Arch Capital Group
In 2001, Warburg Pincus invested in Arch Capital Group (Arch), a reinsurance and insurance company based in Bermuda. Warburg Pincus’ investment in Arch was predicated on the belief that: there existed a significant supply/demand imbalance in the industry that was exacerbated by the events of September 11th, 2001; Arch had a strong management team; Arch represented an attractive operating platform, allowing it to commence business immediately with a clean balance sheet; and, Arch could develop a broad base of product lines and become an enduring going-concern insurance company. Over the course of the investment, the Arch management team emerged as one of the preeminent teams in the industry and built Arch into a premier global insurance and reinsurance company. In 2002 Arch successfully completed its IPO. Warburg Pincus fully exited its position in Arch in 2010.
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