Bain Capital gains billion-dollar investment for insurance fund

Bain Capital has raised $1.15 billion for its first fund dedicated to investing in the insurance industry. The fund exceeds its initial target of $750 million through backing from institutional investors and high-net-worth individuals and family offices, and will be deployed in three core areas of insurance.

Bain Capital Insurance, the dedicated insurance arm of Bain Capital launched in 2021, secured approximately $1 billion of outside commitments.

Bain Capital Insurance Fund is focused on middle market transactions in North America and Europe across the entire insurance value chain and draws on Bain Capital’s core capabilities of finding investment opportunities in highly complex, fragmented markets.

The fund’s investment strategy is concentrated on three core areas: corporate transformations, such as management partnerships, carve-outs, and turnarounds launching and building new insurance platforms; and inflection or event-driven investments driven by supply/demand imbalances, evolving business models, and shifting industry trends.

The company said it is dedicated to capturing the “significant opportunities” available in the $27 trillion global insurance sector. Bain Capital Insurance has executed several investments aligning with its strategy, including an investment in Aptia, a newly formed business created by the purchase of US employee benefits administration and UK pension administration businesses of March McLennan (MMC).

It previously launched Summitas Gruppe, an German insurance brokerage platform, in partnership with JDC Group and Canada Life Irish Holding , and Enhance Health, a technology-enabled health insurance brokerage and care navigation platform serving the individual and family medical plan market.

Matt Popoli, partner and global head of Bain Capital Insurance, said: “This significant milestone reflects the enthusiasm and trust of our investors, the relationships we’ve built with business leaders and entrepreneurs across the industry, and the significant opportunities we see to drive value across the complex insurance value chain.

“We’ve built a scaled team of insurance investing experts, deep researched-backed themes, and the value creation approach to embrace that complexity, all supported by the global and platform advantages of the integrated Bain Capital platform.”

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