Victory Capital Holdings agreed to acquire First Eagle Investments for about $7 billion, creating one of the largest publicly traded traditional asset managers in the U.S. with roughly $571 billion in total client assets. The purchase price consists of about $4.4 billion in cash and $2 billion in newly issued Victory Capital equity, plus the assumption of $575 million of First Eagle’s existing 7.25% senior secured notes due 2032.

Victory Capital Chief Executive David Brown called the deal a transformational transaction that enriches the talent pool, provides additional scale, and amplifies distribution depth. First Eagle, an independent, privately held global asset manager with roughly $222 billion in assets under management as of July 31, will operate on Victory Capital’s platform while retaining its brand, investment autonomy, and existing investment processes. First Eagle Chief Executive Mehdi Mahmud said the combined company’s scale and public status will be a source of long-term strength.

Victory Capital is acquiring First Eagle from Genstar Capital and First Eagle employees, with the transaction expected to close by the end of the first quarter of 2027. Genstar is expected to own about 14.6% of Victory Capital on a fully diluted basis, with voting interest limited to 4.9%, and will designate two directors to the expanded 11-member board. Brown will continue as CEO and chairman. The deal is expected to be roughly 35% accretive to adjusted per-share earnings next year, inclusive of about $280 million in anticipated net expense synergies, with combined annual revenue of approximately $3.2 billion.