ORIX USA completed the acquisition of a majority equity ownership of Hilco Global. Hilco Global will operate as a subsidiary of ORIX USA. The Hilco Global executive leadership team will retain a minority equity ownership position going forward.
As part of the transaction, Hilco Global will simplify its operating structure into a parent company with two divisions, professional services and capital solutions, which will build upon the firm’s successful valuation, monetization and advisory capabilities while expanding its services as an asset manager.
- Hilco Global Professional Services will expand the firm’s current suite of consultative practices, providing asset valuation expertise. This division will also expand the business’ strategic and operational advisory capabilities across restructuring and turnaround, real estate, performance solutions, capital transactions, intellectual property, litigation support, cyber security, geopolitical consulting and more.
- Hilco Global Capital Solutions will expand Hilco Global’s asset management investing, particularly through asset-based private credit lending, which will benefit from ORIX USA’s capital and lending expertise and capabilities. Additionally, the capital solutions division will continue balance sheet investing and asset monetization across the retail, wholesale, commercial industrial, real estate and intellectual property industries.
“We are proud to officially welcome Hilco Global to ORIX USA,” Terry Suzuki, president and CEO of ORIX USA, said. “We look forward to working together to accelerate our shared growth. Adding Hilco Global’s expertise, relationships and sources of origination to ORIX USA’s portfolio will position us well to maximize value for our investors, clients and partners.”
“It has never been a more exciting time at Hilco Global, and we are so pleased to have ORIX USA as our long-term partner,” Jeffrey B. Hecktman, founding chairman and CEO of Hilco Global, said. “We are expanding our platform, growing our emerging private credit business and winning bigger transaction mandates across the market. Looking ahead, our unmatched valuation expertise and intellectual capital will power the success of our growing advisory offering, which sits in our professional services division, as well as the robust private credit business we are building within our capital solutions division. The simplification of our structure will position us well to execute on our strategy, generate momentum and create enduring value for all our stakeholders.”
Davis Polk & Wardwell provided legal counsel to ORIX USA. J.P. Morgan Securities served as financial advisor to Hilco Global, and Kirkland & Ellis and Greenberg Traurig provided legal counsel.
“Bringing together ORIX USA and Hilco Global offers the marketplace a powerful combination of intellect and deep financial resources to help our clients maximize asset value and return on investment,” Hecktman said. “By streamlining our business, Hilco Global emerges as a truly integrated financial solutions company with the ability to deliver valuation, monetization, advisory services and capital solutions through asset-based private credit lending and principal investing.”
In connection with its simplified organizational structure, Hilco Global also announced several executive management leadership roles, which will report Hecktman:
- David Kurtz will serve as the CEO of Hilco Global Professional Services and continue as vice chairman for Hilco Global
- Neil Aaronson will continue in his capacity as president of Hilco Global for the Americas, alongside Henry Foster, who will serve as president of Hilco Global for the UK, EU and APAC.
- Ian Fredericks will serve as the CEO for the capital solutions division – Americas and Henry Foster will serve as CEO of the capital solutions division across the UK/EU/APAC.
- Nik Singhal will serve as the interim head of asset management and private credit within the capital solutions division as an extension of his role as group head of direct lending for ORIX USA.
- James H.M. Sprayregen will continue to serve as vice chairman Hilco Global Strategy and Growth.
Several other leadership roles and responsibilities will be announced in the coming weeks.
“I am thrilled that our impressive team of industry experts at Hilco Global will continue to manage the company and collaborate with ORIX USA as we expand into this exciting next chapter,” Hecktman said. “Our Hilco Global team is well-positioned to support our strategic growth plan by servicing our clients and growing our enterprise value.”
