Bain closes third Asian fund at hard cap

The firm completed the legal documentation and made its regulatory filing on December 17. The precise size of the GP contribution has yet to be finalized, according to a source familiar with the situation. Deployment of the fund, which had an initial target of $2.5 billion, will begin in 2016.

LPs include the Pennsylvania Public School Employees' Retirement System (PSERS), which committed $150 million. The pension system has backed all of Bain's Asian funds. The first closed at $1 billion in 2007 while Fund II closed at $2.3 billion - roughly halfway between the initial target and the hard cap - in 2012.

A PSERS presentation noted that, as of March 2015, Fund I had generated a net multiple of 1.4x and an IRR of 8.2%, with Fund II on 1.3x and 18.4%.

Fund III will 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.

Over the past year, Bain has made three investments in Japan - inn and hot spring chain operator Oedo-onsen, mushroom producer Yukiguni Maitake, and wind farm operator Japan Wind Development - and also paid $199 million for a minority stake in India-based L&T Finance Holdings.

In addition, Bain took Japan-based call center business Bellsystem24 public, making a partial exit in the process. There was another IPO for Australian business software provider MYOB, although no shares were sold during this process. The PE firm also sold a further stake in Japanese casual dining chain Skylark, and made full exits from Indian motorcycle manufacturer Hero Motocorp and Chinese appliance retailer Gome.

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• Topics
• Fundraising
• GPs
• LPs
• Buyout
• Fundraising
• Asia
• GPs
• LPs
• Bain Capital Asia