TOKYO -- Orix will acquire NXT Capital, a Chicago-based commercial financing specialist, in August in a deal likely to exceed 100 billion yen ($903 million).
The U.S. lender provides financing for so-called middle-market acquisitions both directly and through private debt funds managed on behalf of investors. It has more than $5 billion of assets under management. Established in 2010, NXT Capital will become a wholly owned unit of Orix.
With the strong American economy stoking acquisitions, financing for leveraged buyouts of midsize companies has reached $360 billion a year in the U.S., according to some estimates. Even as interest rates rise, observers expect continued activity in leveraged buyouts.
Orix has diversified from leasing to become a financial services group involved in areas such as real estate and investment in unlisted companies. Overseas profit accounts for one-quarter of the Tokyo-based group's total, with the U.S. business becoming a top earner on the strength of real estate financing and corporate lending. Orix already has a presence in the leveraged buyout financing market there.