“We are pleased to announce our final close,” said Charles Kaye, Co-President of Warburg Pincus. “This successful fundraise, in a challenging environment, was driven by strong support from both existing and new investors. We see this success as a clear endorsement by our investors of our global growth investing model.”
The new fund’s limited partners include public and private pension funds, sovereign wealth funds, insurance companies, endowments, foundations and high net worth individuals. A significant number of the new investors in the fund are from outside of the United States. The firm held the final close of the fund within one year of the first close, as planned.
WP XI will continue to pursue a strategy the firm has followed for more than 40 years — partnering with management teams to build world-class companies. Warburg Pincus invests in businesses at all stages of development from start-ups and growth capital to special situations and buyouts. Sectors of interest include energy; financial services; healthcare; technology, media and telecommunications; and consumer and industrial services.
The final close of WP XI follows an active 2012 in which Warburg Pincus invested over $2.3 billion in 28 new companies and made follow-on investments into existing portfolio companies. Several of these new investments were made by WP XI including Venari Resources, a start-up company focused on deepwater exploration and production in the Gulf of Mexico; China Auto Rental, a car rental company in China; and InComm, a global prepaid product, services and transaction technologies company.
The firm has also been active in distributing capital back to investors in prior funds. Warburg Pincus’ funds distributed $6.2 billion to investors in 2012 and another $3 billion in the first quarter of 2013. Some of the companies contributing to this flow of distributions included Targa Resources, a midstream energy company; Ziggo, a cable TV company in the Netherlands; InTime, a department store chain in China; CAMP Systems, a software provider for business aircraft; and Kotak Mahindra, a financial institution in India.
“Our strong track record and continuing ability to both make and exit investments that generate attractive rates of return, regardless of economic cycle, is a testament to the firm’s focus on building durable businesses that deliver value over the long-term,” said Joseph Landy, Co-President of Warburg Pincus.
Warburg Pincus has more than $40 billion in assets under management and has raised 13 private equity funds which have invested more than $45 billion in approximately 675 companies in 35 countries. The firm was founded in 1966 and is headquartered in New York with offices in Amsterdam, Beijing, Frankfurt, Hong Kong, London, Luxembourg, Port Louis, Mumbai, San Francisco, Sao Paulo and Shanghai (www.warburgpincus.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 5-10-13