Warburg Pincus plots $13.5bn fundraise in 2018 – exclusive

The firm closed its debut financial services-focused fund on $2.3bn at the end of 2017 after about six months on the road.

Warburg Pincus is planning to come back to market in 2018 with a flagship fund, Private Equity International has learned.

The New York-based firm is talking to limited partners and will launch fundraising in May with an anticipated final close at the end of the year, according to a source familiar with the matter.

The firm will target about $13.5 billion, not including the GP commitment, and has not yet set a hard-cap, the source added.

The firm declined to comment.

Its previous flagship fund, Warburg Pincus Private Equity XII, closed on $13.4 billion in 2015, including $12 billion of third-party capital. That fund is about 50 percent invested with up to 20 percent being held for follow-on investments, the source said.

Warburg Pincus’s recent fundraising history has been distinguished. Fund XII closed after about six months on the fundraising trail, while Warburg Pincus Financial Sector Fund, its debut financial services-focused fund, closed on $2.3 billion at the end of 2017 after about six to seven months of fundraising. Both were ‘one-and-dones’.

Warburg Pincus have changed the name of the fund – to Warburg Pincus Global Growth – in part to avoid having the number 13 in it, which is often considered to bring bad luck, according to the source. But the firm’s strategy of investing in growth internationally will remain unchanged.

Fund XII, which is still early in its life, posted a 6.43 percent net internal rate of return as of 30 June, according to data from the Regents of the University of California.

Warburg Pincus ranked fifth in the PEI 300, with nearly $31 billion raised between 1 January 2012 and 1 April 2017.

The firm has $44 billion in assets under management, according to PEI data.