Warburg reaches $5.1bn for Fund XI

Warburg Pincus has received commitments from 340 investors for its latest buyout fund, which will target real estate and other strategies. The firm also will offer a fee break to LPs committing $200 million or more.

Warburg Pincus has collected about $5.1 billion in commitments for its eleventh buyout fund, according to documents filed with the US Securities and Exchange Commission. The commingled vehicle will target real estate, among other strategies.

The fund, which launched last fall with a target of $12 billion, has attracted 340 investors, according to the filings. In addition to real estate, Warburg XI will target investments in a variety of strategies, including consumer, industrial and services, energy, financial services, healthcare, technology and media and telecommunications.

Warburg got a big show of support from one of its dedicated backers in March, receiving a $300 million pledge from New Jersey’s $70 billion state pension system. The hefty commitment came with a fee break: Warburg will charge limited partners who make commitments of $200 million or more a management fee of 1.3 percent, versus the 1.4 percent all other limited partners are charged, according to New Jersey pension documents and people with knowledge of the fund. The fund also does not charge any kind of transaction fees. Warburg declined to comment.

New Jersey already has more than $600 million committed to Warburg through the firm’s eighth, ninth and tenth funds. Fund VIII was generating a 2.06x total value multiple (TVA) as of 31 January, 2012; Fund XI was producing a 1.40 total value multiple; and the tenth fund was generating a 1.01 TVA, according to New Jersey documents.

Warburg, which has about $32 billion under management, received a $750 million pledge from the Washington State Investment Board last year – another one of its long-time partners.