Victory Capital Strikes $7B Deal for First Eagle

Victory Capital Holdings has agreed to acquire First Eagle Investments for approximately $7 billion. Victory will pay $4.4 billion in cash and issue $2 billion of stock while assuming $575 million of First Eagle’s 7.25% senior secured notes.

First Eagle manages approximately $222 billion, while Victory reported $348.8 billion in client assets as of July 31. The combined company would oversee about $571 billion and generate approximately $3.2 billion in annual revenue.

“This is a transformational transaction that represents the next chapter in the evolution of our business,” Victory Chairman and CEO David Brown said.

First Eagle will retain its brand, investment teams and processes while operating on Victory’s platform. Its $41 billion CLO and alternative credit business will become the combined firm’s alternatives platform.

The deal advances Victory’s goal of reaching $1 trillion in assets and follows its 2025 acquisition of Amundi’s U.S. business. Victory previously acquired USAA’s asset management operation in 2019 and has completed more than half a dozen transactions since separating from KeyCorp in 2013.

Financing will include a new $3.5 billion term loan, approximately $950 million of secured notes and a $200 million revolving facility.

Genstar Capital, which is selling First Eagle alongside company employees, will own approximately 14.6% of Victory after closing. Its voting interest will be capped at 4.9%, and its holdings will be subject to a three-year lockup.

First Eagle CEO Mehdi Mahmud said clients would benefit from the combined firm’s broader distribution while investment autonomy remains intact. First Eagle has generated positive net flows for three consecutive years and through July 2026.

The transaction is expected to close by the end of the first quarter of 2027.