The Next Chapter for Hilco Global: How the ORIX Corporation USA Deal Supercharges Capital, Scale & Strategy

Rita Garwood: What does ORIX USA’s acquisition mean for Hilco Global, and specifically for the division that you lead?

Ian Fredericks: For us, it really means it’s an opportunity to accelerate our growth. One of the things that we’ve been battling with for some time is a more constrained capital structure. We’ve had different partners along the way, and we’ve had access to that capital, but ORIX USA really brings that capital and the availability of that capital to a different level. It also brings a different cost of capital that allows us to provide different solutions to our clients.

ORIX USA also shares the vision of our founder and the rest of the team of really growing our professional services platform to provide a more holistic group of services and solutions. On the capital solutions side, it’s about access to additional capital at lower cost and being able to provide better, more sophisticated solutions to clients, while also scaling our professional services side to deliver a comprehensive offering.

Garwood: You mentioned the professional services side and the capital solutions side. How do you envision that structure creating more clarity and impact for your clients?

Fredericks: Hilco Global was historically structured as a group of operating companies, each with a different specialty in an asset or sector. For example, I previously led the consumer and retail practice, which focused on inventory and other retail-related assets.

We’ve simplified the organization into two divisions: professional services and capital solutions. This allows clients a more streamlined way to enter the organization and access Hilco Global leadership. At the same time, we’ve maintained sector-specific expertise through what we call a matrix organization. For example, I serve as CEO of Capital Solutions for the Americas but also as executive director of our retail and consumer practice. That expertise runs across both divisions, ensuring clients benefit from deep knowledge in areas like real estate, accounts receivable, and intellectual property while still enjoying a more integrated service model.

Garwood: What synergies are most compelling between ORIX USA’s platform and Hilco Global expertise?

Fredericks: The biggest synergy is that ORIX USA is both an investor and an asset manager. They bring tremendous expertise in raising and managing third-party capital, which will accelerate our ability to raise capital far faster than we had.

They also complement us in areas like lending. ORIX USA has businesses focused on cash flow and real estate lending, which pair well with our asset-backed lending and real estate businesses. Importantly, we’re building a differentiated offering by combining asset management with advisory and professional services — something we don’t see at scale elsewhere in the market.

Garwood: With ORIX USA’s capital backing, how do you see Hilco Global private credit and asset-based lending capabilities expand?

Fredericks: Opportunistic investing is the core of our business, and we don’t want to lose that. The additional capital and lower cost of capital allows us to expand into providing differentiated lending at a lower cost to healthier companies.

Previously, capital constraints and cost limited us. Now, we can serve a wider range of clients directly, while continuing to partner with lenders that have historically worked with us. Our goal is to offer a more streamlined relationship for clients while broadening our lending capabilities.

Garwood: Looking ahead three to five years, do you see this lower-cost capital space as your greatest growth opportunity?

Fredericks: We do. We see it as our largest growth area. With ORIX USA, we can deliver capital solutions in the single digits or low double digits, which opens significant opportunities. We can also move faster than competitors because we have in-house asset expertise, eliminating the need for third-party appraisals. That allows us to structure better solutions, on faster timelines, and at a lower cost of capital.

Garwood: This acquisition positions Hilco Global as both an asset manager and a principal investor. How will you balance those dual roles?

Fredericks: Where we manage outside capital, we have responsibilities to those investors, and we take disclosure very seriously. We generally invest as principals alongside our third-party investors, reinforcing alignment of interests. For borrowers, the process will be seamless; for investors, we’ll provide flexibility to participate where they see value.

Garwood: What should lenders and advisors in specialty finance and ABL expect from Hilco Global going forward?

Fredericks: They should expect consistency. Borrowers and partners will continue to work with the same people and receive the same level of service and attention.

There will be some new processes, such as additional KYC requirements, but our goal is minimal disruption. In fact, with ORIX USA, we’ll have even more tools to deliver comprehensive solutions.

Garwood: How will Hilco Global interact with banks after this acquisition?

Fredericks: We don’t see ourselves competing with banks. Banks are some of our largest professional services clients, and we want to preserve those relationships. Instead, we see opportunities to partner with banks to provide layers of capital that fall outside their mandate — things like stretch financing or term loans.

Garwood: How might this transaction influence broader trends in specialty finance?

Fredericks: I don’t think it will dramatically shift overall trends, but we do see a rise in asset-based finance and lending, where borrowing bases are structured around assets. With ORIX USA, we can now deliver unitranche solutions — including revolvers, middle tranches, and opportunistic capital — giving borrowers a single point of contact across the capital stack. That’s a major differentiator.

Garwood: How will this acquisition shape the approach of Hilco Global to equipment-based lending and finance?

Fredericks: Equipment finance is an area we’re actively pursuing. We’re currently diligencing several opportunities and view this as complementary to our existing skill set. Our immediate priority is scaling asset-based lending, but we plan to add equipment finance offerings for clients in the near future.

Garwood: If we revisit this conversation in two years, what milestones would you hope to point to as proof the ORIX USA partnership is delivering?

Fredericks: Success would mean significantly growing our assets under management, expanding in North America — including Canada and Mexico — and deepening our presence in UK and Europe. If we achieve that, we’ll be on our way to realizing the full potential of this transaction.