Bain Capital Acquires 9.9% Stake in Lincoln National for $825 Million
A Strategic Investment That Signals Long-Term Growth and a Powerful Partnership
In a significant move reshaping the insurance and asset management industries, Bain Capital has agreed to acquire a 9.9% equity stake in Lincoln National Corporation (LNC) for $825 million. The deal not only represents a substantial capital injection into Lincoln but also establishes a strategic investment management partnership between the two firms, aimed at driving long-term growth, innovation, and portfolio diversification.
The transaction underscores Bain Capital’s confidence in Lincoln National’s business fundamentals and future potential, while positioning both firms to capitalize on synergies in private-market investing, retirement services, and insurance-linked financial strategies.
This article explores the details and implications of the acquisition, including what it means for investors, clients, and the broader financial services sector.
1. The Deal at a Glance
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Stake Acquired: 9.9% of outstanding shares in Lincoln National Corporation
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Purchase Price: $825 million (approximately $30 per share)
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Investor: Bain Capital
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Strategic Outcome: Formation of a long-term investment management partnership
The 9.9% stake stops just short of regulatory thresholds that would require further approvals, making it a deliberate and tactical equity investment. The two firms also announced a broader collaboration on product development and private-market portfolio strategies.
2. Who Are the Players?
Bain Capital
Founded in 1984, Bain Capital is a global investment firm managing more than $180 billion in assets across private equity, credit, real estate, venture capital, and public equity. Known for strategic acquisitions and hands-on management, Bain has increasingly turned its attention to financial services and insurance platforms as growth vehicles.
Lincoln National Corporation (Lincoln Financial Group)
LNC, headquartered in Radnor, Pennsylvania, is a Fortune 250 company with over $300 billion in assets under management. Lincoln offers life insurance, annuities, retirement plan services, and wealth management through a national network of advisors. In recent years, the company has focused on expanding its retirement income and asset management offerings.
This partnership pairs Bain’s alternative asset expertise with Lincoln’s large-scale distribution and insurance platforms—a complementary match in today’s evolving financial landscape.
3. Why This Investment Now?
Strategic Timing
The deal comes at a time when life insurers are under pressure to optimize capital deployment and enhance investment returns amid interest rate volatility, regulatory shifts, and rapidly changing client needs.
Lincoln National’s stock had declined more than 30% over the past 12 months (prior to the deal), largely due to reserve adjustments and reinsurance headwinds. Bain Capital’s investment signals institutional confidence in Lincoln’s long-term strategy and potential for rebound.
Market Conditions Favor Partnerships
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Increased investor appetite for private credit and alternatives
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Rising demand for insurance-linked investment products
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Accelerating trend of asset managers partnering with insurers (e.g., Blackstone & AIG, KKR & Global Atlantic)
Bain’s involvement aligns with these macro trends, offering Lincoln access to a broader array of private-market strategies while giving Bain a long-term anchor partner in the insurance sector.
4. Investment-Management Partnership: What It Entails
While full terms of the investment management partnership weren’t disclosed, the firms plan to collaborate on:
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Private credit and alternative asset allocation strategies
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Custom insurance solutions tailored to individual and institutional clients
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Co-managed funds for retirement, annuity, and wealth channels
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Risk-sharing and capital efficiency initiatives across insurance portfolios
Lincoln is expected to allocate portions of its general account and client portfolios to Bain-managed strategies, enhancing yield and diversification.
5. Financial Implications for Lincoln
Capital Strengthening
The $825 million equity investment will bolster Lincoln’s balance sheet, providing additional flexibility to:
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Support capital adequacy amid regulatory stress testing
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Invest in product innovation and digital transformation
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Maintain dividend stability or explore buybacks
Enhanced Investment Capabilities
With access to Bain’s deal flow and alternative platform, Lincoln gains a competitive edge in offering:
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Structured private-market investment options
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Inflation-protected and high-yield fixed income products
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Next-generation retirement solutions
The deal is expected to be accretive to earnings over time, particularly as Bain strategies begin to complement Lincoln’s insurance liabilities.
6. What It Means for Policyholders and Advisors
Lincoln’s clients and financial advisors could see tangible benefits, including:
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Expanded investment menus in retirement accounts and annuities
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Enhanced portfolio performance through exposure to private-market strategies
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New product offerings that integrate risk protection and alpha generation
For independent advisors, the Bain partnership strengthens Lincoln’s positioning as a forward-thinking insurer offering modern, diversified asset solutions.
7. Bain Capital’s Strategy in Insurance
This deal aligns with Bain Capital’s broader strategic interest in the insurance and wealth management space. Over the past decade, Bain has invested in:
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Resolution Life (insurance runoff platforms)
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Retail insurance distributors and technology enablers
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Financial infrastructure companies and fintech solutions
By acquiring a stake in Lincoln, Bain gains:
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Board-level visibility and governance influence
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A platform to scale its private credit and alternatives strategies
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Long-term upside tied to rising retirement demand and annuity flows
It also adds to Bain’s portfolio of long-dated capital partnerships, a critical asset in today’s illiquid private markets.
8. Broader Industry Impacts
This deal adds to a growing list of asset manager–insurer alliances, reshaping the U.S. life insurance landscape. In recent years:
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Blackstone partnered with AIG and bought stakes in life insurers
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KKR acquired Global Atlantic and expanded its alternatives platform
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Apollo and Athene merged, creating a combined insurance-asset manager hybrid
The Lincoln-Bain deal follows this trend, but with a more strategic equity stake and co-developed product focus rather than outright acquisition—preserving Lincoln’s independence while boosting its investment edge.
9. Investor and Market Reaction
Following the announcement, Lincoln’s stock rose modestly in after-hours trading, as investors reacted positively to:
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The capital infusion
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The implied endorsement from Bain Capital
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The potential for improved ROE (Return on Equity) through enhanced asset strategies
Analysts noted that the 9.9% stake, though minority, carries significant signaling value in a market increasingly sensitive to capital adequacy and strategic alignment.
Market sentiment also suggests that further collaborations or even deeper partnerships could emerge in the future, particularly if this initial initiative proves accretive.
10. Final Thoughts: A Calculated Bet on the Future of Insurance and Alternatives
Bain Capital’s $825 million investment in Lincoln National marks a convergence of two powerful forces in modern finance: the scalability and trust of legacy insurance institutions, and the agility and return potential of alternative investment managers.
By taking a 9.9% equity stake and forming a strategic partnership, Bain isn’t just betting on Lincoln—it’s betting on a future where traditional insurance evolves through innovation, diversification, and strategic capital alignment.
For Lincoln, the move offers a boost of confidence, capital, and capabilities at a crucial time. For the industry, it signals that strategic collaboration is now a core pillar of competitiveness and growth.