Bain targets $1bn for its first credit fund in Asia

The company’s credit unit completed several major transactions in Asia Pacific last year from global funds, totaling over $1 bn.

Global private investment firm Bain Capital is introducing its first Asia-focused credit fund targeting $1 billion.

The fund is expected to launch in the first half of 2017 looking at private credit investment in special situations in Asia. These include distressed debt and direct lending opportunities, according to sources familiar with the matter.

The firm declined to comment.

Bain Capital has always been an active investor in Asia’s private credit space. The Bain Capital Credit Debt and Special Situations team invested over $1 billion in special situations across Asia Pacific last year through its global funds.

According to sources close to the firm, Bain Capital acquired a $130 million portfolio of NPLs and distressed equity positions in Southeast Asia and India from a global bank.

The company also entered into a $1 billion partnership with Indian conglomerate Piramal Enterprises to invest in distressed assets in India.

It also bought GE Capital's commercial lending and leasing portfolios in Australia and New Zealand in a deal valued at A$2 billion ($1.5 billion, €1.4 billion), according to the sources mentioned above.

On the global front, the firm currently has one of the most established private credit platforms. The company expanded its credit services with the launch of Bain Capital Credit’s business development company (BDC) last year. The unit raises capital from stock offerings to invest in primarily senior positions in the capital stack with a first lien or second lien on collateral, in companies posting between $10 million and $150 million in EBITDA.

Bain Capital Credit has invested in the capital structure and across the spectrum of credit strategies for 15 years, including leveraged loans, high-yield bonds, distressed debt, private lending, structured products, non-performing loans and equities.