Brookfield, a New York-based asset manager, has joined the competitive bidding for Australian wealth manager Insignia Financial, matching rival offers at A$4.60 per share. This valuation places Insignia at A$3.07 billion (approximately $1.9 billion) and has granted Brookfield limited access to the company's financial records.

Other contenders in the bidding war include Bain Capital and CC Capital Partners, both of which have also submitted offers at the same price. Following the announcement, Insignia's stock rose by 7.6% to A$4.65, exceeding the latest bid for the first time since Bain's initial proposal in late 2024.

The bidding timeline reveals a series of escalating offers. On December 12, 2024, Insignia shares surged over 10% after reports indicated Bain Capital was close to making an offer. The next day, Bain submitted a non-binding cash proposal valuing Insignia at A$2.67 billion. However, Insignia rejected this bid on December 18, stating it did not reflect fair value for shareholders.

In early January 2025, CC Capital Partners entered the fray with a A$2.87 billion offer, surpassing Bain's initial bid. By January 10, Insignia clarified that it had not received an offer from Brookfield, with shares hovering around A$4.14. The competition intensified on January 13 when Bain improved its offer to match CC Capital's valuation.

On January 17, CC Capital raised its bid to A$3.07 billion, marking the first instance of a bidder offering A$4.60 per share. Insignia then granted CC Capital access to non-public information to assess whether it could enhance its proposal. The back-and-forth continued, with Bain matching CC Capital's offer on January 23, pushing Insignia shares to A$4.55.

Brookfield's entry into the bidding war on February 5, 2025, as the third suitor, has intensified the competition for Insignia, further complicating the landscape for potential buyers. The ongoing negotiations highlight the growing interest in the Australian wealth management sector and the strategic moves by private equity firms to expand their portfolios.

As the bidding progresses, the outcome remains uncertain, with each firm vying for a stake in Insignia Financial. The situation underscores the dynamic nature of private equity investments and the competitive environment in which these firms operate.