Warburg Pincus nears final close on financial services fund – exclusive

Warburg Pincus Financial Sector, the private equity firm's debut vehicle focusing on investments in the sector, had an initial target of $1.6bn.

Warburg Pincus is nearing a final close on its first financial services fund, Private Equity International has learned.

The New York-headquartered private equity firm expects to raise more than $2 billion for Warburg Pincus Financial Sector, according to a source familiar with the matter. The fund, which launched earlier this year, has a $1.6 billion target, according to PEI data.

A filing with the US Securities and Exchange Commission from this week shows the vehicle’s hard-cap is $2.3 billion.

Limited partners include the Washington State Investment Board, which committed $225 million, and the Minnesota State Board of Investment.

Warburg Pincus declined to comment.

The firm ranked fifth in the PEI 300 2017 with $30.8 billion raised over the past five years.

Since inception in 1966, it has invested more than $5 billion in financial services-related investments, according to its website. Its primary areas of investment in the sector include asset and wealth management, banks and depository institutions, exchanges, financial technology, insurance companies, payment and transaction processing companies, private banking, and speciality and consumer finance.

Warburg Pincus has mainly invested in financial services out of its flagship fund. Other sectors of focus include energy, healthcare and consumer, industrial and business services and technology, media and telecommunications.

The firm’s latest fund, Warburg Pincus Private Equity XII, closed on $13.4 billion, above its $12 billion target, in 2015.