Warburg turns fundraising attention to energy with first dedicated vehicle


oil oil_lrgGlobal private equity firm Warburg Pincus is reportedly planning its first energy investment fund, which could target more than $2.5bn.

The firm will offer fee breaks to existing clients and backers which commit substantial amounts according to Bloomberg, which cited two people familiar with the matter.

Warburg is following in the footsteps of fellow buyout giants Blackstone, Apollo and Carlyle, who have all raised multibillion dollar energy vehicles.

The move comes less than six months after Warburg managed to raise one of the largest private equity funds since the financial crisis by holding an $11.2bn final close for its Private Equity XI vehicle.

Warburg will split energy deals evenly between that vehicle and the new energy fund, Bloomberg added.

It said the energy vehicle would continue the firm’s existing sector strategy of targeting  oil and gas exploration and production, power generation and services, as well as alternative energy development.

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