Recasts and writes through

By John Biju and Rishav Chatterjee

Feb 5 (Reuters) - Insignia Financial IFL.AX said on Wednesday that Brookfield BAM.TO has thrown its hat into the ring for the Australian money manager, offering to match bids of A$3 billion ($1.9 billion) from Bain Capital and CC Capital Partners.

Insignia shares surged as much as 7.6% to a three-year high of A$4.65, slightly higher than the A$4.60 price all three suitors have offered.

The offer from New York-headquartered, Toronto-listed Brookfield also allows for Insignia investors to take equity in its unlisted bid vehicle if they prefer.

Insignia, formerly known as IOOF, managed some A$327 billion in client money as of December and is the third-largest player in Australia's superannuation sector. It has granted Brookfield limited access to its books as it has done with the two other bidders.

Australia's publicly traded wealth management firms are drawing interest from investors attracted to the country's thriving pension system. Insignia is regarded as a prime target as its operations encompass both funds management and advisory services.

"With access to the A$4.1 trillion superannuation system in Australia, we can see why Brookfield are the latest entrant in the race for the Insignia takeover and possible privatisation," said Jesse Moors, portfolio manager at Spatium Capital.

Bain first bid for Insignia on Dec. 13, when the money manager had a market value of A$2.2 billion. Insignia rejected that offer, after which CC Capital made a proposal and a bidding war ensued.

While interest in Australian fund managers has been high, closing deals has been difficult.

KKR KKR.N had planned to buy Australian fund manager Perpeptual's PPT.AX management and corporate trust businesses for A$2.2 billion but that deal is now in doubt after the company received a much higher-than-expected tax bill.

Regal Partners RPL.AX made an offer for Platinum Asset Management in September, but the buyout talks failed.

Separately, Brookfield has previously sought to take power retailer Origin Energy ORG.AX private for $10.6 billion but the deal was rejected by shareholders. Bain bought out carrier Virgin Australia during the peak of the COVID-19 pandemic.

($1 = 1.5995 Australian dollars)

(Reporting by John Biju and Rishav Chatterjee in Bengaluru, additional reporting by Aaditya Govind Rao; Editing by Edwina Gibbs)

((John.Biju@thomsonreuters.com))