Bain's New Fund nearing Completion
Bain Capital LLC is nearing to reach commitments from investors for about half of the projected GBP3.9 billion or US$6 billion for its latest equity fund. This was confirmed by two individuals familiar with the matter who spoke on condition of anonymity.
The buyout firm is finalizing its subscriptions with investors for the closure of the US$2.5 billion Bain Capital Fund XI. This amount is above the US$600 million commitment made by the fund managers of the firm.
The commitments came in last week and the finalization fo their participation, known in the market as 'first close' is being completed. According to one of the sources, the firm is hoping to complete the fundraising by the fall of 2013.
The sources spoke on condition of anonymity because of the confidentialiy of the transactions. A Bain spokesman declined to make any comment on the matter.
For the fund, Bain has promised a minimum internal rate of return or 20% in its latest fund. This was confirmed by one of the investors, the Pennsylvania State Employees' Retirement System.