SelectQuote Secures $350M Investment from Leading Firms
Deal News | Feb 10, 2025 | Morgan Stanley (MSCP)
SelectQuote, Inc., a leading distributor of Medicare insurance policies, announced a $350 million strategic investment from Bain Capital, Morgan Stanley Private Credit, and Newlight Partners. This investment supports SelectQuote's growth in healthcare services, restructures its balance sheet, and reduces annual debt service. Key appointments to the Board include Chris Wolfe of Bain Capital and Srdjan Vukovic of Newlight Partners. The transaction is expected to close on February 28, 2025. The capital injection will enhance SelectQuote's mission to innovate in senior health insurance and healthcare services, backed by strategic expertise from Wolfe and Vukovic. Jefferies acted as the exclusive financial advisor, and Wachtell, Lipton, Rosen & Katz as the legal advisor. The announcement includes caution about forward-looking statements that are subject to various risks and uncertainties.
Sectors
- Healthcare Services
- Insurance
- Private Equity
- Financial Services
Geography
- United States – The transaction involves U.S.-based SelectQuote and investment partners with operations in North America.
Industry
- Healthcare Services – The investment aims to expand SelectQuote’s healthcare services platform, making this a significant focus of the transaction.
- Insurance – SelectQuote is a prominent distributor in the insurance sector, specifically focusing on Medicare policies.
- Private Equity – Involvement of Bain Capital, Morgan Stanley Private Credit, and Newlight Partners highlights this as a private equity deal.
- Financial Services – The transaction involves restructuring financial components like balance sheet and debt service, which is a key aspect of financial services.
Financials
- $350 million – Total amount of the strategic investment in SelectQuote by Bain Capital, Morgan Stanley Private Credit, and Newlight Partners.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| SelectQuote, Inc. | Target Company | Company | A leading distributor of Medicare insurance and healthcare services. |
| Bain Capital | Investor | Company | A private investment firm participating in the strategic investment in SelectQuote. |
| Morgan Stanley Private Credit | Investor | Company | Providing part of the strategic investment to support SelectQuote's growth. |
| Newlight Partners | Investor | Company | A growth-focused private equity firm aiding SelectQuote's expansion. |
| Jefferies | Financial Advisor | Company | Provided exclusive financial advisory services to SelectQuote for this transaction. |
| Wachtell, Lipton, Rosen & Katz | Legal Advisor | Company | Served as legal advisor to SelectQuote during the transaction. |
| Chris Wolfe | Board Member | Person | Managing Director at Bain Capital, joining SelectQuote's Board. |
| Srdjan Vukovic | Board Member | Person | Partner at Newlight Partners, appointed to SelectQuote's Board. |
| Ashwin Krishnan | Investment Management Leader | Person | Managing Director at Morgan Stanley Investment Management commenting on the investment. |
| Tim Danker | CEO | Person | CEO of SelectQuote commenting on the strategic investment. |