(Bloomberg) -- Warburg Pincus is planning to raise about $2.5 billion for its third fund dedicated to deals in the financial sector, people with knowledge of the matter said. 

The firm has begun preliminary discussions with potential investors about the vehicle, known as WP Financial Sector III, which will invest alongside its flagship private equity fund, according to the people, who requested anonymity to discuss confidential talks. 

Warburg plans to formally launch capital-raising efforts for the fund, which will be overseen by co-heads of financial services Dan Zilberman and Vishal Mahadevia, in coming months, one of the people said. 

A Warburg Pincus spokeswoman declined to comment. 

The New York-based firm last year collected $17.3 billion for its flagship private equity fund, and has more than $83 billion in assets under management.  

Warburg and Centerbridge Partners last year agreed to invest $400 million in Banc of California Inc., in a transaction that was contingent on its merger with PacWest Bancorp., which was completed in December. The firm is also part of a group that last year acquired Jacksonville, Florida-based TIAA Bank, now known as EverBank. 

Warburg, which teamed up with Prudential Financial Inc. to launch Prismic Life Reinsurance, has also backed companies including IntraFi Network, K2 Insurance Services, Vistaar Finance and ParetoHealth, its website shows. 

Warburg’s long history of financial-services investments dates back to the 1980s, when it made bets on Bowery Savings and Mellon Bank.

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