Bain Capital and Lincoln Financial announced a long-term strategic partnership on April 9, according to a news release.
As part of the 10-year non-exclusive partnership, Bain will acquire a 9.9% stake in Lincoln Financial and Lincoln will receive an $825 million all-cash strategic growth investment from Bain.
Bain will also become an investment manager across asset classes including private credit, structured assets, mortgage loans and private equity for Lincoln, according to the release.
“This long-term, strategic relationship reflects our commitment to advancing Lincoln’s future by providing access to our high-quality investment platform, expertise across asset classes, and value-added capital,” said David Gross, co-managing partner at Bain Capital in the release. “We look forward to working closely with the Lincoln team to further their organization in driving meaningful scale and profitable growth."
This is the first partnership for Bain, a spokesperson confirmed to P&I.
As part of the agreement, Lincoln National will sell approximately 18.8 million shares of its common stock for $44.00 per share and Bain agreed to “certain limitations and restrictions on its ability to divest its ownership stake,” according to the release.
“This partnership aligns us with a highly reputable organization whose powerful platform and shared values and goals will enable us to accelerate the execution of our strategy,” said Ellen Cooper, chairman, president and CEO of Lincoln Financial, in the release.
The partnership will also help Lincoln with its goal of reducing its leverage ratio towards its 25% target, according to the release.
The transaction, subject to regulatory approval, is expected to close in the second half of 2025.
Bain had approximately $185 billion in assets under management as of Sept. 30, 2024.
Lincoln, which offers retail investors life insurance, annuities and workplace benefits, had $321 billion in end-of-period account balances, net of reinsurance, as of Dec. 31, 2024.
Strategic partnership have become increasingly popular among asset managers and insurance companies.
Investment manager T. Rowe Price Group along with its alternative credit subsidiary Oak Hill Advisors announced a strategic partnership with life insurance and annuity firm Aspida Holdings in February. And Northwestern Mutual and Sixth Street announced a strategic partnership at the start of the year.
