Lincoln Financial Becomes First Insurer to Offer Private-Market Funds to Individual Investors

What's happening:

Lincoln Financial is partnering with Bain Capital and Partners Group to launch two private-market funds for individual investors, according to The Wall Street Journal. The insurance company plans to leverage its existing network of about 60,000 financial advisers who already sell its insurance products.

Why it matters:

• First mover advantage as Lincoln appears to be the pioneer insurance company entering the private-market fund space

• Distribution leverage gives Lincoln an edge, with Chief Investment Officer Jayson Bronchetti noting it would take competitors 10-15 years to build a comparable network

• Trend acceleration as Wall Street races to bring private market investments to everyday investors beyond institutional clients

The key moves:

• Bain partnership will create a fund investing in various credit types, including corporate and asset-backed loans, plus some more liquid assets

• Partners Group collaboration will focus on royalty investments across sports, pharmaceuticals, and brands

• Accessibility is emphasized, with both funds accepting investors regardless of wealth level and offering quarterly redemption options

By the numbers:

• 60,000 financial advisers in Lincoln's existing distribution network

• $130 billion in Lincoln's general account, with private markets already accounting for about half

• Quarterly liquidity offered by both new funds, unusual for private market investments

Key players:

• Jayson Bronchetti, Lincoln Financial's Chief Investment Officer, leading the initiative

• Bain Capital, partnering on the credit-focused fund

• Partners Group, collaborating on the royalty-focused investment vehicle

The Wrap:

Lincoln Financial's entry into private-market funds represents a significant convergence between insurance and alternative investments. By leveraging its established distribution network while partnering with experienced asset managers, Lincoln is positioning itself at the intersection of two major financial trends: the democratization of private markets and the search for new growth avenues beyond traditional institutional investors.