European asset manager Amundi is set to become a strategic shareholder in global asset management firm Victory Capital, following a signed Memorandum of Understanding (MoU) between the two companies.
Through the agreement, Amundi US will combine into Victory Capital. The firms assert the merger will help to broaden the range of asset classes covered by both firms, including actively managed fixed income, equity, and multi-asset investment strategies. These will be delivered through a variety of investment vehicles, including separately managed accounts, exchange traded funds (ETFs), mutual funds, UCITs funds, collective investment trusts, and model portfolios.
Following the transaction, Amundi will be the distributor of Victory Capital’s investment offering outside of the US, and Victory Capital will be the distributor of Amundi’s non-US manufactured products in the US. This reciprocal distribution agreement will be entered into for 15 years.
Valérie Baudson, CEO of Amundi, commented: “[The proposed transaction] would expand our access to top-performing US investment strategies for the benefit of our clients globally. Additionally, Amundi would greatly benefit from expanded distribution strength in the US market. The combination would provide a significant catalyst for growth.
“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 CEO of Victory Capital, added: “Bringing the Amundi US business on to our platform increases our size and scale, adds new investment capabilities, and further strengthens our US distribution.
“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.”
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