Bain preps for $2b Asia fund

According to The Wall Street Journal, Bain may allow its investors to pay lower management fees (1% instead of the standard 2%), which would translate to higher carried interest. Should investors opt for a 1% management fee, Bain would take 30% carried interest. LPs can also opt for the 2% and 20% model, which is still lower than Bain's historical 2% fee and 30% carry, which it implemented in its first Asia fund.

The reason for the fees shift has been attributed to the more difficult fundraising landscape seen by even the world's largest and most prominent funds. In diversifying its fundraising strategy, Bain hopes to boost its competitive advantage and attract a variety of investors with different priorities.

Fundraising for Bain Asia Fund II LP is officially set to begin in the coming weeks, the report added, and pending the success of the new investment structure the model may be adopted for Bain's future funds, including its next global vehicle. Bain Asia currently has offices in Hong Kong, Shanghai and Tokyo and claims to have facilitated more than 250 transactions in the region.

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• Topics
• Fundraising
• North Asia
• Greater China
• Bain Capital Asia