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Bain Capital
Bain Capital
based due diligence process that analyzes a company’s financial performance, market growth potential, industry attractiveness, and competitive position. One of the fund’s first start-up investments was Staples, Inc., the Private $15 billion office supply retailer. The funding 1984 enabled Staples to expand from one store in 1986 to nearly 1,700 in 2006. Mitt Romney, T. Coleman Twenty years after its inception, Bain CapAndrews III, Eric Kriss ital manages approximately $80 billion in asBoston, Massachusetts sets, and has founded, acquired, or invested Fraser Bullock, Robert F. White, in hundreds of companies including AMC EnJoshua Bekenstein, Adam Kirsch, tertainment, Brookstone, Burger King, BurlPaul Edgerley, Stephen Pagliuca, ington Coat Factory, Domino’s Pizza, Geoffrey S. Rehnert DoubleClick, Guitar Center, HCA, Sealy, The Sports Authority, Toys R Us, Unisource, Private Equity Warner Music Group and The Weather Private equity funds, Leveraged Channel. buyouts, Investments
$78 billion 200+ www.baincapital.com Bain Capital
Type Founded Founder(s) Headquarters Key people
Industry Products Total assets Employees Website
History of private equity and venture capital
Bain Capital LLC is a Boston-based private equity firm founded in 1984 by partners from the consulting firm Bain & Company. Originally conceived as a leveraged buyout and venture capital fund, Bain Capital today manages approximately $80 billion in assets, and its strategies include private equity & venture capital as well as long/short public equity, credit products, and global macro hedge funds.
History
Bain Capital was founded in 1984 by Bain & Company partners Willard Mitt Romney, T. Coleman Andrews III, and Eric Kriss. In addition to the three founding partners, the early team included Fraser Bullock, Robert F. White, Joshua Bekenstein, Adam Kirsch, Stephen Pagliuca and Geoffrey S. Rehnert. Bain Capital’s original $37 million fund was raised entirely from private individuals in mid-1984, led by Ricardo Poma, a Salvadoran businessman. The firm’s investment professionals evaluate potential deals based on a consulting-
Early History (Origins of modern private equity) • The 1980s (LBO boom) • The 1990s (LBO bust and the VC bubble) • The 2000s (Dot-com bubble to the Credit crunch)
Recent Notable Investments
Some recent proposed and actual Bain Capital investments include (in reverse chronological order):
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From Wikipedia, the free encyclopedia
• 2008, Jul – Joins with Thomas H. Lee Partners to purchase Clear Channel Communications.[1] • 2007, Sep – Joins with the Chinese networking company Huawei Technologies in an attempt to acquire 3Com for $2.2 billion in cash.[2] However, they were unable to structure the deal to satisfy constraints set by Committee on Foreign Investment in the United States (CFIUS). In March 2008, Bain and Huawei abandoned the transaction.[3] • 2007, Jun – Signs an agreement with Guitar Center to purchase the music retailer for $1.9 billion, plus $200 million in debt. The buyout will be for $63 per share, a 26% premium on June 26’s closing price. The deal was approved by shareholders on September 18th, 2007 and closed October 9th, 2007.[4] • 2007, Jun – Agrees to acquire HD Supply for $10.3 billion, along with Carlyle Group and Clayton, Dubilier & Rice (with each agreeing to buy a one-third stake in the division). Home Depot sold their wholesale construction supply business to fund a stock repurchase estimated at $40 billion.[5] • 2007, Jun – Acquires Bavaria Yachtbau for a price rumored to be about €1.3B Euros.[6] • 2007, May – Acquires Edgars Department Stores (Edcon Limited) of Zimbabwe and South Africa. [7] • 2006, Aug – Joins the enlarged private equity consortium headed by KKR that agreed to acquire an 80.1% stake in the Semiconductor Division of Royal Philips Electronics. The new company is called NXP Semiconductors. • 2006, Apr – Acquires Burlington Coat Factory Warehouse Corp., which operates more than 360 retail stores. • 2005, Jun – Teams up with Haier Group, China’s largest appliance maker, and private equity firm Blackstone Group in an attempt to acquire Maytag for over $1 billion. The bid was dropped a month later. • 2005, Mar – Proposes a $3.5 billion buyout of all 30 teams in the National Hockey League during the league’s lockout. The offer was rejected. In June 2005, the company made a revised bid of $4.3 billion for the 30 teams and allow the current
Bain Capital
owners to maintain a stake in the league. This bid was also rejected. 2004, Nov – Purchases the Dollarama chain of dollar stores, based in Montreal, Canada and operating stores in the provinces of Eastern Canada for $1.05 billion CAD. 2004, Mar – Acquires Brenntag Group from Deutsche Bahn AG (Exited in 2006; sold to BC Partners for $4B). 2003, Nov – Invests in Warner Music Group. 2003, Aug – Purchases Bombardier’s recreational products division , along with the Bombardier family and the Caisse de dépôt et de placement du Québec, and created Bombardier Recreational Products or BRP. Bain Capital took a 50% interest in the new company. 2002, Jul – Acquires Burger King in July in a leveraged buyout with TPG Capital and Goldman Sachs Capital Partners.
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Affiliates
Bain Capital’s family of funds includes private equity, venture capital, public equity and leveraged debt assets. • is the global macro affiliate of Bain Capital managing approximately $600 million of capital. ARC manages assets in fixed income, equity and commodity markets to produce attractive risk-adjusted returns while maintaining low correlation to traditional investments. • has raised ten funds and invested in more than 200 companies. The private equity activity includes leveraged buyouts and growth capital in a wide variety of industries. • , an affiliate of Bain Capital, LLC, is dedicated to investment opportunities in the European market. Based in London and Munich, and building off Bain Capital’s successful European investment track record since 1989. • is the venture capital arm of Bain Capital, focused on seed through late-stage growth equity investing in software, hardware, information, healthcare, and technologydriven business services companies. • is the public equity affiliate of Bain Capital. Brookside’s primary objective is to invest in securities of publicly traded companies that offer opportunities to
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From Wikipedia, the free encyclopedia
realize substantial long-term capital appreciation. • , the fixed income affiliate of Bain Capital, is one of the nation’s leading private managers of high yield debt obligations. With approximately $33 billion of committed capital, Sankaty invests in a wide variety of securities, including leveraged loans, high-yield bonds, distressed securities, mezzanine debt, convertible bonds, structured products and equity investments.[8] [1] [2] [3] [4] [5] [6] [7]
Bain Capital
[1] [2] [3] [4] [5] [6] Business Day, ’Retail giant Edgars starts a new chapter’ [8] Sankaty Advisors (company website)
External links
• Bain Capital (company website)
References
• Making of Mitt Romney: The Businessman. Boston Globe, June 26, 2007
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