Bain Capital gives investors a choice in Europe

November 25, 2013, 9:28 PM UTC

FORTUNE — Bain Capital recently began raising around €3.5 billion for its fourth European private equity fund, and Fortune has learned that the firm once again is giving investors a choice of fee structures. Either:

  1. (a) 1.75% management fee, 20% carried interest and a 7% preferred return; or
  2. (b) 0.75% management fee, 30% carried interest and no preferred return.

When Bain began raising its 11th flagship fund last year, it included similar options (the second choice had a 0.50% fee), plus a third: 1% management fee, 30% carried interest and a 7% preferred return. A source familiar with the situation says that almost no one availed themselves of that last choice, so Bain chose to streamline this time around.

The new European fund won’t be closed anytime soon, but Bain expects to finish off the 11th flagship by January at the latest. At that point it will begin collecting management fees (Fund X still has enough dry powder to do at least one more deal).

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