ORIX Corporation USA, the U.S. and Latin America business hub for Tokyo-based ORIX Corporation (ORIX), and NXT Capital Inc. (NXT Capital) announced they have signed a definitive agreement under which ORIX USA will acquire NXT Capital. The acquisition combines the financial strength and innovative capital solutions of ORIX USA with NXT Capital’s leadership position as a provider of structured financing to the U.S. middle market.
“The acquisition of NXT Capital is one step forward in expanding our product set within our third-party asset management platform and achieving continued growth through strategic relationships,” said Hideto Nishitani, ORIX USA Chairman, President and CEO. “The addition of NXT Capital will accelerate our position as a hybrid middle-market lender and asset manager, allowing ORIX USA to expand our participation into larger, more strategic investments and strengthen our competitive advantage as a top-tier provider of capital to middle-market companies and real estate investors.”
Based in Chicago, 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 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.
“We look forward to partnering with a company that has a track record for innovation and growth,” said Robert E. Radway, NXT Capital Chairman and CEO. “All of our stakeholders—including sponsors, asset management clients and our employees—will benefit from ORIX USA’s global platform, leading-edge approach to business development and financial strength. We’re pleased with the confidence that ORIX USA has shown in our platform and employees, and are poised for a new chapter in our company’s history, focused on continued growth and delivering strong results for our asset management clients.”
NXT Capital will become a subsidiary of ORIX USA, with Radway continuing to serve in his current role as Chairman and CEO. Radway and the current management team will continue to operate NXT Capital under its existing brand and will remain headquartered in Chicago. The acquisition is expected to close in August 2018, subject to customary closing conditions and regulatory approvals.
Advisors for ORIX USA on the 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.