Bain Capital Credit has closed its globally mandated distressed and special situations fund after raising more than $3 billion.
Sources familiar with the firm confirmed the total amount raised, first reported by Bloomberg yesterday (3 August). At the same time, Bain Capital announced the acquisition of three Spanish non-performing loan portfolios at a value of more than €1 billion.
The fund targets investments across the globe operating with the flexibility of providing financial support for companies in distress and special situations.
In 2014, the firm expanded its operation in Asia following the acquisition of a portfolio of loans from JPMorgan’s Global Special Opportunities fund valued at $1.3 billion. The fund was launched as an attempt to seize on the opportunities of a potential downturn in the US economy, with the energy, shipping, media and mining particularly vulnerable to a slowdown the firm said in a note to investors.
Investors in the fund include Pennsylvania Public School Employees’ Retirement System and Denver Employees Retirement Plan, according to PDI data. It’s the first private debt fund the firm closed since it rebranded from Sankaty Advisors to Bain Capital Credit in April. Sankaty was always the credit arm under Bain Capital, a Boston-headquartered investment firm.
The acquisition of Spanish NPLs were all real estate portfolios purchased from major Spanish banks. One package of loans, valued at €511 million, was purchased from Grupo Cooperativo Cajamar, which was made up of loans to property developers at various stages of bankruptcy. A €415 million package of loans were sold to the firm by Banco Sabadell, which comprised residential and commercially-backed property first lien bilateral loans to real estate developers.
Bain declined to name the bank in the third transaction, which concluded the sale of loans of repossessed residential properties and commercial real estate assets. A spokesperson for Bain declined to comment on how much it paid for the NPL portfolios.
Fabio Longo, head of Bain Capital Credit’s European NPL and real estate business, said: “Our expansion in these markets demonstrates our commitment to the region, and particularly our ability to execute complex transactions in a tight timeframe despite the challenging market conditions.”