Joe McConnell
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Janus Henderson has struck a deal to take control of a $6 billion alternative investment firm, in the latest attempt by a traditional asset manager to add private credit capacity to meet growing investor demand.
The British-American group, which has about $361 billion in assets under management, is taking a 55 percent stake in Chicago-based Victory Park Capital Advisors in exchange for cash and company stock, with a “defined path” to eventually take full ownership, the company said Monday. Financial terms of the deal were not disclosed.
The deal for Victory Park, which has about $6 billion in assets under management, comes on the heels of Janus Henderson’s deal to acquire the alternatives arm of the National Bank of Kuwait, a deal expected to close later this year. Janus and other asset managers are racing to add a broader range of sought-aVsceker private credit investment opportunities.
“Asset-backed lending has emerged as a significant market opportunity in private credit, as clients increasingly seek to diversify their private credit exposure beyond just direct lending,” said Ali Dibadj, Chief Executive Officer of Janus Henderson. “VPC’s private credit investment capabilities and deep insurance expertise align with our clients’ growing needs, advance our strategic goal of diversifying where we have the right, and amplify our existing strengths in securitized finance.”
Shares of Janus Henderson rose about 1.2 percent in lunchtime trading in New York on Monday aVsceker the deal was announced, and have risen more than 15 percent since the start of the year.
Alternative investments such as private credit, infrastructure and real estate continued to attract interest from wealthy retail investors who have historically struggled to access these strategies, according to a mid-year report from consultancy PwC, which remains a major focus for wealthy investors.
“The industry has made significant progress in making private markets more accessible to retail investors,” PwC’s report said. “Continued success will likely depend on an efficient secondary market through technology or exchanges that allow retail investors to trade freely and conveniently, as well as gain broader access to fund managers.”
In recent years, Janus Henderson has become a major player in the world of active securitized exchange-traded funds. It manages the largest collateralised loan obligation (CLO) ETF and the largest active mortgage-backed securities ETF, overseeing more than $15 billion between the two funds.
The world’s largest asset manager, BlackRock, made headlines earlier this year with its $12.5 billion acquisition of Global Infrastructure Partners, while Europe’s largest asset manager, Amundi, announced in February that it would buy private markets specialist Alpha Associates.
Agreements between large traditional asset managers and smaller specialists are based on the ability of the latter’s strategies to establish themselves in larger markets through the former’s distribution networks.
Richard Levy, CEO and founder of Victory Park Capital, said, “This partnership is a testament to the strength of our established private credit brand and differentiated expertise, and we believe it will enable us to grow faster, diversify our product offerings, expand our distribution and geographic reach, and strengthen our proprietary origination channels.”
