Bain Capital backs out of Insignia takeover race

With the exit of Bain Capital, it leaves one potential buyer left in the takeover talks that have now spanned more than six months.

In an ASX announcement this morning, Insignia Financial confirmed that Bain Capital is "unable to proceed" with a binding offer due to macro uncertainty in the global markets.

Insignia will instead continue to discuss the transaction with CC Capital, which has advised that it is actively working towards making a binding bid for the company in the coming weeks.

However, there is "no certainty that the ongoing discussions will result in any transaction being put to Insignia Financial shareholders for their consideration."

"Insignia Financial will continue to keep the market informed in accordance with its continuous disclosure obligations," the statement read.

Bain Capital initially placed a takeover bid to acquire all of Insignia's shares at $4 cash per share late last year; the offer was subsequently rejected.

In the beginning of the year, CC Capital Partners expressed interest in the takeover by offering a higher sum for the shares, and remain as the only active bidder in the deal.

Following much back-and-forth between the two, Insignia has granted both companies more time to finalise debt funding and associate due diligence last month.

The extended exclusivity period is due to expire at close of business tomorrow.

Further, the update also follows Insignia seeing $5 billion drained from its funds under management (FUM) in the March quarter due to market volatility and institutional outflows.

The wealth manager's FUM now sits at $321.8 billion.