Bain eyes Q2 first and final close on Europe V – exclusive

The private equity firm is also expected to begin raising its fourth Asian fund in the third quarter, Private Equity International has learned.

Limited partners are scrambling to join Bain Capital‘s fifth pan-Europe fund ahead of a first and final close in the second quarter, Private Equity International has learned.

Bain Capital Europe Fund V has attracted huge demand, according to three sources familiar with the fund, with one London-based private equity investor telling PEI LPs are “kicking the door in” to commit.

The Boston-headquartered firm is targeting around €3.5 billion for the fund, the same size as its two previous European vehicles, according to the sources. It is expected to launch the vehicle before the end of January, the sources noted.

One LP, who did not wish to be named, said it was unlikely to secure its desired commitment size amid huge demand for the fund. Another told PEI the fund was more difficult to commit to than its predecessor as the firm did not intend to significantly increase the amount raised.

Bain Capital declined to comment.

The secret to such interest lies in the performance of Bain’s previous European funds. Bain Capital Europe Fund III, a 2008-vintage, had generated a 3.37x total-value-to-paid-in and a 22.5 percent net internal rate of return as of 30 September, according to a Bain document seen by PEI.

Bain Capital Europe Fund IV, a 2014-vintage, was 66 percent committed on the same date, having so far delivered a 1.42x TVPI and 29.2 percent net IRR. The fund included commitments from Canada Pension Plan Investment Board, Maryland State Retirement and Pension System and the Frist Foundation.

The latest fundraise marks the start of what could be a frenetic year at Bain Capital, with the firm also expected to begin raising its fourth Asian fund in Q3 2018, according to one of the sources. Bain Capital Asia Fund III, a $3 billion 2015-vintage, attracted commitments from Pennsylvania Public School Employees’ Retirement System, the California State Teachers’ Retirement System and Los Angeles City Employees’ Retirement System, PEI data show.