Bain Capital to double India investments in 3 years

Private investment firm Bain Capital is planning to double its exposure in India in the next three years, as it looks to write larger cheques of over $500 million in a fast-growing economy, Pawan Singh, Partner, Bain Capital Advisors India, said.

Since it started operations in India in 2008, it has invested a little over $7 billion in India, of which around 70 per cent is part of its private equity portfolio and the remaining under its Special Situations Fund.

Globally the firm managed assets of around $185 billion. Japan and India are two of its largest markets and together account for over 50 per cent of its assets. Singh and other senior officials of Bain Capital had an informal interaction with the media on Monday evening.

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At the start of 2024, Bain Capital’s co-managing partner David Gross had said it was on track to invest up to $10 billion in India over 3-5 years.

In India Bain is weighted towards the tech sector, which is currently seeing a slowdown. Singh said there are significant opportunities in the industrials sector, healthcare and pharma. The other sector where it is finding traction is financial services, where it already has a good track record of investments and making profitable exits.

This year it exited Axis Bank and L&T Finance Holdings, while it also completed the acquisition of a majority stake in Adani Capital.

Over an 18-month period Bain Capital invested around $2 billion in India, though in 2024 so far it is yet to write a cheque, even as it is evaluating several opportunities, some of them sizeable transactions of over $1 billion..

Compared to many of its global peers, who have been aggressive in India, Bain has been a conservative investor with investments in the range $200-350 million. Singh said that if it has to step up its exposure it will have to write cheques larger than $500 million and even above $1 billion.

In the pharma sector one of its portfolio companies Emcure Pharma had its initial public offer, in which Bain Capital sold nearly a third of its 13.07 per cent stake. Another portfolio company, wealth firm 360 ONE WAM raised $500 million last month in its maiden secondary fund.

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