Amundi and Victory Capital have signed a Memorandum of Understanding with the aim of merging Amundi US into Victory Capital.
This would make Amundi a strategic investor of Victory Capital and establish future global distribution agreements.
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In addition, the intended deal would give Amundi a link to a larger range of US-managed capabilities. It would also broaden the US investment platform for both businesses’ clients and increase Victory Capital’s international reach.
Clients of both companies would gain from the proposed deal by having access to an increased number of asset classes, such as actively managed equity, fixed income, and multi-asset investment strategies provided through separate managed accounts, mutual funds, UCITs, collective investment trusts, and model portfolios, among other investment vehicles.
Asset management company Victory Capital is a diversified US company with $175bn in total client assets and a track record of effective acquisitions.
Moreover, various distinct investment teams maintain their investment autonomy due to the company’s unique platform, which allows them to all benefit from a controlled, fully integrated operational and distribution platform.
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By GlobalDataCurrently, Amundi US manages $104bn in assets for individuals and companies all over the world. Its diverse asset classes include US and international equities, fixed income, and multi-asset investment options.
Amundi US manages a sizable amount of assets and portfolios on behalf of non-US retail and institutional clients via Amundi’s extensive international distribution presence.
The addition of Amundi US as Victory Capital’s Investment Franchise would considerably grow its worldwide client base and broaden its investment capabilities as a result of its broad and solid long-term performance.
Proposed agreements:
- Amundi would distribute Victory Capital’s investment offerings globally, broadening its reach outside of the US and using Amundi’s global customer base’s investment experience and performance.
- Victory Capital would market Amundi’s non-US manufactured products in the US, boosting Amundi’s distribution infrastructure while also providing customers with Victory Capital’s high-performing non-US investing capabilities.
Victory Capital intends to grow its platform with its Investment Franchise, thereby increasing its client base and providing a unique potential to sell integrated strategies to non-US clients through Amundi’s worldwide distribution network and joint ventures.
The acquisition is projected to benefit Victory Capital and Amundi shareholders by raising adjusted net income and profits per share for both firms.
Valérie Baudson, chief executive officer of Amundi, said: “The proposed transaction with Victory Capital is a unique opportunity to strengthen our presence in the US, while becoming a strategic shareholder in a reputable US based asset management firm with an excellent track record of growth.
“Overall, this is a compelling proposition for our clients and our employees; it would also be a value-creating deal for our shareholders with significant prospects for both revenue growth and synergies.”
David Brown, chairman and chief executive officer of Victory Capital, added: “This transaction would benefit the clients, employees, and shareholders of both organisations. Strategically, bringing the Amundi US business on to our platform increases our size and scale, adds new investment capabilities, and further strengthens our US distribution with the addition of new talent and relationships.
“Moreover, having Amundi as a strategic shareholder in our firm would strengthen our alignment on the distribution agreement and establish the foundation for an enduring and mutually beneficial long-term relationship.”
