s Republic of China.