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Warburg Pincus reportedly seeks $2.5b for next financial fund

Feb 12, 2024
Illustration of a shopping bag full of checks.

Illustration: Gabriella Turrisi/Axios

Warburg Pincus plans to raise $2.5 billion for its next financial sector fund, Bloomberg reports, citing sources.

Why it matters: Financial services and technology were two of the most active sectors for private equity last year, per data from EY.

Context: Public market investors have gotten more bullish about private equity this year, in part due to hopes that interest rates have topped out.

  • Shares of KKR and Apollo are each up 20% year to date.
  • Blackstone has lagged — largely flat in the same period — though it has beaten the S&P 500 over the last 12 months.

Between the lines: Warburg Pincus, which has more than $83 billion under management, has generally kept its financial fund sizes consistent, while others in the industry have aggressively amped up their targets over time.

  • It's second financial sector fund raised $2.6 billion in 2021; its first raised $2.5 billion in 2017.
  • Its financial investments include Varo, IntraFi and Fetch Pet Insurance.

Warburg Pincus declined to comment.

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