Bain Capital wants $4 billion for global special circumstances fund. Two sources claimed Bain Capital is seeking $4 billion for a worldwide “special situations fund” to buy troubled investments across asset classes.
The sources, who requested anonymity because these negotiations are classified, said Bain Capital started fundraising for the new fund at the start of the year and has raised around $2 billion.
Sources said the fund would shut by year’s end.
Bain declined to comment.
Bain Capital raised $3.2 billion for a worldwide fund in 2020. Bain Capital’s credit business housed the Bain Capital Distressed and Special Situations Fund.
Bain Capital’s special circumstances strategy is now a different firm.
Bain Capital’s new approach allows it to participate in equities, distressed assets, loan portfolios, business investments, and real estate.
Due to a difficult climate, buyout companies have slowed dealmaking this year, while distressed funds have increased fundraising in expectation of a fall after a long economic upswing.
Dealogic statistics revealed global takeover agreements fell 62% to $139 billion this year.
Rising interest rates, inflation, and a regional banking crisis are pushing default rates, margins, and financial services liquidity, offering possibilities for distressed investors.
According to PitchBook, investors like Oaktree Capital Management and MidOcean Partners have been promoting new special circumstances funds targeting struggling industries and credit-strained enterprises since last year.
Diameter Capital completed a $2.2 billion special circumstances debt fund in April, according to Prequin, the largest of its kind this year.
Bain Capital manages $16 billion in exceptional circumstances assets globally.
Bain Capital Special Situations has invested over $28 billion in over 850 acquisitions in North America, Europe, and Asia Pacific since 2002.
Last year, Bain Capital closed a $2 billion Asia Pacific “special situations fund” focused on real estate.
Reuters reported on Friday that Bain Capital is approaching the final close of its fifth and largest Asia-focused fund after raising $6 billion from worldwide investors.
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