Warburg Pincus Is Said to Seek $3 Billion for Energy Fund

Warburg Pincus LLC, the private-equity firm that helped discover Ghana’s largest oilfield, has set a $3 billion fundraising target for its first pool dedicated to global energy, two people familiar with the matter said.

Warburg Pincus Energy Fund will take the same approach to energy investing as the New York-based firm’s global private-equity vehicles, said one of the people, who asked not to be identified because the fund is private. It will invest in oil and gas exploration and production, midstream assets, power generation, oilfield technology and related services and alternative energy development.

Warburg Pincus is competing for capital with a number of private-equity firms amassing billions of dollars to take advantage of the growth in the energy industry. Energy & Minerals Group, which has offices in Houston and Dallas, planned to seek $2.5 billion for its next fund, people briefed on the matter said in October. Washington-based Carlyle Group LP (CG) is targeting about $1.5 billion for an energy fund that will make investments outside the U.S.

Jeffrey Smith, a spokesman at Warburg Pincus, declined to comment on the firm’s fundraising.

Even Split

Warburg Pincus will split energy deals evenly between the new fund and the firm’s main offering, according to one of the people. The firm raised $11.2 billion in May for its latest global private-equity fund, which invests in energy, financial services, health care, technology, media and telecommunications, and consumer, industrial and services companies.

Peter Kagan, who joined Warburg Pincus in 1997, leads its energy team. He helped originate the firm’s investment in shale gas producer Antero Resources Corp. (AR), which raised $1.57 billion in an initial public offering in October.

The firm’s two other senior partners focused on energy investments are David Krieger and In Seon Hwang. Krieger is a director of Kosmos Energy Ltd., a venture that discovered the Jubilee Field off the coast of Ghana in 2007. Hamilton, Bermuda-based Kosmos, which is also backed by Blackstone Group LP, raised $594 million in its 2011 IPO. Hwang worked on the purchase of Houston-based Targa Resources Corp., a natural-gas producer that went public in 2010.

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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