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Bain Near $2.5B First Close On Fund XI

Firm: Bain Capital LLC

Fund: Bain Capital Fund XI

Target: $6 billion

Amount Raised: $2.5 billion

Bain Capital LLC is close to securing commitments from investors for about half the $6 billion target for its latest private equity fund, two people familiar with the matter told sister news service Reuters.

The Boston-based buyout firm is finalizing subscriptions from investors for close to $2.5 billion for Bain Capital Fund XI, the people said. This does not include a $600 million commitment from the firm’s fund managers.

Commitments from investors came in last week and the first close is currently under way, one of the people said, adding that Bain is looking to wrap up fundraising by fall. Buyouts has previously reported that the firm is seeking $7 billion for the fund.

The people spoke on condition of anonymity because the fundraising process is confidential. A Bain spokesman declined to comment.

When it started fundraising last May, Bain offered investors options on how to pay fees into Fund XI, either the standard 2 percent management fee and a 20 percent carried interest with a 7 percent hurdle rate, or 1 percent management fee and 30 percent carried interest with a 10 percent hurdle rate, people familiar with the matter told Reuters at the time. Its previous global buyout fund, Fund X, raised $10.7 billion in 2008.

Greg Roumeliotis is a correspondent for Reuters in New York.