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.