Jefferies Financial Group Inc. has agreed to purchase a 50% interest in Hildene Holding Company, LLC, the parent of Hildene Capital Management, for $340 million in cash. The deal also exchanges Jefferies’ existing revenue share in Hildene’s business and a portion of its interest in a private fund. The transaction is expected to close in the third quarter of 2026, subject to regulatory and client approvals, and is structured to be immediately accretive to Jefferies’ earnings.
Hildene Capital Management is a credit‑focused asset manager that currently manages more than $18 billion in assets. The acquisition comes as Hildene simultaneously agrees to buy SILAC Inc. for $550 million in cash, adding retirement products and insurance‑origination capabilities to its platform. The combined entities will broaden Hildene’s product suite and deepen its presence in structured‑credit markets.
Strategically, the deal extends a partnership that began in 2022 when Jefferies’ Leucadia Asset Management acquired a non‑controlling interest in Hildene. By taking a majority stake, Jefferies aims to expand its credit‑investment platform, capture higher fee‑based income, and position itself for growth in the structured‑credit arena, a key focus of its long‑term strategy.
Financially, Jefferies anticipates a $75 million pretax gain from the markup to fair‑market value of its pre‑transaction interest in Hildene. The company will account for the investment using the equity method and will not consolidate Hildene or SILAC. The transaction is expected to be accretive to earnings immediately, reinforcing Jefferies’ profitability profile.
Management emphasized the strategic fit in a joint statement. CEO Richard Handler said, “We are pleased to expand our partnership with the Hildene management team as they acquire SILAC and broaden Hildene’s long‑term opportunity. Origination and management of credit investment opportunities remain a central part of Jefferies’ long‑term strategy.” President Brian Friedman echoed that the partnership strengthens Jefferies’ position in a strengthening credit environment.
The deal builds on a long‑standing relationship between Jefferies and Hildene, reinforcing Jefferies’ commitment to expanding its asset‑management footprint and diversifying revenue streams beyond traditional investment banking. The transaction is a material step in that broader strategic agenda.
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