This article is about the investment tauten. For the management consult company, see Bain & Company
Bain Capital is an american private investing firm based in Boston, Massachusetts. It specializes in private equity, venture capital, credit, public equity, impingement invest, life sciences, and real estate of the realm. Bain Capital invests across a compass of industry sectors and geographic regions. As of 2022, the firm managed more than $ 155 billion of investor capital. [ 2 ] The firm was founded in 1984 by partners from the consulting firm Bain & Company. [ 3 ] The company is headquartered at 200 Clarendon Street in Boston, Massachusetts, with 22 offices in North America, Europe, Asia, and Australia. [ 4 ] [ 5 ] [ 6 ]
Since its establishment it has invested in or acquired hundreds of companies including AMC Theatres, Artisan Entertainment, Aspen Education Group, Apex Tool Group, Brookstone, Burger King, Burlington Coat Factory, Canada Goose, DIC Entertainment, Domino ‘s Pizza, DoubleClick, Dunkin ‘ Donuts, D & M Holdings, Guitar Center, Hospital Corporation of America ( HCA ), iHeartMedia, ITP Aero, KB Toys, Sealy, Sports Authority, Staples, Toys “ R ” Us, Virgin Australia, Warner Music Group, Fingerhut, The Weather Channel, and Apple Leisure Group, which includes AMResorts and Apple Vacations. [ 7 ] The company, and its actions during its first 15 years, became the subject of political and media examination as a solution of co-founder Mitt Romney ‘s late political career, particularly his 2012 presidential campaign. [ 8 ] [ 9 ]
- 1 history.
- 2 Businesses and affiliates.
- 3 Appraisals and critiques.
- 4 noteworthy current and former employees.
- 5 Investments veranda.
- 6 References.
- 7 bibliography.
1984 initiation and early history.
Bain Capital was founded in 1984 by Bain & Company partners Mitt Romney, T. Coleman Andrews III, and Eric Kriss, after Bill Bain had offered Romney the casual to head a new venture that would invest in companies and apply Bain ‘s consulting techniques to improve operations. [ 10 ] In addition to the three founding partners, the early team included Fraser Bullock, Robert F. White, Joshua Bekenstein, Adam Kirsch, and Geoffrey S. Rehnert. [ 11 ] Romney initially had the titles of president [ 12 ] and managing general partner [ 13 ] [ 14 ] or manage partner. [ 15 ] He late became referred to as managing director [ 16 ] or CEO [ 17 ] arsenic well. He was besides the lone stockholder of the tauten. [ 18 ] At the get down, the firm had fewer than ten employees. [ 19 ] In the face of incredulity from electric potential investors, Romney and his partners spent a year raising the $ 37 million in funds needed to start the newly operation. [ 19 ] [ 20 ] [ 21 ] [ 22 ] Bain partners put in $ 12 million of their own money and sourced the rest from affluent individuals. [ 23 ] early investors included Boston substantial estate mogul Mortimer Zuckerman and Robert Kraft, the owner of the New England Patriots football team. [ 21 ] They besides included members of elect Salvadoran families such as Ricardo Poma whose capital fled the area ‘s civil war. [ 24 ] They and other affluent latin Americans invested $ 9 million chiefly through offshore companies registered in Panama. [ 23 ] While Bain Capital was founded by Bain executives, the firm was not an affiliate or a division of Bain & Company but rather a wholly classify company. initially, the two firms shared the like offices—in an agency column at Copley Place in Boston [ 25 ] —and a like border on to improving business operations. however, the two firms had put in place sealed protections to avoid sharing data between the two companies and the Bain & Company executives had the ability to veto investments that posed likely conflicts of matter to. [ 26 ] Bain Capital besides provided an investment opportunity for partners of Bain & Company. The firm initially gave a cut of its profits to Bain & Company, but Romney former persuaded Bill Bain to give that astir. [ 27 ]
The Bain Capital team was initially reluctant to invest its capital. By 1985, things were going ailing enough that Romney considered closing the operation, returning investors ‘ money to them, and having the partners go back to their old positions. [ 28 ] The partners saw watery spots in sol many likely deals that by 1986, very few had been done. [ 29 ] At first, Bain Capital focused on venture capital opportunities. [ 29 ] One of Bain ‘s earliest and most luminary speculation investments was in Staples, Inc., the agency supply retailer. In 1986, Bain provided $ 4.5 million to two supermarket executives, Leo Kahn and Thomas G. Stemberg, to open an office supply supermarket in Brighton, Massachusetts. [ 30 ] The aggressive retail chain went public in 1989 ; [ 31 ] by 1996, the company had grown to over 1,100 stores, [ 32 ] and as of fiscal year-end January 2012, Staples reached over $ 20 billion in sales, closely $ 1.0B in net income, 87,000 employees, and 2,295 stores. [ 33 ] Bain Capital finally reaped a closely septuple refund on its investment, and Romney sat on the Staples board of directors for over a decade. [ 19 ] [ 22 ] [ 29 ] Another very successful investment occurred in 1986 when $ 1 million was invested in checkup equipment godhead Calumet Coach, which finally returned $ 34 million. [ 34 ] A few years late, Bain Capital made an investment in the technology research outfit the Gartner Group, which ended up returning a 16-fold derive. [ 34 ] Bain invested the $ 37 million of capital in its first fund in twenty companies and by 1989 was generating an annualized return in excess of 50 percentage. By the end of the decade, Bain ‘s second gear store, raised in 1987 had deployed $ 106 million into 13 investments. [ 35 ] As the firm began organizing around funds, each such investment company was run by a particular general partnership—that included all Bain Capital executives angstrom well as others—which in turn was controlled by Bain Capital Inc., the management company that Romney had entire ownership control of. [ 36 ] As CEO, Romney had a final say in every distribute made. [ 37 ]
Beginning in 1989, the firm, which began as a venture capital reference investing in start-up companies, adjusted its scheme to focus on leverage buyouts and emergence capital investments in more fledged companies. [ 38 ] Their model was to buy existing firms with money largely borrowed against their assets, partner with existing management to apply Bain methodology to their operations ( rather than the hostile takeovers practiced in other leverage buyout scenarios ), and sell them off in a few years. [ 21 ] [ 29 ] Existing CEOs were offered large equity stakes in the march, owing to Bain Capital ‘s impression in the emerging representation theory that CEOs should be bound to maximizing stockholder value rather than other goals. [ 22 ] By the end of 1990, Bain had raised $ 175 million of capital and financed 35 companies with combined revenues of $ 3.5 billion. [ 39 ] In July 1992, Bain acquired Ampad ( primitively American Pad & Paper ) from Mead Corporation, which had acquired the company in 1986. Mead, which had been experiencing difficulties integrating Ampad ‘s products into its existing product lines, generated a cash advance of $ 56 million on the sale. [ 40 ] Under Bain ‘s possession, the company enjoyed a significant increase in sales from $ 106.7 million in 1992 to $ 583.9 million in 1996, when the caller was listed on the New York Stock Exchange. Under Bain ‘s possession, the company besides made a number of acquisitions, including writing products party SCM in July 1994, stigmatize names from the american trade and Production Corporation in August 1995, WR Acquisition and the Williamhouse-Regency Division of Delaware, Inc. in October 1995, Niagara Envelope Company, Inc. in 1996, and Shade/Allied, Inc. in February 1997. [ 41 ] Ampad ‘s tax income began to decline in 1997 and the company laid off employees and closed production facilities to maintain profitableness. employment declined from 4,105 in 1996 to 3,800 in 2000. [ 42 ] The caller ceased deal on the New York stock change on December 22, 2000 [ 43 ] and filed for bankruptcy in 2001. At the time of the bankruptcy, Bain Capital held a 34.9 % equity ownership pastime in the caller. [ 44 ] The assets were acquired in 2003 by Crescent Investments. Bain ‘s eight years ‘ of affair in Ampad is estimated to have generated over $ 100 million in profits ( $ 60 million in dividends, $ 45–50 million from the proceeds from broth issued after the company went populace, and $ 1.5-2 million in annual management fees ). [ 45 ] In 1994, Bain acquired Totes, a producer of umbrellas and overshoes. [ 46 ] Three years by and by, Totes, under Bain ‘s ownership, acquired Isotoner, a producer of leather gloves. [ 47 ] Bain, in concert with Thomas H. Lee Partners, acquired Experian, the consumer credit rating report business of TRW Inc., in 1996 for more than $ 1 billion. once known as TRW ‘s Information Systems and Services unit, Experian is one of the leading providers of credit reports on consumers and businesses in the US. [ 48 ] The company was sold to Great Universal Stores for $ 1.7 billion just months after being acquired. [ 49 ] other celebrated Bain investments of the late 1990s included Sealy Corporation, the manufacturer of mattresses ; [ 50 ] Alliance Laundry Systems ; [ 51 ] Domino ‘s Pizza [ 52 ] and Artisan Entertainment. [ 53 ] much of the fast ‘s profits was earned from a relatively small number of deals, with Bain Capital ‘s overall achiever and failure rate being about even. One study of 68 deals that Bain Capital made up through the 1990s found that the firm lost money or broke tied on 33 of them. [ 54 ] Another study that looked at the eight-year period following 77 deals during the lapp time found that in 17 cases the caller went bankrupt or out of occupation, and in 6 cases Bain Capital lost all its investment. But 10 deals were very successful and represented 70 percentage of the sum profits. [ 55 ] Romney had two diversions from Bain Capital during the foremost half of the decade. From January 1991 to December 1992, [ 29 ] [ 56 ] Romney served as the CEO of Bain & Company where he led the successful turnaround of the consulting firm ( he remained managing general spouse of Bain Capital during this time ). [ 13 ] [ 14 ] In November 1993, he took a leave of absence for his abortive 1994 test for the U.S. Senate seat from Massachusetts ; he returned the day after the election in November 1994. [ 29 ] [ 57 ] [ 58 ] During that time, Ampad workers went on strike, and asked Romney to intervene ; Bain Capital lawyers asked him not to get byzantine, although he did meet with the workers to tell them he had no side of active authority in the matter. [ 59 ] [ 60 ] In 1994, Bain invested in Steel Dynamics, based in Fort Wayne, Indiana, a golden sword caller that has grown to the fifth largest in the US, employs about 6,100 people, and produces carbon paper steel products with 2010 revenues of $ 6.3 billion on steel shipments of 5.3 million tons. [ 61 ] In 1993, Bain acquired the Armco Worldwide Grinding System steel plant in Kansas City, Missouri and merged it with its steel plant in Georgetown, South Carolina to form GST Steel. The Kansas City plant had a strickle in 1997 and Bain closed the plant in 2001 laying off 750 workers when it went into bankruptcy. The South Carolina establish closed in 2003 but subsequently reopened under a different owner. At the clock time of its bankruptcy it reported $ 553.9 million in debts against $ 395.2 in assets. Bain reported $ 58.4 million in profits, the employee pension fund had a indebtedness of $ 44 million. [ 62 ] [ 63 ] [ 64 ] [ 65 ] Bain ‘s investment in Dade Behring represented a meaning investment in the checkup diagnostics industry. In 1994, Bain, together with Goldman Sachs Capital Partners completed a carveout skill of Dade International, [ 66 ] the medical diagnostics division of Baxter International in a $ 440 million skill. Dade ‘s secret equity owners merged the company with DuPont ‘s in vitro diagnostics business in May 1996 and subsequently with the Behring Diagnostics part of Hoechst AG in 1997. [ 67 ] Aventis, the successor of Hoechst, acquired 52 % of the combined company. [ 68 ] In 1999, the company reported $ 1.3 billion of tax income and completed a $ 1.25 billion leverage recapitalization that resulted in a payout to shareholders. [ 67 ] The dividend, taken together with other previous stockholder dividends resulted in an octuple return on investment to Bain Capital and Goldman Sachs. [ 34 ] [ 55 ] Revenues declined from 1999 through 2002 and despite attempts to cut costs through layoffs the party entered into bankruptcy in 2002. Following its restructure, Dade Behring emerged from Bankruptcy in 2003 and continued to operate independently until 2007 when the occupation was acquired by Siemens Medical Solutions. Bain and Goldman lost their remaining stock in the party as function of the bankruptcy. [ 69 ] By the conclusion of the ten, Bain Capital was on its way to being one of the top secret equity firms in the nation, [ 27 ] having increased its issue of partners from 5 to 18, having 115 employees overall, and having $ 4 billion under its management. [ 19 ] [ 21 ] The firm ‘s average annual return on investments was 113 percentage. [ 20 ] [ 70 ] It had made between 100 and 150 deals where it acquired and then sold a company. [ 34 ] [ 54 ] [ 55 ]
1999–2002 : Romney passing and political bequest.
Romney took a paid leave of absence from Bain Capital in February 1999 when he became the lead of the Salt Lake Organizing Committee for the 2002 Winter Olympics. [ 71 ] [ 72 ] The decision caused convulsion at Bain Capital, with a baron conflict ensuing. [ 73 ] Some partners left and founded the Audax Group and Golden Gate Capital. [ 37 ] early partners threatened to leave, and there was a prospect of eight-figure lawsuits being filed. [ 73 ] Romney was worried that the firm might be destroyed, but the crisis ebbed. [ 73 ] Romney was not involved in daily operations of the firm after starting the Olympics placement. [ 74 ] [ 75 ] Those were handled by a management committee, consisting of five of the fourteen remaining active partners with the firm. [ 37 ] however, according to some interviews and press releases during 1999, Romney said he was keeping a half-time routine at Bain. [ 37 ] [ 76 ] During his exit of absence, Romney continued to be listed in filings to the U.S. Securities and Exchange Commission [ 77 ] as “ sole stockholder, lone director, Chief Executive Officer and President ”. [ 78 ] [ 79 ] The SEC filings reflected the legal reality [ 80 ] and the possession interest in the Bain Capital management company. [ 36 ] [ 81 ] In practice, former Bain partners have stated that Romney ‘s care was by and large occupied by his Olympics position. [ 80 ] [ 82 ] He did stay in regular contact with his partners, and traveled to meet with them respective times, signing corporate and legal documents and paying attention to his own interests within the firm and to his departure negotiations. [ 81 ] Bain Capital Fund VI in 1998 was the final one Romney was involved in ; investors were worry that with Romney gone, the firm would have trouble raising money for Bain Capital Fund VII in 2000, but in practice the $ 2.5 billion was raised without much worry. [ 37 ] His former partners have said that Romney had no function in assessing early new investments after February 1999, [ 37 ] nor was he involved in directing the company ‘s investing funds. [ 36 ] Discussions over the final terms of Romney ‘s deviation dragged on during this time, with Romney negotiating for the best distribute he could get and his continuing status as CEO and lone stockholder giving him the leverage to do so. [ 37 ] [ 80 ] Although he had left open the possibility of returning to Bain after the Olympics, Romney made his crossover voter to politics in 1999. [ 71 ] His interval from the firm was finalized in early 2002. [ 37 ] [ 83 ] Romney negotiated a ten-year retirement agreement with Bain Capital [ 37 ] that allowed him to receive a passive profit share and sake as a adjourn partner in some Bain Capital entities, including buyout and Bain Capital investment funds, in exchange for his possession in the management ship’s company. [ 84 ] [ 85 ] Because the private equity business continued to thrive, this distribute would bring him millions of dollars in annual income. [ 85 ] Romney was the first and last CEO of Bain Capital ; since his departure became final, it has continued to be run by management committee. [ 37 ] Bain Capital itself, and particularly its actions and investments during its first 15 years, came under press examination as the resultant role of Romney ‘s 2008 and 2012 presidential campaigns. [ 34 ] [ 86 ] [ 87 ] Romney ‘s leave of absence and the level of action he had within the firm during the 1999-2002 menstruation besides garnered attention. [ 88 ] [ 89 ] [ 90 ] [ 91 ] [ 92 ] [ 93 ]
In 2000, DIC Entertainment president and CEO Andy Heyward partnered with Bain Capital Inc in a management buyout of DIC from The Walt Disney Company Heyward continued as president and CEO of the animation studio, which has more than 2,500 half-hours of programming in its library. He purchased Bain Capital ‘s matter to in 2004 and took the caller public the come year. Bain Capital began the newly ten by closing on its one-seventh fund, Bain Capital Fund VII, with over $ 3.1 billion of investor commitments. The firm ‘s most celebrated investments in 2000 included the $ 700 million acquisition of Datek, the on-line stock brokerage house firm, [ 94 ] adenine good as the $ 305 million learning of KB Toys from Consolidated Stores. [ 95 ] Datek was acquired by TD Ameritrade in 2002. KB Toys, which had been financially perturb since the 1990s as a leave of increased pressure from national discount rate chains such as Walmart and Target, filed for chapter 11 bankruptcy protective covering in January 2004. Bain had been able to recover measure on its investment through a dividend recapitalization in 2003. [ 96 ] In early on 2001, Bain agreed to purchase a 30 percentage stake, worth $ 600 million, in Huntsman Corporation, a leading chemical company owned by Jon Huntsman, Sr., but the consider was never completed. [ 97 ] [ 98 ] With a significant total of entrust capital in its new fund available for investment, Bain was one of a handful of secret equity investors able of completing boastfully transactions in the adverse conditions of the early 2000s recession. In July 2002, Bain in concert with TPG Capital and Goldman Sachs Capital Partners, announced the high-profile $ 2.3 billion leveraged buyout of Burger King from Diageo. [ 99 ] however, in November the original transaction collapsed when Burger King failed to meet sealed performance targets. In December 2002, Bain and its co-investors agreed on a reduce $ 1.5 billion purchase price for the investment. [ 100 ] The Bain consortium had documentation from Burger King ‘s franchisees, who controlled approximately 92 % of Burger King restaurants at the time of the transaction. Under its new owners, Burger King underwent a major brand renovation including the use of The Burger King character in ad. In February 2006, Burger King announced plans for an initial public offer. [ 101 ] In late 2002, Bain remained active acquiring Houghton Mifflin for $ 1.28 billion, together with Thomas H. Lee Partners and Blackstone Group. Houghton Mifflin and Burger King represented two of the first large clubhouse deals, completed since the crack up of the Dot-com bubble. [ 102 ] In November 2003, Bain completed an investment in Warner Music Group. In 2004 Bain acquired the Dollarama chain of dollar stores, based in Montreal, Quebec, Canada and operate stores in the provinces of Eastern Canada for $ 1.05 billion CAD. In March 2004, Bain acquired Brenntag Group from Deutsche Bahn AG ( Exited in 2006 ; sold to BC Partners for $ 4B ). In August 2003, Bain acquired a 50 % interest in Bombardier Inc. ‘s amateur products division, along with the Bombardier family and the Caisse de dépôt et placement du Québec, and created Bombardier Recreational Products or BRP .
Bain and the 2000s buy-out smash.
In 2004 a consortium comprising KKR, Bain Capital, and very estate of the realm development caller Vornado Realty Trust announced the $ 6.6 billion acquisition of Toys “ R ” Us, the miniature retailer. A month earlier, Cerberus Capital Management, made a $ 5.5 billion offer for both the miniature and baby supplies businesses. [ 103 ] The Toys ‘R ‘ Us buyout was one of the largest in several years. [ 104 ] Following this transaction, by the end of 2004 and in 2005, major buyouts were once again becoming common and market observers were stunned by the leverage levels and finance terms obtained by fiscal sponsors in their buyouts. [ 105 ] The surveil year, in 2005, Bain was one of seven private equity firms involved in the buyout of SunGard in a transaction valued at $ 11.3 billion. Bain ‘s partners in the learning were Silver Lake Partners, TPG Capital, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts, Providence Equity Partners, and Blackstone Group. This represented the largest leverage buyout completed since the coup d’etat of RJR Nabisco at the end of the 1980s leveraged buyout boom. besides, at the time of its announcement, SunGard would be the largest buyout of a technology company in history, a distinction it would cede to the buyout of Freescale Semiconductor. The SunGard transaction is besides luminary in the number of firms involved in the transaction, the largest club deal completed to that detail. The engagement of seven firms in the consortium was criticized by investors in private fairness who considered cross-holdings among firms to be broadly unattractive. [ 106 ] [ 107 ]
Bain led the buyout of Dunkin ‘ Brands for $ 2.4 billion in 2005 Bain led a consortium, in concert with The Carlyle Group and Thomas H. Lee Partners to acquire Dunkin ‘ Brands. The private equity firms paid $ 2.425 billion in cash for the parent company of Dunkin ‘ Donuts and Baskin-Robbins in December 2005. [ 108 ] In 2006, Bain Capital and Kohlberg Kravis Roberts, together with Merrill Lynch and the Frist family ( which had founded the party ) completed a $ 31.6 billion learning of Hospital Corporation of America, 17 years after it was taken secret for the beginning meter in a management buyout. At the time of its announcement, the HCA buyout was the foremost of several to set newfangled records for the largest buyout, eclipsing the 1989 buyout of RJR Nabisco. It was by and by surpassed by the buyouts of EQ Office and TXU. [ 109 ] In August 2006, Bain was separate of the consortium, together with Kohlberg Kravis Roberts, Silver Lake Partners, and AlpInvest Partners, that acquired a controlling 80.1 % share of semiconductors unit of Philips for €6.4 billion. The fresh caller, based in the Netherlands, was renamed NXP Semiconductors. [ 110 ] [ 111 ]
During the buyout boom, Bain was active in the acquisition of respective retail businesses. [ 112 ] In January 2006, Bain announced the acquisition of Burlington Coat Factory, a deduction retailer operating 367 department stores in 42 states, in a $ 2 billion buyout transaction. [ 113 ] Six months former, in October 2006, Bain and The Blackstone Group acquired Michaels Stores, the largest arts and crafts retailer in North America in a $ 6.0 billion leveraged buyout. Bain and Blackstone narrowly beat out Kohlberg Kravis Roberts and TPG Capital in an auction for the company. [ 114 ] In June 2007, Bain agreed to acquire HD Supply, the wholesale construction supply business of Home Depot for $ 10.3 billion. [ 115 ] Bain, along with partners Carlyle Group and Clayton, Dubilier & Rice, would belated negotiate a lower price ( $ 8.5 billion ) when the initial stages of the subprime mortgage crisis caused lenders to seek to renegotiate the terms of the acquisition finance. [ 116 ] Just days after the announcement of the HD Supply deal, on June 27, Bain announced the acquisition of Guitar Center, the leading musical equipment retailer in the U.S. Bain paid $ 1.9 billion, plus $ 200 million in assume debt, representing a 26 % agio to the stock ‘s close monetary value anterior to the announcement. [ 117 ] Bain besides acquired Edcon Limited, which operates Edgars Department Stores in South Africa and Zimbabwe for 25 billion rand ( $ 3.5 billion ) in February 2007. [ 118 ] other investments during the buyout boom included : Bavaria Yachtbau, acquired for €1.3 billion in July 2007 [ 119 ] vitamin a well as Sensata Technologies, acquired from Texas Instruments in 2006 for approximately $ 3 billion. [ 120 ]
In the wake of the closing of the credit markets in 2007 and 2008, Bain Capital Private Equity managed to close alone a little number of ample transactions. Since 2008, the Bain Capital subsidiary company has completed a total of transaction types, including minority ownership, majority possession, and completely-funded acquisitions. [ 121 ] [ 122 ] In July 2008, Bain Capital Private Equity, together with NBC Universal and Blackstone Group agreed to purchase The Weather Channel from Landmark Communications. [ 123 ] The company besides partnered with Thomas H. Lee Partners to acquire well-defined Channel Communications in July 2008. [ 124 ] That same year, Bain Capital Private Equity acquired D & M Holdings for $ 442 million. [ 125 ] In June 2009, Bain Capital Private Equity announced a deal to invest up to $ 432 million in chinese electronics manufacturer GOME Electrical Appliances for a venture of up to 23 %. [ 126 ] In 2010, the ship’s company acquired Styron, a division of The Dow Chemical Company, for $ 1.6 billion, [ 127 ] and besides acquired Gymboree for $ 1.8 billion. [ 128 ] In 2011, the company, together with Hellman & Friedman, acquired Securitas Direct AB. [ 121 ] Hellman & Friedman purchased Bain Capital ‘s remaining impale in Securitas Direct in October 2015. [ 129 ] In 2012, Bain Capital Private Equity acquired Physio-Control for $ 478 million, [ 130 ] and besides acquired a 30 % stake in Genpact Ltd., India ‘s largest business process and call center outsourcing firm, for $ 1 billion. [ 131 ] Later that year, the company acquired hand and power instrument company Apex Tool Group for approximately $ 1.6 billion. [ 132 ] In May 2013, Bain Capital Private Equity partnered with investing firms Golden Gate Capital, GIC Private Limited, and Insight Venture Partners to purchase BMC Software for roughly $ 6.9 billion. [ 133 ] In December 2013, the company acquired a majority stake in the dress chain Canada Goose Inc. [ 134 ] In April 2014, Bain Capital Private Equity purchased a controlling stake in Viewpoint Construction Software, a construction-specific software company, for $ 230 million. [ 135 ] In November 2014, the company and Virgin Group announced the creation of a new cruise lineage, which is presently known as Virgin Voyages. [ 136 ] Later that year, Bain agreed to purchase four divisions of CRH for roughly $ 650 million. [ 137 ] [ 138 ] In March 2015, Bain Capital Private Equity agreed to buy Blue Coat Systems for roughly $ 2.4 billion. [ 139 ] In 2016, the firm named Jonathan Lavine and John Connaughton as co-managing partners, and besides named Steven Pagliuca and Joshua Bekenstein as co-chairman. [ 140 ] In March 2017, Bain Capital Private Equity agreed to acquire industrial clean company Diversey for $ 3.2 billion. [ 141 ] Later that year, Bain partnered with Cinven to take german company Stada Arzneimittel secret. [ 122 ] [ 142 ] In February 2018, Bain Capital Private Equity agreed to acquire Dutch saunterer sword Bugaboo International. [ 143 ] [ 144 ] [ 145 ] In March 2018, Bain Capital Private Equity purchased a 20 % impale in Tower Ltd from australian fiscal conglomerate Suncorp. [ 146 ] In January 2019, Bain Capital Private Equity purchased a majority venture in engineering consultancy Brillio. [ 147 ] In June 2020, Bain Capital Private Equity purchased Virgin Australia. [ 148 ] In October 2020, it was reported that the company was negotiating a coup d’etat of UK-based policy company Liverpool Victoria ( LV= ). The potential manage could have a value of over £530 million, [ 149 ] an sum set to provide a boom payout to LV= ‘s customers. [ 150 ] In November 2021, the company invested $ 200 million into Mixpanel. [ 151 ] Bain Capital invested in health insurance brokerage firm Enhance Health. On November 5, 2021, it was reported that Bain Capital planned to list Brillio on the NASDAQ, with an IPO that included a debt of $ 3 billion or more. [ 152 ] Bain Capital besides invested $ 200 million into When I Work, a schedule platform created by Drive Capital. [ 153 ]
Businesses and affiliates.
Bain Capital ‘s businesses include secret equity, venture capital, populace equity, and credit. [ 154 ] The tauten besides has specialized businesses focused on shock investing, life sciences and veridical estate. [ 155 ] [ 156 ] [ 157 ]
Bain Capital Private Equity.
Bain Capital Private Equity has invested across several industries, geographies, and business animation cycles. Bain Capital Private Equity besides operates in Europe, Australia, [ better source needed ] and Asia. [ 6 ] [ 158 ] Historically, Bain Capital has primarily relied on individual fairness funds, pools of entrust capital from pension funds, policy companies, endowments, fund of funds, high-net-worth individuals, sovereign wealth funds, and other institutional investors. Bain Capital ‘s own investment professionals are the largest single investor in each of its funds. [ citation needed ]
Bain Capital Ventures.
Bain Capital Ventures is the venture capital arm of Bain Capital, focused on semen through late-stage growth equity, investing in business services, consumer, healthcare, internet & mobile, and software companies. [ 2 ] Bain Capital Ventures has funded the launch and growth of respective companies, including Docusign, [ 159 ] Jet.com, [ 160 ] Lime, [ 161 ] LinkedIn, [ 162 ] Rent the Runway, [ 163 ] SendGrid, [ 164 ] and SurveyMonkey. [ 165 ]
Bain Capital Public Equity.
in the first place founded as Brookside Capital, [ 166 ] Bain Capital Public Equity is the populace fairness consort of Bain Capital. Established in October 1996, Bain Capital Public Equity ‘s primary aim is to invest in securities of publicly traded companies that offer opportunities to realize hearty long-run capital appreciation. Bain Capital Public Equity employs a long/short equity scheme to reduce market risk in the portfolio. [ 167 ]
Bain Capital Credit.
originally founded as Sankaty Advisors, [ 166 ] Bain Capital Credit is the situate income consort of Bain Capital, a coach of high output debt securities. With approximately $ 49 billion of assets under management, Bain Capital Credit invests in a wide variety show of securities, including leverage loans, high-yield bonds, stressed securities, mezzanine debt, convertible bonds, structure products, and equity investments. In 2017, Bain Capital Credit closed its first citation fund in Asia, focusing on distress debt in the region. [ 168 ] Bain Capital Credit has besides pursued distress debt strategies in Europe. [ 169 ] In November 2018, Bain Capital Credit took Specialty Finance, a business development company, public through an IPO. [ 170 ]
Bain Capital Double Impact.
Bain Capital Double Impact focuses on affect investing with companies that provide fiscal returns vitamin a well as social and environmental shock. [ 171 ] In 2015, Bain Capital hired Deval Patrick, erstwhile Massachusetts Governor, to lead the new business division. [ 172 ] Bain Capital Double Impact closed its initial fund of $ 390 million in July 2017. [ 156 ] In March 2019, it was reported that Bain Capital Double Impact had acquired a majority post in IT outsourcing firm Rural Sourcing. [ 173 ] In June 2019, the company sold Impact Fitness to Morgan Stanley Capital Partners. [ 174 ]
Bain Capital Life Sciences.
Bain Capital Life Sciences invests in companies that focus on medical initiation and suffice patients with unmet medical needs. [ 175 ] It raised its first fund of $ 720 million in May 2017. [ 155 ] In September 2019, SpringWorks, a biopharmaceutical company Bain Capital Life Sciences owns a 17 % venture in, launched an IPO. [ 176 ] besides in 2019, the company closed two biography sciences portfolios, in Cambridge, Massachusetts, and in the Research Triangle in North Carolina. [ 177 ] [ 178 ]
Bain Capital Real Estate.
Bain Capital Real Estate was founded in 2018 [ 179 ] when Harvard Management Company shifted the management of its real estate investing portfolio to Bain Capital. [ 157 ] [ 180 ] The Bain Capital Real Estate team is managed by members of Harvard Management Company ‘s erstwhile very estate of the realm team. [ 157 ] Bain Capital Real Estate closed an initial fund of $ 1.5 billion in July 2019. [ 181 ]
Bain Capital Tech Opportunities.
Bain Capital Tech Opportunities was created in 2019 to make investments in technology companies, peculiarly in enterprise software and cybersecurity. [ 182 ]
Appraisals and critiques.
Bain Capital ‘s approach of applying consulting expertness to the companies it invested in became wide copied within the private equity diligence. [ 19 ] [ 183 ] University of Chicago Booth School of Business economist Steven Kaplan said in 2011 that the firm “ came up with a exemplar that was very successful and very innovative and that now everybody uses. ” [ 22 ] In his 2009 book The Buyout of America: How Private Equity Is Destroying Jobs and Killing the American Economy, Josh Kosman described Bain Capital as “ ill-famed for its failure to plough profits back into its businesses, ” being the first big private-equity firm to derive a large fraction of its revenues from corporate dividends and other distributions. The gross potential of this scheme, which may “ starve ” a company of capital, [ 184 ] was increased by a 1970s motor hotel opinion that allowed companies to consider the entire carnival market prize of the company, alternatively of only their “ difficult assets ”, in determining how much money was available to pay dividends. [ 185 ] In at least some instances, companies acquired by Bain borrowed money in order to increase their dividend payments, ultimately leading to the collapse of what had been financially stable businesses. [ 58 ]
noteworthy current and former employees.
- Bain Capital (company website)
- “Companies’ Ills Did Not Harm Romney’s Firm” article by Michael Luo and Julie Creswell in The New York Times June 22, 2012