Janus Henderson Group, a global leader in active asset management, has announced the acquisition of a majority stake in Victory Park Capital Advisors (VPC), a specialist in private credit.
The deal will significantly expand Janus Henderson’s presence in the private credit market, bolstering its institutional capabilities and enhancing its expertise in asset-backed lending.
Victory Park Capital, founded in 2007 and headquartered in Chicago, has established a solid reputation over nearly two decades, offering tailored private credit solutions to both established and emerging businesses. VPC’s specialisation in asset-backed lending, spanning sectors such as small business finance, consumer credit, and real estate, will complement Janus Henderson’s already successful securitised credit operations. The acquisition is expected to close in the fourth quarter of 2024, pending regulatory approvals.
With assets under management totalling approximately $6 billion, Victory Park Capital has made over 220 investments worth around $10.3 billion since its inception. The firm also offers structured finance and capital markets solutions through its affiliate platform, Triumph Capital Markets.
This acquisition represents a strategic expansion for Janus Henderson, which already manages $36.3 billion in securitised assets globally. The firm has been at the forefront of securitised credit products, including the largest actively managed CLO ETF (JAAA) and other innovative offerings such as JBBB and JMBS. The addition of VPC will further diversify Janus Henderson’s offerings and provide new opportunities for growth, particularly in the insurance sector, which is a key area of expertise for VPC.
Strategic Growth and Synergies
Ali Dibadj, Chief Executive Officer of Janus Henderson, hailed the acquisition as a key move in the firm’s strategy to expand its private credit capabilities. “We are excited to bring Victory Park Capital into the fold,” said Dibadj. “With the growing demand for diversified private credit solutions, VPC’s expertise in asset-backed lending aligns perfectly with our goals. This acquisition strengthens our position in the private markets and reinforces our commitment to delivering value to clients and shareholders alike.”
Victory Park Capital’s CEO and co-founder, Richard Levy, echoed this sentiment, highlighting the mutual benefits of the partnership. “Janus Henderson’s global reach and strong distribution platform will enable us to scale faster and extend our geographic footprint,” Levy remarked. “This partnership marks an exciting new chapter for VPC, and we are confident it will bring added value to both our clients and portfolio companies.”
Boosting Institutional and Global Market Reach
The acquisition comes at a time when private credit is becoming an increasingly attractive asset class for institutional investors, including pension funds, sovereign wealth funds, and insurance companies. VPC’s deep relationships with these institutions will help Janus Henderson further enhance its standing in the global institutional market.
Moreover, VPC’s custom investment solutions for insurance clients are expected to strengthen Janus Henderson’s growing portfolio in this sector, providing new avenues for collaboration and product development. The acquisition follows Janus Henderson’s recent purchase of NBK Capital Partners, an emerging markets private investment team, as the firm continues to expand its client-led strategic vision.
Financial Impact and Closing Details
The deal, a mix of cash and Janus Henderson shares, is expected to be neutral-to-accretive to earnings per share by 2025. The acquisition marks a milestone in Janus Henderson’s long-term growth strategy, positioning the firm to take advantage of increasing demand for private credit products.
Legal and financial advisers on the transaction included Ardea Partners, Kirkland & Ellis LLP for VPC, and Sheppard Mullin for Janus Henderson.
With the acquisition set to close by the end of 2024, Janus Henderson and Victory Park Capital are poised to capitalise on the growing opportunities in the private credit market, offering clients enhanced access to differentiated investment solutions.
For more details on the acquisition, an investor presentation is available on the Janus Henderson Investor Relations website.
