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Based on the highest ranked content on WSO, Warburg Pincus is a well-regarded firm in the private equity space, known for a variety of investment strategies, including minority stakes and preferred equity investments. While the specific group, Warburg Pincus Capital Solutions, isn't directly mentioned in the context provided, it's reasonable to infer that, like other Warburg Pincus divisions, they would be involved in complex and diverse transactions beyond traditional buyouts.
Given the nature of the investments you mentioned, such as minority stakes and preferred equity, the group likely works closely with coverage teams to identify and execute deals that fit their unique investment criteria. As for the returns, it's common for newer groups or strategies to take some time to establish a track record. The performance would depend on various factors, including market conditions, deal selection, and execution.
If you're considering opportunities with Warburg Pincus Capital Solutions or looking to understand their market position better, it would be beneficial to look at their recent deals, performance metrics, and how they align with your career goals or investment interests. Remember, in private equity, the reputation of the firm and the specific team's track record can be quite telling of the potential opportunities and experiences you might have.
Sources: Warburg Pincus 2021 FT Analyst, What's Wrong with Warburg Industrial & Business Services?, Warburg Pincus Reputation Amongst Megafunds, Warburg pincus 2020 ft, Warburg Pincus 2021 FT Analyst
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What does this group do? Can’t find much on it
Don't think they do much minority equity. Could be wrong, but from descriptions I've seen they appear very focused on structured and asset-based credit which makes sense since growth falls within their flagship mandate. Looks like a pretty interesting spin to credit capitalizing on the current environment, especially with the emerging opportunity in the ABS mkt.
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I think it’s like Blackstone TacOpps / Cerberus / Apollo Hybrid Value.
BX TacOps and APO Hybrid are two very different investment strategies
Any insights for London?
Very Apollo-like lifestyle and culture without the comp and accelerated career track that come with it.
What drives the bad culture in this team specifically? Assume pay is just market?
Pay is market to above market (all groups at WP paid the same, and WP pays one of the highest cash comp figures outside of APO)
Culture highly dependent on who you work with. There is one senior person who is, to be political, “intense” but most of the group is solid especially principal down.
The team doesn’t really fit in with other groups though as they act more as “product specialists” but the industry teams run majority of diligence, model, etc. which creates a questionable associate experience. Don’t think they ever staff full teams from CS without an industry team. This may change since the group is still relatively new in this iteration.
*update as I seem to be best positioned to provide more color here. The strategy is best likened to a Hybrid Value team where the cost of capital is between debt and traditional common equity and can use structure to create convexity in returns (limit left tail, extend right tail meaningfully) and they do this well via highly bespoke structured investments like convertible prefs. Have done 3 or 4 deals now out of the fund which is still being raised but exceeded target (think over $2.5Bn today). Check sizes are smaller ($150-300mm) but lot of flexibility and do some very cool things.
Appreciate the color! Wondering if you can expand on what you mean by the industry teams run the diligence / model. In that case, what exactly is the role of the CS team? Conversely, would that also mean members on the industry teams get deal exposure from LBOs down to prefs? Sounds pretty cool if so and also a pretty unique model.
Happy to. Yes, industry teams get full exposure to evaluating investments across the cap stack (majority or minority common, converts, prefs, etc) and across stage (growth or late stage). It is a really unique experience, very dynamic and good place to start your career, but sometimes creates additional work because you may look at a deal, initially kill it from the common angle, but then reevaluate from a structured perspective. It’s one of the benefits of having an integrated suite of solutions across the return spectrum, but double edged sword as can be annoying sometimes from the ASO perspective. Good learning though.
CS associates will often (not always) be staffed on teams when appropriate but the model and commercial due diligence is typically led by the industry teams. Right now, the CS associates are all pretty new, so they’re more in a support role for random things (help out with IC memos, data cuts, etc) but as the strategy matures, this may change. Sourcing all really comes from the industry teams so I don’t see this ever fully cutting out the industry teams, and they’re just better positioned to run model and market work
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