Hildene Capital Management, LLC, a credit-focused alternative asset manager, has signed a definitive agreement to acquire SILAC, Inc., the parent company of SILAC Insurance Company.
Under the agreement, Hildene will acquire all outstanding common equity of SILAC for approximately $550 million in cash. The transaction is expected to close in mid-2026, subject to customary closing conditions, including the receipt of required regulatory approvals.
The acquisition will support the continued growth of Hildene’s insurance solutions platform. Leveraging its expertise in alternatives, Hildene aims to deliver investment and risk management strategies that enhance growth and strengthen the financial stability of SILAC for the benefit of policyholders.
For SILAC, the deal will position the company for its next chapter of growth amid strong sector tailwinds and provide additional resources to help consumers achieve their retirement goals.
Since 2023, Hildene has managed a portion of SILAC’s investment portfolio. Following the acquisition, Hildene is expected to expand its investment management relationship to cover all of SILAC’s investment assets.
In January 2023, SILAC Insurance Company entered a $2.5 billion quota share reinsurance agreement with Ludlow Re, a Hildene affiliate, to provide reinsurance for SILAC’s annuity products. The agreement was part of a long-term strategic alliance, under which Hildene also acquired a strategic minority ownership stake in SILAC.
Upon closing, G. Daniel Acker, SILAC’s current President and Chief Marketing Officer, will become Chief Executive Officer, while Stephen Hilbert will step down.
Hildene and SILAC also plan to strengthen SILAC’s leadership team with external hires to support ongoing growth and strategic objectives.
“This acquisition represents an important inflection point for SILAC,” said Acker. “It will enable us to accelerate our strategy and further enhance our capabilities as a leading annuity provider. Our employees, partners, agents and policyholders will benefit from our continued focus on innovation and our robust distribution model, especially as demand for annuity products continues to grow.”
Brett Jefferson, President and Co-Chief Investment Officer of Hildene, said, “The acquisition of SILAC will strengthen their ability to serve the long-term interests of its policyholders while broadening Hildene’s product offerings and enhancing our platform and origination capabilities. Since its inception, Hildene has been a pioneer in credit investing, consistently maintaining a disciplined approach to asset management.”
In addition, Jefferies Financial Group Inc., a global investment banking and capital markets firm, is acquiring a 50% interest in Hildene Holding Company, LLC, the parent of Hildene Capital Management and its affiliates. The transaction is expected to close in the third quarter of 2026.
Jefferies previously entered a strategic relationship with Hildene in 2022, owning a revenue share in Hildene’s asset-management business. Under the new arrangement, Jefferies will exchange its revenue share, a portion of its interest in a Hildene-managed private fund, and $340 million in cash for a 50% interest in Hildene. Hildene’s principals will contribute their current ownership plus approximately $250 million of fund and related equity interests and retain the remaining 50% of the company.
Following closing, Hildene will also hold a majority interest in Hildene Re SPC, Ltd., a Cayman Islands-based life and annuity reinsurer.
Jefferies’ $340 million cash investment will be effectively funded by an anticipated reduction of over $500 million in its investments in certain platforms and strategies within its Leucadia Asset Management division during 2026. The investment in Hildene is expected to be immediately accretive and a consistent contributor to Jefferies’ net earnings. Jefferies will not consolidate Hildene or SILAC and will account for its investment using the equity method, recording its 50% share of Hildene’s consolidated earnings. When the transaction closes, Jefferies expects to record an approximately $75 million pretax gain from the markup to fair market value of its pre-transaction interest in Hildene.
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,” added Jefferson 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.”
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