Bain Capital has reportedly closed a $2bn special situations fund for the Asia Pacific region, doubling the size of its $1bn predecessor.
The new vehicle was the largest of its kind in Asia and also beat its target fund size of $1.5bn, according to Reuters, which cited firm managing director Barnaby Lyons.
Lyons said the Asia Pacific fund will invest across a range of assets but mainly focusing on real estate, financial services and the aviation sector.
Bain Capital now has $5bn of capital to invest in Asia Pacific across debt capital structures, structured capital deals, distressed assets, physical assets and growth equity.
“Our strategy is deliberately regional and very opportunistic,” Lyons said. “We aim to partner with companies and entrepreneurs to fill specific capital gaps as they arise. Whether it’s the capital markets pullback in China, a growth inflection point in India, regulatory reform in Australia or ‘chaebol’-driven mergers and acquisition activity in (South) Korea.”
He said Bain has no exposure in Chinese residential real estate given the regulatory changes last year but, despite still be cautious, the firm is seeing opportunities to provide liquidity for large developer groups that have assets offshore.
Bain’s Asia special situations team has completed 65 transactions worth over $6bn, with the majority taken place over the past six years.
Private capital has flocked into special situation funds to fill up public and private market liquidity needs.
Within this week, JP Morgan AM raised $2.4bn for the final close of its second Lynstone Special Situations Fund, targeting stressed, distressed, and event driven situations in European and North American business, while CBRE Global Investment Management collected $599m for its Global Special Situations Fund together with its co-investment vehicles.
Monroe Capital launched a $500m opportunistic private credit fund last month with a focus on asset rich directly originated and secondary credit opportunities.
Non-distress special situation investor closed its fifth fund on its JPY 75bn ($574m) hard cap in April after six months in the market, representing the firm’s fastest fundraise.
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