Firm: Bain Capital LLC
Fund: Bain Capital Europe Fund IV LP
Target: $3.4 billion
Amount Raised: $2.8 billion
Bain Capital, which has offices in London, Luxembourg and Munich, appears to be capitalizing on more positive LP sentiment toward the Continent as the region continues its recovery from the sovereign debt crisis that loomed over world financial markets starting in 2009.
The Boston-based buyout firm with $75 billion in asset under management listed a first sale date of June 27 for Bain Capital Europe Fund IV, which has drawn commitments from 103 investors, according to a Form D filing. Related persons listed on the Form D include Steven Barnes, Joshua Bekenstein, John Connaughton, Paul Edgerley, Stephen Pagliuca , Michel Plantevin, Dwight Poler, Jonathan Zhu and Stephen Zide. All of these executives are listed as managing directors on Bain Capital’s website.
Among the firm’s most recent deals in Europe, Bain Capital teamed up with Advent International and ATP for the acquisition of Nets, one of the largest payment processors in Europe, in a deal that closed on July 9. Bain Capital invested in the firm out of Bain Capital Europe Fund III, according to a source familiar with the firm. The purchase price amounted to about $3.1 billion in cash, according to a statement in March when the deal was initially announced.
In another high profile European deal, Bain Capital reportedly paid about $900 million to buy home decoration retailer Maisons du Monde last year from Apax Partners, Nixen Partners and LBO France.
Europe drew a positive mention by 59 percent of investors as a region presenting the best opportunities in the current financial climate, compared to only 37 percent in 2011, according to the 2014 Preqin Global Private Equity Report. By contrast, North America drew a positive response from 54 percent of the survey, 22 percent for Asia and 11 percent for the rest of the world.
The effort behind Bain Capital Europe Fund IV comes after Bain Capital raised $5.5 billion by 2008 for the fund’s predecessor, Bain Capital Europe Fund III, according to the Thomson One private equity database. Also on the fundraising front, Bain Capital closed Bain Capital Fund XI LP, its flagship fund, at $7.3 billion in April.
The Regents of the University of California committed about $51 million in 2007 to Bain Capital Europe III, which turned in an investment multiple of 1.04x and an IRR of 1.8 percent as of June 30, 2013, according to performance data from the pension system. The Regents of the University of California had contributed $30.3 million to the fund as of the same date.
Other Bain Capital LPs—which may or may not have committed to the firm’s European fund series—include Tennessee Consolidated Retirement System and the Pennsylvania Public Schools Employees’ Retirement System, according to a Buyouts database. Denver Employees Retirement Plan is an LP for Sankaty Credit Opportunities V LP, a fund from Bain Capital’s credit affiliate Sankaty Advisors.
Also on the European fundraising front, Permira Advisors said last month it closed Permira V with $7.2 billion in commitments. The firm had cut back the target of the fund to about $6 billion from $8 billion, but ultimately approached its original goal as the fund picked up speed in recent months. Also on the European front, CVC Capital Partners Ltd raised $14.3 billion last year for CVC Capital Partners VI, a fund focused on investments in Europe and North America.