Bain Capital debt arm to manage first fund for small investors

Bain Capital Credit, the debt-investing arm of the Boston private equity firm, will for the first time manage a fund for individual investors.

The Institutional Access Credit Fund will be offered by Los Angeles-based Griffin Capital Co. and subadvised by Bain Capital Credit. The fund will invest in bank loans, high-yield bonds, non-performing loans, and other debt.

The new fund is not just reserved for wealthy investors: It will have a $1,000 minimum investment for retirement plans and a $2,500 minimum for regular accounts. It is considered high risk, and not as liquid as a mutual fund, because investors will only be able to sell their shares quarterly. Even then, there is no guarantee of being able to sell all the shares desired at one time.

The fund is a departure for Bain Capital, which invests billions of dollars on behalf of pension funds, endowments, and other large institutions, in private equity, debt, and venture capital.