Victory Capital Acquires First Eagle Investments for $7 Billion
Victory Capital Holdings has agreed to acquire New York-based asset manager First Eagle Investments in a deal valued at approximately $7 billion. The acquisition, which includes $4.4 billion in cash and $2 billion in new shares issued by Victory, brings the firm's assets under management (AUM) to around $571 billion. This move aligns with Victory’s strategy of acquiring asset managers while preserving their investment teams and brands before integrating them onto a shared platform. First Eagle manages about $222 billion across various strategies including equity, fixed-income, global value, and alternative credit assets like collateralized loan obligations (CLOs). The firm has consistently seen net inflows for the past three years. Victory expects annual cost savings of around $280 million from this acquisition but has not disclosed specific areas where these efficiencies will be realized. The deal is expected to increase Victory’s leverage, with a projected 3.2x debt-to-EBITDA ratio at closing that should decrease over time. The transaction positions Victory ahead of Janus Henderson in terms of AUM and brings the firm closer to its goal of managing $1 trillion.
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