Bain Capital targets to raise $9b for next global buyout fund

Logo of Bain Capital is screened at a news conference in Tokyo, Japan September 28, 2017. REUTERS/Kim Kyung-Hoon

Bain Capital is planning to raise about $9 billion for its next flagship global buyout fund, as the U.S. alternative asset manager seeks to tap demand from yield-hungry investors, people familiar with the matter said.

The Boston-based firm has started discussions with new and existing investors about the fund, which it aims to close later this year, according to the people, who asked not to be identified because the information is private.

Bain’s last flagship fund closed in 2017 at $9.4 billion, which included $8 billion from investors and another $1.4 billion from the firm’s own partners. Similar internal commitments could increase the eventual size of the new fund by a further 10% to 15%, the people said.

Buyout firms have been on a fundraising spree as institutional investors reach for better returns in an environment of low interest rates and poor performance from stock-picking fund managers. The fundraising in the midst of a global pandemic is a bullish sign for an industry that’s had to grapple with the struggling economy’s effects on companies already under private equity ownership.

A representative for Bain declined to comment.

While leverage may be harder to come by, the market downturn created plenty of buying opportunities for sponsors. The private equity industry is sitting on around $1.4 trillion in unspent capital, according to data compiled by Bloomberg.

There has been a preference for allocating money to a smaller number of established firms such as Blackstone Group Inc. and Carlyle Group Inc., sending fund sizes to new heights. In Europe, CVC Capital Partners is considering a target of more than 18 billion euros ($19.5 billion) for its next flagship fund, Bloomberg News has reported, while EQT AB is seeking to raise about 15 billion euros.

Firms like Bain are becoming one-stop shops for institutional investors such as endowments and sovereign wealth funds by offering bets in a range of alternative asset classes. Bain, founded in 1984, oversees about $105 billion across private equity, credit, real estate and other strategies. The firm is also seeking $1 billion for a tech opportunities fund, investing in Europe from a 4.35 billion-euro fund and has a $4 billion buyout fund in Asia.

Bloomberg

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.