Jefferies Financial Group will be acquiring a majority stake in alternative asset manager Hildene Holding Company, which is the parent of Hildene Capital Management. 

This comes after Hildene announced its plans to acquire Carmel, IN-based SILAC, the parent company of SILAC Insurance Company, which is a fixed indexed annuities provider, for $550 million in an all-cash equity deal. 

Since 2023, Hildene has managed a portion of SILAC’s investment portfolio and following the acquisition, Hildene is expected to oversee all of SILAC’s investment assets, the firm said. 

Following the completion of the acquisition, SILAC’s president and chief marketing officer Daniel Acker will assume the role as CEO succeeding Stephen Hilbert, who will be stepping down as SILAC’s c-suite position. 

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 the company, the company said. 

The deal, which is expected to close in the third quarter of next year, will result in Hildene owning a majority stake in Cayman Islands-based Hildene Re SPC, a life and annuity reinsurer. 

Following the completion of the acquisition, Jefferies, which initially entered a strategic relationship in 2022, will not combine Hildene or SILAC and will account for a 50% share of Hildene’s earnings, the firm said. 

The $340 million payment is set to be funded by more than $500 million in reductions, which will be taking place over the course of next year, across certain platforms and strategies within its Leucadia Asset Management section. 

Hildene Capital Management, which was founded in 2008, manages over $18 billion of assets under management and has offices in Durham, North Carolina and Stamford, Connecticut, the firm said.