Warburg Pincus LLC, the U.S. firm that owns financial market data provider Interactive Data Corp., is preparing to raise a new private-equity fund, two people familiar with the plan said.
The company, based in New York, has discussed the idea with clients after investing more than 80 percent of its current $15 billion pool, raised in 2008, said one of the people, asking not to be named because the information is private. The firm had initially targeted $12 billion for its current fund.
Warburg Pincus is joining leveraged-buyout firms including KKR & Co. and Apax Partners LLP in seeking new money as deals pick up and the stock market recovery allows managers to return money to investors. Private-equity firms raised $225 billion last year, the lowest amount since 2004, as the pensions and endowments that invest in the funds waited for profits from previous investments before committing new capital, according to London research firm Preqin Ltd.
Ed Trissel, a spokesman for Warburg Pincus, declined to comment. The firm’s investments range from backing early stage companies to buyouts of mature businesses.
Private-equity managers may raise about $300 billion in total this year, Preqin said, after about 220 firms secured $110 billion since the start of the year. Industrywide, 1,718 funds are currently seeking to raise an aggregate $716 billion.
“Investors are starting to come back to market, but with the number and value of funds on the road at record levels there is still nowhere near enough capital to satisfy the ambitions of all these managers,” said Tim Friedman, head of communication at Preqin. “As a result, fundraising conditions are set to remain extremely competitive.”
Preqin lists Warburg Pincus in its “Consistent Performers” league table, as the firm’s funds have exceeded the median performance. About 40 percent of Warburg Pincus’ pools are among the top quartile performers, according to Preqin.
Warburg Pincus, whose founder Lionel Pincus died in 2009, has been returning cash to investors this year. The firm agreed this month to sell its stake in Telcordia Technologies Inc. to mobile-phone networks maker Ericsson AB in a deal valuing the telecommunications-services provider at $1.2 billion.
Warburg may sell a stake in Ziggo BV in a $1.5 billion initial public offering valuing the Dutch cable-television company at about 7 billion euros ($10 billion) including debt, two people with knowledge of the matter said in April.
Warburg and Silver Lake bought financial market data and services provide Interactive Data in a $3 billion transaction last year.