Jefferies Financial Group is acquiring a 50% interest in Hildene Holding Company, the parent of Hildene Capital Management and its affiliates (“Hildene”), a credit-focused asset manager with over $18 billion of assets under management for a broad range of clients in hedge fund, separately managed account, drawdown, securitization and insurance solutions products. This commitment is coincident with Hildene signing a definitive agreement to acquire SILAC, Inc., the parent company of SILAC Insurance Company (“SILAC”), a provider of fixed indexed annuities.
Jefferies entered into a strategic relationship with Hildene in 2022, as a result of which Jefferies already owns a revenue share in Hildene’s asset-management business. Jefferies will exchange its revenue share; a portion of its interest in a Hildene-managed private fund (the “Fund”); and $340 million in cash for a 50% interest in Hildene. Hildene’s principals will contribute their current ownership in Hildene plus approximately $250 million of Fund and related equity interests to Hildene, and will own the remaining 50% of Hildene. Subject to customary closing conditions, including receipt of required regulatory and client approvals, these transactions are expected to close in the third quarter of 2026. Following the closing of the transaction, Hildene will also own a majority interest in Hildene Re SPC, Ltd., a Cayman Islands-based life and annuity reinsurer with a current focus on single premium wealth accumulation and retirement products.
Jefferies’ $340 million cash investment will be offset and effectively funded by an anticipated over $500 million reduction in the course of 2026 in Jefferies’ investment in certain platforms and strategies in its Leucadia Asset Management division. Jefferies expects its investment in Hildene will be immediately accretive and a consistent source of contribution to Jefferies’ net earnings. Jefferies will not consolidate Hildene or SILAC and will account for its investment using the equity method, whereby it will record its 50% share of Hildene’s consolidated earnings. When this transaction closes, Jefferies expects to record an approximately $75 million pretax gain from the markup to fair market value of Jefferies’ pre-transaction interest in Hildene.
Upon receiving regulatory approval, Hildene will acquire the outstanding common equity of SILAC for $550 million in cash. As of September 30, 2025, SILAC had capital and surplus of approximately $505 million and approximately $10 billion of total admitted assets. In 2024, SILAC originated approximately $2.5 billion of annuities, primarily fixed indexed annuities. SILAC currently has financial strength ratings from AM Best (B), Fitch (BBB-) and KBRA (BBB).
Rich Handler, CEO of Jefferies, and Brian Friedman, President of Jefferies, stated: “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.”
“Since our launch in 2008, we have sought to invest in innovative credit products that consistently deliver strong risk-adjusted returns for our clients,” said Brett Jefferson, Founder, President and Co-Chief Investment Officer of Hildene, and Dushyant Mehra, Co-Chief Investment Officer of Hildene. “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 while meeting the evolving needs of our clients and capital partners.”
Jefferies LLC served as exclusive financial advisor to Jefferies.
Jefferies LLC served as exclusive financial advisor to Hildene in its acquisition of SILAC.
Sidley Austin served as legal advisor to Jefferies.
Kirkland & Ellis served as legal advisor to Hildene.