The deal is expected to close by the end of 2024, pending regulatory approval, and involves Amundi taking a 26% ownership stake(and 5% voting rights) in Victory Capital. In exchange, Amundi US(which operates under the Pioneer brand) will become the 12th franchise under Victory’s sprawling umbrella. Both firms will also enter into 15-year reciprocal distribution agreements. If the deal closes, Amundi US will become by far Victory’s largest franchise: As of March 2024, Amundi US had USD 104 billion in assets under management, while Victory had USD 170 billion.
Victory runs a multiaffiliate model in which it centralizes operations while giving franchises investment autonomy. While the deal implies some operational synergies, Victory has a long history of being hands-off with affiliates. Still, Victory’s roster of investment teams runs the gamut, with bright spots like Sycamore Capital and Trivalent Investments being offset by questions elsewhere like Victory Income Investors (formerly USAA Investments) and Victory Capital Solutions. The Amundi-Victory deal warrants monitoring, but the Average Parent rating now remains intact.
In other news, longtime private equity backer Reverence Capital Partners sold its stake in Victory in 2023, though fellow private equity investor Crestview Partners remains.