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Bain Capital raises $7.3B in new buyout fund for North America

17 April, 2014

Private equity major Bain Capital has raised $7.3 billion for its new buyout fund reportedly targeted at the North American market, according to several international media reports but first flashed by Fortune. Although the new fund is almost a third less than its predecessor, it managed to raise more than what it was targeting to scoop from external investors.

Bain Capital raised $6.5 billion from outside investors, more than the $6 billion it was originally targeting but less than the $7.5 billion cap it set when it started marketing the fund more than a year-and-a-half ago, one report stated citing sources.

The PE firm’s internal team including employees have committed $800 million to the fund, dubbed Bain Capital Fund XI. The firm’s previous flagship fund, Fund X, raised $10.7 billion in 2008.

Emails sent by VCCircle to Bain Capital for more details did not cite a response.

Bain Capital co-founder Mitt Romney’s unsuccessful bid for US presidency in 2012, just as Bain Capital kicked off fundraising for Fund XI, putting the private equity industry in an unprecedented public spotlight and fuelled debate about its practice of buying and selling companies.

As per its SEC disclosure it had marked a fundraising milestone in April last year at $2.35 billion but reports had suggested the actual first close was at $3 billion.

The current fund will focus on investments in North America, and will occasionally invest globally alongside Bain Capital’s European and Asian funds.

The Boston-based PE firm has more than $75 billion in assets under management. It raised $2.3 billion for its second Asia-focused private equity fund in 2012, and is currently fundraising for its fourth Europe fund, targeting €3.5 billion ($4.8 billion).

Bain Capital had been actively investing in India for the last four years. Last year, the firm acquired a 13.09 per cent stake in Pune’s Emcure Pharmaceuticals from Blackstone for about Rs 700 crore, in a secondary sale transaction.

The company also joined hands with Singapore’s sovereign wealth fund GIC in two large sized deals. It invested $850 million (with GIC bringing in another $150 million) to buy a large stake in outsourcing firm Genpact in August 2012. A year earlier the two also co-invested to buy a minority stake in Hero MotoCorp.

Previously, in 2010, it bought a stake in Kolkata-based Himadri Chemicals.

It is estimated to have committed around $1.6 billion in India in the last four years.

(Edited by Joby Puthuparampil Johnson)


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Bain Capital raises $7.3B in new buyout fund for North America

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