UNITED STATES OF AMERICA —San Antonio-headquartered Victory Capital Holdings has reached a definitive agreement to acquire 100% of First Eagle Investments from private equity owner Genstar Capital and internal shareholders for approximately $7 billion. The transaction figure consists of $4.4 billion in cash, $2 billion in newly issued equity, and the assumption of $575 million in senior secured notes. Expected to close by the end of the first quarter of 2027, the deal will expand Victory Capital's total client assets under management to approximately $571 billion.
Victory Capital Holdings is a publicly traded, independent global asset manager based in Texas with $348.8 billion in assets as of mid-2026. First Eagle Investments, founded in 1864 and based in New York, manages approximately $222 billion across global multi-asset, equity, fixed income, and credit portfolios. San Francisco-based private equity firm Genstar Capital holds around $51 billion in assets under management across specialized middle-market verticals.
This strategic acquisition addresses growing institutional demand for diversified alternative investment platforms and scaled credit capabilities. Following the transaction, First Eagle's $41 billion collateralized loan obligation and private credit division will serve as Victory Capital’s primary alternative assets arm. First Eagle will maintain its investment autonomy, brand identity, and leadership structure, preserving established processes while gaining access to Victory Capital's broader U.S. and international distribution networks, including its key partnership with global manager Amundi.
The combined entity is projected to generate annual revenues of around $3.2 billion. Victory Capital expects the merger to deliver approximately $280 million in net expense synergies and boost adjusted earnings per share by roughly 35% in 2027. Transaction financing is backed by committed debt facilities from Bank of America and RBC Capital Markets, comprising a $3.5 billion term loan facility, $950 million in new secured notes, and an expanded $200 million revolving line of credit. Genstar Capital will retain a 14.6% economic stakeholder interest subject to a three-year lock-up period and secure two seats on the enlarged 11-member board of directors.
The transaction underscores a ongoing wave of consolidation within the asset management industry, where scale and multi-asset capabilities are increasingly vital to offset margin pressure and distribution bottlenecks. Institutional investors and distribution partners benefit from expanded product access and institutional credit vehicles, while public markets gain another premier high-volume asset manager capable of navigating shifting market environments across fixed income and value equities.
