Bain Capital Insurance raises $1.15 billion for first fund

Bain Capital Insurance has raised $1.15 billion for its inaugural private equity fund, exceeding its initial target of $750 million.

The Boston-based private equity fund said its insurance investing unit would use the funds to focus on middle market transactions in North America and Europe in three core areas

•  corporate transformations, such as management partnerships, carve-outs, and turnarounds

•  launching and building new insurance platforms; an

•  inflection or event-driven investments driven by supply/demand imbalances, evolving business models, and shifting industry trends.

Bain Capital Insurance was launched in 2021 as a new business unit dedicated to capturing the significant opportunities available in the $27 trillion global insurance sector. 

In June, the firm announced an investment in Aptia, a newly formed business created by the purchase of US employee benefits administration and UK pension administration businesses of Marsh McLennan.  It also previously launched Summitas Gruppe, an innovative German insurance brokerage platform, in partnership with JDC Group and Canada Life Irish Holding Co, and Enhance Health, a technology-enabled health insurance brokerage and care navigation platform serving the individual and family medical plan market.

The fund includes approximately $1 billion of outside commitments from institutional investors and high-net-worth individuals and families. Bain Capital employees committed the balance of the fund, continuing the firm’s heritage of being the largest investor collectively across its funds.

“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,” said Matt Popoli (pictured), partner and global head of Bain Capital Insurance.

“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.”