Bain Capital LLC

Bain Capital LLC | Private Equity Profile

The following piece on Bain Capital, LLC is being published as part of our Private Equity Tracker Tool, our daily effort to track private equity firms in the industry.

Resource #1: Bain Capital Invests in China's GOME Electronics Holdings

Bain Capital LLC, a private equity firm based in Boston, recently closed a deal to invest as much as $420 million in Chinese electronics retailer, GOME Electrical Holdings Ltd. Bain Capital decided that it would settle the role of second largest shareholder in the company. The private equity group hopes to change GOME's recent trend of declining revenues and profits. Other buyout firms competed for the prized stake, Kohlberg Kravis Roberts & Co. as well as Warburg Pincus tried for months.

There is an element of risk in this venture; Huang Guangyu, the founder and former chairman of GOME, was arrested in November accused of "economic crimes." Importantly, Huang is the retains the largest stake in the company. He and his wife have a combined 35.6% stake in GOME. Although Huang was replaced as chairman by Chen Xiao, the biggest shareholder's legal troubles add to the obstacles Bain Capital is facing.

Jonathon Zhu, Bain's managing director leading the deal, gave an interview with the WSJ concerning the GOME deal.
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Tags: Private equity Bain Capital, Bain Capital LLC, Bain Capital Partners, Bain Capital Ventures, Bain Capital Fund, Bain Capital Group, Bain Capital Inc., Bain Capital Limited

Link to This Resource: Bain Capital LLC

http://privateequityblogger.com/2007/07/bain-capital-llc.html