Key Takeaways
- • Warburg Pincus filed SEC paperwork on November 16, 2018, indicating intent to raise up to $13.75 billion for a new global growth fund, marking one of the largest fundraises in the firm's history.
- • The $13.75 billion target includes amounts from parallel fund vehicles, with the firm filing multiple entities including Warburg Pincus Global Growth Partners, Global Growth-E, and Global Growth-B in the same filing.
- • Warburg Pincus engaged J.P. Morgan Securities and advisory firms in China, South Korea, and Chile to support capital raising efforts, signaling a globally distributed fundraising strategy.
- • Rumors of the massive fundraise began circulating in January 2018 when Private Equity International reported the firm planned to raise approximately $13.5 billion, excluding general partner commitments.
- • The new fund represents a strategic name change from the firm's previous Fund XII (2015), which closed at $13.4 billion, a decision reportedly motivated in part by superstitious considerations regarding fund naming conventions.
Summary
Warburg Pincus, the New York-based global private equity firm, formally filed paperwork with the Securities and Exchange Commission on November 16, 2018, signaling its intention to raise as much as $13.75 billion for a new investment vehicle. This represents one of the largest fundraising efforts in the firm's history and concludes nearly a year of industry speculation regarding the firm's capital-raising plans.
The $13.75 billion target includes commitments structured across multiple parallel fund vehicles to optimize investor participation and capital deployment. The firm filed paperwork for several entities simultaneously, including Warburg Pincus Global Growth Partners, L.P., Warburg Pincus Global Growth-E, L.P., and Warburg Pincus Global Growth-B, L.P., with additional parallel fund filings expected in the coming weeks. This multi-vehicle structure allows limited partners to participate according to their specific investment mandates and fee preferences.
To execute this significant capital raise, Warburg Pincus retained J.P. Morgan Securities as lead financial advisor alongside advisory firms with regional expertise in China, South Korea, and Chile, reflecting the firm's intent to source capital from institutional investors across multiple geographies. The firm's diverse portfolio underpins investor confidence, with existing investments in leading technology companies including CrowdStrike, Mobike, and OfferUp, along with participation in Ant Financial's Series C funding round—a $14 billion transaction representing the largest venture capital deal on record at that time.
Initial reports of the fundraising initiative emerged in January 2018 when Private Equity International disclosed that Warburg Pincus planned to raise approximately $13.5 billion, a figure excluding general partner commitments. The firm notably chose to rename the fund from its traditional numbering convention, a decision reportedly influenced by superstitious considerations following its previous Fund XII close in 2015 at $13.4 billion.
The $13.75 billion target includes commitments structured across multiple parallel fund vehicles to optimize investor participation and capital deployment. The firm filed paperwork for several entities simultaneously, including Warburg Pincus Global Growth Partners, L.P., Warburg Pincus Global Growth-E, L.P., and Warburg Pincus Global Growth-B, L.P., with additional parallel fund filings expected in the coming weeks. This multi-vehicle structure allows limited partners to participate according to their specific investment mandates and fee preferences.
To execute this significant capital raise, Warburg Pincus retained J.P. Morgan Securities as lead financial advisor alongside advisory firms with regional expertise in China, South Korea, and Chile, reflecting the firm's intent to source capital from institutional investors across multiple geographies. The firm's diverse portfolio underpins investor confidence, with existing investments in leading technology companies including CrowdStrike, Mobike, and OfferUp, along with participation in Ant Financial's Series C funding round—a $14 billion transaction representing the largest venture capital deal on record at that time.
Initial reports of the fundraising initiative emerged in January 2018 when Private Equity International disclosed that Warburg Pincus planned to raise approximately $13.5 billion, a figure excluding general partner commitments. The firm notably chose to rename the fund from its traditional numbering convention, a decision reportedly influenced by superstitious considerations following its previous Fund XII close in 2015 at $13.4 billion.
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