How will you feel, if your original investment yields you 450% returns in six years?
Well, The Warburg Pincus-One of the World’s Largest Investment firm has got its investment a return of cool 450%. The Warburg Pincus has invested in Bharti Televentures (Airtel) India, $292 million in return for 19% stake from 1999-2001. Then Bharti went IPO in 2002 which reduced th’r stake to 15% .Check how they made th’r returns as pointed by Arun Natarajan by exiting the venture from 2004-2005.
August 2004: Warburg sells a 3.35% stake for about $208 million.
March 2005: Warburg sells another 6% stake for $560 million, marking the largest ever equity deal in a single scrip on an Indian stock exchange.
October 2005: Warburg sells its final 5.65% stake to UK-based Vodafone for $847.5 million.
$292 million in six years have grown to $1.616 Billion – a cool 450% return on the original investment. How they did that? As th’r philosophy states they had invested in Management and has reaped the benefits.
Maverick 