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Warburg Pincus Inks Second China Deal in a Month

Global buyout fund Warburg Pincus entered into its second China deal in a month after investing $55 million in a Chinese maternity, infant and kidswear retailer in a sign of rising private equity investment activity in China, Reuters reported Tuesday. Warburg in early July paid $200 million for a minority stake in privately-owned China Auto Rental Holdings Inc.,, after the car rentals company pulled its U.S. IPO in April due to market turmoil.

(Reuters) – Global buyout fund Warburg Pincus entered into its second China deal in a month after investing $55 million in a Chinese maternity, infant and kidswear retailer, in a sign of rising private equity investment activity in China.

Warburg in early July paid $200 million for a minority stake in privately-owned China Auto Rental Holdings Inc, after the car rentals company pulled its U.S. IPO in April due to market turmoil.

Warburg has invested in China Kidswant Investment Holdings Co Ltd for an undisclosed stake, Kidswant, as the retailer is known, said in an emailed statement on Tuesday.

The investment will be used for Nanjing-headquartered Kidswant’s plans to open more stores and expand geographical coverage.

Kidswant targets medium to high-income households with infants and children up to 14 years old, and has nine stores in the Yangtze River Delta region and Chongqing. The company also provides pre-school and English teaching for children.

New York-headquartered Warburg made its first investment in China in 1994, and since then, has invested over $3 billion in companies including 7 Days Inn, Guangzhou R&F Properties and Harbin Pharmaceutical.