As It Links Out of LinkedIn, Bain VC Team Preps a Mega-Fundraise

Bain Capital just made more back on a secondary offering of LinkedIn shares than its entire 2009 fund raised.

What better time than the present to raise a new fund, then? peHUB has learned from sources that Bain Capital Ventures will raise a new fund, targeting between $500 million and $750 million.

Not a whole lot on Bain Capital Ventures’ returns are made public. According to Thomson Reuters’ data, the lone known LP investor is the Alaska Permanent Fund Corp. The VC most recently raised a fund in 2009, bagging about $525 million—one source indicated this was toward the lower end of their target range, but said it is likely they will top that figure next time out. Other Bain VC funds include two, $250 million funds, one from2001 and another from 2005, as well as a 2007 fund that reeled in $499.5 million, Thomson Reuters data show.

Earlier this year, LBO Wire reported that Bain would dial back its carry for its forthcoming fund.

Bain Capital Ventures’ hits are not just relegated to LinkedIn (although it did lead the biggest round of funding into the online jobs and networking site in 2008—so comparing its LinkedIn return to its most recent fund is a bit unfair). Other prominent deals include its investment in DoubleClick (1998 IPO), Internet video series host Blip.tv, and Taleo Corp. (2005 IPO). The investment shop is, of course, part of the group of affiliates that make up the Bain Capital family, which controls in aggregate more than $60 billion in assets.

But not all the news has been quite so good. Earlier this year, a daily deals site supported by Bain, BuyWithMe, revealed (first) it was looking to raise new funds amid an M&A spree. Then, it was reported the company would have to shut down absent a buyer or capital, and finally, Gilt Groupe swooped in for an acquisition for terms undisclosed.

Bain Venture Capital also dove into Color Labs with co-investors Sequoia and SVB earlier this year—only to see the company lose key personnel and hastily prepare a pivot in the following months, all after Google had reportedly made an offer to acquire the startup.

According to data provided by Thomson Reuters (the publisher of this blog), Bain Capital Ventures has made more than two dozen investments right in its own backyard, in the Massachusetts region, making the area its top priority for capital distribution. Not surprisingly, New York and California are its other most visited jurisdictions.

Individuals at Bain did not provide comment by press time.

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