DENVER - Janus Henderson Group (NYSE: NYSE:JHG), a global active asset manager, has entered into a definitive agreement to acquire a majority stake in Victory Park Capital Advisors, LLC (VPC), a private credit manager. The transaction, expected to close in the fourth quarter of 2024, aims to enhance Janus Henderson's private credit offerings and expand its institutional capabilities.
VPC, founded in 2007 and headquartered in Chicago, specializes in asset-backed lending and has invested approximately $10.3 billion across various industries and asset classes. The firm has assets under management of around $6.0 billion, serving a long-standing institutional client base.
The acquisition is set to complement Janus Henderson's $36.3 billion securitized credit portfolio, which includes innovative products like the largest CLO ETF (JAAA) and the largest actively managed mortgage-backed securities ETF (JMBS). VPC's expertise is expected to diversify Janus Henderson's private credit exposure and align with the growing client demand for such investment options.
Janus Henderson's CEO, Ali Dibadj, expressed that the acquisition is aligned with the company's strategic vision and will amplify its strengths in securitized finance. VPC's co-founders, Richard Levy and Brendan Carroll, also conveyed their optimism about the partnership, anticipating accelerated growth and enhanced product offerings.
The terms of the acquisition include a mix of cash and Janus Henderson common stock, with the deal anticipated to be neutral to accretive to earnings per share in 2025. This marks another step in Janus Henderson's expansion of its private credit capabilities, following the planned acquisition of NBK Capital Partners later in the year.
The agreement is subject to regulatory approvals and customary closing conditions. An investor presentation on the transaction is available on Janus Henderson's Investor Relations website.
This news is based on a press release statement.
In other recent news, Janus Henderson Group has released its second quarter results for 2024, showcasing a strong performance. The global asset management firm reported a 37% increase in adjusted diluted earnings per share (EPS) compared to the same period the previous year and a 3% rise in assets under management (AUM) to $361.4 billion, the highest in over two years. The company's investment performance was also solid, with 63% of assets outperforming benchmarks across multiple timeframes.
The company has seen success with strategic initiatives, including the growth of the institutional business and market expansion through acquisitions, such as the recent purchase of Tabula Investment Management. Janus Henderson also made strides with its joint venture, Privacore, which is advancing in democratizing private alternatives.
These recent developments highlight the company's focus on organic growth while also considering inorganic opportunities through partnerships and acquisitions. The firm is expanding in the U.S. intermediary market and internationally in Europe, Latin America, Asia, and Australia.
Despite acknowledging historical weakness in U.S. institutions under the legacy Janus brand, the company remains confident in its trajectory, with plans to continue investing in the business and returning capital to shareholders.
InvestingPro Insights
As Janus Henderson Group (NYSE: JHG) solidifies its presence in the private credit sector with the acquisition of Victory Park Capital Advisors, the company's financial health and market position offer additional insights for investors. Janus Henderson's commitment to dividend growth is underscored by the fact that it has raised its dividend for three consecutive years, signaling confidence in its financial stability and future earnings potential.
Analysts monitoring Janus Henderson have revised their earnings estimates upwards for the upcoming period, reflecting an optimistic outlook for the company's performance. With a P/E ratio of 11.82 and an adjusted P/E ratio of 12.1 for the last twelve months as of Q2 2024, the company trades at a low multiple relative to its near-term earnings growth, suggesting a potentially undervalued stock to investors seeking growth at a reasonable price.
Janus Henderson's financial metrics also reveal a robust business structure; the company boasts a gross profit margin of 64.19% for the last twelve months as of Q2 2024, demonstrating efficient operations and strong pricing power. Furthermore, the company's liquid assets exceed its short-term obligations, providing financial flexibility and reducing liquidity risk for the company and its investors.
For those seeking more in-depth analysis, InvestingPro offers additional insights, including further InvestingPro Tips for Janus Henderson Group, which can be found at Investing.com/pro/JHG. As of the latest update, there are 8 more InvestingPro Tips available, providing a comprehensive assessment of the company's financial health and market position.
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