Amundi and Victory Capital announce plan to establish a strategic partnership:
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Amundi US to combine into
Victory Capital -
Amundi to become a strategic shareholder of
Victory Capital - Reciprocal 15-year exclusive distribution agreements
PARIS &
The proposed transaction would benefit clients of both firms with a broader range of asset classes including actively managed fixed income, equity, and multi-asset investment strategies offered through a variety of investment vehicles including separately managed accounts, ETFs, mutual funds, UCITs, collective investment trusts, and model portfolios.
Amundi US currently manages
The addition of Amundi US as Victory Capital’s largest Investment Franchise would meaningfully enhance Victory Capital’s scale, expand its global client base, and further diversify its investment capabilities, given Amundi US's broad investment capabilities and strong long-term investment performance.
Under the proposed transaction:
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Amundi US would be combined into
Victory Capital in exchange for a 26.1% economic stake for Amundi inVictory Capital , with no cash payment involved. Amundi would become a strategic shareholder ofVictory Capital with two of its representatives joining the Victory Capital Board of Directors when the transaction closes. - Both parties would simultaneously enter into 15-year reciprocal distribution agreements.
Under these proposed distribution agreements:
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Amundi would be the distributor of Victory Capital’s investment offering outside of the US. This would allow
Victory Capital to further expand its reach beyond the US through Amundi’s global client base, which would benefit from Victory Capital’s deep investment expertise and strong investment performance track record across a wider range of US-manufactured solutions. -
Victory Capital would become the distributor of Amundi’s non-US manufactured products in the US. As a result, Amundi would gain access to an expanded distribution platform in the US, while providing Victory Capital’s clients with its wide range of high-performing non-US investment capabilities.
The proposed transaction would enable both parties to further their respective strategic goals:
- It would allow Amundi to strengthen its access to the US market via a larger US investment and distribution platform, as well as to provide Amundi’s clients with access to a broader and even more differentiated range of US investment solutions;
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It would enable
Victory Capital to strategically extend its platform with the addition of its largest Investment Franchise, which would meaningfully expand and diversify its client base both in the US and outside the US. It also would presentVictory Capital with a unique opportunity to sell the combinedVictory Capital and Amundi US strategies to non-US clients through Amundi’s entire global distribution network and joint ventures. Victory Capital’s clients would benefit from expanded US and non-US investment capabilities and products in complementary asset classes.
As contemplated, the transaction is expected to be accretive for the shareholders of both
The parties are working toward definitive agreement, which is expected to be announced by the end of the second quarter.
About this opportunity,
The Memorandum of Understanding is non-binding on the parties. As with any negotiation, there is no certainty that these negotiations will result in a definitive agreement. The ultimate completion of a transaction would remain subject to conditions, including regulatory approvals.
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FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements within the meaning of applicable
Although it is not possible to identify all such risks and factors, they include, among others, the following: the fact that the Memorandum of Understanding is non-binding and there is no certainty that the negotiations will result in definitive agreements on the anticipated timeline, if at all, or that the currently contemplated terms will not change; risks that conditions to closing will fail to be satisfied and that the transaction will fail to close on the anticipated timeline, if at all; risks associated with the expected benefits, or impact on the Victory Capital’s and Amundi’s respective businesses, of the proposed transaction, including the ability to achieve any expected synergies; and other risks and factors relating to Victory Capital’s and Amundi’s respective businesses contained in their respective public filings
About Amundi
Amundi, the leading European asset manager, ranking among the top 10 global players1, offers its 100 million clients - retail, institutional and corporate - a complete range of savings and investment solutions in active and passive management, in traditional or real assets. This offering is enhanced with IT tools and services to cover the entire savings value chain. A subsidiary of the Crédit Agricole group and listed on the stock exchange, Amundi currently manages more than €2 trillion of assets2.
With its six international investment hubs3, financial and extra-financial research capabilities and long-standing commitment to responsible investment, Amundi is a key player in the asset management landscape.
Amundi clients benefit from the expertise and advice of 5,400 employees in 35 countries.
Amundi, a trusted partner, working every day in the interest of its clients and society.
www.amundi.com LinkedIn Twitter Facebook
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1 Source: IPE “Top 500 Asset Managers” published in
2 Amundi data as at
3
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Amundi
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Amundi US
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Geoff.Smith@amundi.com
Investor contacts:
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Press contact:
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Jessica_davila@vcm.com
Investor contact:
Tel. +1 216-898-2412
mdennis@vcm.com
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