Houlihan Lokey Advises JG Wentworth Company

Houlihan Lokey is pleased to announce that JG Wentworth Company, LLC (JG Wentworth), a portfolio company of Axar Capital Management LP (Axar), has raised a $45 million first lien term loan and a $30 million delayed draw term loan. Proceeds from the transaction will be used to refinance the company’s existing indebtedness and fund its continued growth initiatives in debt resolution and personal lending. The financing transaction closed on September 7, 2023.

JG Wentworth is a leading direct-to-consumer specialty finance company that has been the market leader in structured settlement payment purchasing for 25+ years, providing customers with liquidity by purchasing their guaranteed structured settlements, life contingent structured settlements, annuities, or lottery receivables. Given the long-term success of its structured settlement payment purchasing business, the company launched a debt resolution segment in 2019, pursuant to which it negotiates with creditors on behalf of consumer clients to reduce their unsecured debt balances over a multi-year period. Following the rapid growth of its debt resolution segment, JG Wentworth expanded its business model earlier this year to include personal lending, including debt consolidation loans to existing customers. JG Wentworth occupies a unique position in the industry by employing a best-in-class direct-to-consumer marketing model that is supported by an iconic brand with national awareness.

Based in New York, New York, Axar is a value-oriented alternative asset management firm with an investment strategy focused on stressed and distressed credit, hybrid capital with fixed income, and potential equity upside and other special situations. Founded in 2015, Axar has ~$2.3 billion in assets under management and focuses on investments in the financial services and consumer products and services industries.

Houlihan Lokey served as the exclusive financial advisor and placement agent to JG Wentworth.

If you would like more information about Houlihan Lokey or have questions regarding the firm’s role in the transaction, please contact one of the team members listed below.

About Houlihan Lokey

Houlihan Lokey, Inc. (NYSE:HLI) is a global investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, and financial and valuation advisory. Houlihan Lokey serves corporations, institutions, and governments worldwide with offices in the Americas, Europe, the Middle East, and the Asia-Pacific region. Independent advice and intellectual rigor are hallmarks of the firm’s commitment to client success across its advisory services. The firm is the No. 1 investment bank for global M&A transactions under $1 billion, the No. 1 M&A advisor for the past eight consecutive years in the U.S., the No. 1 global restructuring advisor for the past nine consecutive years, and the No. 1 global M&A fairness opinion advisor over the past 25 years, all based on number of transactions and according to data provided by Refinitiv.