Kansas pledges $50m to Warburg

The Kansas Public Employees Retirement System’s board of trustees approved a $50 million commitment to Warburg Pincus Private Equity Fund XI at its meeting last week, a retirement system spokesperson told Private Equity International. 

The commitment is contingent on a final legal review of partnership documents, the spokesperson said. 

Warburg has set a $12 billion target for its 11th fund, which will invest in venture capital start-up, later stage growth capital and leveraged buyout transactions, according to New Jersey Division of Investment documents. The fund will seek investments in the media, telecommunications, consumer and industrial, financial services, life sciences, natural resource and real estate sectors. 

Firm co-presidents Charles Kaye and Joseph Landy are listed as key investment professionals on the fund, according to New Jersey documents. 

Fund XI’s strategy is similar to that of the firm’s previous fund, which raised $15 billion in 2007. Warburg Pincus Private Equity X was generating a 1.15x total value multiple and a 5.5 percent internal rate of return as of 30 September, according to Oregon Investment Council documents.  

In November, Kansas adopted a new asset allocation mix that increased its private equity investment target from 5 percent to 8 percent. The board approved a $50 million commitment to EnCap Energy Capital Fund IX in January, according to meeting minutes.