US private equity giant Warburg Pincus has announced raising $17.3 billion for its latest global flagship fund Warburg Pincus Global Growth 14 (WPGG 14), marking the largest-ever fundraising in its 57-year history.
The fund, which was launched in 2021, exceeded its $16-billion target and the size of the previous global flagship fund, which closed at $15 billion in 2018, according to the announcement.
The new fund also surpassed in size Warburg Pincus Private Equity X, a $15.1 billion PE fund the firm launched in 2007, which was its largest fund prior to WPGG 14.
Warburg Pincus said the fund was met with very high investor demand and significantly exceeded expectations despite a generally challenging fundraising environment for PE firms.
“This is a challenging period for investors, with rising rates and geopolitical tension, but also new promise from this wave of innovation,” said Warburg Pincus chairman Timothy Geithner.
The fund’s limited partners include existing investors in Warburg Pincus’ current funds and new investors in the firm. Per the announcement, the investors represent a diversified mix of leading public and private pension funds, sovereign investors, insurance companies, endowments, foundations, funds of funds, family offices, and high-net-worth individuals.
WPGG’s investments so far include Simtra BioPharma Solutions (formerly Baxter’s BioPharma Solutions business), Ensemble Health, EverBank, Internet Brands, Norstella, Oona Insurance, ParetoHealth, and Watertec India.
“The overwhelming success of this fundraise was driven by strong support from both existing and new investors who recognize and support our growth investment model and our ability to manage risk across market cycles,” said Warburg Pincus CEO Chip Kaye.
Warburg Pincus has more than $83 billion in assets under management. Its active portfolio of more than 250 companies is highly diversified by stage, sector, and geography.
Founded in 1966, the firm has over 55 years of investing experience in North America, over 30 years in Europe and over 25 years of experience in Asia. The firm has raised 21 private equity and two real estate funds, which have invested more than $112 billion in over 1,000 companies in more than 40 countries.
In July, the firm announced the appointment of Jeffrey Perlman, current head of Southeast Asia and Asia-Pacific real estate, as its new president.
Perlman, who joined the PE firm 17 years ago, will take the helm from Timothy Geithner, who will become the company’s chairman.
The firm also roped in Takashi Murata, a Goldman Sachs Group veteran, as co-head of its Asia real estate business.
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