Victory Capital Holdings Inc. shares jumped 3.7% to $119.61 in early trading on Wednesday, marking a new 52-week high as investors reacted to the asset manager’s planned $7 billion acquisition of First Eagle Investments.
The deal, structured with $4.4 billion in cash and $2.0 billion in new Victory Capital shares, includes the assumption of $575 million in First Eagle’s senior secured notes due in 2032. Victory Capital, based in San Antonio, will integrate First Eagle’s $222 billion in assets under management with its own $348.8 billion, creating a combined entity with pro forma assets of approximately $571 billion.
The acquisition follows a period of strong financial performance for Victory Capital, with management citing robust free cash flow and an active deal pipeline as key factors supporting the transaction. The move also comes after the collapse of a prior attempt to acquire Janus Henderson and the successful integration of Pioneer Investments, previously acquired from Amundi US.
Genstar Capital, one of the sellers of First Eagle, is among the stakeholders involved in the deal. Victory Capital’s shares outperformed broader equity benchmarks, with the S&P 500 up 0.1%, the Dow Jones Industrial Average essentially flat, and the Nasdaq unchanged during the same session.
