Bain Capital’s Fund XI ‘almost halfway’ deployed

The $7.3 billion fund invests globally in healthcare, TMT, consumer, financial services and industrials.

Bain Capital is almost halfway through investing its 2014-vintage $7.3 billion Fund XI, according to managing directors Chris Gordon and Steve Pagliuca.

The global diversified vehicle closed above its target size of $6 billion, while its predecessor, Bain Capital Fund X, closed in 2008 on $10.71 billion, beating its $10 billion target, according to PEI Research & Analytics.

Healthcare is one of the Boston-headquartered firm’s five investment sectors, alongside TMT, consumer, financial services and industrials, and the firm holds a weighting of between seven and 20 percent in the sector, depending on opportunities in the market.

Gordon, who focuses on healthcare at the firm, said the allocation was currently in line with where it should be for Fund XI, but the firm was actively seeking other healthcare opportunities.

Speaking to Private Healthcare Investor just after the group’s Fund X portfolio company Physio-Control was sold to Stryker Corporation for $1.28 billion in cash, Pagliuca said that the company “had been investing in healthcare businesses since the mid-1980s”.

He said Bain had initially acquired urgent care product maker Physio-Control in 1994 as a much smaller company, and then took it public in 1995. Medtronic acquired the company in 1998.

Bain Capital maintained close ties with the company, and fourteen years later when Medtronic decided it was non-core, Bain Capital acquired the business again.

Gordon told PHI: “A big part of our due diligence was whether they had still maintained a strong customer-facing voice in the market and market place strength. We found that they had.”

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