Bain seeks €1bn for European special sits – exclusive

The firm is aiming to hold a first close for Bain Capital Special Situations Europe in April, according to a Bain document seen by PEI.

Bain Capital is targeting €1 billion for a European special situations fund, Private Equity International has learned.

The Boston-headquartered firm is aiming to hold a first close for Bain Capital Special Situations Europe in April 2018, according to a Bain document seen by PEI. The fund will target European non-performing loan portfolios, non-core assets sold by financial institutions, other portfolios and real estate, the document noted.

Bain Capital declined to comment.

Seven turnaround and distressed funds raised $2.4 billion in 2017, according to PEI data. There were 29 existing distressed and turnaround funds in market targeting $24.9 billion as of 17 January.

The latest special situations vehicle comes amid a period of frenetic fundraising activity for Bain. The firm is also seeking $1 billion for Bain Capital Special Situations Asia, for which it held a first close on $557.9 million in September, and is expected to launch its next Asian buyout fund in the third quarter of this year, PEI reported on Tuesday.

The firm is also targeting a one-and-done close on €3.5 billion for Bain Europe Capital Fund V in the second quarter, as PEI reported. One London-based private equity investor told PEI limited partners were “kicking the doors in” to commit to the fund, while an LP who did not wish to be named said it was unlikely to secure its desired commitment size amid huge demand for the fund.

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.