Bain Capital has exited the race to acquire Australian wealth manager Insignia Financial, walking away from a potential AUD3.34bn ($2.2bn) takeover amid heightened global market turbulence, the firm confirmed this week, according to a report by Reuters.
The private equity giant had been one of three contenders vying for control of the ASX-listed firm, but its withdrawal leaves New York-based investment manager CC Capital as the sole active bidder. Canadian alternative asset manager Brookfield had previously declined to raise its offer, effectively stepping back from the process earlier in the year.
In a statement on Wednesday, Insignia Financial said Bain had informed the company that it would not proceed with a binding offer “due to the macro uncertainty caused by the volatility in global capital markets.”
Insignia continues to engage with CC Capital, which is said to be working towards submitting a binding proposal in the coming weeks. CC Capital has yet to comment publicly on its plans.
Both Bain and CC Capital had previously sweetened their bids to AUD5 per share in March in an effort to outmanoeuvre Brookfield, whose lower offer failed to keep pace. Following Bain’s exit, Insignia shares plunged 15.3% to AUD3.39.
