Lincoln Financial, a provider of retail life and annuity solutions and workplace benefits, has announced an investment of $825m from global investment firm Bain Capital.
The parties have signed a definitive agreement, whereby Bain Capital will acquire a 9.9% stake in Lincoln National.
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This deal includes the sale of approximately 18.8 million shares of Lincoln’s common stock at $44 apiece, reflecting a 25% premium to the 30-day volume-weighted average price as of 8 April 2025.
Completion of the all-cash deal is expected in the second half of 2025, contingent upon standard closing conditions including regulatory approvals.
The investment is intended to support Lincoln’s priorities including expanding spread-based earnings, enhancing asset sourcing capabilities and optimising its legacy life portfolio.
The company also expects “financial flexibility” from the transaction, which it says will help ramp up its goal to cut leverage ratio to 25%.
Lincoln Financial chairman, president and CEO Ellen Cooper said: “This partnership aligns us with a highly reputable organisation 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.”
Lincoln Financial, which provides annuities, life insurance, group protection and retirement plan services, had $321bn in end-of-period account balances as of 31 December 2024. The company serves approximately 17 million customers.
In addition to the stake purchase, Lincoln and Bain Capital signed a ten-year, non-exclusive investment management relationship.
Under this arrangement, Bain will manage investments across several asset classes including private credit, structured assets, mortgage loans and private equity.
Bain Capital co-managing partner David Gross said: “For over 120 years, Lincoln has served as a trusted financial steward for millions of people.
“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 organisation in driving meaningful scale and profitable growth.”
For Lincoln Financial, Goldman Sachs was the financial advisor and Wachtell, Lipton, Rosen & Katz was the legal advisor.
Bain Capital secured legal counsel from Debevoise & Plimpton and Ropes and Gray, with Sumitomo Mitsui Banking acting as structuring advisor.
