Jefferies Acquires 50% Stake in Hildene Capital; Hildene Expands with SILAC Annuities Buy

Jefferies Financial Group has acquired a 50% stake in Hildene Capital Management, an $18 billion credit manager. This strategic move transitions Jefferies from holding a revenue-sharing arrangement with Hildene to a significant equity position, involving a combination of a $340 million cash payment, revenue share exchanges, and interest in a Hildene-managed private fund. The acquisition aligns with Jefferies’ long-term focus on credit investment origination and management. Simultaneously, Hildene Capital Management is expanding its footprint by acquiring SILAC Insurance, a U.S.-based annuities provider, for $550 million. Post-acquisition, Hildene will also maintain majority control over Hildene Re SPC, a Cayman Islands-based life and annuity reinsurer, signaling strategic diversification into annuities and reinsurance sectors. Jefferies will finance the $340 million portion of the deal by reducing investments exceeding $500 million across various platforms within its Leucadia Asset Management division by 2026. Despite this partnership, Jefferies will not consolidate Hildene or SILAC in its financial statements but anticipates a $75 million pre-tax gain due to fair value adjustments of its existing Hildene interest. The acquisition deal, set to close in the third quarter of 2026, aims to enhance Hildene’s ability to scale its credit origination capabilities and broaden its investment platform to serve evolving client and capital partner needs effectively. This partnership emphasizes collaboration in credit and asset management rather than full integration, reflecting strategic positioning within the asset management and insurance sectors. Hildene’s management team, retaining half ownership post-transaction, are contributing their current annuities provider ownership and approximately $250 million in fund and equity interests. The move into the annuities space via SILAC and the reinsurer ownership broadens Hildene’s asset and product diversification, important for long-term market competitiveness. Overall, this deal represents a notable development in credit asset management and insurance-linked investment strategies, underlining ongoing consolidation and strategic partnerships in the financial services industry. It highlights the increasing intersection of asset management with insurance operations, particularly in reinsurance and annuities.