Lincoln Financial Teams Up with Bain Capital in Long-Term Strategic Partnership to Drive Growth and Innovation

Lincoln Financial Teams Up with Bain Capital in Long-Term Strategic Partnership to Drive Growth and Innovation

Lincoln Financial and Bain Capital Forge $825 Million Strategic Partnership to Propel Growth and Innovation

In a significant move poised to reshape the financial services landscape, Lincoln Financial Group (NYSE: LNC) has announced an $825 million strategic growth investment from Bain Capital, a leading global private investment firm. This collaboration entails Bain Capital acquiring a 9.9% stake in Lincoln Financial, setting the stage for a long-term partnership aimed at accelerating Lincoln’s strategic initiatives and fostering sustained profitable growth.

Strategic Investment Details

Under the terms of the agreement, Bain Capital will purchase approximately 18.8 million shares of Lincoln Financial’s common stock at $44.00 per share. This price reflects a 25% premium over the 30-day volume-weighted average price as of April 8, 2025. The transaction, structured as an all-cash deal, is expected to provide Lincoln Financial with substantial capital to deploy toward its strategic priorities. These priorities include enhancing spread-based earnings, advancing portfolio management efforts, optimizing the legacy life portfolio, and accelerating the reduction of its leverage ratio toward the 25% target.

Lincoln Financial Teams Up with Bain Capital in Long-Term Strategic Partnership to Drive Growth and Innovation

Long-Term Strategic Partnership

Central to this collaboration is a 10-year, non-exclusive strategic investment management relationship. Bain Capital will serve as an investment manager across a variety of asset classes, including private credit, structured assets, mortgage loans, and private equity. This partnership grants Lincoln Financial access to a sustained source of high-quality private assets with differentiated risk-adjusted returns, thereby enhancing Lincoln’s existing multi-manager platform.

Ellen Cooper, Chairman, President, and Chief Executive Officer of Lincoln Financial, emphasized the significance of this partnership:

“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. We are extremely pleased with the strategic and financial benefits of our mutual capabilities and believe this partnership positions us for future success.”

David Gross, Co-Managing Partner at Bain Capital, echoed this sentiment:

“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. We look forward to working closely with the Lincoln team to further their organization in driving meaningful scale and profitable growth.”

Enhancing Investment Capabilities

The collaboration is designed to bolster Lincoln Financial’s investment capabilities by leveraging Bain Capital’s extensive expertise and resources. By integrating Bain Capital’s proficiency in private credit, structured assets, mortgage loans, and private equity, Lincoln aims to diversify its investment portfolio and enhance returns. This strategic alignment is expected to provide Lincoln with a competitive edge in sourcing and managing private assets, ultimately benefiting its policyholders and stakeholders.

Financial Flexibility and Growth

The $825 million capital infusion is set to provide Lincoln Financial with the financial flexibility needed to pursue growth opportunities and strengthen its financial position. By focusing on growing spread-based earnings and optimizing its legacy life portfolio, Lincoln aims to enhance profitability and shareholder value. Additionally, the partnership supports Lincoln’s objective of reducing its leverage ratio toward the 25% target, thereby improving its financial stability and credit profile.

Regulatory Approvals and Closing

The transaction is subject to customary closing conditions, including regulatory approvals, and is anticipated to close in the second half of 2025. Both parties have expressed confidence in meeting these requirements and look forward to commencing their collaborative efforts upon closing.

Advisors

Goldman Sachs & Co. LLC acted as the financial advisor to Lincoln Financial, while Wachtell, Lipton, Rosen & Katz served as legal advisor. Sumitomo Mitsui Banking Corporation acted as structuring advisor to Bain Capital, with Debevoise & Plimpton LLP and Ropes & Gray LLP serving as legal advisors.

Conference Call Information

Lincoln Financial hosted an investor call at 8:30 a.m. Eastern Time on Wednesday, April 9, to discuss this announcement. A presentation is available on the company’s Investor Relations webpage at www.lincolnfinancial.com/investor. The conference call was broadcast live through the company’s website at www.lincolnfinancial.com/webcast, with a replay available by 12 p.m. Eastern Time on April 9, 2025.

About Lincoln Financial Group

Lincoln Financial Group helps people confidently plan for their vision of a successful financial future. As of December 31, 2024, approximately 17 million customers trust Lincoln’s guidance and solutions across four core businesses: annuities, life insurance, group protection, and retirement plan services. The company reported $321 billion in end-of-period account balances, net of reinsurance, as of December 31, 2024. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates, including broker-dealer/affiliate Lincoln Financial Distributors, Inc.

About Bain Capital

Founded in 1984, Bain Capital is one of the world’s leading private investment firms. Committed to creating lasting impact for investors, teams, businesses, and communities, Bain Capital operates as a private partnership with a culture of collaboration and innovation. The firm’s global platform invests across five focus areas: Private Equity, Growth & Venture, Capital Solutions, Credit & Capital Markets, and Real Assets. With 24 offices on four continents, more than 1,850 employees, and approximately $185 billion in assets under management, Bain Capital brings deep sector expertise and wide-ranging capabilities to its investments.

Conclusion

The strategic partnership between Lincoln Financial and Bain Capital represents a transformative collaboration aimed at accelerating growth, enhancing investment capabilities, and delivering long-term value to stakeholders. By aligning with Bain Capital’s expertise and resources, Lincoln Financial is well-positioned to execute its strategic initiatives and achieve sustained profitable growth in the evolving financial services landscape.

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