Bain Capital closed its 11th North American private equity fund with $7.3 billion, which includes an $800 million investment by Bain executives, said sources familiar with the fund.
Bain Capital XI’s target was $6 billion with a $7.5 billion hard cap. It took Bain Capital executives a year and a half to raise the 11th fund. Bain’s new North American buyout fund is smaller than the last fund, the $10 billion Bain Capital X. The sources said Bain Capital’s new fund is the perfect size to invest in large- and midmarket buyouts.
One of the two most popular fee options offered to investors in Bain’s 11th fund is a so-called performance structure, which includes a 0.5% management fee, 30% carried interest and no preferred return — a return a fund has to earn before Bain could get its share of profits. The other option has a 1.5% management fee, 20% carried interest and 7% preferred return, the sources said.
Investors in the fund include the $58.3 billion Virginia Retirement System, Richmond, and $10.9 billion New Mexico Educational Retirement Board, Santa Fe.
