LV has entered exclusive discussions with private equity giant Bain Capital over a potential buyout.

The news was confirmed in a statement this morning, after reports that a number of parties including Royal London and Bain were circling a potential takeover of LV.

“As previously stated, LV’s board’s focus is on maximising long-term value for its members and ensuring the business continues to be operated in their best interests, following the disposal of the general insurance business,” the board writes.

LV says that while talks with Bain are now exclusive, there is no guarantee a deal will be reached or on what terms a transaction would go ahead.

“Any transaction would also be subject to regulatory approval,” the statement reads.  “The two organisations will make further announcements if and when appropriate.”

LV sold its general insurance unit to Allianz last year. It has since been undertaking a strategic review over the group’s future.

Last week, it confirmed it was in “discussions with a number of parties regarding a potential transaction”. One of these parties, according to sources, was Royal London, but also included interest from private equity titans including Bain.

A price tag of between £500m and £1bn has been mooted for LV, but it remains unclear how large an investment Bain is looking to make.

If a deal goes ahead, it would mark a watershed moment for the UK pensions and wealth management sectors, which are attracting renewed interest from the world of private equity.

Bain was said to be interested in a bid for Old Mutual Wealth several years ago before the firm broke off from its parent.