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Warburg Pincus hits $5bn mark for latest private equity fund

11 May 2012

Private equity heavyweight Warburg Pincus is understood to have raised more than $5bn for its new fund in just over seven months.

The firm, which is chasing $12bn for its latest investment vehicle, has negotiated a tough fundraising environment by offering investors a 1.4 per cent management fee while taking 20 per cent carried interest.

Some big investors could be charged a 1.3 per cent management fee according to a report by Reuters.

It said Warburg’s success was also driven by its focus on growth investments rather than the leveraged buyouts which have become the subject of public scrutiny amid Bain Capital founder Mitt Romney’s bid to become US President.

Warburg’s eleventh fund has the second largest target in the market behind Blackstone’s Real Estate Partners VII, which is targeting $13bn.

Warburg’s tenth private equity fund was ranked second quartile in terms of returns and valuation as of the end of December according to VentureXpert, a Reuters market research firm that scores all private equity and venture capital funds.

The firm has benefited from a string of successful exits recently, including the €3.7bn IPO of Dutch cable company Ziggo which it owned with fellow private equity firm Cinven.

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