Jefferies Financial Group has acquired a 50 per cent stake in $18bn (£13.5bn) credit manager Hildene Capital Management.
The move follows the investment banking group’s decision in 2022 to take a revenue share in Hildene’s asset management business. Jefferies will exchange this revenue share, a portion of its interest in a Hildene-managed private fund and $340m in cash for the new 50 per cent interest.
The deal comes as Hildene signed an agreement to acquire US annuities provider SILAC Insurance for $550m this week.
“We are pleased to expand our partnership with the Hildene management team as they acquire SILAC and broaden Hildene’s long-term opportunity,” said Rich Handler, chief executive of Jefferies, and Brian Friedman, president of Jefferies. “Origination and management of credit investment opportunities remain a central part of Jefferies’ long-term strategy.”
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The group said the $340m payment will be funded by more than $500m in reductions, due to take place over the course of 2026, in investments across certain platforms and strategies within its Leucadia Asset Management division.
Hildene’s principals will retain the remaining 50 per cent stake, contributing their existing ownership in the annuities provider as well as roughly $250m of fund and related equity interests.
Following completion, Hildene will also own a majority interest in Hildene Re SPC, a Cayman Islands-based life and annuity reinsurer.
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Jefferies said it does not intend to consolidate Hildene or SILAC after retaining the 50 per cent interest.
Upon completion, the group expects to book a $75m pre-tax gain from the markup to fair market value of its pre-transaction interest in Hildene.
The transaction is expected to close in the third quarter of 2026, subject to customary closing conditions.
“We believe that expanding our partnership with Jefferies and completing the acquisition of SILAC will best position us to scale our platform, broaden our origination capabilities and support the long-term interests of SILAC’s policyholders while meeting the evolving needs of our clients and capital partners,” said Brett Jefferson, founder, president and co-chief investment officer of Hildene, and Dushyant Mehra, co-chief investment officer of Hildene.
