Bain Capital nears final close of record $10.5 billion Asia fund, sources say

By Kane Wu

HONG KONG, March 10 (Reuters) - Bain Capital is close to wrapping up fundraising for its sixth pan-Asia private equity fund after raising about $10.5 billion, two people with knowledge of the matter said Tuesday, well exceeding its $7 billion target.

The firm has bagged $9 billion from fund investors, or the so-called limited partners, and plans to contribute $1.5 billion of its own capital, making the vehicle its largest Asia-focused fund to date, one of the people said.

The sources declined to be named as the information is private.

Bain Capital has separately raised about $2 billion for a buyout fund targeting mid-cap deals in Japan, the sources said.

The Boston-based investment firm declined to comment.

Bloomberg first reported the fundraising amounts on Tuesday.

STRONG INVESTOR INTEREST IN ASIA

Bain Capital's smooth fundraising underscores strong investor interest in the Asia region, particularly Japan where the firm has a heavy focus, amid market volatility and geopolitical uncertainties.

It has invested in Japanese businesses for two decades including marquee deals such as the $18 billion buyout of Toshiba Corp's memory chip business and a $5.5 billion acquisition of York Holdings, the non-core businesses of Seven & i Holdings 3382.T.

The firm, which raised $7.1 billion in its fifth pan-Asia buyout fund in 2023, also has a strong presence in Greater China and India.

The fundraising adds to a growing list of mega pan-Asia buyout funds raised by global investment firms.

Sweden's EQT EQTAB.ST has secured $11.4 billion in commitments for its new Asia-focused buyout fund, with fundraising expected to end before year-end and hit a hard cap of $14.5 billion in 2026, it said in July.

Blackstone has raised over $10 billion for its third Asia private equity fund, which has a $12.5 billion hard cap, sources have said.

KKR KKR.N has kicked off fundraising for its fifth Asia private equity fund, targeting $15 billion, Reuters reported in November.