Bain Capital is targeting a combined USD 9bn for its sixth pan-Asian fund and second Japan mid-market fund, according to multiple sources familiar with the situation.

Both funds are now being marketed to LPs. The private equity firm is looking to raise USD 7bn for the pan-Asian fund, excluding the GP commitment, four sources said. The Japan fund is targeting USD 2bn, according to two of those sources and two additional sources.

Bain Capital Asia Fund V closed on USD 7.1bn – including a USD 750m GP commitment – in November 2023 against a target of USD 5bn. The fund closed after approximately 16 months in the market. Bain raised USD 4.65bn for Fund IV, completing the process in late 2018, and USD 3.25bn for Fund III.

The Japan mid-cap strategy was introduced in 2020, largely in response to increased deal flow in different segments of the market. Fund I closed on JPY 110bn (then USD 1bn) in April 2021.

Asia private equity fundraising, excluding renminbi-denominated vehicles, reached a 10-year low of USD 48.5bn in 2024 amid concerns about weak distributions from the asset class globally.

As of mid-June, USD 32.1bn had been raised in 2025, according to AVCJ Research. However, first closes of EQT and Blackstone’s latest Asian funds accounted for nearly half of that, underscoring how certain pan-regional players benefit from a flight to familiarity and a preference for diversification.

Japan was the only major Asian market to post a year-on-year improvement in fundraising in 2024. A record USD 13.8bn was committed to country-focused funds. Carlyle, the only other global sponsor with a dedicated Japan fund series, led the way with JPY 430bn (USD 2.98bn) for its fifth vehicle.

Bain Capital Asia Fund III was marked at a 23.9% net IRR and a total value-to-paid-in (TVPI) of 2.04x as of September 2024, according to Pennsylvania Public School Employees’ Retirement System (PSERS). Fund IV was on 30.6% and 1.81x. California State Teachers’ Retirement System (CalSTRS) had Fund V marked at a 22.45% IRR as of June 2024.

The private equity firm has seen significant traction in Japan across the pan-regional and mid-cap country fund strategies. Trade sales of care services provider Nichii Gakkan and Japan Wind Energy each generated around USD 1.4bn in late 2023, while flash memory specialist Kioxia listed in December 2024.

On the investment side, Bain’s largest deal of 2025 to date is an agreed JPY 814.7bn carve-out of York Holdings, the supermarket division of Seven & I Holdings. It has also completed a tender offer for Jamco at a USD 338.5m valuation and agreed to buy Mitsubishi Tanabe Pharma Corporation for USD JPY 510bn.

Notable activity elsewhere in the region includes a USD 504m deal to assume joint control Manappuram Finance, an India-based non-banking financial company (NBFC) and gold financier.

Bain declined to comment on fundraising.