US private equity firm Bain Capital has completed fundraising for its third Asia-focused fund, beating its target and closing on its hard-cap of $3 billion, according to a source with knowledge of the matter.
Bain Capital Asia Fund III was launched in May with an initial target of $2.5 billion. The fundraising took six months, with a first and final close in early December.
The pan Asian-fund has the same strategy as Bain’s previous Asia funds with geographical focus on China, Japan, India and Australia and the flexibility to invest wherever the opportunities are in the region, said a source close to the matter. It will invest in a range of sectors from consumer products to financial services.
Investors in the fund include the Los Angeles City Employees' Retirement System, Pennsylvania Public School Employees' Retirement System, Maryland State Retirement and Pension System and the Paris-based Groupama Private Equity, according to PEI’s Research & Analytics division.
The fund also includes a $250 million commitment from the firm.
Bain declined to comment on details of the fund.
Bain’s second pan-Asia fund collected $2.3 billion in commitments in 2012 and has been largely invested, it is understood. As of the end of September, it had generated a net internal rate of return of 13.8 percent, ranking it among the better performing funds in the region.
Bain Capital Asia Fund I closed on a $1 billion in 2007.
The firm has completed growth equity and traditional buyout investments throughout the region across a variety of industries and countries, according to the firm’s website.
Investments in the region include in Japan’s second largest restaurant chain Skylark, Australian accounting software firm MYOB, China-based English language school Rise, and Hero Investments, a holding company for Indian motorcycle maker Hero Honda.