Key Takeaways
- • Janus Henderson Group (NYSE: JHG) has entered a definitive agreement to acquire a majority stake in Victory Park Capital Advisors, LLC (VPC), a Chicago-headquartered global private credit manager, according to a Business Wire press release dated August 12, 2024.
- • VPC manages approximately $6.0 billion in assets under management (as of June 30, 2024) and has invested roughly $10.3 billion across more than 220 investments since its 2007 founding.
- • The deal expands Janus Henderson's private credit and insurance-focused asset-backed lending capabilities, complementing its $36.3 billion in securitized AUM as of June 30, 2024.
- • Consideration is a mix of cash and Janus Henderson common stock; the transaction is expected to be neutral-to-accretive to earnings per share in 2025 and close in Q4 2024, subject to regulatory approvals.
- • The acquisition follows Janus Henderson's pending purchase of NBK Capital Partners, the emerging markets private investments team of the National Bank of Kuwait, signaling a client-led push into private markets.
Summary
Janus Henderson Group announced on August 12, 2024 that it has entered into a definitive agreement to acquire a majority stake in Victory Park Capital Advisors, LLC (VPC), a global private credit manager. According to the company's press release, VPC has a track record of nearly two decades providing customized private credit solutions to established and emerging businesses. Founded in 2007 by Richard Levy and Brendan Carroll and headquartered in Chicago, VPC has specialized in asset-backed lending since 2010, spanning small business and consumer finance, financial and hard assets, and real estate credit. Its capabilities also include legal finance and custom investment sourcing and management for insurance companies, and its affiliate platform, Triumph Capital Markets, offers structured financing and capital markets solutions.
The press release states that since inception VPC has invested approximately $10.3 billion across more than 220 investments and currently manages approximately $6.0 billion in assets under management, as of June 30, 2024. Its institutional client base includes insurance companies, pensions, endowments, and sovereign wealth funds.
Janus Henderson said the transaction complements its securitized credit franchise, which includes $36.3 billion in securitized AUM globally as of June 30, 2024. The firm cited its active securitized ETFs, including JAAA, described as the largest CLO ETF, and JMBS, described as the largest actively managed mortgage-backed securities ETF, per Morningstar data as of July 31, 2024. Janus Henderson expects VPC's insurance-tailored capabilities to expand its offering for a growing insurance clientele and its distribution platform to support VPC products globally.
The acquisition consideration is a mix of cash and Janus Henderson common stock and is expected to be neutral-to-accretive to earnings per share in 2025. Closing is expected in the fourth quarter of 2024, subject to customary conditions including regulatory approvals. Ali Dibadj, Chief Executive Officer of Janus Henderson, said asset-backed lending has emerged as a significant opportunity within private credit as clients seek to diversify beyond direct lending. Richard Levy, CEO, CIO and founder of VPC, said the partnership should help the firm scale faster and expand its geographic reach, while Brendan Carroll, Senior Partner and Co-Founder of VPC, cited cross-selling opportunities. Ardea Partners served as exclusive financial advisor to VPC, Kirkland & Ellis LLP as its legal counsel, and Sheppard Mullin as legal counsel to Janus Henderson.
The press release states that since inception VPC has invested approximately $10.3 billion across more than 220 investments and currently manages approximately $6.0 billion in assets under management, as of June 30, 2024. Its institutional client base includes insurance companies, pensions, endowments, and sovereign wealth funds.
Janus Henderson said the transaction complements its securitized credit franchise, which includes $36.3 billion in securitized AUM globally as of June 30, 2024. The firm cited its active securitized ETFs, including JAAA, described as the largest CLO ETF, and JMBS, described as the largest actively managed mortgage-backed securities ETF, per Morningstar data as of July 31, 2024. Janus Henderson expects VPC's insurance-tailored capabilities to expand its offering for a growing insurance clientele and its distribution platform to support VPC products globally.
The acquisition consideration is a mix of cash and Janus Henderson common stock and is expected to be neutral-to-accretive to earnings per share in 2025. Closing is expected in the fourth quarter of 2024, subject to customary conditions including regulatory approvals. Ali Dibadj, Chief Executive Officer of Janus Henderson, said asset-backed lending has emerged as a significant opportunity within private credit as clients seek to diversify beyond direct lending. Richard Levy, CEO, CIO and founder of VPC, said the partnership should help the firm scale faster and expand its geographic reach, while Brendan Carroll, Senior Partner and Co-Founder of VPC, cited cross-selling opportunities. Ardea Partners served as exclusive financial advisor to VPC, Kirkland & Ellis LLP as its legal counsel, and Sheppard Mullin as legal counsel to Janus Henderson.
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