Houlihan Lokey Advises Bluestem

Houlihan Lokey is pleased to announce the execution of a definitive agreement for the sale of a credit card receivables portfolio and related assets from Bluestem Brands and its affiliated entities (Bluestem) to Jefferson Capital, Inc. (NASDAQ:JCAP). The transaction represents a strategic divestiture of a revolving loan portfolio with a face value of $488.2 million.

Founded in 2002, Jefferson Capital is a leading analytically driven purchaser and manager of charged-off and insolvency consumer accounts with operations in the United States, Canada, the United Kingdom, and Latin America. The company purchases and services both secured and unsecured assets, and its growing client base includes Fortune 500 creditors, banks, FinTech origination platforms, telecommunications providers, credit card issuers, and auto finance companies.

Bluestem, through its affiliated entities, has historically provided consumer credit and retail services across the United States. The transaction does not include Bluestem’s retail operations or assets, and Jefferson Capital does not intend to pursue ongoing originations through the Bluestem platform. The transaction also follows Jefferson Capital’s acquisition of the Conn’s portfolio in 2024 and further solidifies its position as a strategic acquirer of dislocated consumer credit assets in complex situations. Jefferson Capital will enter into an interim servicing agreement with Bluestem to facilitate the orderly transition of servicing responsibilities to CardWorks Servicing, LLC, a leading credit card servicer.

Houlihan Lokey served as the exclusive financial advisor to Bluestem.

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