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Bain Capital closes ninth fund on $10bn

The Boston-headquartered buyout firm has raised $8bn for Bain Capital IX, with a further $2bn allocated to a co-investment vehicle for larger transactions.

Boston-based private equity firm Bain Capital has raised $10 billion (€8.1 billion) in just three months for its ninth buyout fund.
 
Bain began marketing Bain Capital IX in January of this year. PEO reported earlier this month that the vehicle had reached its $8 billion cap but was continuing to raise a co-investment vehicle of up to $2 billion for investments in larger transactions. The fund will receive a 30 percent carry on profits, unlike the 20 percent typical of private equity funds.
 
Limited partners have yet to be identified for the new fundraising, but previous Bain Capital buyout vehicles have received allocations from The University of Washington, Stanford Management Co., Duke University, The Massachusetts Institute of Technology and The Regents of the University of California.
 
It is understood that the majority of investors in previous Bain Capital funds have taken positions in Bain Capital IX.
 
Bain Capital has followed a strategy of raising a co-investment vehicle alongside a core fund for its last three fundraisings. Predecessor fund Bain Capital Fund VIII, closed on $3.5 billion in June 2004, with another $750 million raised as a co-investment vehicle. The fundraising was reported at the time to have completed within two months.
 
The firm has been aggressively deploying funds from Bain Capital VIII in recent months, closing four deals in the last quarter of 2005: coffee and doughnut chain Dunkin’ Donuts; the FCI connectors unit of Areva; broadcaster Susquehanna Radio; and CRC Health Group, a chain of drug and alcohol treatment centres.