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.