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November 23, 2021

Warburg Pincus in talks to buy stake in China Everbright Bank’s wealth unit

By Verdict Staff

American private equity major Warburg Pincus is reportedly in talks to buy a minority hold in China Everbright Wealth Management , the wealth management unit of China Everbright Bank.

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Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

The Beijing-based bank is carrying out discussions with several potential investors for the deals worth between $300m and $400m, Bloomberg reported citing people familiar with the matter.

The people also said that a scrutiny from regulators could hinder a potential transaction, which may value China Everbright Wealth Management at around $1.5bn to $2bn.

Spokespersons for Warburg Pincus and China Everbright Bank did not comment on the news.

Established in 2019, Everbright Wealth Management has a registered capital of CNY5bn.

Everbright Bank revealed the plans to look out for strategic investors for its wealth unit in an announcement on the Shanghai exchange in May this year.

According to the filing, the bank was seeking to divest a stake of a maximum of 20% in the unit to two investors, or a maximum of 15% to a single investor.

The development comes as China continues to open up its $54 trillion financial market to foreign entities.

Earlier this year, a report by Reuters said that Warburg Pincus applied for a brokerage joint venture with the China Securities Regulatory Commission.

A number global financial giants, including Goldman Sachs, UBS and JPMorgan Chase, are also seeking to beef up their presence in the country.

Recent moves by Warburg Pincus

Last month, Warburg Pincus acquired a minority stake in the investment management firm Edelman Financial Engines.

Last year, the American private equity firm raised its holding in Singaporean real estate fund manager ARA Asset Management to 48.7%.

In 2019, Warburg agreed to acquire a majority stake in Texas-based broker-dealer Kestra Financial from Stone Point Capital.

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

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