Bain Capital joins Virgin pursuit

First round bids for Virgin Australia are due on Friday. Picture: David Clark

Bain Capital is expected to bring in additional backers as part of its pursuit of Virgin Australia.

In the increasingly fluid contest for the collapsed airline, Bain Capital is currently understood to be working with the Future Fund.

However, the US-based private equity firm is expected to add additional firepower to its consortium should it continue in pursuit of the business.

Brookfield, which has former Virgin Australia director David Baxby in its corner, is no longer working with Macquarie Capital, but may have other backers if it remains in the contest.

BGH Capital, meanwhile, has shaken off talk in the market it is working with the Singaporean-based Temasek and Canadian pension funds, including CDPQ, with sources close to the fund denying it is currently involved with such parties.

Still, it is early days in the contest, with first round bids due on Friday.

Any party will no doubt be eager to win the hearts and minds of Virgin Australia employees and creditors, who will vote on any deed of company arrangement for the airline.

The employees account for the largest number of creditors so will have a major say in whether the deal is agreed.

A contender that has recently emerged for the business is InterGlobe enterprises, the major shareholder of the low-cost Indian airline IndiGo and seen as a potentially strong competitor.