So, why did private-equity firm Warburg Pincus hire Tim Geithner as its president?
“Warburg Pincus is struggling to figure out where to focus,” a source close to the firm said.
The former Treasury secretary will help Warburg Pincus formulate its organization and strategy.
The somewhat publicity shy Warburg Pincus in May closed on an $11.2 billion global private-equity fund, a bit short of its $12 billion target.
New York State’s pension committed $100 million to the fund, after committing a much larger $350 million to its prior 2007 vehicle.
Unlike most of its peers, Warburg Pincus traditionally raises one fund every three to four years to cover all its global investments.
However, the New York firm is breaking away from its past and just launched a $2.5 billion fund just for energy investments.
Geithner can introduce the firm to untapped international pools of capital, a source said.
Warburg Pincus declined comment.