SelectQuote, a distributor of Medicare insurance policies and owner of a rapidly-growing healthcare services platform, signed a $350 million investment from funds managed by Bain Capital, Morgan Stanley Private Credit and Newlight Partners.
The transaction positions the company to continue growing its healthcare services business, deepening its relationship with carrier partners and providing choice and value for consumers. This investment will allow the company to recapitalize its balance sheet, lower its annual cash debt service and provide liquidity and increase operating flexibility to fund growth initiatives. The company’s successful renegotiation of its senior secured credit facility provides a lower interest rate on the remaining balance.
This investment will accelerate the company’s effort to optimize its capital structure as it continues to explore accretive, strategic solutions with its insurance carrier partners and to grow its rapidly expanding healthcare services business.
Additionally, SelectQuote is appointing Chris Wolfe of Bain Capital and Srdjan Vukovic of Newlight Partners to the board of directors, each bringing over 20 years of investing and healthcare sector experience to the company. SelectQuote anticipates Wolfe and Vukovic will join the board upon the closing of the transaction, expected to be on Feb. 28, 2025.
“This strategic investment provides the financing we need to capitalize on the robust growth opportunities we foresee in both the senior health insurance and healthcare services marketplaces,” Tim Danker, CEO of SelectQuote, said. “While we have more work to do, this deal, on the heels of our 2024 receivables securitization, marks the second meaningful milestone toward our ultimate goal of refinancing the business and significantly deleveraging the balance sheet. We look forward to benefitting from Chris’s and Srdjan’s valuable growth-oriented healthcare expertise to help augment the Company’s mission to drive long-term value creation.”
Wolfe is a managing director at Bain Capital Insurance, the dedicated insurance investing unit of Bain Capital. Previously, he was a partner at Capital Z Partners and a principal in a series of special purpose acquisition vehicles focused on health insurance and services. Wolfe has more than 20 years of experience in healthcare and insurance private equity investing.
“SelectQuote pioneered the way consumers approach shopping for insurance by removing barriers and introducing transparency and choice,” Wolfe said. “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.”
Vukovic is a partner at Newlight Partners, where he focuses on investments in the healthcare industry. Representative investments include Oak Street Health (acquired by CVS Health) and Zing Health. He has over 20 years of private equity investing experience.
“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,” Ashwin Krishnan, managing director and co-head of North America Private Credit at Morgan Stanley Investment Management, said.
Jefferies served as exclusive financial advisor to SelectQuote in the transaction. Wachtell, Lipton, Rosen & Katz served as legal advisor to SelectQuote.
