Victory Capital agreed on 26 August to acquire First Eagle Investments, an independent global asset manager with about $222bn under management, for about $7.0bn.
Why Victory Capital Holdings is buying First Eagle Investments
Victory said the deal would create a diversified global manager with about $571bn of client assets and roughly $3.2bn of annual revenue. It expects the acquisition to add about 35% to 2027 adjusted earnings per share, including about $280m of net expense savings.
“This is a transformational transaction that represents the next chapter in the evolution of our business.”
Deal terms and financing
Victory will pay about $4.4bn in cash and issue about $2.0bn of new equity, and will assume $575m of First Eagle's 7.25% senior secured notes due 2032. BofA Securities and RBC Capital Markets have committed financing including a new $3.5bn term loan. Genstar's stake of about 14.6% will carry voting rights capped at 4.9%, with the rest held as non-voting convertible preferred stock under a three-year lock-up, and Genstar will name two directors.
Regulatory approvals and timing
Closing is expected by the end of the first quarter of 2027, subject to regulatory approvals, client and fund board consents and Victory shareholder approval of the share issue.
Market context
First Eagle's assets include a $41bn CLO and alternative credit platform. Genstar Capital and First Eagle employees are the sellers.
