Warburg Pincus, a pioneer of private equity global growth investing, announced the first closing of its first multi-asset continuation fund transaction, with over $2.2 billion in commitments. The deal was co-led and fully capitalized by HarbourVest Partners, Ardian and Canada Pension Plan Investment Board (CPP Investments).
The lead investors underwrote the entirety of this raise with no required syndication. And the fund includes Warburg Pincus portfolio companies that are diversified across geographies and industry sectors.
This strategic transaction offered the Limited Partners optionality, either locking in strong returns and eliminating future market and business risk through this sale, or rolling into the Continuation Fund for maintaining asset exposure and potential future upside. Plus, the transaction provides the portfolio companies with incremental time and capital to pursue additional valuation creation initiatives under the continued stewardship of Warburg Pincus and with ongoing relationship consistency for management teams.
Kirkland & Ellis served as legal counsel and Evercore served as financial advisor to Warburg Pincus.
KEY QUOTES:
“Our focus is on driving value and realizing attractive returns for our investors through active portfolio and risk management, including developing creative and flexible paths to liquidity. It is this mindset and approach that has allowed us to be a net provider of capital back to our investors in nine of the last ten years, a fact we are incredibly proud of. We are also proud of the success each of these companies have achieved to-date and strongly believe that this transaction will provide the portfolio with greater resources, time and flexibility to execute on its next phase of growth.”
- Jeffrey Perlman, CEO, Warburg Pincus
“This transaction provides our investors with an option to take accelerated liquidity at a market-driven price, while allowing the portfolio companies the opportunity to continue to pursue their long-term growth plans, a win-win for all involved. We look forward to partnering with HarbourVest Partners, Ardian and CPP Investments on this new fund and working with our portfolio companies on their next phase of growth.”
- Eddie Huang, Managing Director, Global Head of Fundraising and Investor Relations, Warburg Pincus
