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Warburg Pincus closes Fund XII above $12bn

The fund, launched in May, exceeded its hard cap, drawing commitments from various types of LPs including a number from outside of the US.

Warburg Pincus has closed its Warburg Pincus Private Equity XII in excess of its $12 billion hard cap after just six months in market, the firm said.

The fund launched in May and drew commitments from LPs such as public and private pension funds, sovereign wealth funds, insurance companies, endowments, foundations and wealthy individuals, with “considerable participation” from LPs outside of the US, the firm said.

Warburg Pincus declined to disclose the exact amount raised for the fund.

According to PEI’s Research & Analytics division, the Minnesota State Board of Investment committed $150 million to the fund, the New Hampshire Retirement System $75 million, Washington State Investment Board $750 million, the Oklahoma Police Pension and Retirement System $10 million, the Public Employees Retirement Association of New Mexico $85 million, and the Oklahoma City Employee Retirement System $10 million.

Market sources with knowledge of the fundraising say they believe this to be one of the largest single closes in private equity history and the firm did not have to offer any incentives to close, such as fee holidays and management discounts.

Kirkland & Ellis served as legal advisor for the formation of the fund.

Its predecessor, Warburg Pincus Private Equity XI, is a 2011-vintage that closed on $11.2 billion.

Warburg Pincus’ investments this year include mining company Anemka, business predictive applications provider Blue Yonder in Germany, credit rating agency DBRS, mobile-based driving services company eDaijia in China, and SaaS transportation management software provider MercuryGate International, according to its website.

Warburg Pincus seeks investment opportunities in companies at all stages of development and focuses on the energy, financial services, health care and consumer, industrial and business services, and TMT sectors.

The firm manages more than $40 billion in private equity assets and has more than 120 portfolio companies in various stages, sectors and geographies.