St. Louis Park firm files IPO to become Minnesota’s next public company

Jefferson Capital could be Minnesota’s next public company after filing an initial public stock offering to raise $100 million.

The St. Louis Park-based company says that, as the third largest debt buyer and servicer in North America, it had increased revenue 55% in 2024 to $154.9 million. Profits were $68.1 million, up 126%.

If successful, it would be the state’s second major IPO in less than a year.

Med-tech company Anteris Technologies went public in December. It was the first Minnesota company to do so through a major IPO since Life Time in September 2021.

The number or price of shares to be offered has not been determined. The final amount raised could differ from $100 million.

It is expected the existing shareholders will maintain a controlling interest of more than 50% of the company’s shares after the offering.

Jefferson Capital plans to use proceeds of the offering to create a public market for its shares, restructure its corporate debt, provide financial flexibility and for general operating purposes.

Chief Executive David Burton founded the company in 2002 after acquiring the consumer accounts of the old Fingerhut business, the once ubiquitous catalog company that helped consumers finance their purchases.

Jefferson Capital now has 720 employees in 10 offices from Denver to San Antonio, Texas, London and Toronto.

Most of the accounts it acquires have been charged off by the companies after multiple attempts to collect, but Jefferson also acquires some current accounts.

Jefferson Capital also acquires accounts through bankruptcy proceedings.

In a deal last fall, the company spent $340 million to acquire the consumer accounts of two furniture firms in the Southwest, Conn’s and Badcock Home Furniture & More, that had filed for Chapter 11 bankruptcy protection.

Conn’s and Badcock provided in-house financing for their customers. In the deal, Jefferson added about 200 Conn’s and Badcock employees to its collections office in San Antonio.

“This transaction is another important moment for Jefferson Capital, showcasing the dedication, expertise, and collaborative spirit that define our company,” said Burton in a news release. “It fits well within our capabilities to service and collect on low balance subprime accounts in a wide variety of asset classes.”

Three-quarters of the company’s accounts are in the United States and the rest in the United Kingdom, Latin America and Canada.

About 87% of the debt is from installment loans or credit card debt and the remaining from auto and student loans or debts to utilities and telecom companies.

Lead underwriters for Jefferson’s offering are Jefferies and Keefe, Bruyette & Woods.