Lincoln National Secures $825M Strategic Investment From Bain Capital

Core Viewpoint - Lincoln National Corporation (LNC) has formed a strategic partnership with Bain Capital, involving an $825 million investment for a 9.9$44 each, a 25% premium over the recent average [1][3] Group 1: Partnership Details - Bain Capital will manage a portion of Lincoln's assets under a 10-year, non-exclusive investment management agreement, allowing LNC to collaborate with other firms [2] - The partnership aims to support Lincoln's strategic goals by providing capital and access to high-quality private assets, enhancing LNC's multi-manager platform [3] Group 2: Financial Implications - Lincoln intends to utilize the funds to expand spread-based earnings, improve asset management capabilities, optimize its legacy life insurance portfolio, and reduce financial leverage to a target of 25% [3] - LNC's long-term debt was $5.9 billion at the end of 2024, a 2.8% increase year-over-year, with a long-term debt to capital ratio of 41.5%, significantly above the industry average of 14.3% [4] Group 3: Market Performance - LNC shares increased by 14% following the announcement of the partnership, and have gained 12.6% over the past year, outperforming the industry growth of 9.4% [1][5]