Bain closes on $3.2bn for distressed, special sits – exclusive

Bain Capital Credit has beaten a target of $3bn for the third fund in its global distressed and special situations series.

Boston-headquartered fund manager Bain Capital Credit has posted a final close of $3.2 billion for its Bain Capital Distressed and Special Situations Fund 2019, which was launched last year, according to market sources.

The firm itself declined to comment and no information was immediately available regarding either the target return for the fund or the management fee and carry being charged.

The DSS 2019 fund, which had a target of $3 billion, follows predecessor versions with 2013 and 2016 vintages. The 2013 fund closed on $2.5 billion including separately managed accounts, and the 2016 fund closed on $2.85 billion including SMAs.

Prior to these specialist vehicles, the firm had invested in distressed and special situations through multi-strategy platforms since 2002.

It has been backed by existing and new investors as well as a significant investment from Bain Capital employees. Two known investors in the fund are Pennsylvania Public School Employees’ Retirement System and Ohio State Highway Patrol Retirement System.

The fund has a global remit and will target US distress, European loan portfolio purchases and Asia-Pacific special situations.

Bain is understood to be particularly bullish on the Asia-Pacific opportunity, which it views as immature with inefficiencies in the credit and capital markets and a lack of competition. The firm has offices in Singapore, Hong Kong, Guangzhou, Mumbai, Sydney, Melbourne and Seoul.

In India, Bain has a joint venture with Mumbai-based conglomerate Piramal Group, which invests debt and equity into distress-for-control opportunities.

Bain has a 72-strong investment team globally covering distressed and special situations.