Warburg Pincus makes nearly 4x with FacilitySource sale

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San Francisco Employees’ Retirement System, pension fund, private equity, Arcline Investment Management
Photo of San Francisco skyline courtesy of peeterv/iStock/Getty Images
  • Warburg bought majority of FacilitySource in February 2012
  • Warburg Fund X raised $15 bln
  • CBRE trades on the NYSE

Warburg Pincus is nearly quadrupling its money with the sale of FacilitySource, more than five years after investing in the company, a source said.

CBRE Group said June 12 it acquired FacilitySource for $290 million. CBRE, a real estate services firm that trades on the New York Stock Exchange, employs 80,000 people globally.

Its main business is buying, selling and evaluating commercial real estate for clients. It also manages facilities for customers.

FacilitySource is the Columbus, Ohio, provider of technology to help manage those facilities, which can include office buildings, retail centers and warehouses. FacilitySource employs 550. No job cuts or management changes are expected.

Warburg Pincus, New York, invested in FacilitySource in February 2012, buying a majority of the company. How much the firm invested is unclear. Warburg is making 3.6x its investment with the sale, the source said.

Warburg used its 10th flagship fund, a 2007 vintage that raised $15 billion, to invest in FacilitySource. The PE firm’s 11th fund closed on $11.2 billion in 2013, while its 12th pool weighed in at $13.4 billion in 2015.

June has been busy for the New York PE firm. Warburg was one of the investors of Ant Financial’s $14 billion Series C round announced earlier this month.

On June 5, Warburg said it was buying Self Bank from Société Générale. It also acquired a majority of Reorg Research, as well as Legal & General’s stake in IndiaFirst Life, in separate deals so far in June.

Action Item: Contact Bill Hayden, FacilitySource’s CEO, at +1 800-896-9000.