Warburg Pincus has invested $300 million in Princeton Growth Ventures, a New York-headquartered technology, media and telecommunications (TMT) platform founded by former Tata Communications executive Rangu Salgame.
Warburg’s investment in Princeton Growth will be used to back TMT assets in India, China, Southeast Asia, the Middle East and Latin America.
The firm is also looking closely at data centre providers in Asia and Latin America. Viraj Sawhney, managing director at Warburg Pincus, said the regions are experiencing a shortage of quality providers and expects demand for this service to increase with the growth in cloud, mobile and video streaming.
He added: “We believe telecom companies will increasingly divest non-core assets, which should lead to a number of attractive investment opportunities in data centres and the broader TMT infrastructure sector.”
Salgame also said Princeton Growth seeks to build a multi-billion dollar internet infrastructure platform by acquiring assets from or partnering with telecom media companies in major emerging markets.
Warburg is currently deploying its twelfth buyout vehicle which closed on $13.4 billion in November 2015. The firm has invested over $16 billion in more than 300 TMT companies across company life stages and geographies. Among its current TMT investments in Asia include Chinese mobile-based designated driving services eDaijia, Mumbai-based third-party logistics company Stellar Value Chain Solutions and Jakarta-based motorcycle-hailing company GO-JEK.