Not a lot of discussion on here about them in the last few years. Bloomberg just reported that they’re now targeting a $9B fundraise + partner commits, so modestly bigger than their last fund. Looks like performance lately has also been good, so presumably they’re taking a restrained approach? Curious if anyone has additional info or perspective into how they’re doing as a firm.

There is a civil way of determining this debate. CALSTRS Performance (Q3 ’19): Bain Capital Fund IX, 2006: 6.2% IRR Bain Capital IX Co-Investment Fund, 2006: 9.6% IRR Bain Capital Fund X, 2008: 9.9% IRR Bain Capital X Co-Investment Fund, 2008: 3.0% IRR New Mexico Performance (Q2 ’19): Bain Capital Fund XI, 2014: 27% IRR Bain Capital Fund XII, 2017: NM The story is that Bain Cap struggled through the ’08 Recession (~3rd quartile funds) but has since somewhat recovered. The Negatives: A big negative sign is that many pension funds (California – CALSTRS, LA – LAFPP, NYC Fire, PA – PSERS) end

Thoughts on Bain Capital PE?

TheBuellerBanker

I do not work at Bain. The people I've worked with there are incredibly sharp and knowledgeable, particularly in industry w/r/t portcos and potential investments. Very impressive group and to my knowledge, high performing funds though I would check LP pages to get a good gauge

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Analyst 1 in IB-M&A

The reality is, in 2020, these guys are a slightly above average UMM fund. Returns have declined and fundraising has slowed significantly. It really can't be overstated enough how big of a deal it is that their recent fundraise is nearly failing to eclipse their prior fund, that is a huge red flag in the world of PE. If I were a top associate candidate I would think twice, this isn't 2005 anymore.

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APAE

Redacted.

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I am permanently behind on PMs, it's not personal.

APAE

Also.

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I am permanently behind on PMs, it's not personal.

Prospect in HF - Other

this guy is giving such false information. if you were lucky enough to get to bain, you wouldn’t be looking to jump to another PE fund unless you needed to

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VP in PE - LBOs

This is completely inaccurate.

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Analyst 1 in

Top shop but you’ll work VERY long hours including on weekends

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Authored by: Certified Investment Banking Professional - 1st Year AssociateCertified Investment Banking Pro

Nouveau Richie

Analyst 1 in :
Top shop but you’ll work VERY long hours including on weekends

Yeah, but, you know, the upside of that is you get to work at Bain fucking Capital.

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“Millionaires don't use astrology, billionaires do”

Associate 1 in PE - LBOs

Most Helpful

There is a civil way of determining this debate.

CALSTRS Performance (Q3 ’19):

Bain Capital Fund IX, 2006: 6.2% IRR
Bain Capital IX Co-Investment Fund, 2006: 9.6% IRR
Bain Capital Fund X, 2008: 9.9% IRR
Bain Capital X Co-Investment Fund, 2008: 3.0% IRR

New Mexico Performance (Q2 ’19):

Bain Capital Fund XI, 2014: 27% IRR
Bain Capital Fund XII, 2017: NM

The story is that Bain Cap struggled through the ’08 Recession (~3rd quartile funds) but has since somewhat recovered.

The Negatives:

A big negative sign is that many pension funds (California – CALSTRS, LA – LAFPP, NYC Fire, PA – PSERS) ended their Bain Capital relationship and did NOT re-invest in the 2014 and 2017 funds (you won’t find these funds listed on their pension docs and returns summaries, even though most were invested in all previous funds).
For the 2017 fund raise, $1.4bn / $9.4bn of the fund came from the firm’s employees (e.g. Joshua Beckenstein) – in my experience, that ~15% of the fund is a large number. Generally I’ve seen closer to 5-10% (really closer to 5%). Suggests some challenges in fundraising.
Some media reports suggested the last fund had a target of >$10n but stopped at $9.4bn.
There have been some hard-hitting high-profile bankruptcies: iHeartRadio ~$18bn, ToyRUs $6.6bn, Guitar Center $2bn (approx. TEVs). While this really only affects their ‘06/’08 funds, the public nature of these business losses has likely made some pension funds queasy. Pension funds have rightfully become extra conscious of PR risk.
Some recent portfolio companies aren’t looking great either – Virgin Voyages (COVID effect on travel), US Renal Care, US Surgery Partners (COVID effect on elective procedures), Varsity Brands? (apparel).

The Positives:

Having said that, will Bain Cap have any difficulty raising a >$9bn fund? No. The brand is too strong, the demand for alternatives/private equity is too high so there will always be pension funds/SWFs/endowments who will be takers.
Bain Cap has clearly refocused, its last fund is doing really well and it has done some successful recent sales – Canada Goose, Waystar $2.7bn – and investments $5.7bn Zelis, $2bn Rocket Software. Healthcare, in particular, has always been a strong suit (e.g. HCA).
Bain Cap still has very smart people, a lot to teach and excellent business school placement – legacy brand names are sticky.

From an Associate’s perspective, still a great experience but no harm in being a little skeptical that golden brand names have their limitations.

Sources: https://www.calstrs.com/sites/main/files/file-attachments/private-equit… https://www.nmerb.org/pdfs/2019-01-10_NMERB%202Q19%20PE%20Report%20FINA… https://pitchbook.com/news/articles/bain-capital-approaches-10b-for-lat… https://pitchbook.com/news/articles/bain-capital-back-under-the-microsc… https://pitchbook.com/news/articles/this-day-in-buyout-history-deluged-… https://www.baincapitalprivateequity.com/portfolio#getTop757