With plans of a new global special situations fund Bain Capital to raise $4B

A US-based investment firm, Bain Capital, eyeing an opportunity to acquire troubled investments in a wide range of asset classes, is seeking to raise $4 billion for a new global “Special Situations Fund”, two sources reported on the matter.

According to the sources, who requested anonymity as these discussions were confidential, the investment firm kicked off the fundraising at the beginning of 2023 and has successfully raised $2 billion of the $4 billion goal for the new fund.

The sources added that Bain Capital was targeting a final close on fundraising by the end of 2023.

After securing $3.2 billion in commitments, Bain Capital had previously set up a successful global fund in 2020. Named the Bain Capital Distressed and Special Situations Fund, the program previously used to be a part of Bain Capital’s credit business.

After being carved out of the umbrella of the credit unit with its own independent team, the Special Situations Strategy of Bain Capital is now its own standalone business.

While the environment has made it difficult for buyout firms to make deals this year, distressed funds have increased their fundraising efforts in recent years in preparation for a downturn after an extended period of economic expansion.

According to Dealogic data, global buyout deals decreased 62% from the same period last year, totaling $139 billion this year.