Bain Capital is seeking to raise $4 billion for a new global "special situations fund" as the US firm sees an opportunity to snap up distressed investments in a broad range of asset classes, two people familiar with the matter said, Kane Wu and Anirban Sen reported for Reuters.
Photo Insert: Bain Capital has adopted more flexibility in deploying capital and is investing in a range of asset classes, including equity, distressed assets, loan portfolios, corporate investments, and real estate.
Bain Capital kicked off the fundraising at the start of the year and has already raised about $2 billion for the new fund, said the sources, who requested anonymity as these discussions are confidential.
The firm is targeting a final close of the fund by the end of the year, the sources added.
In 2020, Bain Capital set up a previous global fund after securing $3.2 billion in commitments. The program was previously called Bain Capital Distressed and Special Situations Fund and used to sit within Bain Capital's credit business.
Bain Capital's special situations strategy is now a standalone business, after being carved out with an independent team outside the umbrella of the credit unit.
As part of the new strategy, Bain Capital has adopted more flexibility in deploying capital and is investing in a range of asset classes, including equity, distressed assets, loan portfolios, corporate investments, and real estate.
While dealmaking involving buyout firms has slumped this year due to a challenging environment, distressed funds have accelerated fundraising efforts over the past few years in anticipation of a downturn following a prolonged period of economic expansion.
Global buyout deals totaled $139 billion this year, down 62% from the same period a year ago, Dealogic data showed.