US private equity firm takes 49% stake in Chinese AM

New York-headquartered private equity company Warburg Pincus has received the green light of the China Securities Regulatory Commission (CSRC) to acquire a 49% in Chinese asset manager Fortune SG.

The transaction is expected to close in Q3 2017. Fortune SG’s majority shareholder remains Baowu Group.

Fortune SG provides domestic public equity fund products, overseas investment fund products and wealth management under separately managed accounts (SMAs).  As of 30 June 2017, it managed public equity assets of RMB122.5bn (€15.39bn).

Warburg Pincus will support Fortune SG with its expertise from strategic planning to product development and financial technology.

Ben Zhou, managing director, Warburg Pincus, commented: “With the rapid growth of the Chinese economy and accumulation of family wealth in the past 30 years, people have become increasingly aware of the importance of wealth management and asset allocation. We are strong believers in the long-term prospects of China’s asset management industry and public fund management industry.

“Our strategic investment into Fortune SG marks a significant move for Warburg Pincus into China’s asset management industry.”

Warburg Pincus has over $44bn (€37.1bn) in private equity assets under management.

Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

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