Jefferies to buy 50% Hildene stake in credit push; shares jump

Shares of investment bank Jefferies Financial Group JEF.N up 2.9% at $60.50 premarket

Co says it will acquire 50% interest in Hildene Holding, parent of credit-focused asset manager Hildene Capital with over $18 bln AUM

Deal coincides with Hildene signing pact to buy SILAC, a fixed-indexed annuity provider, for $550 mln

JEF expects $75 mln pretax gain after deal closes, which is expected in Q3 2026

Co says investment aligns with long-term strategy to expand credit origination and asset management

Separately, Morgan Stanley upgraded JEF to overweight from equal-weight and raised its PT to $78 from $74

Brokerage says PT raise driven by expectations of capital markets rebound, share gains from expanded SMBC partnership and fading concerns around First Brands' exposure

JEF stock down 24.59% YTD, as of last close