Bain Capital Offices

Bain Capital Offices

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Boston

Boston

John Hancock Tower
200 Clarendon Street, Boston, MA 02116 United States

P:+1 (617) 516-2000 F:+1 (617) 516-2010

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New York

A New York

590 Madison Avenue
42nd Floor, New York, NY 10022 United States

P:+1 (212) 326-9420 F:+1 (212) 421-2225

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B New York Bain Capital Ventures
Bain Capital Ventures

632 Broadway, New York, NY 10012 United States

P:+1 (212) 822-2900 F:+1 (646) 439-9100

London

London

Devonshire House
Mayfair Place, London, W1J 8AJ United Kingdom

P:+44 20 7514 5252 F:+44 20 7514 5250

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Munich

Munich
Bain Capital Beteiligungsberatung GmbH

Maximilianstrasse 11, 80539 Muenchen, Germany

P:+49-89244410700 F:+49-89244410731

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Mumbai

Mumbai
Bain Capital Advisors (India) Private Limited

2nd Floor, Free Press House
Nariman Point, , Mumbai 400 021 India

P:+91-2267528000 F:+91-2267528010

Hong Kong

Hong Kong
Bain Capital Asia, LLC

51/F Cheung Kong Center
2 Queen's Road Central, Hong Kong, Hong Kong S.A.R., China

P:+852-36566800 F:+852-36566801

Shanghai

Shanghai
Bain Capital Advisors (China) Ltd.

46/F Two IFC
8 Century Boulevard, Shanghai, 200120 China

P:+86-2161632000 F:+86-2161632088

Tokyo

Tokyo
Bain Capital Asia, LLC

5F, Palace Building
1-1-1 Marunouchi, Chiyoda-ku, Tokyo 100-0005 Japan

P:+81-362127070 F:+81-362127071

Palo Alto

Palo Alto

335 Bryant Street, Palo Alto, CA 94301 United States

P:+1 (650) 798-2500 F:+1 (650) 798-2501

Chicago

Chicago
Sankaty Advisors Illinois, LLC

1603 Orrington Avenue
Suite 815, Evanston, IL 60201 United States

P:+1 (847) 563-5330 F:+1 (847) 563-5331

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Luxembourg

A Luxembourg
Bain Capital Luxembourg S.à.r.l.

4 rue Lou Hemmer, L-1748 Luxembourg, Luxembourg

P:+352-2678601 F:+352-26786060

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B Sankaty European Investments, S.á.r.l.
Sankaty European Holdings, S.á.r.l.

4 rue Lou Hemmer, L-1748 Luxembourg, Luxembourg

P:+352-267866 F:+352-26786651

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Melbourne

Melbourne
Sankaty Advisors (Australia), Pty. Ltd.

Level 20, 101 Collins Street, Melbourne, VIC 3000 Australia

P:+61 3 8102 8600 F:+61 3 9014 6930

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  • Bain Capital Private Equity
    • Bain Capital Private Equity

      Bain Capital Private Equity pioneered the value added investment approach. We partner with management teams to provide strategic resources that build and grow great companies. We have made over 260 investments generating industry leading returns for many leading endowments, foundations, pension funds and individuals.

      »Visit the Bain Private Equity Site
  • Brookside Capital
    • Brookside Capital

      Brookside Capital is the global long/short public equity affiliate of Bain Capital. We employ a fundamental investment approach with a team of industry-focused professionals to identify opportunities that offer capital appreciation over a multi-year time horizon.

      »Visit the Brookside Capital Site
  • Sankaty Advisors
    • Sankaty Advisors

      Sankaty Advisors, the credit affiliate of Bain Capital, LLC, is one of the nation's leading managers of high-yield corporate credit obligations. With approximately $22.3 billion in committed capital, we invest in a wide variety of instruments, including leveraged loans, high-yield bonds, stressed debt, distressed debt, mezzanine debt, structured products and equity investments.

      »Visit the Sankaty Advisors Site
  • Bain Capital Ventures
    • Bain Capital Ventures

      Bain Capital Ventures is the venture capital affiliate of Bain Capital. We focus on seed through late-stage growth investments in business services, software, digital media / mobile / ecommerce, and healthcare IT and services companies. Bain Capital Ventures has made over 100 investments since our launch in 2000.

      »Visit the Bain Capital Ventures Site
  • Absolute Return Capital
    • Absolute Return Capital

      Absolute Return Capital (ARC) is the absolute return affiliate of Bain Capital. The team manages assets in fixed income, equity, commodity and currency markets to produce attractive risk-adjusted returns while maintaining low correlation to traditional investments.

      »Visit the Absolute Return Capital Site

Newsroom Bain's Sankaty closes second mid-market credit fund at $1.4 bln

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News
Date: 
December 13, 2013

Investors are becoming more comfortable with Sankaty Advisors’ approach to mid-market lending, Michael Ewald, managing director at Sankaty, told Buyouts after the firm closed its second dedicated fund at nearly $1.4 billion.

Sankaty Advisors, the credit arm of Boston-based Bain Capital LLC, has done this kind of investing since Sankaty’s establishment in 1998, but it has done so historically out of the firm’s multi-strategy funds. The firm raised $900 million for its inaugural mid-market fund in 2010, in the wake of the financial crisis.

“I think there’s a little more clarity on the LP side about what the middle market entails,” Ewald said. LPs are allocating commitments now to an “opportunistic credit bucket” in contrast to conventional strategies such as private equity or fixed income. The pools are structured closed-end funds like a buyout fund but provide current income.

Coming out of the financial crisis with conventional lenders such as banks pulling back from leveraged lending, Bain Capital found that its LPs wanted to target their own investing strategies more precisely, Ewald said, and in addition, “we saw bigger opportunities in certain segments of the market than we could target with a multi-strat fund. One of those opportunities was the middle market.”

The middle market offers higher yield with lower leverage than large-cap borrowers, and it provides stronger documentation, with maintenance covenants and financial covenants, and better information, with financials on a 30-day lag with access to management teams and sponsors, versus quarterly filings and calls with groups of analysts that are typical of high-yield bond issuers, Ewald said.

The firm raised $1.38 billion from 142 investors for Sankaty Middle Market Opportunities Fund II LP, according to a regulatory filing in December. The tally was above the $1 billion target and near the $1.5 billion hard cap for the vehicle.

The firm has an international focus for the mid-market fund, targeting borrowers with EBITDA of $10 million to $75 million in North America, Europe and Australia/New Zealand. Sankaty has members of its 20-person mid-market team in Chicago, Boston, London and Melbourne.

Sankaty has a typical hold size of $20 million to $75 million per mid-market credit, Ewald said. The inaugural fund was invested 60 percent to 65 percent in subordinated debt, with another 20 percent to 30 percent invested in senior debt and the remainder in equity co-investments.

About 70 percent of the borrowers are backed by conventional sponsors, with 15 percent unsponsored, such as family businesses, and the remainder of borrowers backed by independent sponsors such as fundless sponsors, Ewald said.

The mid-market team also has access to the industry-specific groups elsewhere in Sankaty. Metals and mining, for instance, has specialized issues and terminology, as do many industries, so the resources improve the team’s decision-making, Ewald said.

“We’re asking questions 11 through 20 rather than questions one through 10.”