Bain Capital Fund Size and Investment Strategies

Bain Capital has a total fund size of over $95 billion, making it one of the largest private equity firms globally.

This massive fund size allows Bain Capital to invest in a wide range of assets, from private equity and venture capital to credit and public equity.

Bain Capital's investment strategies are focused on partnering with exceptional entrepreneurs and management teams to drive growth and value creation in their portfolio companies.

The firm's private equity investments typically range from $50 million to $5 billion, giving them the flexibility to invest in smaller, early-stage companies or larger, more established businesses.

Bain Capital Credit, L.P. has approximately $45 billion in assets under management.

The firm's Private Credit Group managed around $11 billion of capital as of September 30, 2023.

Bain Capital Fund XI, the firm's latest flagship fund, raised $7.3 billion, which includes $800 million from Bain employees.

You might enjoy: Capital One Credit Card Transfer Funds

Bain Capital Real Estate was founded in 2018 when Harvard Management Company shifted the management of its real estate investment portfolio to Bain Capital.

The Bain Capital Real Estate team is managed by members of Harvard Management Company's former real estate team.

In July 2019, Bain Capital Real Estate closed an initial fund of $1.5 billion.

Bain Capital LLC raised $7.3 billion for its next flagship fund, Bain Capital Fund XI, which is more than the $6 billion it was originally targeting.

The fund's final size was boosted by Bain employees who committed another $800 million to the fund, bringing the total to $7.3 billion. Bain's previous flagship fund, Fund X, raised $10.7 billion in 2008.

Bain's fundraising environment was favorable, with the firm raising $6.5 billion from outside investors. This is a significant amount, considering the firm was originally targeting $6 billion.

Bain's previous experience with fundraising was also notable, as its co-founder Mitt Romney's bid for U.S. president in 2012 put the private equity industry in the public spotlight. However, this didn't seem to affect Bain's fundraising efforts, as investors contacted by Reuters said political attacks made no difference in their assessment of the firm.

Bain's employees committed a significant amount to the fund, with $800 million coming from them. This is a testament to the firm's commitment to its employees and its funds.

Bain's fundraising efforts are part of a larger trend in the private equity industry, with $32 billion raised across 230 U.S.-based funds through the third quarter of 2018.

A different take: Fidelity Raises $250 Million for First Venture Capital Fund

Middle Market is a key area of focus for Bain Capital Credit, with a dedicated Private Credit Group that focuses on providing complete financing solutions to businesses with EBITDA between $10 million and $150 million located in North America, Europe and Asia Pacific.

The team has a deep understanding of the middle market, having invested in this space for over 25 years. This expertise enables them to build strong relationships with sponsors and management teams, and to provide differentiated financing solutions.

Bain Capital Credit's Private Credit Group manages approximately $11 billion of capital, and has a global team that enables them to diligence complex situations and provide flexible private capital solutions to middle market businesses.

The Fund's flexible capital base allows the team to evaluate and structure the best perceived risk-adjusted return opportunity within the capital structure, resulting in increased competitiveness of their terms.

With over $1 billion in total commitments to invest in the latest vintage series, Bain Capital Credit is well-positioned to continue serving as a full capital solutions partner for middle market businesses.

For another approach, see: What Is Capital Group American Funds

Bain Capital's funds come in various types, each with its own unique characteristics.

Private equity funds are the most common type, with Bain Capital's private equity funds having a median size of $2.5 billion.

Venture capital funds, on the other hand, are used to invest in early-stage companies, with Bain Capital's venture capital funds having a median size of $500 million.

A fund closure is a permanent shutdown of a fund, which can happen for various reasons such as poor performance, lack of investor interest, or changes in market conditions.

Funds with a fixed term, like the 5-year bond fund, are more likely to be closed after their term ends, as they are designed to be short-term investments.

A fund closure can also be triggered by low assets under management, which is a common issue for small or niche funds, like the international equity fund.

Investors in closed funds will typically receive a final distribution of their remaining assets, which may be subject to capital gains tax.

The fund closure process usually involves a formal notice to investors, outlining the reasons for the closure and the next steps.

Suggestion: Closed End vs Open End Fund

Bain Capital Credit, a leading global credit specialist, has successfully closed its Middle Market Credit Fund with over $1 billion in total commitments. This fund will invest in middle market businesses with EBITDA between $10 million and $150 million.

The fund's flexible capital base allows the team to evaluate and structure the best perceived risk-adjusted return opportunity within the capital structure. Bain Capital Credit's Private Credit Group focuses on providing complete financing solutions to businesses in North America, Europe, and Asia Pacific.

Bain Capital has also raised approximately $3 billion for its fourth life sciences fund, which will support promising companies working on transformative medicines and medical devices. This fund brings Bain's fundraising total to around $6.7 billion since its founding in 2016.

Bain Capital's investment strategy is overseen by more than 25 investment professionals and advisors, who leverage their extensive investing experience and deep operating expertise. The firm has a proven track record of success, with several of its portfolio firms enjoying high-value exits recently.

Bain Capital has also raised $7.3 billion for its next flagship fund, Bain Capital Fund XI, which is its largest fund to date. The fund was oversubscribed, with Bain raising $6.5 billion from outside investors and committing an additional $800 million from its employees.

Expand your knowledge: Capital Allocation Line vs Capital Market Line

Bain Capital Private Equity has invested across several industries, geographies, and business life cycles.

Historically, Bain Capital has primarily relied on private equity funds, which are pools of committed capital from pension funds, insurance companies, endowments, fund of funds, high-net-worth individuals, sovereign wealth funds, and other institutional investors.

Bain Capital's own investment professionals are the largest single investor in each of its funds.

The firm operates in Europe, Australia, and Asia, expanding its reach globally.

Bain Capital's private equity funds are often used to invest in companies that are already established, but may need additional funding to grow or expand.

Bain Capital Credit's Private Credit Group has a dedicated global team that enables the firm to diligence complex situations and provide flexible private capital solutions to middle market businesses.

The group manages approximately $11 billion of capital as of September 30, 2023.

The Bain Capital Middle Market Credit 2022 fund, also known as MMC 22, has over $1 billion in total commitments to invest in its latest vintage series.

Bain Capital Life Sciences has invested in companies that focus on medical innovation and serve patients with unmet medical needs.

It raised its first fund of $720 million in May 2017. This significant investment demonstrates the company's commitment to life sciences.

In 2019, SpringWorks, a biopharmaceutical company Bain Capital Life Sciences owns a 17% stake in, launched an IPO.

The company also closed two life sciences portfolios in 2019, one in Cambridge, Massachusetts, and the other in the Research Triangle in North Carolina.

Bain Capital Credit raised $3 billion for its fourth fund to back promising life sciences companies. This is a significant amount, considering the firm's previous fundraising totals.

Bain's investment strategy is overseen by more than 25 investment professionals and advisors, who leverage their extensive investing experience in the private and public domains. They also have deep operating, consulting, medical, and scientific expertise.

The fund will support biotech players developing transformative medicines, medical devices, diagnostics, and life sciences tools that have the potential to improve the lives of patients with unmet medical needs. This is a key area of focus for Bain.

Several of Bain's portfolio firms have enjoyed high-value exits recently, including Cerevel Therapeutics, which was bought by pharma giant AbbVie for $8.7 billion.

Bain Capital's fund size has grown significantly over the years, with the firm's private equity funds raising over $100 billion in commitments since its inception in 1984.

The firm's first fund, Bain Capital Fund I, was launched in 1987 with a size of $37.5 million.

Bain Capital's largest fund to date is its 2019 fund, which raised $7.4 billion in commitments.

The firm's private equity funds have invested in a wide range of industries, including retail, healthcare, and technology.

Bain Capital has a strong track record of generating returns for its investors, with its funds delivering an average annual return of over 20% since 1984.

The firm's ability to generate strong returns has allowed it to attract a large and diverse investor base, with over 1,000 institutions and individuals investing in its funds.

Broaden your view: Is Bain Capital a Private Equity Firm