Lincoln Financial (NYSE: LNC) has just announced a strategic partnership with Bain Capital, a leading global investment firm, which involves a significant investment of $825 million by Bain Capital to acquire a 9.9% ownership stake in Lincoln Financial. This partnership is set to facilitate the acceleration of Lincoln Financial’s strategy, unlock value creation opportunities, and provide growth capital to be deployed in areas of strategic focus.
The transaction involves the sale of approximately 18.8 million shares of Lincoln Financial's common stock to Bain Capital at a price of $44.00 per share, representing a 25% premium to the 30-day volume-weighted average price as of April 8, 2025. Additionally, Bain Capital has agreed to certain limitations and restrictions on its ability to divest its ownership stake.
This strategic partnership also includes a 10-year, non-exclusive strategic investment management relationship, with Bain Capital becoming an investment manager across a variety of asset classes, including private credit, structured assets, mortgage loans, and private equity. This partnership aims to provide Lincoln Financial with access to high-quality private asset classes with differentiated risk-adjusted returns that enhance its existing multi-manager platform.
The partnership is expected to provide Lincoln Financial with growth capital to deploy toward its strategic priorities, including growing spread-based earnings, advancing its portfolio management efforts and asset sourcing capabilities, and optimizing its legacy life portfolio. Additionally, it will offer the financial flexibility to accelerate its goal of reducing its leverage ratio towards its 25% target.
Goldman Sachs & Co. LLC acted as the financial advisor and Wachtell, Lipton, Rosen & Katz served as the legal advisor to Lincoln Financial in this transaction. Sumitomo Mitsui Banking Corporation acted as the structuring advisor, and Debevoise & Plimpton LLP and Ropes and Gray LLP served as legal advisors to Bain Capital.
The transaction is subject to customary closing conditions, including regulatory approvals, and is anticipated to close in the second half of 2025.
This partnership is viewed as a pivotal milestone for Lincoln Financial, with its Chairman, President, and CEO, Ellen Cooper, emphasizing the commitment to delivering long-term value for stakeholders. David Gross, Co-Managing Partner at Bain Capital, also expressed commitment to advancing Lincoln’s future through the strategic relationship.
The company will host an investor call to discuss this announcement, and a presentation is available on the company’s investor relations webpage. Following these announcements, the company's shares moved 13.0%, and are now trading at a price of $32.72. For more information, read the company's full 8-K submission here.
