Bain Starts Raising Buyout Fund With $6 Billion TargetSabrina Willmer and Jason Kelly
Bain Capital Partners LLC, the Boston-based private-equity firm co-founded by U.S. presidential candidate Mitt Romney, began raising a $6 billion fund, according to an e-mail sent to prospective investors.
The firm will spend the next six months pitching investors on Bain Capital Fund XI, and will seek to gather initial commitments by next February, Bain said in the e-mail sent July 11, a copy of which was obtained by Bloomberg News. Alex Stanton, a spokesman for Bain, declined to comment.
The firm, which Romney helped create in 1984, is pushing ahead with its latest flagship fund even as the presidential election brings scrutiny to the former Massachusetts governor’s time at Bain, as well as the broader private-equity industry. Bain this month finished raising a separate fund for investments in Asia.
Bain employees will contribute a minimum of 10 percent of the fund’s capital, or $600 million, to the flagship pool, according to the e-mail. The balance of the money will come from investors, also known as limited partners, comprising a mix of college endowments, foundations, wealthy families and public pension plans.
In addition to the $6 billion in commitments, Bain will offer investors the chance to put additional money into deals requiring more than $400 million in equity, according to the e-mail. Most of the fund’s investments are likely to require equity commitments of $200 million to $500 million.
The firm’s prior fund, Bain Capital Fund X, gathered about $10 billion in 2008.
Bain, which has invested in companies such as donut purveyor Dunkin’ Brands Group Inc. and Toys “R” Us Inc., gathered $2.3 billion for the latest Asia fund, including about $300 million from Bain employees. Its previous Asia fund was $1 billion.
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