In case you haven’t been paying attention to the Romney
headlines, it’s America's best-known private equity firm and it’s returning to
market. Fortune reports that Bain
Capital has told investors that it plans to begin raising its eleventh general
buyout fund sometime next month, according to sources familiar with the
situation. The target will be $6 billion, plus a $2 billion "sidecar"
fund for co-investments on large deals.
This is significantly smaller than the $10 billion+ Bain
raised for its tenth fund in 2010 (plus a $1.8b sidecar), and reflects the
firm's belief that super-sized leveraged buyouts are becoming endangered
species. Particularly large take-privates. In fact, Bain began signaling such
beliefs a couple years back, when it offered LPs the opportunity to cut their
sidecar commitments in half.
At the time, Bain's sidecar kicked in when a deal's equity
check passed the $600 million mark. This time around, it will be $400
million. As in the past, Bain's own
partners will make a substantial general partner commitment. Expect it to be
around 10% of the total….
Read more about it at http://finance.fortune.cnn.com/2012/05/30/bain-raising-8-billion/?iid=SF_F_River
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