Warburg Pincus raises $12B for new global fund

Private equity firm Warburg Pincus that invests in India out of a global fund, has raised $12 billion in its latest flagship, Warburg Pincus Private Equity XII, L.P. The firm said that the fund received third-party commitments in excess of its upper limit within six months.

The latest fund’s limited partners (LPs) or the investors include public and private pension funds, sovereign wealth funds, insurance companies, endowments, foundations and wealthy individuals. It said a significant amount was raised outside the US, traditionally the main source of fundraising for global PE and VC funds.

Last month, French businessman Marc Ladreit de Lacharriere picked  5 per cent stake in the PE firm through his family holding company Groupe Marc de Lacharriere.

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

Warburg Pincus invests globally in businesses at all stages of development with a focus on five key industry sectors: energy, financial services, healthcare and consumer, industrial and business services and technology, media and telecommunications.

Warburg Pincus’ previous global private equity fund, Warburg Pincus Private Equity XI, which launched in 2011, had raised $11.2 billion. The PE firm has more than $40 billion in private equity assets under management and has an active portfolio of over 120 companies globally.

Warburg Pincus has committed well over $500 million in India this year alone across four firms.

Last month, the marquee PE firm entered  a joint venture with real estate developer Embassy Group to build industrial parks and warehouses in India. The joint investment is pegged at $250 million.

In September this year, the PE firm co-invested in a $45 million funding round along with other investors in SaaS-based CRM solutions provider Capillary Technologies Pvt Ltd.

In July, Warburg Pincus had inked its single-biggest bet in India in local currency terms and just short of what it had put in Bharti Airtel in dollar terms over a decade ago in two tranches, when it picked a minority stake in Piramal Realty for $284 million. Early this year it said it will invest over $133 million in e-commerce focused logistics startup Ecom Express.

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