New York-based private equity major Warburg Pincus has announced raising $3 billion in the final close of its latest financial services fund, surpassing a $2.5 billion target.
The fund, Warburg Pincus Financial Sector III (WPFS III), launched in 2024 is the firm’s largest dedicated financial services fund to date. Warburg Pincus looks to deploy fresh capital into banks, insurers, payments, and other finance-related businesses through the vehicle.
Notable investments of the firm’s financial services strategy include AA, Avanse, Banc of California, EverBank, Foundation Risk Partners, GCash, IntraFi, Kestra, Mellon Bank, McGill & Partners, and Procare.
The final close of WPFS III comes about five years after the firm raised $2.6 billion for WPFS II. The maiden financial sector fund secured $2.5 billion in 2017.
It also follows the firm’s global flagship fund, Warburg Pincus Global Growth 14, which closed at $17.3 billion in 2023, and its capital solutions fund, which closed at $4 billion in 2024.
Warburg Pincus’ Funds
Warburg Pincus CEO Jeff Perlman said the fundraising underscored the firm’s global platform and long-standing focus on the sector despite a “complex macroeconomic and geopolitical backdrop.”
“We believe our strong fundraising reflects the substantial momentum and trust of our limited partners, earned through consistent engagement, rigorous execution, and deep sector experience across financial services,” Perlman said.
Warburg Pincus has invested in financial services for more than five decades, deploying nearly $27 billion across more than 160 companies through different market cycles, per the announcement.
Its financial services strategy spans banking, insurance, asset and wealth management, specialty finance, payments, and financial services-focused software, infrastructure, and services.
Past investments include GCash, EverBank, Foundation Risk Partners, IntraFi, Avanse, Kestra, and McGill & Partners, the firm said.
Warburg’s financial services practice is a cohesive, global platform comprising over 40 investment professionals, one of the largest dedicated global financial services teams in the industry.
“Our financial services investing practice leverages a broad global platform and deep experience across a variety of sub-sectors, with the flexibility to pursue what we view as the most attractive opportunities,” said Dan Zilberman, global co-head of Financial Services and global head of Capital Solutions.
Vishal Mahadevia, global co-head of financial services and head of Asia private equity, said demand for WPFS III was supported by performance in the firm’s first two financial services funds, including its ability to return capital to investors.
“With this fresh set of capital, we believe we are well-positioned to pursue both secular and cyclical trends shaping the financial services sector to build durable companies that are capable of delivering value,” said Mahadevia.
Warburg Pincus has more than $85 billion in assets under management and more than 215 companies in its active portfolio, diversified across stages, sectors, and geographies.
The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, Singapore, and Tokyo.
It has invested in more than 1,000 companies across its private equity, real estate, and capital solutions strategies. In the Asia Pacific region, the firm has invested about $34 billion in more than 270 companies.
In December, the firm agreed to invest in Hong Kong-headquartered Acclime, a provider of corporate and business services across the Asia Pacific. Industry sources said the deal valued Acclime at approximately $1 billion. Warburg also opened an office in Tokyo, following a steady increase in Warburg’s investment activity in Japan.
