Warburg Pincus to invest $600m in Zenith Energy

An affiliate of the global private equity firm has agreed to invest up to $600m in Zenith Energy, a liquids and bulk terminalling company.

An affiliate of Warburg Pincus, a private equity firm based in New York, will lead a line-of-equity investment of up to $600 million in Zenith Energy, a liquids and bulk terminalling company, Zenith said in a recent press statement. Minority investors that include members of Zenith’s management team and other individuals will be joining Warburg Pincus, the company said without providing further details.

Houston-based Zenith is pursuing opportunities to buy, build and operate terminals primarily in Latin America, Europe and Africa. These terminals include storage and logistics for crude oil, refined products, and petrochemicals.

According to the statement, Zenith will also pursue opportunities in the logistics and distribution assets that support terminals, such as pipelines, truck racks and barges.

“We look forward to working with Warburg Pincus as we develop and grow Zenith into a leading international terminalling company,” Zenith’s chief executive Jeffrey Armstrong said. “The firm’s deep energy experience and large, global footprint will provide us with the support needed to take advantage of opportunities in the marketplace.”

The statement did not indicate which Warburg Pincus affiliate will be leading the investment. It was also unclear if the capital would come from Warburg Pincus Energy, the latest energy vehicle Warburg Pincus launched in May with a target of $3 billion and which will invest in all segments of the energy sector, including midstream assets.

Warburg Pincus did not respond to a request for comment.

Founded in 1966, Warburg Pincus focuses on growth investing. The firm has more than $39 billion in assets under management and to date has raised 13 private equity funds, which have invested more than $50 billion in over 720 companies globally.