Warburg Pincus has raised $3bn for its latest financial services fund, bucking a broader slowdown in private equity fundraising and reinforcing its long-standing focus on the sector.

The vehicle, known as WP Financial Sector III, exceeded its initial $2.5bn target and is the firm’s largest fund dedicated exclusively to financial services. It will be overseen by Warburg’s global co-heads of financial services, Dan Zilberman and Vishal Mahadevia.

The fund will invest across banking, insurance, asset and wealth management, specialty finance, payments, and financial services-focused software and infrastructure. Warburg has been active in the sector for decades, with past and current investments including Avanse Financial Services, Banc of California, EverBank, GCash, and McGill & Partners.

The close comes at a time when many buyout firms are grappling with slower deal activity and delayed exits, making fundraising more challenging. Warburg, however, has continued to return capital, generating about $13bn of realizations for investors last year, according to people familiar with the matter.

The firm has also made progress on its broader fundraising, having already raised around 70% of a $17bn target for its latest global private equity fund.

If you think we missed any important news, please do not hesitate to contact us at [email protected].

Can`t stop reading? Read more.