Bain Capital has quickly moved to match the $3 billion takeover price for Insignia Financial (ASX: IFL) by fellow US private equity group CC Capital Partners, while not ruling out prospects of making an even higher offer.

In the tit-for-tat battle to control one of Australia’s largest wealth management companies, Bain Capital has increased its offer from $4.30 to $4.60 per share – which is level with CC Capital’s increased offer price announced last Friday.

Insignia, which was formerly known as IOOF Holdings, has granted Bain Capital access to “certain non-public information on a non-exclusive basis” that the company says may determine if Bain is able to offer a “further improved proposal”.

“The provision of this information is subject to certain conditions, including the signing of an appropriate confidentiality and standstill agreement by Bain,” says Insignia.

“The provision of limited due diligence does not guarantee that the Bain second revised indicative proposal will result in a binding offer or one that is capable of being recommended by the board of Insignia Financial.”

Bain Capital is keen to secure a deal for Insignia after being rebuffed by the Insignia board following its original $4-per-share bid for the company lodged on 12 December, an offer that valued the group at $2.68 billion.

CC Capital stepped in with an indicative offer price of $4.30 per share on 6 January, setting the scene for a bidding war with Bain for Insignia.

In a December-quarter update to the market today, Insignia revealed a $7.2 billion, or 2.2 per cent, increase in funds under management and administration (FUMA) to $326.8 billion.

Total net inflows for the quarter were $2.3 billion, which were driven by $564 million net inflows into MLC Expand and $577 million net inflows into retail Asset Management, and $2 billion institutional net inflows into Asset Management.

“We achieved a number of critical strategic milestones during the quarter, and presented a vision for the company that will allow us to build on our strong foundations, deliver growth and create value,” says Insignia Financial CEO Scott Hartley.

“At our Investor Day in November 2024, we outlined our strategy for Insignia Financial to become Australia’s leading and most efficient wealth management company by 2030.

“This marked a shift in our focus from building capability through acquisition, integration and simplification, to accelerated and sustainable growth through a relentless obsession with our customers.”

Hartley notes that during the quarter Insignia completed the IT separation of the MLC business from National Australia Bank (ASX: NAB) after acquiring the business from the banking group in 2021.

“This was one of the largest wealth management separations in Australian financial services history and the most important initiative that we had to deliver as an organisation in FY25, allowing us to implement our strategic vision for the Master Trust business,” he says.

“The growth we've achieved throughout this quarter and the delivery of these key strategic milestones highlights our ability to deliver our 2030 strategy.”

Insignia plans to announce its FY25 first-half results on 20 February 2025.

The company’s shares were trading at $4.49, up 6c, at 10.26am (AEDT).

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