Alameda County commits $50m to Warburg

Warburg Pincus is targeting $12bn for its latest mega-buyout fund, which the firm plans to invest globally across a variety of strategies and sectors.

The Alameda County Employees’ Retirement Association investment committee approved a $50 million commitment to Warburg Pincus’ 11th flagship fund at its meeting last month, according to documents. 

ACERA’s chief investment officer Betty Tse did not respond to a request for comment. 

Warburg is targeting $12 billion for its latest vehicle, which it launched 2011. The firm’s previous flagship fund raised $15 billion in 2007 and was generating a 3 percent net internal rate of return since inception as of 30 June, according to Fresno County Employees’ Retirement Association documents.  

As with previous Warburg funds, Warburg Pincus Private Equity XI will target venture capital startup, later stage growth capital and leveraged buyout investments in the media, telecommunications, consumer and industrial, financial services, life sciences, natural resources and real estate sectors, according to New Jersey Division of Investment documents. 

The fund has a 1.3 percent management fee during the commitment period, a 1.25 percent fee post investment period and a 1 percent fee thereafter, according to New Jersey state documents. Firm co-presidents Charles Kaye and Joseph Landy are listed as key investment professionals on the fund. 

The firm had raised at least $5.1 billion for the fund as of May. Limited partners include the New Jersey Division of Investment, the Florida State Board of Administration, the New York State Common Retirement Fund, the Oklahoma Police Pension and Retirement System, the State of Wisconsin Investment Board and the Washington State Investment Board

Warburg Pincus did not respond to a request for comment. 

ACERA had a 6.1 percent allocation to private equity as of June. The $5.3 billion retirement association has a 10 percent target allocation to private equity and alternative return strategies.