Victory Capital Holdings surged 3.7% to $119.61 in early trading, marking a fresh 52-week high, after the asset manager announced plans to acquire First Eagle Investments for approximately $7.0 billion.
The all-cash-and-equity transaction, structured with $4.4 billion in cash and $2.0 billion in newly issued Victory Capital equity, includes the assumption of $575 million in First Eagle's senior secured notes due 2032. The deal values First Eagle, an independent global asset manager, at roughly $7.0 billion, with sellers including private equity firm Genstar Capital and First Eagle employees.
First Eagle oversees approximately $222 billion in client assets, while Victory Capital currently manages $348.8 billion. The combined entity would oversee total assets of roughly $571 billion, reinforcing Victory Capital's acquisition-led growth strategy outlined during its Q2 2026 earnings call. The call highlighted an active deal pipeline supported by strong free cash flow.
Market reaction remained subdued beyond Victory Capital's shares, with the S&P 500 up 0.1%, the Dow Jones essentially flat, and the NASDAQ unchanged. The asset management sector had previously focused on Victory Capital following its failed bid for Janus Henderson earlier in the year. Past integration success cited by the company includes the Pioneer/Amundi US integration.
