Victory Capital Holdings has entered an agreement to acquire independent asset management firm First Eagle Investments in a deal valued at $7 billion.
David Brown
Once finalised, the transaction will form a combined company expected to hold approximately $571 billion in client assets – a move which will make Victory Capital one of the largest publicly traded traditional asset managers in the US.
The acquisition is currently scheduled to close by the end of Q1 2027.
The deal will move First Eagle’s operations onto Victory Capital’s platform, and the firm’s CLO and alternative credit platform will form the combined company’s alternative investments platform after the acquisition is closed.
Specifically, First Eagle will retain its brand, investment autonomy and existing investment processes through the transaction.
David Brown, chair and chief executive of Victory Capital, said: “This is a transformational transaction that represents the next chapter in the evolution of our business. This transaction enriches Victory Capital’s talent pool, gives us additional scale to invest even more in our overall platform, and amplifies our distribution depth and breadth in the US, as well as outside the US through our strategic partnership with Amundi.
“Our clients gain access to a broader set of investment capabilities and deeper resources, and our shareholders benefit from the enhanced scale and earnings power of the combined company.”
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The deal has also been welcomed by Amundi, who is a long-term partner with both firms, as well as a shareholder in Victory Capital.
Valérie Baudson, chief executive at Amundi, added: ” Victory Capital and First Eagle are two excellent asset managers that we know intimately – we have been distributing their high-performing US and global strategies to our clients outside of the US for years.
“As Victory Capital’s strategic shareholder and the distributor of its investment solutions outside of the US, Amundi is fully supportive of this deal and looks forward to the next chapter of this partnership.”