Warburg Pincus Fills Its Warchest; Closes A $12 Bn Global PE Fund

Having raised 14 equity funds and invested more than $50 Bn in over 720 companies across 35 countries, global private equity firm, Warburg Pincus, has closed a $12 Bn private equity fund.

The New York-based firm that opened up its India office back in 2000, has increased the pace of its investments in the country – seven deals worth over $1 Bn since October 2014.

Warburg Pincus XII, which was launched in May 2015, has received third party commitments significantly in excess of its $12 Bn hard cap, said the company.

Warburg Pincus XII’s Limited Partners include leading public and private pension funds, sovereign wealth funds, insurance companies, endowments, foundations and wealthy individuals. Reflecting the firm’s international investing model, the fund has also received participation from investors outside the United States.

“Global growth investing, alignment of interests, proprietary deal sourcing, adding value to our portfolio companies – these elements have long been central to the success of our business model and this fund’s oversubscription affirms our differentiated approach to private equity investing,” said Charles R. Kaye, co-CEO of Warburg Pincus.

The firm invests globally in businesses at all stages of development,  focusing on five key industry sectors: Energy, Financial Services, Healthcare and Consumer, Industrial and Business Services (IBS) and Technology, Media and Telecommunications (TMT). It has more than $40 Bn in private equity assets under management.

“This new fund will enable us to continue what Warburg Pincus has done for almost fifty years: investing with entrepreneurs and management teams, starting and building businesses that will generate persistent returns for our investors,” said Joseph P. Landy, co-CEO of the firm.

Recently, the Paris-based holding company of the family of the billionaire Marc Ladreit de Lacharrière, Fimalac, acquired 5 percent passive stake in Warburg Pincus. Marc will hold the position as a senior strategic partner in the global PE firm.

Warburg Pincus has invested over over $3 Bn in India. Some of its recent investments are: $ 271 Mn (INR 1800 Cr) in the realty arm of Piramal Group, $128 Mn (INR 850 Cr) in Ecom Express, $180 Mn (INR 1200 Cr) in jewellery retailer Kalyan and $45 Mn (INR 300 Cr) in cloud-based software solutions maker Capillary Technologies.

According to a Grant Thornton report, private equity (PE) investments have witnessed a surge with $13.83 billion being invested during the period of January-October, across 863 deals, as compared to 497 such transactions worth $10 Bn in the same period, a year ago.

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