Firm: Warburg Pincus LLC
Fund: Warburg Pincus Energy Fund
Target: $3 bln
Amount raised: $4 bln
Warburg Pincus joins peers such as Blackstone Group LP and Apollo Global Management LLC that already have dedicated investment funds for energy deals alongside their flagship, multi-sector private equity funds.
At a time when prices for leveraged buyouts of companies remain expensive, energy deals have allowed private equity firms to put a lot of money to work at lower valuations by providing capital to seasoned management teams to acquire and develop assets. With energy prices currently suppressed amid a glut of supply, more opportunities to acquire such assets cheaply are expected.
Warburg Pincus said the new fund would focus primarily on energy exploration and production investing in North America and around the world, including Africa, Asia, Europe and Latin America. It will also pursue opportunities in the midstream, oilfield services, mining and power sectors, the New York-based firm added.
Warburg Pincus was previously investing in those sectors through its global private equity funds, including its latest $11.2 billion fund it raised last year. Its investments include oil and gas explorers and producers Antero Resources Corp and Kosmos Energy Ltd.
Warburg Pincus said it had already invested and committed more than $9.5 billion in over 50 energy-related companies around the world since it was established in 1966.
The firm said investors in the energy fund were primarily existing investors in its other funds. They include public and private pension funds, sovereign wealth funds, insurance companies, endowments, foundations and wealthy individuals.
Reporting by Greg Roumeliotis of Reuters news service.