Janus Henderson Group will acquire a majority stake in global private credit manager Victory Park Capital Advisors (VPC), executives at the two companies confirmed.
Details on the cost of the deal, expected to be closed by the fourth quarter, weren't disclosed.
But Ali Dibadj, Janus Henderson's CEO, said in an interview that the acquisition — to be funded with a mix of cash and shares — will leave Janus Henderson with a 55% stake in Victory Park Capital. The team at the Chicago-based private credit boutique firm will retain the remaining 45%.
Dibadj said Janus Henderson's acquisition of VPC, with $6 billion in mostly asset-backed focused private credit, would represent the firm's third — and biggest — move into private markets over the past year or so.
In June 2023, the London-based money manager formed a joint venture with Privacore Capital to establish an open-architecture distributor of alternative products for private wealth clients, followed by an announcement in May of this year that it would acquire the emerging-markets private capital boutique firm NBK Capital Partners by year’s end.
Brendan Carroll, senior partner and co-founder of Chicago-based Victory Park Capital, said his firm has focused on asset-backed private lending, based on the expected liquidation value of a company's physical assets. That stands in contrast to direct lending, based on a target company's cash flow or enterprise value. Direct lending has dominated investor demand for private credit in recent years.
By way of example, if VPC is talking with a young stapler manufacturer with a history too brief to tap established markets, the amount of private credit VPC would consider extending to the company would come down to "what do we think that stapler is worth if you need to step in and liquidate it," he said.
Janus Henderson's Dibadj said VPC's market segment is garnering greater attention now as investors increasingly look to diversify their private credit exposures beyond direct lending.
VPC will become an affiliate of Janus Henderson, and the firm’s management — led by Carroll and co-founder Richard Levy, who established the firm in 2007 — will remain in place.
A Janus Henderson news release said the acquisition of VPC’s roughly $6 billion in customized private credit services will complement Janus' $36.3 billion global book of securitized assets under management as of June 30 while broadening its institutional footprint.