Warburg Pincus has halted fundraising for its $2.5 billion energy fund, citing a slowdown in the oil and gas market, according to Bloomberg.
The private equity firm applied the brakes on fundraising for Warburg Pincus Energy Fund II in late 2019 before the fund could hold a first close; however, it had already locked in $1 billion in investor commitments.
The previous fund in the series, Warburg Pincus Energy fund, closed with $4 billion in commitments in 2014. Warburg Pincus established its first institutional fund in 1971 and has raised 19 private equity funds totaling $95 billion since, according to the firm’s website. These funds have invested more than $81 billion in over 890 companies, spanning more than 40 countries.
According to Bloomberg, the firm may relaunch the fundraise at a later time if market conditions change.