Jefferies is set to acquire a 50% stake in Hildene Holding Company – parent of credit-focused asset manager Hildene Capital Management.
The firm will exchange its current revenue share and also pay an additional $340 million in cash as part of the transaction. Hildene’s principals will continue to own the rest of the firm.
The move comes as part of Jefferies’ effort to enhance its credit investment opportunities and sees the sell-side firm up its previous investment in the asset manager.
The two firms’ partnership in 2022 specifically saw the investment bank owning a revenue share in Hildene’s asset management business.
Following the acquisition of a 50% stake, Jefferies will simultaneously reduce other planned investments in its Leucadia Asset Management division in 2026 by more than $500 million, to offset spending increases.
The move also aligns with recent news that Hildene had signed a deal to acquire fixed indexed annuities provider, SILAC, which will see Hildene take over SILAC’s outstanding common equity for $550 million in cash, upon regulatory approval.
Rich Handler, chief executive and Brian Friedman, president of Jefferies, said: “Origination and management of credit investment opportunities remain a central part of Jefferies’ long-term strategy.”
Hildene currently holds more than $18 billion assets under management (AUM), providing services for clients spanning hedge funds, separately managed accounts, drawdowns, securitisation and insurance solutions products.
Brett Jefferson, founder, president and co-chief investment officer, and Dushyant Mehra, co-chief investment officer of Hildene, added: “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.”