Washington re-ups with Warburg Pincus for $750 mln

  • Warburg Pincus targets $12 bln for Fund XII
  • Washington has $3.3 bln invested with Warburg
  • Pension system values its PE portfolio at $17.7 bln

The Washington State Investment Board approved a commitment of up to $750 million to Warburg Pincus’ latest flagship fund at its meeting last week, spokeswoman Liz Mendizabal said in an email.

Washington is one of Warburg’s most important LPs, having allocated more than $3.3 billion to the firm since 1994, according to pension documents. The $81 billion pension system committed $750 million to each of the firm’s two previous flagship funds.

Warburg Pincus set a $12 billion target for Fund XII, which the firm began raising just two years after closing its previous vehicle on $11.2 billion in 2013.

The global investment firm’s flagship funds possess a relatively broad mandate, with the ability to invest in everything from venture capital to large buyouts in North America, Europe and Asia. Warburg Pincus’ equity checks can range from less than $10 million to upwards of $1 billion.

Warburg Pincus Private Equity X, the firm’s $15 billion 2007 vintage fund, netted an 8.81 percent internal rate of return as of March 31, according to Washington documents. Fund XI netted a 20.87 percent IRR as of the same date.

The Washington State Investment Board valued its private equity portfolio at $17.7 billion as of June 30, according to retirement system documents.

Washington also committed up to 250 million Australian dollars ($177.2 million) to Laguna Bay Agricultural Fund 1 at its Sept. 17 meeting, with the ability to invest up to A$50 million more if the fund exceeds A$1 billion, Mendizabal said. Laguna Bay will invest the fund in upstream agriculture assets in Australia and New Zealand.