SelectQuote Announces $350 Million Strategic Investment

Posted February 12, 2025

Overland Park-based SelectQuote announced it had signed a $350 million investment that will allow the firm to recapitalize its balance sheet and lower its annual cash debt.

Bain Capital, Morgan Stanley Private Credit and Newlight Partners managed funds from the $350 million strategic investment, according to a release Monday.

In the release, SelectQuote said the investment would allow for the recapitalization of its balance sheet, lower its annual cash debt service as well as provide liquidity and increase operating flexibility to fund growth initiatives.

“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,” SelectQuote CEO, Tim Danker, said in the release. “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.”

Approximately $250 million of the investment will go toward paying off the company’s term debt, SelectQuote President Bob Grant said at the company’s second-quarter fiscal 2025 earnings call on Monday. The nearly $100 million that remains will go toward the company’s Medicare platform and healthcare services.

SelectQuote generated 481 million in revenue for the second quarter, up 19% from a year ago. SelectRx, the company’s healthcare membership platform, experienced a 54% membership growth year-over-year. The membership expansion saw revenues grow by 64%, or $183 million.

As a result of this surge in growth, SelectQuote expects revenue to be in the range of $1.5 billion to $1.575 billion, up from the previous range of $1.425 to $1.525 billion.

Additionally, SelectQuote is appointing Chris Wolfe of Bain Capital and Srdjan Vukovic of Newlight Partners to the Board of Directors. Wolfe and Vukovic will join the Board following the closure of the transaction, which is expected to be on February 28.

Wolfe has 20 years of experience in healthcare and insurance private equity investing. He previously served as a partner at Capital Z Partners and a principal in a series of acquisitions focused on health insurance and services.

At Newlight Partners, Vukovic focuses on investments in the healthcare industry. Representative investments include Oak Street Health, which was acquired by CVS Health in 2023, and Zing Health. Vukovic has over 20 years of private equity investing experience.