Bain raises $4.25bn for two funds

The Boston buyout shop has managed to round up commitments in less than two months in one of the largest fundraisings of the year.

Boston-based buyout firm Bain Capital has raised $4.25 billion (€3.5 billion) for two new private equity funds, according to a source close to the firm.

The fundraising reportedly ended after less than two months of marketing. Bain raised $3.5 billion for Bain Capital Fund VIII, beating its $3 billion goal, and met its $750 million goal for a fund that reportedly will be co-invested alongside Fund VIII.

Most of the capital committed to the fund is from endowments, foundations and wealthy families, with a small number of pension plans in the mix as well.

Bain's successful fundraising comes shortly after the firm and a private equity consortium comprising Charlesbank Capital Partners, JP Morgan Partners, CIBC Argosy Merchant Fund and BancBoston Capital sold Sealy, the world's largest manufacturer of mattresses, to Kohlberg Kravis Roberts for $1.5 billion. Bain and its co-investors reportedly earned a return of five times their original investment. 

Bain's success also follows on the heels of two other significant buyout fundraisings this year. In April, Menlo Park, California- and New York-based Silver Lake Partners announced the final close of its $3.6 billion second fund, making it the largest buyout vehicle focused on large-scale investments in 'mature technology' and related growth companies. In February, Fort Worth, Texas-based buyout giant Texas Pacific Group held a final close on its fourth private equity fund, drawing a total of $5.3 billion in capital commitments from an international investor base.