Santander will retain the other 50 per cent of the business, which operates in Mexico, Spain and Brazil.
The bank said selling the arm would generate a net capital gain of about €410m, which it planned to use to strengthen its balance sheet.
Last year Warburg and fellow private equity firm General Atlantic bought half of Santander’s asset management unit.
The firm managed to raise one of the largest private equity funds since the financial crisis last year after receiving strong support from existing LPs.
Warburg Pincus Private Equity XI held a final close of $11.2bn after hitting its first close of over $5bn in May 2012.
The fund was raised after less than two years on the road despite the tough fundraising environment.
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