Warburg Pincus has started fundraising for its second Capital Solutions fund and is targeting $5 billion, Bloomberg reported, citing people familiar with the matter. The New York based firm has not announced the raise, and the target has not been confirmed by the firm.
The predecessor sets the context. Warburg’s first Capital Solutions fund closed at $4 billion in 2024, double its initial $2 billion target, to pursue structured transactions. One of Bloomberg’s sources put the debut fund’s net returns at 55 percent. That figure comes from an unnamed source in a single report and is carried here as reported, not as a firm disclosure.
Capital Solutions is Warburg’s structured finance strategy, built over nearly two decades of structured investing and run alongside its buyout and sector funds, including the $3 billion Financial Sector III fund that closed in January 2026. A $5 billion second fund would make the strategy one of the firm’s larger pools of non buyout capital.
The reported timing is the signal. Bloomberg noted the firm is aiming to raise more money despite a challenging fundraising environment, which it read as evidence of demand for alternative vehicles that are not focused only on buyouts. Structured capital, which can take the form of preferred equity, unitranche and structured mezzanine positions, has been one of the few private markets strategies still raising at larger sizes.