Victory Capital has bought a 15% stake in Alderwood Partners (Alderwood), an investment advisory business headquartered in London.
The amount invested to buy the stake was not revealed.
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Diversified asset manager Victory Capital made the investment via its wholly owned unit.
Alderwood Capital, a London-based investment advisory business and the operating entity of Alderwood, picks minority holdings in specialist boutique asset managers.
Alderwood intends to raise a single fund to implement its plan. The move is pending regulatory nod.
Victory Capital plans to invest in the fund.
The firm will have board representation at the general partner level.
Victory Capital chairman and CEO David Brown believes that the deal offers “compelling strategic advantages”.
Brown stated: “It significantly broadens our international scope for future growth, particularly in the UK and on the European continent.
“In addition to expanding opportunities for complementary distribution alliances and strategic partnerships leveraging organisational and regulatory platforms in non-US jurisdictions, it also provides attractive return opportunity on our investment.”
Victory Capital offers specialised investment strategies to individual investors, institutions, intermediaries, as well as retirement platforms.
The firm managed $136.8bn in assets at the end of August 2020.
Alderwood Capital was set up this year by Jonathan Little, who previously was the founder and managing partner of Northill Capital.
He previously worked as the global co-head of Asset and Wealth Management at BNY Mellon, and the head of International Funds and Sub-Advisory at JP Morgan Investment Management.
He also had a stint at Fidelity Investments International.
Little said: “Our organisations have strong cultural alignment, and we share the view that active management in focused firms will continue to generate robust cash flow and attractive risk-adjusted IRR.”
Other deals
Last July, Victory Capital snapped up USAA Asset Management Company.
The acquisition includes USAA’s Mutual Fund and ETF businesses as well as its 529 College Savings Plan.
In 2018, Victory Capital announced the purchase of derivative asset manager Harvest Volatility Management.
