Victory Capital maintains its Average Parent rating as it pursues its largest acquisition yet in First Eagle Investments.
The deal, expected to close in 2027’s first quarter, will create a US-industry giant with nearly USD 600 billion in assets under management. It’s the latest step toward CEO David Brown’s vision of surpassing USD 1 trillion in assets, following the April 2025 acquisition of Pioneer Investments and a failed hostile bid for Janus Henderson in early 2026. Beyond scale, the deal provides access to First Eagle’s differentiated global value team. It also gives Victory a footprint in the alternative credit space via First Eagle’s USD 40 billion Napier Park business.
While the move is right out of Victory’s playbook, it’s a surprising shift for First Eagle, which is fresh off an August 2025 buyout by private equity firm Genstar Capital. First Eagle had growth ambitions of its own, including the April 2026 purchase of boutique value shop Diamond Hill. Genstar will retain a 14.6% stake in Victory and get two of 11 board seats.
The deal expands Victory’s strategy menu, which already sprawls across nine franchises. First Eagle’s lineup complements Victory’s in places, but also introduces overlap, particularly in small/mid-cap and international equities. Victory’s track record of giving its franchises investment autonomy should offer comfort to fundholders. But the deal does imply some operational synergies, and Victory hasn’t been completely hands-off after every acquisition. Following its 2025 Pioneer acquisition, Victory shuttered a few of its smallest franchises in Sophus, NewBridge, THB, and Munder.
United States