Warburg Pincus Raises $17.3B for Buyout Fund, Exceeds Target

US private equity giant Warburg Pincus said on Tuesday that it has closed on $17.3 billion in equity for its latest buyout fund, exceeding its target of $16 billion by more than 7 percent.

The New York-based firm said that, despite a challenging environment Warburg Pincus Global Growth 14, the latest edition of its flagship strategy, achieved the largest fundraising total in its 57-year history.

“This is a challenging period for investors, with rising rates and geopolitical tension, but also new promise from this wave of innovation,” said Warburg Pincus chairman Timothy Geithner.This puts a premium on diversification, a careful and disciplined approach to investing, and deep expertise on the shifting frontiers of technology, across sectors and economies.

Warburg Pincus said that the successful closing gives it a cache of capital to invest in growth companies globally in its key sectors, with the firm standing as a frequent investor in biomedical, insurance, digital infrastructure and telecom.

Global Footprint

The WPGG 14 has already made significant investments in companies including a range of high growth companies globally, including Simtra BioPharma Solutions (formerly Baxter’s BioPharma Solutions division), Ensemble Health, EverBank, Internet Brands, Norstella, Oona Insurance, ParetoHealth, and Watertec India.

Now the company says it aims to continue that dealmaking streak by targetting companies across sectors and geographies.

“We are well positioned to take advantage of the current market environment and will continue to build a globally diverse, sustainable portfolio for our investors,” said Warburg Pincus president, Jeff Perlman, who formerly headed the firm’s real estate business for Asia and helmed its Southeast Asia operation.

“One of our distinguishing characteristics is our team’s ability to work collaboratively across distinct industry groups with deep domain expertise to identify new and emerging trends around the world,” he added. “We are excited about the current investment landscape and are looking forward to putting this capital to work as a partner of choice with innovative management teams across the globe.”

Asia Deals Continue

Warburg Pincus Global Growth 13, the previous version of the series, had closed on $15 billion in 2018.

During the past five years Warburg Pincus has invested in companies including e-wallet provider Momo and retail chain Vincom Retail in Vietnam, as well as mortgage provider Home First Finance and telecom major Bharti Airtel.

The global fundraising milestone comes less than two years after Warburg Pincus closed on $2.8 billion for its first pan-Asia dedicated real estate fund. In Asia, the company has been active backing property and infrastructure firms including data centre provider Princeton Digital Group, BW Industrial in Vietnam and NWP Property in Indonesia.

Fan Li, a managing director with Warburg Pincus’ Asia real estate team will be appearing in a spotlight interview at the Mingtiandi Singapore Focus Forum on 14 November, together with Fion Ng, chief operating officer of BW Industrial and Kevin Kow, group CEO and president director of NWP.

In addition to its Asia real estate fund, Warburg Pincus in 2019 raised $4.25 billion for its first China-Southeast Asia fund, which invested in both buyout and real estate strategies.