Bain Capital targets $2.5b for third Asia fund

A source confirmed to AVCJ that the new fund will be in the market soon. Bain's second Asia fund reached a final close of $2.3 billion - roughly halfway between the initial target and the hard cap - in 2012.

Fund III is expected to follow a similar strategy to Funds I and II, targeting buyout opportunities in the $400-500 million range, in addition to smaller growth deals of $40-50 million. The geographic focus will be China, Japan, India and Australia, with deals also coming under consideration in Southeast Asia and South Korea.

The previous vehicle - which counted California State Teachers' Retirement System (CalSTRS), Pennsylvania Public School Employees' Retirement System (PSERS), and HarbourVest Partners among its LPs - generated a multiple of 1.12x, and an IRR of 11.77 as of June 30, according to data from PSERS.

In January Bain made a full exit from Chinese retailer Gome Electrical Appliances, selling its remaining shares for about HK$1.06 billion ($137 million). This followed the second of two partial exits from Indian motorcycle manufacturer Hero MotorCorp, raising INR24.5 billion ($400 million). Last October the GP generated JPY68.8 billion by shedding a third of its stake in Japanese diner chain Skylark via an IPO.

The fund will launch at a time when most of the large pan-regional players are not fundraising, with Baring Private Equity Asia recently closing its sixth vehicle just shy of $4 billion. However, RRJ Capital is currently seeking $4.5 billion for its third fund, which has already received backing from the Teachers' Retirement System (TRS) of the State of Illinois, while a number of country-focused GPs are either in or expected to enter the market.

 

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• Topics
• Fundraising
• Buyout
• Bain Capital Asia
• Fundraising
• buyout
• Asia