Bain expects ‘one and done’ on fourth pan-Asia fund

Performance details of the firm's previous Asia-focused funds were also revealed in a US pension document.

Bain Capital expects to hold a first a final close on its latest pan-Asian vehicle by the end of the year, US pension documents show.

The Boston-headquartered private equity firm is targeting $3.5 billion for Bain Capital Asia Fund IV by December, according to a 24 September public investment memorandum from the Pennsylvania Public School Employees’ Retirement System.

Bain expects the fund to be oversubscribed. The firm declined to comment on fundraising.

Bain was reported to have started raising capital for Asia Fund IV in July. The vehicle’s target is slightly larger than its predecessor, the 2015-vintage $3 billion Asia Fund III.

The firm is targeting a 10 percent GP commitment to the fund, of which 25 percent is expected to come from Bain’s Asia team members, the PSERS document revealed.

PSERS is mulling a commitment of $200 million. The pension fund has already backed Bain’s previous Asia funds, committing $100 million to the $2 billion Asia Fund II and $130 million to Fund III.

Fund II delivered a net internal rate of return of 25.3 percent and a money multiple of 2.08x, while Fund III delivered a 60.9 percent net IRR and 1.29x multiple as of 30 June, according to the PSERS document.

Fund IV will follow the previous funds’ strategies of investing in five industry verticals: consumer, financial and business services, healthcare, industrials and technology. Bain will have a continued focus on China and Japan, consistent with its prior Asia funds. The firm expects to invest between $100 million and $400 million per deal in an estimated 15 to 18 investments.

Bain led the region’s largest ever deal last year with its $18 billion acquisition of Toshiba’s memory chip business. The mega-deal included investor capital from Apple, SK Hynix, Dell and Seagate Technology.

The firm is also in market with its debut Asia Special Situations Fund targeting $1 billion, according to PEI data.