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Bain Capital’s PE-backed buyout deals in the hot seat

by Jessica Hull

  • 26 Jan 2012
  • PE

Private equity has taken centre stage in the last couple of weeks owing to the connection with US republican candidate, Mitt Romney, who founded Bain Capital in 1984. Controversy has grown since details of his federal tax returns were released on Tuesday. In light of these recent events, Bain Capital’s past investments have been thrown into the spotlight. Preqin’s deals analyst database shows that in 2011, Bain Capital made 32 investments with an aggregate value of $15.3billion, which is the highest number and aggregate value of PE-backed buyout deals since the onset of the global financial crisis for Bain Capital. The number and aggregate value of buyout deals in which Bain Capital participated in 2011, still falls short of the peak which was witnessed in 2006, where 24 buyouts were valued at approximately $77bn.

From 2000- present, Bain Capital’s investments have not been limited to a particular industry, but extend across a broad array of sectors. Bain Capital’s greatest number of private-equity backed deals by industry has been witnessed in consumer discretionary, industrials and information technology, whereas the highest aggregate value of buyouts by industry has stretched across health care, consumer discretionary and telecoms, media & communications, with an aggregate value of $41.3bn, $36.29bn and $34.29bn, respectively. The location of such deals has been predominately in North America, with 62% of all Bain Capital’s investments made in the continent. European and Asian investments have made up 20% and 16% of Bain Capital’s portfolio from 2000 to present, with African and Australian investments only making up 1% each of buyout deals in this time frame.

In 2011, Bain Capital participated in a number of noteworthy buyout deals, which included six large-cap investments, which valued over $1bn. Such deals included the announcement of a $3.4bn acquisition of a significant majority stake in Skylark Co., Ltd bought from Nomura Group in November 2011. Last year also saw Bain Capital acquiring MYOB from Archer Capital and HarbourVest Partners for $1.23bn and the $1bn buyout of International Market Centers from a consortium of investors, which included Bain Capital and Oaktree Capital Management.

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