Warburg Pincus said on Friday that it had closed its latest fund at $11.2 billion, in one of the biggest private equity fund-raising rounds since the end of the financial crisis.
The fund, Warburg Pincus Private Equity XI, will be earmarked for deals across an array of industries, including energy, financial services, technology and media. The final close came one year after the fund’s first close.
“We are pleased to announce our final close,†Charles R. Kaye, a co-president of the firm, said in a statement. “This successful fundraise, in a challenging environment, was driven by strong support from both existing and new investors. We see this success as a clear endorsement by our investors of our global growth investing model.â€
Warburg Pincus raised $15 billion for its last fund in 2008, as conditions for private equity deal-making began to crumble.
It began raising money for its 11th fund two years ago. Since then, the landscape for buyouts has improved considerably, with cheap debt financing and improving stock markets making it easier to buy and sell companies.
Warburg Pincus has benefited. It paid out $6.2 billion to its limited partners last year and another $3 billion in the first quarter this year alone, in large part by selling off pieces of portfolio companies like Ziggo, a Dutch cable-TV company.
“Our strong track record and continuing ability to both make and exit investments that generate attractive rates of return, regardless of economic cycle, is a testament to the firm’s focus on building durable businesses that deliver value over the long term,†Joseph P. Landy, Warburg Pincus’s other co-president, said.
