Warburg Pincus Opens Satellite Office

Dateline: Newark, NJ
November 18, 2009

In a bold and innovative move, the venerable New York private equity firm of Warburg Pincus has leased 45 square feet of office space in the federal district courthouse — in Newark, NJ.

The refurbished janitors’ closet sits seven steps from the walnut-paneled door to Judge Cavanaugh’s trial courtroom.

The sign outside the closet-cum-office reads:

“Fred Hassan — Senior Adviser,
Warburg Pincus — NJ Branch Office”

Asked to comment, a senior Warburg HR executive said that this takes the idea of “hotelling” one’s office space — in a logical and convenient place — one step beyond telecommuting.

“It just makes sense — Mr. Hassan will spend endless weeks on trial here, in the coming year, so why not leverage this, and reduce his commute time?”

Yeh — the choo-choo to Manhattan (or a stretch Bentley-limo and driver, more likely) — are both so passe, right?

Namaste

He is (supposedly) a full-time private equity guy now. At least for a year. [I have a couple of graphics, with details on Warburg's portfolio of company-investments under that link.]

But he’ll not advise in any space where Merck competes — at least not advising any company with more than $10 million in Merck-competitive sales. For a whole year — to secure his perhaps $178 million in ‘chutes.

Imagine that.

[Actually, the $178 million is likely more than half the reason Warburg picked him up -- I am certain he is being asked to invest a goodly chunk of that change, into the capital base of Warburg Pincus. So it goes. In the end, 17,000 people lose their jobs, so Fred may more soundly capitalize a private equity firm.]

Namaste