Bain Capital Credit Launches New Business Development Company for Income Focused Investors
Boston, MA, February 16, 2023 – Bain Capital Credit, LP (“Bain Capital Credit”), a leading global credit specialist, today announced the launch of Bain Capital Private Credit (“BCPC” or the “Fund”), a perpetual life, non-traded business development company. The Fund will offer access to income-producing investments in middle market companies that have historically been available mostly to institutional investors. Bain Capital Credit has been a longstanding investor in the middle market since its founding in 1998.
Bain Capital Private Credit seeks to deliver investors current income and favorable risk-adjusted returns primarily through directly originated debt investments in middle market companies. In line with Bain Capital Credit’s 25-years of experience executing its middle market private debt strategy, BCPC is focused on senior secured, floating rate loans, as well as select junior capital investments to enhance yield.
“Bain Capital’s principal investing heritage has allowed us to remain strongly aligned with our investors over time. We are privileged to have a capital base that serves as a core part of institutional credit portfolios, and the launch of BCPC allows us to bring our differentiated investment capabilities and expertise to a wider set of investors,” said Michael Ewald, a Partner at Bain Capital Credit and Global Head of the Private Credit Group. “We believe our global credit platform is well-positioned to continue to execute on our successful middle market investment strategy on behalf of Fund investors.”
Bain Capital Credit’s Private Credit Group manages $10 billion in assets and has a dedicated global team that provides comprehensive coverage and broad geographical reach across the middle market that leverages the resources, expertise and relationships across the Bain Capital platform. The Private Credit Group, which has invested more than $20 billion across over 450 portfolio companies since inception, has flexible investment capabilities to provide private credit solutions across the capital structure through its investment strategies focused on senior secured debt and junior capital investing.
“We are excited about the opportunity set ahead of us with private credit markets benefitting from attractive yields and more lender-friendly terms characterized by tight documentation and favorable structures,” added Michael Boyle, a Partner at Bain Capital Credit. “Investment selection and underwriting high quality companies is going to be especially paramount given market uncertainties and a slower economic growth backdrop and we believe Bain Capital’s disciplined value-added approach that was founded on an intensive, consulting-based process is well-suited to the current environment for our investors.”
BCSF Advisors, LP, a subsidiary of Bain Capital Credit, LP, serves as the investment adviser for the Fund.
To learn more about Bain Capital Private Credit, please visit: https://baincapitalprivatecredit.com.
As of February 10, 2023, Bain Capital Private Credit is available in 33 states and territories, excluding Alabama, Alaska, Arizona, Arkansas, California, Florida, Kansas, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, Nevada, New Jersey, New York, North Carolina, Oregon, Tennessee, Vermont, Virginia, and Washington. We continue to work on expanding our offering to be available in additional states.
About Bain Capital Credit, L.P.
Bain Capital Credit (www.baincapitalcredit.com) is a leading global credit specialist with approximately $43 billion in assets under management. Bain Capital Credit invests across the credit spectrum and in credit-related strategies, including leveraged loans, high-yield bonds, structured products, private middle market loans, bespoke capital solutions, distressed securities and assets, non-performing loans, hard assets and equities. Our team of more than 95 investment professionals creates value through rigorous, independent analysis of thousands of corporate issuers around the world. In addition to credit, Bain Capital invests across asset classes including private equity, public equity, venture capital and real estate, and leverages the firm’s shared platform to capture opportunities in strategic areas of focus.
Important Disclosure Information
Summary of Risk Factors
BCPC is a non-exchange traded business development company ("BDC") that expects to invest at least 80% of its total assets (net assets plus borrowings for investment purposes) in private credit investments (bonds and other credit instruments that are issued in private offerings or issued by private companies). This investment involves a high degree of risk. You should purchase these securities only if you can afford the complete loss of your investment. You should read the prospectus carefully for a description of the risks associated with an investment in BCPC. These risks include, but are not limited to, the following:
• We have no operating history and there is no assurance that we will achieve our investment objectives or investment strategy.
• This is a "blind pool" offering and thus you will not have the opportunity to evaluate our investments before we make them.
• You should not expect to be able to sell your shares regardless of how we perform.
• You should consider that you may not have access to the money you invest for an extended period of time.
• We do not intend to list our shares on any securities exchange, and we do not expect a secondary market in our shares to develop prior to any listing.
• Because you may be unable to sell your shares, you will be unable to reduce your exposure in any market downturn.
• We intend to implement a share repurchase program, but only a limited number of shares will be eligible for repurchase and repurchases will be subject to available liquidity and other significant restrictions.
• An investment in our Common Shares is not suitable for you if you need access to the money you invest. See "Suitability Standards" and "Share Repurchase Program" in the prospectus.
• We cannot guarantee that we will make distributions, and if we do, we may fund such distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, or return of capital, and we have no limits on the amounts we may pay from such sources.
• Distributions may also be funded in significant part, directly or indirectly, from temporary fee waivers or expense reimbursements borne by the Advisor or its affiliates, that may be subject to reimbursement to the Advisor or its affiliates. The repayment of any amounts owed to the Advisor or its affiliates will reduce future distributions to which you would otherwise be entitled.
• We expect to use leverage, which will magnify the potential for loss on amounts invested in us.
• We qualify as an "emerging growth company" as defined in the Jumpstart Our Business Startups Act and we cannot be certain if the reduced disclosure requirement applicable to emerging growth companies will make our Common Shares less attractive to investors.
• We may invest in securities that are rated below investment grade by rating agencies or that would be rated below investment grade if they were rated. Below investment grade securities, which are often referred to as "junk" have predominantly speculative characteristics with respect to the issuer's capacity to pay interest and repay principal. They may also be illiquid and difficult to value.
Neither the Securities and Exchange Commission nor any state securities regulator has approved or disapproved of BCPC’s securities or determined if the prospectus is truthful or complete. Any reference to the contrary is a criminal offense. This sales material must be read in conjunction with the BCPC prospectus in order to fully understand all the implications and risks of an investment in BCPC. This sales material is neither an offer to sell nor a solicitation of an offer to buy securities. An offering is made only under BCPC's registration statement filed with the Securities Exchange Commission and only by means of the prospectus, which must be made available to you prior to making a purchase of shares. Investors are advised to carefully consider the investment objectives, risks and charges and expenses of BCPC before investing. A copy of the prospectus containing this and other information about BCPC and can be obtained from the SEC's website at www.sec.gov and at www.baincapitalprivatecredit.com. You are advised to obtain a copy of the prospectus and to carefully review the information contained or incorporated by reference therein before making any investment decision, including the "Risk Factors" section therein, which contains a discussion of the risks and uncertainties that we believe are material to our business, operating results, prospects and financial condition.
Forward Looking Statement Disclosure
Certain information contained in this document constitutes "forward looking statements," which can be identified by the use of forward looking terminology such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue" or other similar words, or the negatives thereof. These may include our financial projections and estimates and their underlying assumptions, statements about plans, objectives and expectations with respect to future operations, and statements regarding future performance. Such forward‐looking statements are inherently uncertain and there are or may be important factors that could cause actual outcomes or results to differ materially from those indicated in such statements. BCPC believes these factors include but are not limited to those described under the section entitled "Risk Factors" in its prospectus and any such updated factors included in its periodic filings with the Securities and Exchange Commission (the "SEC") which will be accessible on the SEC's website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in BCPC's prospectus and other filings.
Except as otherwise required by federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
Opinions expressed herein reflect the current opinions of Bain Capital Credit as of the date appearing in the materials only and are based on Bain Capital Credit's opinions of the current market environment, which is subject to change.
Prospective investors should consult their own tax, legal and accounting advisors with respect to the tax consequences to them of investing in BCPC in light of their particular circumstances.
Securities offered through Emerson Equity LLC Member: FINRA SIPC. Only available in states where Emerson Equity LLC is registered. Emerson Equity LLC is not affiliated with any other entities identified in this communication.