Warburg Pincus' original investment was in Pacific Greystone Corporation, a builder of single family homes in California. The investment, made in 1991, was based on the assumption that a well-capitalized, conservatively managed homebuilder, which could purchase land at discounts, would be in a position to take advantage of the gradual economic recovery in California. Following Warburg Pincus' initial investment, Pacific Greystone made excellent progress in building a very profitable, well-managed operation and expanded its operations to include Arizona and Nevada. Pacific Greystone became a public company in June 1996. In the fall of 1997 the company merged with Lennar Corporation and in February 2000, Lennar acquired U.S. Homes. The combined entity is one of the largest and most profitable homebuilders in the United States, with a significant presence in Florida, California, Texas, Arizona and Nevada.

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