Ohio Police & Fire starts new relationship with Warburg

The $12.4bn pension fund’s $55m commitment to Warburg Pincus’ latest mega-fund is its first with the firm.

The Ohio Police & Fire Pension Fund’s board of trustees committed $55 million to Warburg Pincus Private Equity XI at its December meeting, according to a monthly board report. 

The commitment, approved unanimously by the board, is Ohio Police & Fire’s first with Warburg Pincus

The $12.4 billion pension system’s board was attracted to the firm’s global investment strategy, as well as the fact that Warburg is one of the more “established” firms in the industry, a spokesperson told Private Equity International. 

Warburg is targeting $12 billion for Fund XI, which will invest in 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 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 5.5 percent net internal rate of return as of 30 September, according to Oregon Investment Council documents.  

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

It is understood that Ohio Police & Fire is paying a 1.4 percent management fee for its commitment, though a pension system spokesperson declined to confirm or deny that number.

Warburg Pincus has invested more than $40 billion across approximately 650 companies since its inception. The firm is headquartered in New York and maintains offices in Beijing, Frankfurt, Mumbai, Hong Kong, London, San Francisco, Shanghai, São Paolo, Amsterdam, Luxembourg and Mauritius.