Warburg Pincus closes energy fund on $4 billion

The fund beat its $3 billion target, and will focus on E&P

Global private equity firm Warburg Pincus has closed its Warburg Pincus Energy Fund on $4 billion. The fund beat its $3 billion target, hitting its hard cap.

Warburg Pincus Energy will be a companion fund to Warburg Pincus Private Equity XI, an $11.2 billion global private equity fund, which closed in May 2013. Warburg Pincus Energy was launched in November 2013 and held an oversubscribed first close in May 2014.

Warburg Pincus Energy will focus primarily on energy exploration and production investing in North America with additional markets including Africa, Asia, Europe and Latin America. In addition to E&P, Warburg Pincus Energy will also pursue opportunities in the midstream, oilfield services, mining and power sectors.

The fund is already partially invested. One of its major investments is in Texas-based Venari Resources, an oil and gas exploration company. That company completed a $1.3 billion fundraise led by Warburg Pincus in August, PEI reported at the time. Venari’s management and existing private equity and investment firms Kelso & Company, Temasek and The Jordan Company, were joined by several new investors, including GIC, Singapore’s sovereign wealth fund, and BlackRock Private Equity Partners for the second financing effort.

To date, Venari has raised approximately $2.4 billion from private equity backers.

Venari is engaged in deepwater exploration throughout the Gulf of Mexico region and recently announced the discovery of the Guadalupe-1 well, which spud in June 2014 and discovered significant oil pay. Venari holds a 15% working interest in the well alongside Chevron and BP.

Other investments from the fund include – Antero Resources which represented the largest IPO of an independent E&P company; Targa Resources; Kosmos Energy; Laredo Petroleum, and MEG Energy.