In 2010, Warburg Pincus acquired a minority stake in Primerica to facilitate the company’s IPO spin-out from Citigroup. Primerica, based in Duluth, GA, was the leading North American distributor of insurance and investment products. Primerica’s key differentiator was a unique distribution model consisting of part-time agents organized in a multi-level marketing structure, which efficiently reached the underserved lower-to-middle income consumer. Warburg Pincus’ investment thesis was predicated on backing a strong, experienced management team with a unique and attractive franchise. Primerica also fit well within two notable Warburg Pincus investment themes: growing power of distributors versus manufacturers of financial products and finding cost-effective means to service underpenetrated lower-to-middle income consumers. In May 2013, Warburg Pincus fully exited its position in Primerica.
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