SelectQuote said Monday it received a $350 million strategic investment from private equity firms Bain Capital and Newlight Partners and investment bank Morgan Stanley Private Credit.
The publicly held online insurance brokerage plans to use the funds to stabilize its balance sheet and expand its healthcare services, according to a news release.
Related: Insurance brokers bank on busy Medicare enrollment period
"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 news release.
The transaction is expected to close Feb. 28. At that time, Bain and Newlight each will get a seat on SelectQuote's board.
SelectQuote did not immediately respond to an interview request.
Rising competition and new federal restrictions on how Medicare Advantage policies can be marketed drove some insurers to cut their ties with the firm over the years.
For the first six months of its fiscal 2025 ended Dec. 31, SelectQuote on Monday reported net income of $8.7 million, compared with a loss of $11.7 million in the year-ago period. Revenue increased 21.2% to $773.3 million. The company sold 339,529 Medicare Advantage policies, up 2%.
Medicare Advantage represented 91% of all policies SelectQuote brokers sold in the six months ended Dec. 31. The company also sells Medicare supplemental and standalone Part D prescription drug policies and life, dental, vision and hearing health plans.
Shares of SelectQuote were up more than 30% in after-hours trading.
