Victory Capital and Amundi Announce Strategic Partnership Agreement
Victory Capital Holdings, Inc. has announced that it has reached a definitive agreement with Amundi for their previously announced transaction. This strategic partnership, consistent with the Memorandum of Understanding announced on April 16, 2024, will see the integration of Amundi US (formerly Pioneer Investments) into Victory Capital and Amundi becoming a strategic shareholder.

Victory Capital Holdings, Inc. has announced that it has reached a definitive agreement with Amundi for their previously announced transaction. This strategic partnership, consistent with the Memorandum of Understanding announced on April 16, 2024, will see the integration of Amundi US (formerly Pioneer Investments) into Victory Capital and Amundi becoming a strategic shareholder.
As part of the agreement, Victory Capital and Amundi have entered into reciprocal 15-year distribution agreements. Upon closing the transaction, these agreements will come into effect, facilitating a mutual distribution network. Victory Capital will supply US-manufactured active asset management products for Amundi's distribution outside the US, while Amundi's non-US manufactured products will be distributed by Victory Capital within the US.
David Brown, Chairman and CEO of Victory Capital, emphasized the significance of this strategic relationship, stating, "This strategic relationship accelerates the globalization of our firm through a new global distribution channel. The transaction’s structure is carefully designed to closely align our common interests." He further highlighted that combining Amundi US with Victory Capital will broaden their investment offerings, adding new and complementary investment capabilities. This merger is expected to enhance their US distribution, sales, and marketing efforts, providing a more extensive reach.
Financially, Victory Capital anticipates achieving low-double-digit EPS accretion within a year of closing. The transaction is projected to result in over $100 million in annual cost savings, with the majority realized within the first year and any remaining synergies in the subsequent year. The company's net leverage ratio is expected to improve significantly due to higher cash flow and the absence of incremental debt from the transaction.