SelectQuote announces $350 million strategic investment

Medicare broker SelectQuote Insurance Services announced that it signed a $350 million strategic investment from funds managed by Bain Capital, Morgan Stanley Private Credit, and Newlight Partners.

This investment will allow the public company to recapitalize its balance sheet, lower its annual cash debt service, and provide liquidity and increase operating flexibility to fund growth initiatives.

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.

The company recently reported net income of $53.2 million in its fiscal second quarter.

SelectQuote also reported total debt obligations of $711.9 million as of December 31, 2024.

“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. 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.” – SelectQuote CEO Tim Danker.