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The battle for one of Australia’s largest wealth management companies continues as investment firm Bain Capital and private equity group CC Capital Partners both increase their offers to $5 per share for Insignia Financial (ASX: IFL).
The news comes a month after New York-based Brookfield Capital Partners entered the battle for Insignia, matching the previous $4.60 per share offer that was lobbed by both Bain Capital and CC Capital Partners as they fought for control.
The revised offer, totalling $3.35 billion, from Bain and CC Capital represents a 63 per cent premium to the closing price of IFL shares on 11 December – that being the last trading day before Insignia received the first $2.68 billion offer from Boston-based Bain.
In an announcement to shareholders, the IFL board concluded it would be in the best interests of shareholders that the company enter into an exclusivity deed with both Bain and CC Capital to further progress both proposals.
The board confirmed it would provide both parties access to confirmatory due diligence, with the process expected to be completed within six weeks.
Each proposal is subject to various conditions, including satisfactory completion of due diligence, unanimous recommendation of the IFL board and commitments from all financial directors to vote in favour of the applicable proposal, an independent expert concluding the applicable proposal is in the best interests of shareholders,
“After careful consideration, the board has determined the terms of each proposal to be attractive for Insignia Financial shareholders and has concluded that it would be in the best interests of Insignia Financial shareholders that Insignia Financial enter into an exclusivity deed with each of Bain and CC Capital to further progress their respective proposals,” the company said.
In its 2025 half-year results, Insignia reported underlying net profit grew by 30 per cent year-on-year to generate $124 million, with the firm’s funds under management administration (FUMA) increasing by $25 billion to $320 billion.
NPAT came in at a loss of $17 million, a marked improvement from the $50 million loss posted in the first half of FY24. EBITDA was up 26 per cent to hit $233.6 million.
If any deal is entered by Insignia, it is subject to the approval of the Australian Prudential Regulation Authority, the Foreign Investment Review Board and IFL’s shareholders.
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