In a large pot or Dutch oven, heat the olive oil over medium-high heat.
Add the chopped bacon and cook until crisp, then remove with a slotted spoon and set aside.
Season the beef with salt and pepper, then sear in the pot until browned on all sides.
Add the carrots, parsnips, mushrooms, and pearl onions to the pot, sautéing for 5 minutes until slightly softened.
Stir in the minced garlic and tomato paste, cooking for 1 minute until fragrant.
Pour in the red wine to deglaze the pot, scraping up any browned bits from the bottom.
Add the beef broth, thyme, bay leaf, and the cooked bacon back into the pot.
Cover and simmer on low heat for 90 minutes or until the beef is fork-tender and the sauce has thickened.