ORIX USA completed its acquisition of NXT Capital, making NXT Capital a new subsidiary of ORIX USA. The acquisition combines ORIX USA’s financial strength with NXT Capital’s ability to provide structured financing in 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 900 ORIX employees 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 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. ORIX also acquired RB Capital in 2016 and Mariner Investment Group in 2010.
Advisors for ORIX USA on the NXT Capital transaction included Houlihan Lokey as financial advisor and Davis Polk & Wardwell as legal advisor. For NXT Capital, J.P. Morgan Securities served as exclusive financial advisor and Kramer Levin Naftalis & Frankel as legal advisor.
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ORIX USA Acquires NXT Capital to Expand into Middle Market