Warburg Pincus, the New York-based private equity firm with deal teams around the world, is approaching investors about a new fund that has a target of between $10 billion and $15 billion, according to sources.
The partners of the firm hope to see Warburg Pincus X close on substantially more than the $8 billion ninth fund, which held a final close in 2005.
Warburg Pincus is known for its global mandate as well as ambidextrous approach to investing across the deal spectrum, from early stage investments to mature-company buyouts. The firm recently proposed the take-private of contact lense maker Bausch & Lomb for $4.5 billion.
The new fund will not include an allocation to private equity real estate deals. Last year, Warburg Pincus closed its first dedicated vehicle for real estate investments, rounding up a total of $1.2 billion.
Warburg Pincus’ investor relations team recently added a senior partner in the form of John Shearburn, formerly an investor relations professional at Goldman Sachs. The IR team is led by Steven Schneider.
Warburg Pincus is already among the largest private equity firms in the world. The firm recently ranked 14th on the PEI 50, a league table created by sister publication Private Equity International. According to the PEI 50, Warburg Pincus has raised roughly $13.3 billion since 2002 for direct private equity investments.
The firm is led by co-presidents Charles Kaye and Joseph Landy. Warburg Pincus has additional offices in San Francisco, Beijing, Shanghai, Hong Kong, Mumbai, Tokyo, London and Frankfurt.
A major limited partner to the firm, Washington State Investment Board (WSIB), records its commitments to two Warburg Pincus funds from vintage years 1998 and 2001 as having current IRRs of 10.6 percent and 17.7 percent, respectively. A fund called Warburg Pincus International Partners, closed in 2000, has a current IRR of 14.5 percent, according to the WSIB web site.