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Bain Capital

an American private investment firm based in Boston. It specialises in private equity, venture capital, credit, public equity, impact investing, life sciences, crypto, tech opportunities, partnership opportunities, special situations and real estate
Bain Capital
Leadership team

Josh Bekenstein  (Co-Chairman)

John Connaughton  (Co-Chairman)

Steve Pagliuca (Co-Chairman)

Jonathan Lavine  (Managing Partner)

Mitt Rommney (co-founder)

Number of Employees
1,000 - 20,000
Headquarters
Boston, Massachusetts, United States
Established
1984
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Summary

Bain Capital is a global private investment firm that was founded in 1984. It has approximately $165 billion in assets under management and is known for its consulting-based approach to private equity investing. The firm works closely with management teams to provide insights and improve operations in order to create value and build great businesses.

Over the years, Bain Capital has expanded its investment approach across various asset classes, including private equity, public equity, fixed income, credit, venture capital, and real estate. The firm aims to drive positive and lasting impact for companies, employees, communities, and the environment through its investments and engagements.


History

Bain Capital is a private investment firm that was founded in 1984 by former partners of the consulting firm Bain & Company. The founders of Bain Capital, including Mitt Romney, T. Coleman Andrews III, and Eric Kriss, established the firm with the goal of applying their management consulting expertise to the world of private equity investing.

The firm's early focus was on using a consulting-based approach to identify and invest in companies with significant potential for improvement and growth. This approach involved working closely with management teams to provide strategic insights and operational expertise to drive value creation within portfolio companies.

In its early years, Bain Capital raised several funds to support its private equity investments. The first fund, known as Fund I, was raised in December 1984 with $37 million in capital. Subsequent funds followed, with Fund II raised in March 1987 ($106 million), Fund III in June 1989 ($60 million), Fund IV in February 1993 ($300 million), and Fund V in March 1995 ($500 million).

As Bain Capital gained traction and success, it expanded its investment activities beyond private equity. In 1996, the firm founded Bain Capital Public Equity to focus on public equity investments. In the same year, Bain Capital Credit was established to pursue credit investments. The firm further broadened its investment platform by launching Bain Capital Ventures, a venture capital arm, in May 2000.

Over the years, Bain Capital continued to grow and diversify its investment strategies. It opened offices in various cities worldwide, including London, New York, Shanghai, Tokyo, Hong Kong, Sydney, Mumbai, and Seoul, among others. The firm expanded into new asset classes, such as real estate and life sciences, by establishing Bain Capital Real Estate in February 2018 and Bain Capital Life Sciences in June 2016.

Bain Capital's growth and success led to the raising of larger funds over time. For example, Fund VI was raised in September 1998 with $1.2 billion, Fund VII in December 2000 with $3.1 billion, Fund VIII in March 2004 with $4.1 billion, Fund IX in April 2006 with $10 billion, Fund X in October 2007 with $11.8 billion, Fund XI in March 2014 with $6.5 billion, and Fund XII in July 2017 with $8 billion.

In addition to its focus on financial returns, Bain Capital has also embraced environmental, social, and governance (ESG) considerations. In October 2020, the firm closed its second Double Impact fund, which focuses on investing in companies that generate both positive financial returns and measurable social and environmental impact.

Today, Bain Capital is recognized as one of the world's leading private investment firms, with a diverse portfolio and a global presence. The firm's investment activities span multiple sectors, including technology, healthcare, consumer products, financial services, and industrials. Bain Capital continues to leverage its consulting-based approach and industry expertise to create value and make a lasting impact on its investors, portfolio companies, and the communities in which it operates.


Investment criteria

Bain Capital follows a disciplined investment approach and criteria when evaluating potential investment opportunities. While specific criteria may vary depending on the asset class and sector, there are some common factors that Bain Capital considers when making investment decisions. Here are the key elements of Bain Capital's investment criteria:

  • Strong Management Team: Bain Capital places great emphasis on partnering with experienced and capable management teams. They look for teams that have a track record of success, domain expertise, and a clear vision for growth. The ability of the management team to execute the investment thesis and drive value creation is a crucial factor in Bain Capital's decision-making process.
  • Market Opportunity: Bain Capital seeks investments in attractive markets with significant growth potential. They assess the market dynamics, competitive landscape, and market size to determine if there is a favourable environment for the company to achieve sustainable growth and market leadership. They look for companies that can benefit from industry trends, technological advancements, or changing consumer behavior.
  • Competitive Advantage: Bain Capital looks for companies that have a sustainable competitive advantage, such as proprietary technology, strong brand recognition, intellectual property, or unique market positioning. They seek businesses that can withstand competitive pressures and have a defensible market position, providing a foundation for long-term success.
  • Growth Potential: Bain Capital seeks investments with substantial growth prospects. They evaluate the company's historical and projected financial performance, revenue growth, and profitability. They look for opportunities to accelerate growth through various means, such as expanding into new markets, introducing new products or services, or implementing operational improvements.
  • Cash Flow Generation: Bain Capital considers the cash flow generation potential of a business. They analyze the company's historical and projected cash flows, assessing its ability to generate consistent and strong cash flow over time. Positive cash flow helps support growth initiatives, reduces financial risks, and provides opportunities for value creation.
  • Value Creation Potential: Bain Capital focuses on creating value in its investments. They seek opportunities where they can bring their operational expertise, strategic insights, and network of resources to enhance the company's performance and drive operational improvements. Value creation may involve initiatives such as operational optimization, strategic acquisitions, expansion into new markets, or improving efficiency and scalability.
  • Alignment of Interests: Bain Capital looks for alignment of interests with the company's management team and other stakeholders. They often co-invest alongside management and seek to align incentives to foster a strong partnership. Bain Capital's long-term perspective and patient capital approach contribute to fostering alignment and supporting the company's growth and success.

It's important to note that these investment criteria are not exhaustive and may vary depending on the specific investment strategy, asset class, and market conditions. Bain Capital's investment professionals conduct thorough due diligence and analysis to assess the fit and potential of each investment opportunity, ultimately aiming to create lasting value for all stakeholders involved.


Values

Bain Capital is guided by a set of values that underpin its approach to investing and shaping the companies it partners with. These values serve as a foundation for the firm's culture, decision-making process, and the way it conducts business. Here are the core values of Bain Capital:

  • Integrity and Ethical Behavior: Bain Capital places a strong emphasis on integrity and ethical behaviour in all aspects of its operations. The firm is committed to maintaining the highest standards of professionalism, honesty, and transparency. It seeks to build trust and long-term relationships with its investors, portfolio companies, employees, and other stakeholders.
  • Partnership and Collaboration: Bain Capital values partnerships and collaboration. It believes that strong relationships with management teams, investors, and other stakeholders are essential to achieving long-term success. The firm works closely with its portfolio companies, leveraging its industry expertise and network of resources to support their growth and create value. Bain Capital aims to foster a collaborative and inclusive environment where diverse perspectives are valued and teamwork is encouraged.
  • Results-Oriented and Performance-Driven: Bain Capital has a results-oriented mindset and a focus on achieving superior investment performance. The firm is driven by a commitment to delivering value and generating attractive returns for its investors. It sets high standards for itself and its portfolio companies, continuously seeking to improve operational efficiency, drive growth, and enhance shareholder value.
  • Entrepreneurial Spirit and Innovation: Bain Capital embraces an entrepreneurial spirit and values innovation. The firm actively seeks out opportunities that can disrupt industries, drive technological advancements, and create new business models. It encourages creativity, flexibility, and a willingness to take calculated risks. Bain Capital recognizes that innovation and adaptability are critical in an evolving global economy.
  • Long-Term Perspective: Bain Capital takes a long-term perspective in its investments. The firm aims to create sustainable value and lasting impact over time, rather than focusing solely on short-term gains. It recognizes that building successful businesses requires patience, strategic vision, and a commitment to long-term value creation. Bain Capital seeks to support the growth and development of its portfolio companies, often over extended investment horizons.
  • Social Responsibility and Positive Impact: Bain Capital is committed to making a positive impact on society and the communities in which it operates. The firm actively considers environmental, social, and governance (ESG) factors in its investment decisions and seeks to promote responsible business practices. Through initiatives such as the Bain Capital Double Impact Fund, the firm pursues investments that generate both financial returns and measurable social and environmental outcomes.

Mission

Bain Capital's mission is to create a lasting impact for its investors, teams, businesses, and the communities in which they operate. The firm aims to achieve this mission through its investment and engagement activities, guided by a set of core principles. These principles form the foundation of Bain Capital's approach to business and shape its decision-making processes.


Portfolio

Bain Capital manages a diverse and extensive portfolio of investments across various asset classes, including private equity, public equity, credit, venture capital, and real estate. The firm's portfolio consists of companies from a wide range of sectors, industries, and geographies. Here are some notable aspects of Bain Capital's portfolio:

  • Private Equity: Bain Capital's private equity portfolio includes investments in companies across industries such as healthcare, technology, consumer products, industrials, and financial services. The firm partners with management teams to drive growth, operational improvement, and value creation. Notable investments in the private equity space have included companies like Domino's Pizza, Burger King, Weather Channel, and Bright Horizons Family Solutions.
  • Public Equity: Bain Capital manages a portfolio of public equity investments, which involves investing in publicly traded companies. The firm leverages its expertise in fundamental research and analysis to identify undervalued or high-growth potential stocks. This allows Bain Capital to participate in the performance of public markets and generate returns for its investors.
  • Credit: Bain Capital's credit portfolio focuses on investments in debt instruments, such as leveraged loans, high-yield bonds, and distressed assets. The firm seeks to capitalize on opportunities in the credit markets by providing financing solutions to companies and generating attractive risk-adjusted returns. Bain Capital's credit investments span various industries and include both primary and secondary market transactions.
  • Venture Capital: Bain Capital's venture capital arm, Bain Capital Ventures, invests in early-stage and growth-stage companies with high-growth potential. The firm supports entrepreneurs and innovative businesses across sectors such as technology, healthcare, and consumer products. Bain Capital Ventures provides capital, strategic guidance, and access to its network of resources to help portfolio companies scale and succeed.
  • Real Estate: Bain Capital Real Estate focuses on investments in the commercial real estate sector, including office buildings, residential properties, hotels, and industrial facilities. The firm seeks to identify attractive real estate opportunities and create value through property acquisition, development, and active management strategies. Bain Capital Real Estate's portfolio includes properties in major markets around the world.

References
Bain Capital
Leadership team

Josh Bekenstein  (Co-Chairman)

John Connaughton  (Co-Chairman)

Steve Pagliuca (Co-Chairman)

Jonathan Lavine  (Managing Partner)

Mitt Rommney (co-founder)

Number of Employees
1,000 - 20,000
Headquarters
Boston, Massachusetts, United States
Established
1984
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