A real estate subsidiary of Bain Capital has completed fundraising for its third flagship fund with $3.4 billion in commitments. The close marks a 13% increase over the $3 billion raised for the preceding fund.
Bain Capital Real Estate attracted investments from institutional investors worldwide, including $300 million from employees and alums of Bain Capital, a Boston-based investment firm. The New Jersey State Investment Council committed up to $250 million.
The successful raise demonstrates sustained investor appetite for opportunistic real estate strategies despite recent market turbulence.
The fund targets value-add opportunities where operational improvements can accelerate returns. Focus areas include lab space for drug development, urban infill industrial properties, open-air retail centers, medical outpatient buildings, senior housing, marinas and digital real estate assets.
In October, Bain Capital Real Estate paid $25.11 million for 30 Hampshire St., an empty 30,000-square-foot office building in the Kendall Square Life Science Center in Cambridge, Massachusetts.
The firm targets 18% gross returns, according to New Jersey State Investment Council documents.
Other recent acquisitions include a national portfolio of private golf clubs, 10 Publix-anchored retail centers across Florida and South Carolina, and industrial properties in Northern New Jersey, according to Bain Capital. The firm also acquired Boathouse Marine Center in Pompano Beach, Florida.
"Our thematic focus, underpinned by rigorous analysis and collaboration across Bain Capital's platform, combined with disciplined selectivity and active management, positions us well to invest successfully across cycles," Ryan Cotton, partner and head of Bain Capital Real Estate, said in a statement.
Fund III forms part of a broader $5 billion capital raise across Bain Capital's real estate strategies. The total includes $1.6 billion raised alongside 11North Partners for open-air retail investments.