The $15 billion war chest of Warburg Pincus

Warburg Pincus, which is a top private equity firm, got its start over 40 years ago, bringing a professional approach to the business. Since then, the firm has invested $29 billion in more than 585 companies across 30 countries.

Well, now the firm has even more firepower for deals as it has raised a hefty $15 billion for its next fund. Some of its marquee investors include Washington State Investment Board and GE Asset Management.

But with the credit crunch, what can Warburg Pincus do with the money? Well, keep in mind that the firm has a growth orientation, which has less reliance on debt sources. What's more, Warburg Pincus has a global platform, which is particularly attractive to institutional investors.

Interestingly enough, Warburg Pincus has ventured into some distressed investing. The most notable transaction was a $1 billion investment in MBIA (NYSE: MBI), which suffered from bad timing (the deal was struck late last year).

But this doesn't seem to be much of a concern for Warburg Pincus. After all, the firm has undergone a variety of market cycles and realizes that real returns take time.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.