ORIX Corporation USA to Acquire NXT Capital Inc.
July 01 2018 - 9:30PM
Business Wire
Complementary businesses form foundation for
growth in U.S. middle-market lending
ORIX Corporation USA (ORIX USA), the U.S. and Latin America
business hub for Tokyo-based ORIX Corporation (ORIX), and
NXT Capital Inc. (NXT Capital)
announced today they have signed a definitive agreement under which
ORIX USA will acquire NXT Capital. The acquisition combines the
financial strength and innovative capital solutions of ORIX USA
with NXT Capital’s leadership position as a provider of structured
financing to the U.S. middle market.
“The acquisition of NXT Capital is one step forward in expanding
our product set within our third-party asset management platform
and achieving continued growth through strategic relationships,”
said Hideto Nishitani, ORIX USA Chairman, President and CEO. “The
addition of NXT Capital will accelerate our position as a hybrid
middle-market lender and asset manager, allowing ORIX USA to expand
our participation into larger, more strategic investments and
strengthen our competitive advantage as a top-tier provider of
capital to middle-market companies and real estate investors.”
Based in Chicago, NXT Capital provides a full range of
structured financing solutions on a direct basis through its
Corporate Finance and Real Estate Finance groups. NXT Capital
manages capital for third parties through its asset management
platform and offers investors proprietary access to primarily first
lien senior secured loans that are not broadly traded or otherwise
generally available without a loan origination platform.
“We look forward to partnering with a company that has a track
record for innovation and growth,” said Robert E. Radway, NXT
Capital Chairman and CEO. “All of our stakeholders—including
sponsors, asset management clients and our employees—will benefit
from ORIX USA’s global platform, leading-edge approach to business
development and financial strength. We’re pleased with the
confidence that ORIX USA has shown in our platform and employees,
and are poised for a new chapter in our company’s history, focused
on continued growth and delivering strong results for our asset
management clients.”
NXT Capital will become a subsidiary of ORIX USA, with Radway
continuing to serve in his current role as Chairman and CEO. Radway
and the current management team will continue to operate NXT
Capital under its existing brand and will remain headquartered in
Chicago. The acquisition is expected to close in August 2018,
subject to customary closing conditions and regulatory
approvals.
Advisors for ORIX USA on the transaction included Houlihan Lokey
Inc. as financial advisor and Davis Polk & Wardwell LLP as
legal advisor. For NXT Capital, J.P. Morgan Securities LLC served
as exclusive financial advisor and Kramer Levin Naftalis &
Frankel LLP as legal advisor.
ORIX Corporation USA (ORIX USA)
Since 1981, ORIX USA has provided innovative capital solutions
that clients need to propel their business to the next level. ORIX
USA and its subsidiaries—Boston Financial Investment Management,
Lancaster Pollard, Mariner Investment Group, RB Capital and RED
Capital Group—include a team of more than 900 employees spanning
more than 30 offices across the U.S. and Brazil. ORIX USA and its
family of companies have $57 billion of assets under management,
administration and servicing (including $8.6 billion held by the
company and its subsidiaries). Its parent company, ORIX
Corporation, is a publicly owned international financial services
company with operations in 38 countries and regions worldwide. ORIX
Corporation is listed on the Tokyo Stock Exchange (8591) and New
York Stock Exchange (IX). For more information on ORIX USA, visit
www.orix.com.
NXT Capital LLC
NXT Capital is a leading provider of structured financing to the
U.S. middle market. Since its formation in 2010, the company has
originated approximately $20 billion in total financing volume
spread over 600+ transactions. With approximately $12 billion of
committed capital at its disposal, NXT Capital provides a full
range of structured financing solutions on a direct basis through
its Corporate Finance and Real Estate Finance groups. NXT
Capital manages capital for third parties through its asset
management platform and offers investors proprietary access to
primarily first lien senior secured loans that are not broadly
traded or otherwise generally available without a loan origination
platform. Investment offerings include levered and unlevered funds,
separately managed accounts and CLOs. NXT Capital's investor
base includes public and private pension plans, insurance
companies, endowments, foundations and other institutional
investors. NXT Capital Investment Advisers LLC, a subsidiary of NXT
Capital LLC, is registered with the SEC as an Investment Adviser.
With approximately 120 professionals, NXT Capital is based in
Chicago with offices in Atlanta, Dallas, Los Angeles, Nashville,
New York and Phoenix. For more information on NXT Capital, visit
www.nxtcapital.com.
Caution Concerning Forward-Looking Statements:
These documents may contain forward-looking statements about
expected future events and financial results that involve risks and
uncertainties. Such statements are based on our current
expectations and are subject to uncertainties and risks that could
cause actual results that differ materially from those described in
the forward-looking statements. Factors that could cause such a
difference include, but are not limited to, those described under
“Risk Factors” in the Company’s annual report on Form 20-F filed
with the United States Securities and Exchange Commission and under
“(4) Risk Factors” of the “1. Summary of Consolidated Financial
Results” of the “Consolidated Financial Results April 1, 2017 –
March 31, 2018.”
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version on businesswire.com: https://www.businesswire.com/news/home/20180701005048/en/
ORIX Corporation USAAmanda Rider,
972-770-5083arider@marketwave.bizorJeff Smith,
214-237-2301Jeff.smith@orix.comorNXT Capital LLCMegan O’Brien,
312-450-8087megan.obrien@nxtcapital.com
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