Janus Henderson expands private credit footprint with boutique business

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Janus Henderson has struck a deal to take control of an alternative investment firm worth $6 billion, in the latest push by a traditional asset manager to add private credit capabilities to meet growing investor demand.

The British-American group, which has about $361 billion in assets under management, is acquiring a majority stake in Chicago-based Victory Park Capital Advisors in exchange for cash and stock in the company.

The deal for Victory Park, which has about $6 billion in assets under management, follows Janus Henderson’s pact to acquire the alternative investments division of the National Bank of Kuwait, a deal also expected to close by at the end of the year. year. Janus and other asset managers are racing to add a wider range of private investment opportunities in sought-after credit.

“Asset-backed lending has emerged as a significant market opportunity within private credit as clients increasingly look to diversify their exposure to private credit beyond just direct lending,” said Janus Henderson Chief Executive Ali Dibadj. “VPC’s private credit investment capabilities and deep insurance expertise align with the growing needs of our clients, advance our strategic objective to diversify where we have the right, and amplify our existing strengths in securitized financing.”

Shares of Janus Henderson rose about 1.2 percent in midday trading in New York on Monday after the deal was announced, and are up more than 15 percent year to date.

Alternative investments such as private credit, infrastructure and real estate continued to pique the interest of affluent retail investors, who have historically struggled to gain access to such strategies, which remain one of the main areas of interest for wealthy investors, according to a middle study. annual report from PwC consultancy.

“The industry has made significant progress in making private markets more accessible to retail investors,” the PwC report said. “Continued success will likely depend on an efficient secondary market through technology or exchanges that allow retail investors to trade freely and profitably, as well as gain wider access to fund managers.”

In recent years, Janus Henderson has become a major player in the world of active securitized exchange-traded funds. It owns the largest collateralized loan obligation (CLO) ETF and the largest mortgage-backed securities assets, overseeing over $15 billion between the two funds.

The world’s largest asset manager, BlackRock, earlier this year made headlines with its $12.5 billion acquisition of Global Infrastructure Partners, and Europe’s largest asset manager, Amundi, announced in February that plans to buy Alpha Associates, a private markets specialist.

Deals between large legacy asset managers and smaller specialists are based on the ability of the latter’s strategies to find footholds in larger markets through the former’s distribution networks.

Richard Levy, CEO and founder of Victory Park Capital, said: “This partnership is a testament to the strength of our established private credit brand and differentiated expertise, and we believe it will allow us to scale faster, diversify our product offering , let’s expand. our distribution and geographic reach and strengthening our own home channels.”