Firms & Funds

Bain launches impact-investing fund led by ex-Gov. Patrick

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Bain Capital, private equity, impact investing, Deval Patrick
Former Massachusetts Gov, Deval Patrick receives an honorary Doctor of Laws degree during the 364th Commencement Exercises at Harvard University in Cambridge on May 28, 2015. Photo courtesy Reuters/Brian Snyder
  • Patrick joined Bain last year to launch impact business
  • Bain’s business targets overlooked, distressed areas
  • Impact-investment volume reached $15.2 bln in 2015

Bain Capital launched a fund to be run by former Massachusetts Gov. Deval Patrick that will invest across asset classes to target distressed communities, according to a regulatory filing.

The fund, Bain Capital Double Impact Fund, is part of the impact-investing strategy at Bain created by Patrick, who joined Bain in 2015.

The firm has not been public with details, but the filing of a Form D fundraising document with the SEC July 29 indicates Bain is raising a fund around the strategy. Patrick is the lone executive listed on the Form D.

It’s not clear how much Bain is targeting for the fund or whether it’s raised any money yet. A Form D filing can indicate a fund has held a first close, but it’s unclear whether that’s the case with the Double Impact fund.

Making a difference

Impact investing is a broad term that can include areas of social and environmental impact like education, access to finance, health, small business, renewable energy and clean tech.

Bain’s impact business was slated to focus on investments that “improve the overall quality of life or that create economic opportunities in communities which are economically distressed, overlooked by investors or otherwise in need of investment capital,” Bain said in a statement at the time.

Investments would focus mostly on the U.S. but would not be limited by geography, the firm said.

Impact-investing volume in 2015 reached $15.2 billion across 7,551 transactions, the 2016 Annual Impact Investor Survey from the Global Impact Investing Network shows. The survey captured data from 158 impact investors.

Respondents planned to invest 16 percent more in 2016, the survey said.

Patrick decided to forgo a reelection bid for the Massachusetts governor’s office in 2014, saying he would head back into the private sector. Earlier this year Patrick’s name was floated as one of several potential vice-presidential running mates for Hillary Clinton.

Action Item: Global Impact Investing Network’s investment report: https://thegiin.org/knowledge/publication/annualsurvey2016

Former Massachusetts Gov. Deval Patrick receives an honorary Doctor of Laws degree during the 364th Commencement Exercises at Harvard University in Cambridge on May 28, 2015. Photo courtesy Reuters/Brian Snyder