Houlihan Lokey Advises ORIX Corporation USA

Houlihan Lokey is pleased to announce that ORIX Corporation USA has acquired NXT Capital, Inc. The transaction closed on August 28, 2018.

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. Through the acquisition of NXT Capital, ORIX USA has taken a step forward in expanding ORIX USA's product set within its third-party asset management platform and achieving continued growth through strategic relationships. The addition of NXT Capital will accelerate its position as a hybrid middle-market lender and asset manager, allowing the company to expand its participation into larger, more strategic investments and strengthen the company's competitive advantage as a top-tier provider of capital to middle-market companies and real estate investors.

NXT Capital will become a subsidiary of ORIX USA, with Robert E. Radway, NXT Capital Chairman and CEO, continuing to serve in his current role. Radway and the current management team will continue to operate NXT Capital under its existing brand and will remain headquartered in Chicago.

Since 1981, ORIX USA has provided innovative capital solutions that clients need to propel their business to the next level. ORIX USA and its subsidiaries—Boston Financial Investment Management, Lancaster Pollard, NXT Capital, Mariner Investment Group, RB Capital, and RED Capital Group—include a team of more than 1,000 employees spanning 30+ offices across the U.S. and Brazil. ORIX USA and its family of companies have $63 billion of assets under management, administration, and servicing (including more than $10 billion held by the company and its subsidiaries). Its parent company, ORIX Corporation, is a publicly owned international financial services company with operations in 38 countries and regions worldwide. ORIX Corporation is listed on the Tokyo Stock Exchange (8591) and New York Stock Exchange (IX).

NXT Capital is a leading provider of structured financing to the U.S. middle market. Since its formation in 2010, the company has originated approximately $20 billion in total financing volume spread over 600+ transactions. With approximately $12 billion of committed capital at its disposal, 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 also 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. Investment offerings include levered and unlevered funds, separately managed accounts, and CLOs. NXT Capital's investor base includes public and private pension plans, insurance companies, endowments, foundations, and other institutional investors. NXT Capital Investment Advisers, LLC, an affiliate of NXT Capital, is registered with the SEC as an investment adviser. With more than 115 professionals, NXT Capital is based in Chicago with offices in Atlanta, Dallas, Los Angeles, Nashville, New York, and Phoenix.

Houlihan Lokey served as exclusive financial advisor to ORIX USA. This transaction marks the third buyside process that Houlihan Lokey's Financial Institutions Group has advised ORIX USA on in the past five years. Houlihan Lokey advised ORIX USA on a competitive process to acquire Lancaster Pollard in September 2017 and on the acquisition of a majority stake of Robeco in July 2013.