Jefferies Buys 50% of Hildene, Deepening Asset Management Push
The $340 million cash deal for the credit specialist is expected to be immediately accretive to Jefferies' earnings and expands its footprint in the insurance space.
Jefferies Financial Group is deepening its push into alternative asset management, announcing a deal to acquire a 50% interest in Hildene Holding Company, a credit-focused asset manager with more than $18 billion under management.
The transaction, which builds on a strategic partnership established in 2022, will see Jefferies pay $340 million in cash and roll its existing revenue-sharing agreement into the equity stake. The investment bank said Monday the deal is expected to be immediately accretive to its earnings upon closing, which is anticipated in the third quarter of 2026.
Shares of Jefferies (NYSE: JEF) saw a modest rise in early trading following the announcement, reflecting investor approval of the firm's move to diversify its revenue streams. The stock climbed approximately 2.1% in premarket activity to $60.41 after the deal was made public.
The acquisition marks a significant strategic step for Jefferies, giving it a substantial foothold in the specialized market of structured and private credit. The deal is timed to coincide with Hildene's own agreement to acquire SILAC, Inc., the parent of an insurance company that provides fixed indexed annuity products. This parallel transaction positions Jefferies to benefit from the rapidly growing insurance and annuity sector, a key area of focus for alternative asset managers seeking stable, long-term capital.
"We are very pleased to expand our partnership with the talented management of Hildene as they are acquiring SILAC and broadening their long-term opportunity," said Rich Handler, CEO, and Brian Friedman, President of Jefferies, in a statement regarding the deal. The move aligns with Jefferies' strategy of leveraging its investment banking and capital markets expertise to grow its asset management platforms.
Under the terms of the agreement, Jefferies will exchange its existing revenue share in Hildene, a portion of its interest in a Hildene-managed private fund, and the cash payment for the 50% stake. Hildene's principals will contribute their existing equity and maintain the remaining 50% ownership. The transaction values Hildene's expertise and platform, which caters to a global client base through hedge funds, separately managed accounts, and insurance solutions.
Jefferies expects to record a pre-tax gain of approximately $75 million from the fair market value adjustment of its pre-existing interests in Hildene. The firm noted that the cash component of the deal would be effectively funded by an anticipated reduction of over $500 million in its investments in certain other asset management strategies during 2026, suggesting a strategic reallocation of capital towards higher-growth areas.
With a market capitalization of just over $12 billion, Jefferies has been actively working to diversify its business beyond the inherent volatility of investment banking and trading. The firm's quarterly revenue growth of 21.6% year-over-year highlights its current momentum, and adding a stable, fee-generating business like Hildene is a logical next step. According to a company press release, the deal will provide a consistent contribution to Jefferies' net earnings.
Analysts have taken a cautiously optimistic view of the transaction. While some initial commentary, such as that from TipRanks' AI Analyst, rated the stock as "Neutral"—balancing positive corporate events against financial metrics like high leverage—the strategic merit of the deal is clear. The move provides Jefferies with a powerful engine for growth in the private credit space, an area that has drawn significant interest from institutional investors.
The transaction is subject to customary closing conditions, including regulatory and client approvals. Brett Jefferson and Mark M. Hudspeth, the leaders of Hildene, will continue to manage the business, ensuring continuity for its clients and strategies.