Victory Capital enters $7bn deal to buy First Eagle Investments
Victory Capital has agreed to buy First Eagle Investments from Genstar Capital and First Eagle employees in a deal valued at about $7bn.
After completion, the merged group is expected to oversee about $571bn in total client assets.
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Under the planned structure, First Eagle will be integrated onto Victory Capital’s platform but will keep its name, investment independence and current investment processes.
As of 31 July 2026, First Eagle, a privately held global asset manager, had around $222bn in assets under management.
The company has recorded positive net flows in each of the past three years and has remained net flow positive so far in 2026 through 31 July, highlighted Victory Capital.
The deal is expected to widen the combined group’s distribution reach across channels.
First Eagle CEO and president Mehdi Mahmud said: “I believe this transaction is a very positive development for First Eagle and, most importantly, for our clients. First Eagle’s distinctive investment teams will continue to operate autonomously, with no change to the investment philosophies and processes that have earned our clients’ confidence over time.
“I expect the combined company’s scale, status as a publicly traded company, and ability to invest in the business for the long term will be a source of strength in the years ahead.”
Annual revenue for the combined company is projected at about $3.2bn.
Once the transaction closes, Genstar is expected to hold about 14.6% of Victory Capital on a fully diluted, as-converted basis, while its voting stake will be limited to 4.9%.
Genstar’s full position will be subject to a three-year lock-up.
It will also have the right to appoint two directors to the Victory Capital Holdings board, which is due to expand to 11 members on closing.
David Brown is set to remain chief executive and chairman.
The acquisition is still subject to standard closing requirements and is expected to complete by the end of the first quarter of 2027.
Victory Capital said financing for the deal has been fully committed by BofA Securities and RBC Capital Markets.
Victory Capital chairman and CEO David Brown said: “This transaction enriches Victory Capital’s talent pool, gives us additional scale to invest even more in our overall platform, and amplifies our distribution depth and breadth in the U.S., as well as outside the U.S. through our strategic partnership with Amundi.
“It makes our company better, more competitive and more resilient through all market cycles. Our clients gain access to a broader set of investment capabilities and deeper resources, and our shareholders benefit from the enhanced scale and earnings power of the combined company.”
