SelectQuote, a major Medicare insurance distributor and healthcare services provider, has secured a $350mn investment. Bain Capital, Morgan Stanley Private Credit, and Newlight Partners participated in the funding.
The investment will support the company’s expansion in healthcare services and strengthen its relationships with insurance carriers. It will also help recapitalize the balance sheet, reduce annual debt costs, and improve liquidity for future growth.
SelectQuote has renegotiated its Senior Secured Credit Facility, lowering interest costs on its remaining balance. The company plans to optimize its capital structure, continue working with insurance carriers, and expand its healthcare services division.
This investment is a key step in SelectQuote’s strategy to strengthen its financial position and drive long-term growth. As part of the deal, Chris Wolfe of Bain Capital and Srdjan Vukovic of Newlight Partners will join the board. Both have over 20 years of experience in private equity healthcare investments. The transaction is expected to close on February 28, 2025.
CEO Tim Danker stated that the funding provides the capital needed to pursue growth opportunities in senior health insurance and healthcare services. He noted that this deal, following the 2024 receivables securitization, marks a second major step toward refinancing and reducing debt.
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.
SelectQuote CEO Tim Danker
“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, highlighted SelectQuote’s role in improving insurance access by increasing transparency and choice. He looks forward to working with the board and management team to support the company’s growth in insurance sales and healthcare services.
Morgan Stanley’s managing director Ashwin Krishnan expressed confidence in the company’s future, emphasizing that the investment and recent operational progress position it for sustained success.
Jefferies served as SelectQuote’s exclusive financial advisor, while Wachtell, Lipton, Rosen & Katz provided legal counsel.
SelectQuote, founded in 1985, operates a direct-to-consumer platform that distributes insurance policies and healthcare services.
The company specializes in Medicare Advantage, Medicare Supplement, and Medicare Part D plans, along with other senior health insurance products. It also offers life, auto, and home insurance.
In 2021, SelectQuote expanded into healthcare services with the launch of Population Health, focusing on reducing medication-related risks. The company also operates SelectRx, a pharmacy that provides medication management services.
As of 2024, SelectQuote reported significant revenue growth and employs thousands of professionals. Headquartered in Overland Park, Kansas, it continues to strengthen its position in the insurance and healthcare markets.
