Victory Capital to Acquire USAA Asset Management

By Marlene Satter

News November 07, 2018 at 03:53 PM

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Victory Capital Holdings Inc. and USAA have announced an agreement for the former to acquire USAA Asset Management Co., which includes its mutual fund and ETF businesses and USAA 529 College Savings Plan, for $850 million plus the opportunity for additional contingent payments based on future business performance.

As of Sept. 30, USAA Asset Management had $69.2 billion in assets under management in 53 investment funds. Based on AUM as of the same date, Victory Capital would have approximately $144.4 billion in firmwide AUM at the close of the transaction.

USAA Asset Management is based in San Antonio, Texas; it was formed to serve the investment needs of the military and their families. It offers a full suite of investment capabilities.

In addition, Barron's named USAA Asset Management the 12^th Best Fund Family of 2016 and the 23^rd Best Fund Family of 2017. It was also ranked 3^rd in the taxable bond category for 2016 and 5^th for 2017.

The acquisition expands and diversifies Victory Capital's investment platform with an emphasis on fixed income and solutions asset classes, and the firm will add target date and target risk strategies, managed volatility mutual funds and active fixed income ETFs to its solutions platform.

The acquisition is expected to close in the second quarter of 2019, and is subject to regulatory and other customary approvals, conditions and consents, including approval by USAA mutual fund and ETF shareholders and the board of trustees.

— Check out Best & Worst 529 College Savings Plans of 2018: Morningstar on ThinkAdvisor.

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