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Victory Capital to buy First Eagle Investments for about $7 billion
The deal values First Eagle at about $7 billion, including $4.4 billion in cash and $2.0 billion in new Victory Capital stock, and Victory Capital will assume $575 million in First Eagle bonds yielding 7.25% due 2032.
Victory Capital Holdings has announced an acquisition of First Eagle Investments, a transaction that is set to create an asset manager with $571 billion in combined client assets, the companies said.
Victory Capital will pay about $7 billion for First Eagle, with the consideration made up of $4.4 billion in cash and $2.0 billion in new Victory Capital stock. The companies also said Victory Capital will assume $575 million in First Eagle bonds carrying a 7.25% coupon that mature in 2032.
The acquisition adds First Eagle’s multi asset, equity and fixed income funds to Victory Capital’s lineup, and it also brings a $41 billion alternative credit platform, including collateralized loan obligations. Genstar Capital and First Eagle employees are selling the privately held firm for cash and stock, and Genstar is expected to own about 14.6% of Victory Capital after the deal closes.
First Eagle will keep its own brand, investment teams and processes. Genstar will have two seats on Victory Capital’s board, which will expand to 11 directors, and Genstar’s voting power will be capped at 4.9%, with the remainder held as non voting preferred shares locked up for three years.