Bain Capital aims to raise $4 billion with new Asia-focussed fund

Going by disclosures made by one of Bain Capital’s partners – the Pennsylvania Public School Employees’ Retirement System – by the end of 2016, Bain Capital’s second pan-Asia fund which raised $2.3 billion in 2012, reported an internal rate of return of 19.7%.

On Thursday, a source with direct knowledge of the matter stated private equity firm Bain Capital LLC is targeting up to $4 billion for a new Asia-focused fund. The development underscores Bain’s strategy of increasing its warchest in the region where it has enjoyed a two-year fundraising bonanza.

As per the source who spoke on the condition of anonymity Bain is set to begin fundraising in the region this July and expects to raise $3.5 to $4 billion.

In 2017, Bain Capital successfully led a consortium to purchase Toshiba’s memory unit for $18 billion.

Bain Capital declined to comment.

The development gains significance since the region is flush with funds.

According to Preqin, a data provider, 342 funds have raised a combined total $107 billion in Asia in 2017.

As of September 2017, monies that have been committed but not invested by Asia-focused private equity funds have touched a record $248 billion, up by more than 70% from its 2016 figure for the same period. Planned and ongoing private equity fundraising could pile another $30 billion to that figure by 2019.

Although Bain’s fourth pan-Asia fund will be its biggest so far in the region, in comparison to its peers, it has still to gain size.

Case in point, KKR & Co raised a record $9.3 billion through its Asia-focused fund in 2016; Carlyle is also expected to soon close a $5 billion buyout fund. Sources familiar with the fundraising say, Baring Private Equity Asia and PAG are each looking to raise up to $6 billion in 2018.

In addition to its sizeable bets in Japan, Bain Capital’s portfolio includes India’s Axis Bank and Trans Maldivian Airways, a seaplane operator it bought together with a Chinese partner in December 2017.

Advertisements


Categories: Creativity, Economy & Finance, Entrepreneurship, HR & Organization, Strategy

Tags: , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: