Jefferies has acquired 50% interest in Hildene Holding Company, parent company of credit-focused Hildene Capital Management and its affiliates.
Hildene Capital Management holds more than US$18 billion in assets under management.
Jefferies has held a revenue share in Hildene Capital Management since 2022, represented as interest in a Hildene-managed private fund. This will be exchanged, alongside US$340 million in cash, for a 50% share in the parent company.
The US$340 million is expected to be offset by a US$500 million reduction in Jefferies’ 2026 investments across its Leucadia Asset Management division. The investment bank will record its 50% share of Hildene’s consolidated earnings in its net earnings, and expects to see approximately a US$75 million pretax gain from the markup to fair market value of its pre-transaction interest in the company.
Jefferies CEO Rich Handler and president Brian Friedman affirmed, “Origination and management of credit investment opportunities remain a central part of Jefferies’ long-term strategy.”
Hildene is concurrently acquiring the outstanding common equity of SILAC, the parent of fixed indexed annuities provider SILAC Insurance Company, for US$500 million in cash. SILAC holds capital and surplus of approximately US$505 million, with approximately US$10 billion in total admitted assets. Its financial strength ratings are B (AM Best), BBB- (Fitch) and BBB (KBRA).
Brett Jefferson, founder, president and co-chief investment officer of Hildene, and Dushyant Mehra, co-chief investment officer of Hildene, commented, “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.”
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