Summary
Bain Capital Specialty Finance Inc., a subsection of investment firm Bain Capital, has filed for a $100 million IPO.
BCSF is a small company which could take advantage of a major market opportunity and interest in middle market lending.
The company reports high revenue growth, but its debt level is higher than investors should like.
No conclusions can be drawnwithout a formal pricing, but investors should be skeptical as the company isnew and may not draw that much benefit from its association with its parentcompany.
Bain Capital is finally going public. To be more specific, a section of the well-known investment firm called Bain Capital Specialty Finance Inc. (BCSF) has filed for a $100 million IPO under the banner of BCSF according to Reuters. The IPO amount is a placeholder value used to calculate filing fees and we can expect BCSF to enlarge the IPO size eventually. BofA Merrill Lynch, Goldman Sachs, Morgan Stanley and Citigroup are among the underwriters for the IPO.
There is not a lot we know about this IPO, especially as we do not know the IPO size nor its resulting valuation. We cannot thus draw a firm conclusion about whether investors should be interested, but there are some troubling signs as we look through the initial numbers and what BCSF is trying to do. Investors should listen carefully during the roadshow, but skepticism should be the initial order of the day.
