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Portfolio > Alternative Investments > Private Equity

Bain Creates $1.15B Insurance Private Equity Fund

By Allison Bell

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Bain Capital says it now has $1.15 billion in cash it can use to fund insurance deals.

The Boston-based investment firm’s Bain Capital Insurance Fund plans to invest some of the money in insurance companies’ efforts to restructure themselves, carve some operations out from others and turn troubled operations around.

The fund will also invest in the start of new insurance platforms and insurers’ moves to address product gluts, product shortages and other trends.

Bain originally hoped to raise $750 million for the fund. Outside institutional investors, high-net-worth individuals and high-net-worth families ended up contributing $1 billion, and Bain’s own employees contributed more than $100 million.

What It Means

Some of your clients are looking for insurers willing to provide guarantees through insurance policies and annuity contracts. Other clients may think this is a great time to invest in the insurers providing the guarantees.

Bain

In recent years, Bain involved itself in the U.S. life and annuity sector by helping Federal Life, a Riverwoods, Illinois-based insurer, move away from being a policyholder-owned mutual insurer to having a stock company charter.

Federal Life recently announced that it will sell life insurance policies that include long-term care benefits at the worksite.

The Insurance Fund

Bain started the Bain Capital Insurance Fund in 2021.

Now that Bain has closed on raising cash for the fund, the fund managers will be “focused on middle-market transactions in North America and Europe across the entire insurance value chain,” the company said.

Credit: MilanMarkovic/BigStock

Allison Bell

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