Jefferies Bets Big on Credit: Acquires 50% Stake in Hildene as Hildene Expands into Insurance
Strategic Partnership Deepens: Jefferies Acquires 50% of Hildene Amid Hildene’s SILAC Deal
Jefferies Financial Group (NYSE: JEF) is making a decisive move to strengthen its foothold in credit and insurance markets, announcing a deal to acquire a 50% interest in Hildene Holding Company, the parent of $18+ billion asset manager Hildene Capital. The acquisition is timed with Hildene’s definitive agreement to buy SILAC, Inc.—a fixed indexed annuity provider with roughly $10 billion in assets—creating an end-to-end ecosystem for origination and management of credit-focused products.
Deal Structure Favors Long-Term Value Creation
Under the agreement, Jefferies will exchange its existing Hildene revenue share, part of its interest in a Hildene-managed fund, and $340 million in cash for a 50% ownership stake. Hildene principals retain the other 50% and will contribute their ownership and about $250 million in fund equity back into Hildene. Notably, Jefferies' cash outlay will be covered by reducing exposure elsewhere in its Leucadia Asset Management arm, freeing over $500 million by 2026.
Immediate Financial Upside Expected for Jefferies
Jefferies expects its Hildene investment to deliver immediate and steady net earnings. The accounting approach means Hildene will not be consolidated; instead, Jefferies will recognize its share of profits using the equity method. When the deal closes—targeted for Q3 2026—Jefferies will book an estimated $75 million pre-tax gain by marking its pre-deal interest to fair value.
| Deal Participant | Stake/Acquisition | Key Asset Figures | Transaction Amount |
|---|---|---|---|
| Jefferies | 50% of Hildene | $18B+ AUM (Hildene) | $340M in cash (offset by divestments) |
| Hildene | Acquires SILAC | $10B in assets, $2.5B annuity origination (2024), $505M surplus (Sep '25) | $550M cash |
| Jefferies (Post-Deal) | Expected Gain | $75M pre-tax from revaluation | – |
Synergy: Broader Origination and Scalable Credit Solutions
The alignment between Jefferies and Hildene signals a growing trend: asset managers and investment banks partnering to bridge the gap between capital markets and alternative credit origination. With Hildene’s purchase of SILAC, the team adds an insurance platform to its toolkit, extending its reach from structured credit strategies into the rapidly growing world of retirement and wealth accumulation products.
SILAC’s credentials: $2.5 billion in 2024 annuity origination, a capital and surplus base of $505 million as of September 2025, and a $10 billion asset book. Ratings from AM Best (B), Fitch (BBB-), and KBRA (BBB) place it squarely in the investment grade space, with a solid runway for expansion under new stewardship.
Jefferies Leans In on Asset-Light, Recurring Fee Models
Jefferies CEO Rich Handler and President Brian Friedman describe the deal as central to the firm's long-term strategy—leveraging innovative partnerships for stable, recurring fee income. The cash portion of the deal will be funded by pulling back on existing strategies within Leucadia Asset Management, essentially swapping legacy risk for a stake in a fast-growing credit franchise.
Key Transaction Milestones
- Hildene’s acquisition of SILAC: $550 million cash, closing after regulatory approvals.
- Jefferies’ 50% stake in Hildene: Finalized after customary approvals, anticipated Q3 2026 close.
- Immediate $75 million pre-tax gain: From fair market value adjustment at deal close.
Looking Forward: What This Means for Investors
This strategic deal underscores Jefferies’ confidence in scalable credit and insurance origination. By anchoring its partnership with Hildene, Jefferies is positioning for exposure to high-growth, non-traditional lending markets and annuity flows—while diversifying income streams. The ability to immediately add to earnings, without taking on balance sheet consolidation risk, adds another layer of appeal for stakeholders looking for disciplined, innovation-driven growth.
For market watchers, Jefferies’ move serves as another marker that the race to integrate asset management, insurance, and capital markets solutions is well underway—and shows no signs of slowing down.
Contact Information:
If you have feedback or concerns about the content, please feel free to reach out to us via email at support@marketchameleon.com.
About the Publisher - Marketchameleon.com:
Marketchameleon is a comprehensive financial research and analysis website specializing in stock and options markets. We leverage extensive data, models, and analytics to provide valuable insights into these markets. Our primary goal is to assist traders in identifying potential market developments and assessing potential risks and rewards.
NOTE: Stock and option trading involves risk that may not be suitable for all investors. Examples contained within this report are simulated and may have limitations. Average returns and occurrences are calculated from snapshots of market mid-point prices and were not actually executed, so they do not reflect actual trades, fees, or execution costs. This report is for informational purposes only, and is not intended to be a recommendation to buy or sell any security. Neither Market Chameleon nor any other party makes warranties regarding results from its usage. Past performance does not guarantee future results. Please consult a financial advisor before executing any trades. You can read more about option risks and characteristics at theocc.com.
The information is provided for informational purposes only and should not be construed as investment advice. All stock price information is provided and transmitted as received from independent third-party data sources. The Information should only be used as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments and trading strategies. The Company does not guarantee the accuracy, completeness or timeliness of the Information.
Disclosure: This article was generated with the assistance of AI