SelectQuote, a leading distributor of Medicare insurance policies and owner of a rapidly growing healthcare services platform, has secured a $350m strategic investment.
The investment, which featured investment from Bain Capital, Morgan Stanley Private Credit, and Newlight Partners, is expected to enhance the firm’s ability to expand its healthcare services business while deepening relationships with insurance carriers.
The funding will also allow the company to recapitalise its balance sheet, lower its annual cash debt service, and increase liquidity for future growth initiatives.
SelectQuote has also successfully renegotiated its Senior Secured Credit Facility, reducing the interest rate on its remaining balance.
With the new funding, it plans to optimise its capital structure, continue strategic collaborations with insurance carriers, and further expand its healthcare services division.
The investment is positioned as a key step in the company’s long-term strategy to strengthen its financial position and drive sustainable growth.
As part of the deal, SelectQuote will appoint Chris Wolfe of Bain Capital and Srdjan Vukovic of Newlight Partners to its board of directors. Both bring over 20 years of experience in private equity investing in the healthcare sector. The transaction is expected to close on February 28, 2025.
SelectQuote CEO Tim Danker said, “This strategic investment provides the financing we need to capitalise on the robust growth opportunities we foresee in both the senior health insurance and healthcare services marketplaces. While we have more work to do, this deal, on the heels of our 2024 receivables securitisation, marks the second meaningful milestone toward our ultimate goal of refinancing the business and significantly deleveraging the balance sheet.”
Wolfe, a managing director at Bain Capital Insurance, added, “SelectQuote pioneered the way consumers approach shopping for insurance by removing barriers and introducing transparency and choice. I am excited to partner with my fellow board members and the Company’s management team to drive continued growth of its robust insurance sales and healthcare services solutions, which play a crucial role in safeguarding and enhancing the financial well-being and health of its customers.”
Morgan Stanley’s managing director Ashwin Krishnan commented, “We are pleased to partner with SelectQuote and lead this financing alongside our partners Bain Capital and Newlight. We believe this investment, along with the Company’s recent operating momentum, sets the business up for continued long-term success.”
Jefferies served as the exclusive financial advisor for SelectQuote, while Wachtell, Lipton, Rosen & Katz provided legal counsel for the transaction.
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