Bain Capital has raised $1 billion for a debut fund that is focused primarily on investments in China and Japan.
Jim Hildebrandt, a Bain Capital managing director who is based in Hong Kong, said: “We completed our fundraising in just three months. It was significantly oversubscribed as there is a lot of appetite for Asia among long-time Bain Capital investors, as expected, but we decided to close the fund at $1 billion.”
Hildebrandt said investors in the fund consisted primarily of existing limited partners from Bain Capital Fund IX, a $10 billion fund raised last year. He said: “In addition to garnering support from existing investors, Bain Capital attracted a number of new Asian LPs and others around the world who wanted exposure to private equity investments in Asia and Bain’s differentiated approach.
Bain Capital executives including the Asia-based investment professionals also contributed toward the fund.
The new fund raised will back buyouts as well as providing growth capital to medium-sized to large businesses mainly in Japan and China. Bain Capital is targeting investments in the $30 million to $100 million range, but the private equity team in Asia will have access to Bain Capital IX for larger transactions over $1billion in equity.
Bain Capital has also financed two transactions in Japan and three growth-oriented deals in China from Bain’s ninth buyout fund in the past year.
Since making its foray into Asia eighteen months ago, Bain has built a team of 30 investment professionals including 6 managing directors across three locations: Hong Kong, Tokyo and Shanghai. Hildebrandt expects the team to grow further as its portfolio of investments in Asia expands.