Bain Capital Credit has crossed the $1 billion fundraising mark for its private business development company, after it amassed over $400 million for the vehicle in almost three months.
The Boston-based firm’s Bain Capital Specialty Finance has raised $1.26 billion, according to a Tuesday filing with the US Securities and Exchange Commission. The firm’s most recent disclosure, in its first-quarter report submitted to the SEC in May, showed $842.2 million as of 31 March, meaning Bain brought in $412.92 million from April to the end of June.
The BDC launched in early October with approximately almost $550 million in capital. The firm’s net asset value per share was $20.24 as of 31 March, according to quarterly report.
A representative for the company could not be reached for comment.
A source familiar with the situation said Bain launched the BDC to access two classes of investors: offshore investors looking to access mid-market direct lending while avoiding commingled funds for regulatory reasons; and onshore tax-exempt investors limited by the use of leverage at the fund level, as Private Debt Investor previously reported.
The fair value of the firm’s investments was at $194.54 million across 25 portfolio companies, as of 31 March. Bain’s portfolio consists almost exclusively of first lien senior secured loans, which make up 92.9 percent, or $180.67 million, of its investments, with senior secured loans comprising the remaining 7.1 percent, or $13.88 million.
High-tech industries was the sector to which Bain had the largest exposure, comprising 20.4 percent of its holdings. The second and third largest positions were in capital equipment and media companies, consisting of 12.1 percent and 11.6 percent, respectively. Some 93 percent of its investments were in US-based companies, while 4.9 percent and 2.1 percent were in the UK and the Netherlands, respectively.
The BDC targets companies posting between $10 million and $150 million in EBITDA, according to the registration statement. The venture may also invest in mezzanine and other junior debt, along with snapping up debt in the secondary market.