Global private equity firm Bain Capital LLC expects to hold a first and final close for its $3.5-billion Asia-focused fund in December.
The development was first reported by Private Equity International.
The timeline for Bain’s fund close was revealed in a public investment memorandum from the Pennsylvania Public School Employees’ Retirement System (PSERS), which is a limited partner in the latest Asia fund. Bain Capital Asia Fund IV, L.P will primarily target equity investments in the range of $100 million to $400 million in an estimated 15 to 18 investments.
PSERS says it plans to invest $200 million into the new fund, which it says is likely to be oversubscribed.
Bain Capital is targeting 10 per cent investment in the fund, of which 25 per cent is expected to be by its Asia team members.
Bain’s new fund will target investments in Asian companies across the firm’s five core industries: financial & business services, consumer, industrials, healthcare and technology, the documents show. Bain will continue to focus on investments in China and Japan but does not maintain a fixed geographic allocation and pursues investments across Asia that offer attractive risk-return opportunities.
The investment will be PSERS’ third contribution into a Bain Asia Fund. The pension fund previously committed $100 million to Bain’s $2 billion Asia Fund II, and $130 million to the $3 billion Asia Fund III. It has committed $225 million to two Bain Capital North America Funds, and over $2 billion to six Bain Capital credit funds.
All of Bain’s previous Asia Funds have generated top-quartile or near top-quartile returns on a net IRR basis, PSERS reported.
At $3.5 billion, Bain’s fourth Asia fund will be its biggest in the region. However, it pales in comparison to mega funds raised by PE firms investing in the region such as Hillhouse’s record-breaking $10.6-billion fourth vehicle closed in September and KKR’s $9.3-billion Asia fund.