Jefferies Financial Group Inc. announces the acquisition of a 50% interest in Hildene Holding Company, LLC.
The partnership includes Hildene Capital Management, LLC, a credit-focused asset manager with over $18 billion AUM.
The acquisition involves a strategic relationship initiated in 2022 and a definitive agreement to acquire SILAC, Inc.
Strategic Acquisition
Jefferies to exchange revenue share, interest in a private fund, and $340 million in cash for a 50% stake in Hildene.
Financial Impact
Jefferies' $340 million investment to be funded by reducing investments in other platforms, expecting immediate earnings contribution.
Transaction Details
Expected closure of transactions in Q3 2026, with Jefferies accounting for its investment via the equity method.
- Upon closing, Hildene will also acquire a majority interest in Hildene Re SPC, Ltd., a Cayman Islands-based reinsurer.
- The investment is anticipated to be immediately accretive to Jefferies' net earnings with a projected $75 million pre-tax gain from the transaction.
The collaboration strengthens both Jefferies and Hildene, leveraging their expertise in credit investing and expanding their market reach.