(Reuters) - Insignia Financial ( IOOFF ) on Wednesday said Bain Capital has pulled out of making a binding bid for the Australia-based wealth management firm, citing volatility in global capital markets.

Bain Capital had been locked in a bidding war with Wall Street-based private equity firm CC Capital to buy Insignia, and in March, had raised its takeover offer to A$3.34 billion (US$2.16 billion), valuing the shares at A$5 each.

"Insignia Financial ( IOOFF ) remains in discussions with CC Capital, which has advised that it continues to actively work towards making a binding bid for the company over the coming weeks," the company said in a statement.

The Australian wealth manager had granted both bidders extended exclusivity periods till Thursday to refine their proposals.

($1 = 1.5458 Australian dollars)