Bain Capital Credit raising debut European special-situations fund

Bain Capital Credit is targeting 1 billion euros ($1.23 billion) for its debut European special-situations fund, which will invest in nonperforming loans and distressed debt, among other things, a fund document seen by Buyouts shows.

Bain Capital Special Situations Europe is expected to hold a first close in April, the document said. The fund is charging a 1.75 percent management fee. Bain is offering a discounted 1.5 percent management fee for first-close investors, the document said.

Fund I is charging a 20 percent carried-interest rate with an 8 percent preferred return, the document said. The pool will have a four-year investment period and an eight-year term with two one-year extensions.

Fund I will invest in a portfolio of nonperforming loans; originated or secondary purchases of equity, junior capital or other ownership interests and secondary purchases of distressed senior debt of European real estate investments or related businesses, the document said.

Bain Capital Credit has more than $35 billion under management. The group has been in business since 1997. Stuart Davies, a managing director with the credit group focused on distressed investing, retired at year-end 2016. Jeff Robinson, who co-led the credit team’s distressed and special situations focus, took over as sole head of the strategy.

Action Item: Check out Bain Capital Credit’s Form ADV: http://bit.ly/2F5Zvhg

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