Warburg Pincus’ interest in China’s $3.8 billion mutual fund industry shows no sign of abating with the US private equity giant reportedly making progress on the acquisition of a stake in Zhong Ou Asset Management Co from Intesa Sanpaolo, according to a report by Reuters.
Warburg Pincus’ interest in China’s $3.8 billion mutual fund industry shows no sign of abating with the US private equity giant reportedly making progress on the acquisition of a stake in Zhong Ou Asset Management Co from Intesa Sanpaolo, according to a report by Reuters.
The report says that Intesa Sanpaolo first disclosed in its 2021 annual report that the Italian banking group’s board had approved the sale of a 23.3% stake in Zhong Ou to Warbug Pincus.
Zhong Ou has now reportedly received regulatory feedback from the China Securities Regulatory Commission (CSRC) on its application for a shareholder change involving the Warburg Pincus deal.
The CSRC filling does not reveal the size of the stake Warburg Pincus is hoping to acquire in the RMB350 billion yuan ($51.3 billion) business.
If approved the deal would be Warburg Pincus’ second investment in a Chinese mutual fund business following its acquisition of 29% stake in Hwabao WP Fund Management Co.
