Abu Dhabi, UAETuesday 7 July 2020

Bain Capital looking for $5bn-$7bn for new equities fund

Private equity firm has stuck with hedge fund strategy even as competitors have left the business

A reporter raises his hand to ask a question during a news conference by Bain Capital. The company has $105bn of assets under management, according to its website. Reuters
A reporter raises his hand to ask a question during a news conference by Bain Capital. The company has $105bn of assets under management, according to its website. Reuters

Bain Capital is looking to raise as much as $7 billion for a new equities fund, according to people familiar with the matter, the latest move by an alternative asset manager to broaden its investment offerings.

Josh Ross, who started running the Boston-based firm’s public equities group in 2017, is overseeing the new fund along with the firm’s $1.3 billion global hedge fund, said the people, who asked not to be identified because the information is private.

A Bain representative declined to comment.

Private equity firms including Bain are becoming one-stop shops, offering bets in real estate, credit, and technology. They’re creating more options for institutional investors such as endowments and pension funds, which have been pouring money into the industry and seeking longer-term investments that still produce double-digit annual returns.

Read More

While firms like Carlyle Group, Apollo Global Management and Blackstone Group have scaled back or left the hedge fund business, Bain has stuck with it — last year its global partners fund rose 17 per cent, according to documents seen by Bloomberg.

Bain, which oversees about $105 billion across various asset classes according to its website, is seeking to raise $5 billion to $7 billion for the new public equities vehicle over the long term, the people familiar with the matter said.

Other smaller private equity firms are already making long-only bets. Advent International set up Sunley House in 2014 to focus on public investments, while Berkshire Partners started Stockbridge Investors in 2007. That business has more than $2.5 billion of assets, according to the company’s website.

Updated: January 9, 2020 10:29 PM

SHARE

SHARE

Most Popular