Victory Capital agreed to acquire First Eagle Investments for approximately $7bn, in a transaction that hands Genstar Capital a lucrative exit barely a year after it took control of the asset manager. The deal will create a combined business overseeing about $571bn in total client assets, ranking Victory among the largest publicly traded traditional asset managers in the US.

Under the agreement, Nasdaq-listed Victory will acquire 100% of First Eagle, which manages around $222bn, from Genstar and First Eagle employees. The total consideration of roughly $7bn comprises approximately $4.4bn in cash and $2bn in newly issued Victory Capital equity. Victory will also assume $575m of First Eagle's 7.25% senior secured notes due 2032.

The acquisition strengthens Victory's position in the competitive asset management industry, combining two established firms with distinct investment philosophies and client bases.