Warburg reaches $5.1bn for Fund XI

Warburg Pincus has received commitments from about 50 partners and will offer a fee break to LPs committing $200m or more.

Warburg Pincus has collected about $5.1 billion in commitments for its eleventh global fund, according to documents filed with the US Securities and Exchange Commission.

The fund, which launched last fall with a target of $12 billion, has attracted commitments from roughly 50 limited partners. Warburg XI will target investments in a variety of strategies, including consumer, industrial and services, energy, financial services, healthcare, real estate, technology and media and telecommunications.

The firm got a big show of support from one of its dedicated backers in March, receiving a $300 million pledge from New Jersey’s $70 billion state pension system. The hefty commitment came with a fee break: Warburg will charge limited partners who make commitments of $200 million or more a management fee of 1.3 percent, versus the 1.4 percent all other limited partners are charged, according to New Jersey pension documents and people with knowledge of the fund. The fund also does not charge any kind of transaction fees.

Warburg declined to comment.

The firm, which has about $32 billion under management, received a $750 million pledge from the Washington State Investment Board last year – another one of its long-time partners.

New Jersey already has more than $600 million committed to Warburg through the firm’s eighth, ninth and tenth funds. Fund VIII was generating a 2.06x total value multiple as of 31 January, 2012; Fund IX was producing a 1.40 total value multiple; and Fund X was generating a 1.01 total value multiple, according to New Jersey documents.

In related news, in March Warburg appointed Simon Eyers as managing director in the firm’s London office to focus on energy investments in Europe and emerging markets. Eyers joined from 4D Global Energy Advisors, a private equity firm specialising in the energy sector of which he is a founding partner.