Bain to close Europe fund on €3.5bn hard-cap

The Boston-based firm, which started raising the fund late last year, held a €2.03bn first close in July

Bain Capital has raised €3.5 billion for its latest European fund, PEI has learnt.

Bain Capital Europe Fund IV, which was oversubscribed, has stopped fundraising this month and is currently wrapping up the legals, according to a source familiar with the matter.

Bain Capital professionals will contribute at least €250 million to the fund, which will bring the total to at least €3.75 billion.

Bain declined to comment.

The fund officially came to market last December targeting €2.5 billion, and held a first close of €2.03 billion in July.

Bain offered investors two options for the fee structure of the European fund, according to the source. The first option involved the standard management fee at 1.75 percent, with 20 percent carried interest for the firm with a 7 percent preferred return. The second option consists of a management fee of 0.75 percent but with a premium carry rate of 30 percent and no preferred return.

In April, Bain raised $7.3 billion for its Bain Capital Fund XI. Fund XI also offered different fund terms options: a 1.15 percent management fee with a 20 percent carry and 7 percent preferred return, a 1 percent management fee with a 30 percent carry and 7 percent preferred return, or a 0.5 percent management fee with a 30 percent carry and no preferred return, PEI revealed in March.

In March, Bain and Advent International teamed up with Danish pension fund ATP to acquire Nets, a payment provider in the Nordic region, for DKK 17 billion (€2.3 billion; $3.1 billion).