Warburg Said to Raise More Than $5 Billion for Next Fund

Warburg Pincus LLC, the owner of Neiman Marcus and Interactive Data Corp., has raised more than $5 billion for its new fund, said a person briefed on the matter who asked not to be named because the information is private.

The buyout firm is seeking $12 billion for Warburg Pincus Private Equity XI LP, which started gathering money in September, according to a marketing document obtained by Bloomberg News.

Ed Trissel, a spokesman for the New York-based firm, declined to comment.

Unlike some peers that have scaled back their capital-raising targets, Warburg Pincus has the same goal for Fund XI as its predecessor. Warburg Pincus Private Equity X LP surpassed its target with a final close at $15 billion in 2008.

When Warburg Pincus started fundraising, it told investors that it would give a management fee break to those that committed at least $200 million, according to the marketing document. Several large buyout firms are offering similar discounts to win large checks.

The prior Warburg Pincus fund was producing 1 times the Oregon Public Employees Retirement Fund’s investment, for a 0.3 percent internal rate of return, as of Sept. 30, according to data from pension system.

Reuters reported the fundraising progress earlier today.

To contact the reporter on this story: Sabrina Willmer in New York at swillmer2@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

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