• Sector: Real Estate
  • Geography: China
  • Stage: Growth
  • Investment Year: 2008
  • Exit Year: 2019
  • Website Link

Red Star Macalline

Between 2008 and 2010, Warburg Pincus invested in Red Star Macalline, a leading developer and operator of retail malls focused on furniture and home fixtures. Warburg Pincus’ investment into the company was a direct play into China’s fast-growing furniture retail market. Warburg Pincus worked proactively with the management team to accelerate national expansion, introduce professional management teams and a new incentive scheme, improve internal approval processes, ERP systems, bring in additional capital partners and drive M&A initiatives. With the support of Warburg Pincus, the company successfully listed on the Hong Kong Stock Exchange in June 2015, raising over $1 billion. In January 2018, Red Star Macalline achieved a dual listing on the Shanghai Stock Exchange, raising over RMB3 billion. Warburg Pincus exited the investment in 2019.

Website Case Studies Disclaimer

The investments described in the case studies are provided for illustrative purposes only and are not, and do not purport to be, representative of all investments, or all types of investments, previously made by Warburg Pincus, or indicative of the performance of all prior Warburg Pincus investments. The case studies have been selected on the basis of objective criteria that Warburg Pincus believes are representative of the firm’s experience partnering with portfolio company management teams, and of the sectors, stages, strategies and/or geographies in which the firm invests. The information provided in the case studies are not necessarily an indication of future results, and may not be relied up for any purpose. Warburg Pincus’ current or future portfolio companies may differ materially in size, type, performance and other characteristics from the investments presented in the case studies. Further, references in this case study should not be construed as a recommendation or offer to buy or sell any particular security or to make any particular investment.