Bain Capital agreed to acquire a 9.9% equity stake in Lincoln Financial in a $825m all-cash deal, marking the start of a long-term strategic partnership between the global investment firm and the NYSE-listed life insurance and retirement services provider.

The transaction includes a 10-year, non-exclusive investment management relationship under which Bain Capital will manage assets across private credit, structured products, mortgage loans, and private equity. The partnership provides Lincoln with direct access to Bain’s institutional-grade private market strategies, positioning it to enhance returns while maintaining a diversified, multi-manager platform.

Lincoln Financial, which serves 17 million customers and manages $321bn in end-of-period account balances, will use the capital to accelerate its growth strategy. Proceeds will support the expansion of spread-based earnings, strengthen asset sourcing capabilities, and optimise Lincoln’s legacy life insurance portfolio. The transaction also helps advance the firm’s goal of reducing its leverage ratio toward its 25% target.

“This partnership aligns us with a highly reputable organisation whose powerful platform and shared values will enable us to accelerate the execution of our strategy,” said Ellen Cooper, Chairman, President, and CEO of Lincoln Financial. “We are extremely pleased with the strategic and financial benefits this brings.”

David Gross, Co-Managing Partner at Bain Capital, commented: “This long-term, strategic relationship reflects our commitment to advancing Lincoln’s future by providing access to our high-quality investment platform and value-added capital. We look forward to working closely with the Lincoln team to support meaningful scale and profitable growth.”

The deal, based on a 25% premium to Lincoln’s 30-day volume-weighted average share price, involves the issuance of approximately 18.8 million shares at $44.00 per share. Bain Capital has also agreed to certain limitations on divesting its stake.

The transaction is expected to close in the second half of 2025, subject to customary regulatory approvals.

Goldman Sachs served as financial advisor to Lincoln Financial, while Wachtell, Lipton, Rosen & Katz provided legal counsel. Bain Capital was advised by Sumitomo Mitsui Banking Corporation, Debevoise & Plimpton LLP, and Ropes & Gray LLP.