Brookfield ‘unlikely’ to continue Insignia bid

CC Capital, Brookfield and Bain Capital have been carrying out due diligence on Insignia Financial.

Private equity powerhouse Brookfield has cooled on takeover target Insignia Financial, say sources.

Brookfield, a North American private equity firm that owns Australia’s hospital operator Healthscope and retirement operator Aveo, initially bid $4.60 per share for the business, but now the understanding is that it is unlikely to get there in terms of a formal proposal that will secure the blessing from the Insignia board.

There was talk that CC Capital may be less keen on the target, but now Brookfield is the group said to be on the fringes.

Shares in Insignia Financial closed at $4.26 on Thursday.

CC Capital, Brookfield and Bain Capital have all been carrying out due diligence on the company for a potential buyout after offering $4.60 per share, or $3.1bn.

Among Insignia’s shareholders is John Wylie’s Tanarra Capital, who holds about 14 per cent.

Bain Capital, which is being aided by former Insignia boss Renato Mota, is advised by Bank of America, CC Capital, Deutsche Bank and Brookfield, Jarden.

Insignia is advised by Citi and Gresham.

The company has been in the middle of a turnaround program, moving to cut costs and integrate businesses it has purchased through mergers and acquisitions.

Previously called IOOF, the group is not paying dividends for the first half of the 2025 financial year and says it has the ability to pay franked dividends from the 2027 financial year final dividend once tax payments resume.

It hopes to reduce net costs by about $150m in total operating expenditure over the 2026 to 2030 financial years.