Bain Capital and CC Capital secured access to Insignia Financial’s books after both private equity firms raised their takeover bids for the Australian wealth management group to $2.11bn. 

The revised offer of AUD5 per share, up from their initial AUD4.60 bids, represents an 8.7% premium and has propelled Insignia’s stock 13.5% higher to AUD4.835—its strongest level since August 2021.

The bidding war has intensified after Brookfield Asset Management entered the fray last month with a matching bid. However, Brookfield is now reportedly unlikely to raise its offer, making Bain and CC Capital the frontrunners. Market analysts suggest a final “knockout” bid of AUD5.20 per share could still emerge.

Insignia, formerly known as IOOF, manages AUD327bn in client assets, positioning it as Australia’s third-largest superannuation provider. With global investors eyeing Australia’s booming pension market, Insignia has become a prime acquisition target.

Initially, the firm had granted limited financial access to all three bidders. However, after reviewing the latest proposals, Insignia determined Bain and CC Capital’s offers to be in shareholders’ best interests. The firms now have six weeks to complete confirmatory due diligence, which could set the stage for a final acquisition deal.

Investor confidence has surged since Bain’s initial approach on 12 December, with Insignia’s stock climbing nearly 40%, reflecting optimism over a premium buyout. Bain recently joined Italy’s Largest Private Equity Conference in Milan.