Bain Capital Offers To Cut Size of Co-Invest Fund
Bain Capital is offering investors the chance to reduce their commitments to a $1.8 billion co-investment fund, peHUB has learned. Each limited partner would be allowed to cut back by up to 50%, assuming that a majority of investors ratify an amendment to the original fund documents (which they almost certainly will). LPs also would have the option to increase their commitments by acquiring someone else's discarded position (which they almost certainly will not). Bain closed the co-investment fund in late 2007, as a sidecar to what became an $11.5 billion general fund (Bain Capital Fund X). The idea was that it would be used for North American deals in which Bain’s equity check exceeded $650 million, with the general and co-invest funds to split the remainder 50/50. It also could theoretically be used for deals out of Bain’s European and Asian funds, although the initial waterfall for those vehicles flowed into Bain Capital Fund X. Since the co-investment fund was raised, however, it has only been tapped twice: First for the $17.9 billion buyout of Clear Channel Communications in July 2008, and then for the $3.5 billion buyout of The Weather Channel in September 2008 (using a combined $100m from the co-invest fund). All of Bain’s subsequent deals have been
