Warburg Pincus Global Growth Fund raises $14.8bn

Alessia Argentieri
19 November 2019

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US-based private equity firm Warburg Pincus has closed its latest vehicle, Warburg Pincus Global Growth Fund, on $14.8bn, Unquote understands.

The fund was launched in May 2018 with a $13bn target and a $15bn hard-cap. It is larger than its predecessor, Warburg Pincus Private Equity XII, which closed on $12bn in November 2015, after only six months on the road.

In addition, the GP is currently managing a smaller vehicle, Warburg Pincus Financial Sector Fund, which held a final close on its hard-cap of $2.3bn in December 2017 and invests in financial services companies globally.

Investors
LPs in the vehicle are public and private pension funds, sovereign wealth funds, insurance companies, endowments, foundations and wealthy individuals.

Investments
Warburg Pincus Global Growth Fund follows a similar strategy to its predecessors, investing globally in businesses operating in the energy, financial services, healthcare, consumer, industrial, technology, business services, media and telecommunications sectors.

The fund is expected to create a diversified portfolio of 60–90 companies with equity investments in the $50-500m range. It will have a lifespan of 12 years, during which the investment phase will last for six years. It targets a net IRR of 15-18% and a total value to paid in multiple of 2.0x.