Groupe Marc de Lacharriere (GML), the family holding company of French billionaire, Marc Ladreit de Lacharrière acquired a 5% stake in Warburg Pincus, a private equity firm with $35 billion of assets under management.
In a statement, Mr. Ladreit de Lacharrière said, “We are very pleased to have the opportunity to invest in Warburg Pincus. GML is delighted to become a long-term partner with a global private equity firm and Warburg Pincus perfectly matches our objectives with respect to investing model, culture, and persistence of performance.”
GML owns several investments, including 86% in Fimalac, a publicly traded company in France.
Mr. Ladreit de Lacharrière becomes Senior Strategic Partner ar Warburg Pincus
Mr. Ladreit de Lacharrière is now a Senior Strategic Partner of Warburg Pincus following the investment of GML. The French billionaire plans to invest in the private equity firm’s future funds as a limited partner, according to the private equity firm.
A person with knowledge of the matter told the New York Times that Mr. Ladreit de Lacharrière had been looking for private equity firm to invest over the long-term. The person said the French billionaire approached Warburg Pincus regarding the transaction.
Charles R. Kaye and Joseph P. Landy serve as co-chief executives of Warburg Pincus. Former U.S. Treasury Secretary Timothy Geithner joined Warburg Pincus as president in 2013.
The private equity firm did not disclose the amount of GML’s investment, and other financial terms in the transaction.
Comments from Warburg Pincus executives
Warburg Pincus said it would use all the proceeds from the transaction to invest in its funds. The private equity firm said the investment would enhance the alignment between its professionals and limited partners. It would also create additional flexibility for the firm.
“Warburg Pincus has always valued clearly aligned interests – within our general partnership, with our limited partners who invest in our funds and with the management teams of the companies in which we invest. We know GML shares that commitment and this transaction is consistent with those interests,” said Mr. Kaye.
Mr. Landy is looking forward to partnering with GML as they work on improving Warburg Pincus’ network of potential investment opportunities.
Mr. Geithner said, “We are honored to introduce a figure of Marc’s standing to our firm.”