Warburg Pincus today announced it has raised Warburg Pincus Financial Sector, L.P. with US$2.3 billion. The fund, launched in June 2017 with a target of US$1.6 billion, is a companion fund to Warburg Pincus XII, L.P., a US$13.4 billion private equity Fund that closed in late 2015.
The Warburg Pincus Financial Sector Fund will invest in financial services opportunities sourced through the firm’s global investment platform, seeking to partner with entrepreneurs and management teams to build companies of sustainable value.
Current investments of the fund include China Huarong Asset Management, Ascentium Capital, Au Financiers, Avaloq, Capital First Limited, Cango Auto Finance, DBRS, Fortune Fund, Mariner Finance, Network International, SCM Insurance Services, Mosaic, Triton International, Varo and Wacai.
Past investments have included Aeolus Re, Arch Capital, DIME Bancorp, HDFC, Kotak Mahindra Bank, Mellon Bank, Metavante, National Penn Bancshares, Primerica, Renaissance Re, Santander Asset Management, Santander Consumer USA, Sterling Financial, and Webster Bank, among others, the firm said in an announcement.
"Financial services investing has been a large and important contributor to our fund returns over many years and, with this new companion fund, we now have additional capital to pursue what we see as growing financial services and financial technology opportunities across the globe," said Charles R. Kaye and Joseph P. Landy, co-CEO of Warburg Pincus.
Warburg Pincus has been investing in financial services beginning in 1971. Since that time, the firm has committed over US$11 billion to more than 95 portfolio companies across the developed and emerging market economies and in a diverse range of sub-sectors, including banks, specialty lenders, insurance, asset and wealth management, payments, core processing, and tech-enabled non-bank lending. The firm also has developed expertise in the area of financial technology.
"This new fund, in conjunction with our main, global fund, will enable us to invest behind both secular and cyclical trends that are driving the growth in the financial services sector, including increasing financial penetration in emerging markets; technology enablement; financial services outsourcing; and, in the event of a downturn, potential market dislocation opportunities," said Michael Martin, managing director and Head of Financial Services, Warburg Pincus.
The Limited Partners who have committed to the Warburg Pincus Financial Sector Fund include existing investors in Warburg Pincus’ funds and new investors to the firm, including leading public and private pension funds, sovereign wealth funds, insurance companies, endowments, foundations and high-net-worth individuals.