ORIX Corp. USA and NXT Capital signed a definitive agreement for ORIX to acquire NXT. According to its statement, ORIX pursued NXT to expand its management platform and bolster its position as a middle-market lender.
“The acquisition of NXT Capital is one step forward in expanding our product set within our third-party asset management platform and achieving continued growth through strategic relationships,” ORIX USA Chairman, President and CEO Hideto Nishitani said in a statement.
“The addition of NXT Capital will accelerate our position as a hybrid middle-market lender and asset manager, allowing ORIX USA to expand our participation into larger, more strategic investments and strengthen our competitive advantage as a top-tier provider of capital to middle-market companies and real estate investors,” he added.
NXT Capital's real estate finance division provides financing for the acquisition of multifamily, office, retail, industrial, hotel, and student housing. The company offers first mortgage and junior capital products from $10 million to $75 million. The company is based in Chicago, has offices in Atlanta, Dallas, Los Angeles, Nashville, New York and Phoenix, and serves approximately 75 metro areas.
According to the company, since its founding in 2010, NXT Capital has originated approximately $20 billion in total financing across more than 600 transactions in corporate and real estate finance.
ORIX is the umbrella under which a number of financial firm subsidiaries reside, including Boston Financial Investment Management, Lancaster Pollard, Mariner Investment Group, RB Capital and RED Capital Group. NXT Capital will become the next jewel in the set, pending the closing process which is expected to finalize in August of this year.
“We look forward to partnering with a company that has a track record for innovation and growth,” NXT Capital Chairman and CEO Robert Radway said in a statement.
“All of our stakeholders—including sponsors, asset management clients and our employees—will benefit from ORIX USA’s global platform, leading-edge approach to business development and financial strength. We’re pleased with the confidence that ORIX USA has shown in our platform and employees and are poised for a new chapter in our company’s history, focused on continued growth and delivering strong results for our asset management clients.”
NXT will remain headquartered in Chicago and Radway will retain his role as its chairman and CEO.
Financial terms of the deal were not disclosed.