It is always good to know where the “smart money” is going. So when we read Bloomberg’s exclusive report on Warburg Pincus’ new fund targeting global energy deals, we paid attention.
The article says that the new fund will take the same approach as the firm’s global private-equity pools, investing in oil and gas exploration and production, midstream, power generation, oilfield technology and related services, as well as alternative energy development.
Warburg expects to split energy deals evenly between the new fund and its main offering, says Bloomberg. Why does your Digest editor think that Warburg represents “smart money”? It raised USD11.2 billion this year, which is “among the largest pools raised following the financial crisis”, according to Bloomberg.
Warburg also typically finishes well in many of the industry rankings published by PE media companies. Apparently, Warburg is not alone in seeking to capture some of the momentum in the energy markets. Both Blackstone and Apollo raised billion dollar natural-resources vehicles of late and Carlyle is seeking to raised USD 1.5 billion for an energy fund that will make investments outside the US. (Image source: Tullow Oil)