KBRA Publishes Ratings for Hildene Holding Company, LLC and Hildene Capital Management, LLC

KBRA publishes issuer ratings of BBB and senior secured debt ratings of A- for Hildene Holding Company, LLC and Hildene Capital Management, LLC (“Hildene”, “HCM”, or “the firm”). The Outlook for the ratings is Stable. On June 9, 2026, these ratings were assigned on an unpublished basis.

The ratings are supported by Hildene’s growing scale and platform diversification across multiple segments of structured credit, asset-based finance, and insurance, underpinned by management’s expertise in complex securitized products and structured finance investing. Collectively, these factors have contributed to Hildene’s established market position while the pending acquisition of SILAC, Inc., parent of SILAC Insurance Company (“SILAC”), a leading provider of fixed and fixed indexed annuity products, will further diversify AUM toward longer-duration assets. Hildene is exposed to inherent risks related to its concentration in structured credit, including market and credit spread volatility, sector specific downturns, as well as periods of reduced liquidity and heightened valuation volatility during stressed market environments. These risks are partially mitigated by Hildene’s longstanding expertise in structured credit underwriting and experience navigating multiple market and credit cycles. Key person risk exists with the firm’s co-CIOs, in part, counterbalanced by the depth of the broader senior team. Management fees are primarily earned based on book value and NAV, which may fluctuate with market conditions. Hildene also earns shared services fees while performance fees offer upside. Revenue diversification is improving as HCM expands into insurance. A flexible cost base augments cash flow resiliency during stressed conditions. A meaningful portion of AUM is in open-ended fund structures subject to standard redemption risk. Redemption risk appears manageable and limited as Hildene maintains various liquidity management provisions designed to mitigate outflows. HCM and Hildene Holding Company, LLC, together as co-borrowers, are seeking a $150 million senior secured delayed draw credit facility with a three-year maturity and two 12-month extension options. Approximately $100 million will be used to fund a portion of the ~$550 million SILAC acquisition. The remaining balance on the facility is intended to be used for general corporate purposes. Pro forma debt/EBITDA is expected to decline over time based on management projections and to be managed at levels in line with rating assumptions. The senior secured facility benefits from recourse to management fee income and the acquired annuity platform, which altogether provide >2x coverage of the facility and meaningful overcollateralization. Covenant protections include limitations on additional indebtedness and restrictions on distributions following an event of default, among other credit enhancing features that support a two-notch uplift of the facility rating from the issuer rating.

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