Jefferson Capital Inc., a private equity firm headquartered in the United States, raised US$150 million in its initial public offering (IPO) by pricing shares at US$15 each, the lower end of its marketed range.
The company and its investors sold a total of 10 million shares, according to a statement released on June 25, 2025.
At this IPO price, Jefferson Capital’s market capitalization is valued at US$972 million, based on its filing.
The company’s shares will begin trading on June 26, 2025, on the Nasdaq Global Select Market under the ticker symbol JCAP.
The company offered 625,000 shares, while the remaining 9.375 million were sold by investors, including its majority shareholder, JC Flowers & Co.
JC Flowers & Co., which acquired a majority stake in Jefferson Capital in 2018, holds 81.7% ownership and is expected to retain 68.9% of voting power after the IPO.
Founded in 2002 by CEO David Burton, Jefferson Capital purchases consumer debt from credit cards, auto loans, and other products.
For the three months ending March 31, 2025, the firm reported a net income of US$64.2 million on revenue of US$154.9 million., increasing from US$32.9 million net income on US$99.9 million revenue during the same period in 2024.
Food for thought
1. Private equity’s IPO strategy shows evolution of investment lifecycle
Jefferson Capital’s IPO represents a clear example of private equity’s value creation and exit strategy in action.
J.C. Flowers acquired Jefferson Capital in 2018 as part of their strategic expansion into financial services focused on distressed assets management.
Just six years later, they’re taking the company public while maintaining 68.9% voting control post-IPO, demonstrating the PE firm’s confidence in Jefferson’s continued growth potential while partially monetizing their investment.
This reflects a growing trend where PE firms bring portfolio companies to public markets strategically rather than fully exiting. Jefferson’s strong financial performance (US$433.3 million revenue and US$128.9 million net income in the previous year) made it an attractive candidate for this approach.
The $972 million valuation achieved through this IPO provides J.C. Flowers with public market validation of their investment thesis while allowing them to maintain operational control.
2. Debt collection firms differentiating through specialized business models
Jefferson Capital’s consistent profitability since 2002 demonstrates how specialization in the debt collection industry can drive sustainable performance.
Unlike competitors who handle the full collection process, Jefferson differentiates by outsourcing call centers while focusing their internal resources on data analysis and performance optimization.
This model contrasts with industry peers like PRA Group, which reported a net margin of 6.27%, illustrating the performance variations between different operational approaches in debt collection.
Jefferson’s focus on data analytics allows them to better evaluate and price debt portfolios across multiple markets, with deployments spanning the US (75% of investments), Canada, the UK, and Latin America.
The company’s ability to maintain profitability every year since inception while expanding internationally validates this specialized approach in a competitive industry where operational efficiency is critical to success.
3. Debt buying industry sees rare public market entry despite challenging IPO environment
Jefferson Capital’s US$150 million IPO represents an uncommon public market entry for the debt purchasing sector, which has historically seen limited public offerings compared to other financial services.
Despite pricing at the bottom of its expected US$15-17 range, the offering still attracted sufficient investor interest to complete the transaction, suggesting ongoing market appetite for profitable financial services businesses even in cautious market conditions.
The company’s strong growth trajectory (34.1% revenue increase year-on-year) likely helped overcome investor hesitation, demonstrating how consistent performance can open public market opportunities even in specialized financial niches.
Jefferson’s IPO offers public market investors rare exposure to the charged-off debt market, where companies purchase defaulted consumer debt at steep discounts and generate returns through recovery operations.
The involvement of established underwriters Jefferies and Keefe, Bruyette & Woods signals mainstream financial market acceptance of this business model, potentially paving the way for similar companies to consider public offerings.
