Global private equity major Bain Capital is said to be in the market to raise $2 billion for its second Japan mid-market fund, according to a MergerMarket report.
This means Bain Capital is now targeting a combined $9 billion for its latest buyout funds, $2 billion for the Japan fund and $7 billion for Bain Capital Asia Fund VI, which was earlier reported by Bloomberg.
Bain closed its first Japan mid-cap PE fund at 110 billion yen (about $1 billion at the time) in April 2021. Bain Capital Asia Fund V, on the other hand, closed at $7.1 billion in November 2023, exceeding a $5 billion target.
The PE major is also in the market to raise $2.1 billion for Bain Capital Special Situations Asia III.
The US investment firm’s fundraising comes as Southeast Asia’s PE scene is entering choppier waters as the turbulence caused by Trump’s tariffs injects fresh volatility into global markets.
The region had witnessed a rebound in new PE dealmaking in 2024, which reached $15 billion in value, per the Southeast Asia Private Equity 2024 in Review report released by Bain & Company. This marked a 67% year-on-year increase from $9 billion in 2023, driven by major infrastructure investments like KKR’s transaction in ST Telemedia Data Centres and BlackRock’s deal in Ditrolic Energy.
Private equity firms typically launch successor funds within two to three years of closing a prior vehicle. After the five-year investment period ends, the typical 2% fee on committed capital often decreases to about 0.5% and is charged only on invested capital.
In February, Bain Capital was in the final stages of negotiations with the promoters of Kerala-based Mannapuram Finance to buy a controlling stake in the gold loan provider.
As a global private investment giant, Bain Capital operates a pan-Asia platform rather than segmented country-specific funds, reflecting its diversified investment strategy which ensures a balanced allocation of capital across the region.
Beyond Southeast Asia, the firm also invests actively in Japan, China, India, Australia, and South Korea. Bain Capital pioneered the value-added investment approach.
