Jefferies Financial Group Inc. (JEF), an investment banking and capital markets firm, Monday announced that it is acquiring a 50 percent stake in Hildene Holding Company, LLC, an asset management company.
Previously, the company was in a strategic relationship with Hildene in 2022 with Jefferies owning 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 and $340 million in cash for its 50 percent interest in Hildene.
The transaction is expected to close in the third quarter of 2026 and Jefferies is expecting its investment in Hildene to be accretive immediately and to contribute to its net earnings consistently. The company also expects to record around $75 million pretax gain from the markup to fair market value of its pre-transaction interest in Hildene.
Jefferies cash investment in Hildene will be funded by $500 million reduction in the course of 2026 in Jefferies' investment in certain platforms and strategies in its Leucadia Asset Management division.
Coincidentally, Hildene has agreed to acquire SILAC, Inc., the parent company of SILAC Insurance Company, for $550 million in cash.
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, the company said in a statement.
In pre-market activity, JEF shares were trading at $60.41, up 2.18% on the New York Stock Exchange.
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