Victory to Acquire Amundi’s $104B U.S. Division

Victory Capital announced Tuesday it has signed a memorandum of understanding to acquire the U.S. business of global asset manager Amundi to gain access to both its U.S. distribution and international clientele.

Victory, which is based in San Antonio, Texas, will be adding Amundi’s $104 billion in assets under management and about 480 employees overseeing a broad range of asset classes offered through investment vehicles, including mutual funds, collective investment trusts and separately managed accounts. Victory will also get a 15-year “exclusive” distribution agreement for Amundi’s U.S.-based channels, including a national defined contribution investment-only sales team.

In turn, Amundi will receive a 26.1% stake in Victory and access to its U.S. products and clientele.

“The proposed transaction would create a broader U.S. investment platform for clients of both firms, provide Amundi with access to a wider set of U.S.-managed capabilities, and expand worldwide distribution for Victory Capital,” according to the announcement.

The firms said no cash payment will be involved and expect to finalize the deal before the end of Q2 2024. Two Amundi representatives will join Victory Capital’s board after the transaction closes.

“The distribution agreement would immediately position our products for success through Amundi’s extensive and effective distribution channels throughout the world,” David Brown, chairman and CEO of Victory, said in a statement. “Moreover, having Amundi as a strategic shareholder in our firm would strengthen our alignment on the distribution agreement and establish the foundation for an enduring and mutually beneficial long-term relationship.”

Through the deal, Victory will also become the distributor of Amundi’s non-U.S. manufactured products in the U.S. The firms said the transaction is expected to be accretive for shareholders of both firms by increasing adjusted net income and earnings per share.