Bain Capital has raised Australia’s Insignia to $1.8 billion, according to CC Capital.

(Reuters) – Australia’s Insignia Financial said on Monday that private equity firm Bain Capital had sweetened its bid for the 178-year-old wealth manager, now valuing it at $US2.87 billion ($1.76 billion), matching CC Capital’s bidding war. It is heated between the two seekers.

Under the offer, Insignia shareholders will receive A$4.30 per share, a 7.5% premium to Bain Capital’s previous offer.

Earlier this year, US-based investment manager CC Capital partners (WA: ) has offered to buy Insignia for $2.87 billion, days after Insignia rejected Bain Capital’s initial takeover offer, saying it didn’t give shareholders fair value.

The Australian wealth manager said that under the revised offer, Bain Capital would be open to giving Insignia Financial an option to receive a portion of the total purchase price for Bain Capital’s final controlling interest.

Bain Capital’s revised offer reflects strong investor demand for Australian-listed wealth managers whose asset base has grown strongly.

The deal will provide access to Australia’s £4.1 trillion superannuation system, one of the world’s largest private pension markets.

CC Capital did not immediately respond to a request for comment.

($1 = 1.6279 Australian dollars)