Victory Capital Strikes $7B Deal for First Eagle, Targets $571B in Client Assets

Global ETF inflows reached $150 billion in August, nearing a record $1.4 trillion year-to-date. T. Rowe Price acquired F/M Investments, adding fixed income capabilities. Victory Capital acquired First Eagle, creating a $571 billion asset manager. VettaFi acquired RAFI Indexing, expanding smart-beta offerings. Northern Trust rebranded FlexShares ETFs under its main brand. Corgi hired Jeff Weniger as CIO, continuing its thematic ETF expansion.

Victory Capital Holdings agreed to buy First Eagle Investments for $7 billion, adding $222 billion in assets under management and bringing its total to $571 billion. The deal includes $4.4 billion in cash, $2 billion in new shares, and assuming $575 million in debt. Victory aims to achieve $280 million in annual cost savings and reduce leverage to 2x by 2028. First Eagle has seen net inflows for three years and higher fee rates than Victory.

Victory Capital Holdings (VCTR) agreed to acquire First Eagle Investments for $7b, creating a combined platform with $571b in client assets. VCTR's stock has surged 88.97% year-to-date, but analysts debate its valuation, with a consensus price target of $96.33, suggesting a 26% overvaluation at its last close of $121.13. The company faces risks from fee compression and asset outflows.

Victory Capital (VCTR) will acquire First Eagle Investments for $7bn, adding $222bn in AUM. The deal, expected to close by Q1 2027, will create a combined entity with $571bn in assets, boosting Victory's scale and earnings. First Eagle will retain its brand and investment autonomy. The transaction is 35% accretive to 2027E adjusted EPS, with $280m in net expense synergies.

Victory Capital will acquire First Eagle Investments, a privately owned asset manager with $222B in AUM, for $7B. The deal, expected to close by Q1 2027, will create a combined entity with $571B in total client assets. Victory Capital will pay $4.4B in cash, issue $2B in equity, and assume $575M in debt. First Eagle will retain its brand and investment autonomy. (VC, FE)

Victory Capital (VCTR) stock rose 3.7% to a 52-week high of $119.61 after announcing a $7.0 billion deal to acquire First Eagle Investments, which manages $222 billion in assets. The combined entity will oversee $571 billion in total assets. The acquisition includes $4.4 billion in cash, $2.0 billion in Victory Capital equity, and assumption of $575 million in debt. The broader market had minimal impact on the move.