Warburg Capital Partners relies on its industry expertise, extensive footprint and management know-how to identify investment opportunities. Collectively, the investment professionals of the financial services team has more than 50 years of experience across all sectors of the financial services industry, providing strong historical knowledge, working relationships with key financial services players and deep expertise to guide our investment choices.

Currently, the U.S. financial services sector is experiencing a sharp downturn, which began in the summer of 2007. Industry valuations generally reflect this stress, having declined 20-80{6cbe89753541fdac6ba97d0695a5b31b791fd10314476fad83404f48f9d2ffd8} across various sub-sectors since summer 2007 with multiple sub-sectors trading at discounts to book value. Based on past cycles and considering the unique characteristics of the current crisis, Warburg Capital Partners believes that many financial services firms will need to raise equity capital to shore up their balance sheets and restore confidence in the marketplace. Given the scope and scale of the current distress, Warburg Capital Partners believes that even established companies with proven business models and brands are likely to seek fresh capital at depressed prices.

The investment professionals of the financial services team’s approach to investing comprises the following major principles.

• Industry Specialization: Since its inception, Warburg Capital Partners has adopted an industry-focused approach to investing. We believe in-depth knowledge of specific industries improves our ability to source and create deals, conduct effective due diligence, develop strong relationships with management teams and identify potential buyers as part of a coherent exit strategy.
• Consistent and Disciplined: A consistent and disciplined investment philosophy produces the highest consistent returns. We seek to make sound investments in good companies with strong management teams and structure our transactions with appropriate amounts of debt.
• Influence and Strategic Partnering: We draw on existing relationships as well as forging new ones to bring the most value to the investment – be it during the due diligence phase or in advising portfolio companies in ongoing operations.