Report: Bain Capital Is Setting Up A $1 Billion Tech Opportunities Fund

By Amit Chowdhry ● May 31, 2019
  • Bain Capital is reportedly raising $1 billion for a new technology fund for late-stage minority investments and buyouts
  • The fund is expected to be called Bain Capital Tech Opportunities
  • The Bain Capital Tech Opportunities fund will be co-managed by Darren Abrahamson and Dewey Awad

Multi-asset alternative investments company Bain Capital has been successfully acquired and invested in hundreds of companies for the last 35 years. And now Bain Capital is reportedly raising $1 billion for a new technology fund for late-stage minority investments and buyouts, according to CNBC’s sources.

The new fund will be called Bain Capital Tech Opportunities and it will target equity investments between $50 million and $200 million primarily in the enterprise software and cybersecurity spaces. And the fund will also be used for acquiring smaller companies. This initiative will be separate from Bain Capital Ventures, which invests in companies at the seed and earlier stages.

This model has worked well for private equity firms like Thoma Bravo and Vista Equity. For example, Vista sold Marketo to Adobe for $4.75 billion at a $1.8 billion profit in about two years. Bain Capital had similar success when it acquired Blue Coat for $2.4 billion in 2015 and sold it to Symantec for $4.65 billion about a year later.

Bain Capital is looking at companies that have annual recurring revenue of $30 million to $100 million and valuations of less than $500 million. And for companies at this stage, Bain will be offering its expertise at setting up international opportunities and setting up partnerships with some of its portfolio companies.

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The Bain Capital Tech Opportunities fund is going to be co-managed by private equity managing director Darren Abrahamson and public equity managing director Dewey Awad. About 15 people internally and externally will also be brought into the team.