ORIX Corporation USA (ORIX USA) announced today that the acquisition of NXT Capital, Inc. is complete, making NXT Capital a new subsidiary of ORIX USA. The acquisition combines ORIX USA’s financial strength with NXT Capital’s proven track record as a leading provider of structured financing to the U.S. middle market.
“NXT Capital is now a strategic part of ORIX USA’s asset management and middle-market growth engine,” said Hideto Nishitani, ORIX USA Chairman, President and CEO. “We are fortunate to add NXT Capital to our team, which will bolster our reputation as a hybrid middle-market lender and asset manager.”
Based in Chicago, NXT Capital will continue to operate out of its current headquarters, while Robert E. Radway remains in his role of Chairman and CEO. More than 115 NXT Capital employees will join the 900 employees who are already part of the ORIX USA Group and who span more than 30 offices across the U.S. and Brazil.
“Our two companies complement each other very well,” Radway said. “ORIX brings further scale and financial strength to NXT Capital with its larger portfolio of products, services and international presence. This provides an enhanced platform for NXT Capital to achieve continued growth and profitability.”
ORIX USA has a long history of providing cash flow-based debt and equity capital to middle-market companies through its Leveraged Finance business unit, which underwrites growth financings, recapitalizations, leveraged buyouts, acquisitions and more. Moving forward, the Leveraged Finance team will be integrated with NXT Capital’s Corporate Finance unit, strengthening the company’s overall middle-market financing capability.
“We’re excited to build upon our expertise with a seasoned partner like NXT Capital,” Nishitani said.
This acquisition is the latest in a series of transactions for ORIX USA, which acquired Lancaster Pollard in 2017, Boston Financial Investment Management in 2016, and RED Capital Group in 2010. The three companies fall under the ORIX Commercial Mortgage Servicing umbrella. In 2016, ORIX USA acquired RB Capital, and in 2010, the company acquired Mariner Investment Group.
Advisors for ORIX USA on the NXT Capital 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.
For more information, see www.orix.com/nxtcapital.
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, NXT Capital, Mariner Investment Group, RB Capital and RED Capital Group—include a team of more than 1,000 employees spanning 30+ offices across the U.S. and Brazil. ORIX USA and its family of companies have $63 billion of assets under management, administration and servicing (including more than $10 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 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 also 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, an affiliate of NXT Capital, is registered with the SEC as an investment adviser. With more than 115 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.”