Bain Capital has held a final close on its fourth Asia buyout fund on $4.65 billion, surpassing its $4 billion hard-cap.
Investor demand for Bain Capital Asia Fund IV significantly exceeded the $3.5 billion target, a source with knowledge of the fundraise told Private Equity International, but the firm “kept the fund at a size that enabled it to deploy capital towards specific types of investments with the objective of generating strong absolute returns for investors”.
Bain began raising capital for Fund IV in July, gathering $4 billion from investors plus a $650 million commitment from the firm’s team members and related parties, the source said.
PEI reported in October that Bain expected a first and final close before the end of the year, according to a investment memorandum prepared for the Pennsylvania Public School Employees’ Retirement System, which was mulling a $200 million commitment to Bain.
The firm declined to comment on fundraising.
Capital raised for Fund IV will follow the same strategy as its 2015-vintage $3 billion predecessor, focusing on consumer, financial and business services, healthcare, industrials and technology sectors, and transforming companies by developing new products and expanding into new geographies. Its recent investments include China’s supermarket chain operator Yonghui Superstores, Korean cosmetics company Carver and the $18 billion acquisition of Japan’s Toshiba Memory, the largest ever private equity deal in the country.
It is unclear whether the firm has started deploying Fund IV.
Fund III was delivering a 60.9 percent net internal rate of return and 1.29x multiple as of 30 June, according to the PSERS document.