Warburg Pincus invests $400m in Chinese logistics platform NewEase

By Mars W. Mosqueda Jr.

September 19, 2018

Global private equity major Warburg Pincus has made a $400-million equity investment in NewEase China, a Shanghai-based warehousing and logistics platform, according to an announcement by NewEase.

The investment will give Warburg Pincus a 50 per cent stake in NewEase China, an investor and operator of hubs and platforms for urban logistics infrastructure.

NewEase China, founded just this year, noted that it is a joint investment of $800 million by both Warburg Pincus and NewEase.

With the fresh capital, NewEase is now embarking on realizing its plan of laying out 10 million square meters of logistics facilities in China over the next three years.

The company says its investments are focused on the development of logistics infrastructure such as aviation hub centres, regional hub centres, and city distribution centres. It also provides smart logistics operations for cross-border and non-cross-border trade, warehouse management, and commercial settlement.

The company is headed by Sun Dongping, an experienced industrial investment, architectural engineering, and real estate development professional.

Warburg Pincus Group, founded in 1966, is one of the largest private equity investment funds in the world, with more than $45 billion in private equity assets under management.

Warburg had invested more than $8 billion in over 100 enterprises in China by the end of 2017. In recent years, the private equity firm has spent around $1 billion on average in China, covering healthcare, consumption, financial service, energy and industry, real estate and high-tech industries.

In Southeast Asia, Warburg Pincus started investing in 2013, with Vietnam as its maiden market. Since then, the PE firm has invested in seven companies in the region, including Vincom Retail, Lodgis Hospitality, ARA Asset Management, Go-Jek, NWP Retail, and Trax.

In an earlier interview with DEALSTREETASIA, Warburg Pincus Southeast Asia chief Jeffrey Perlman said private equity firms will have to do earlier stage deals and help startups progress to larger institutional rounds for the next series of unicorns to emerge.

Also Read:

SE Asia unlikely to see a large number of mid-market firms, says Perlman of Warburg Pincus

JD.com-backed China Logistics Property eyes co-investments to expand

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.
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