Victory Capital has agreed to acquire certain assets of THB Asset Management. No financial terms were disclosed. Willkie Farr & Gallagher LLP represented Victory Capital on deal, which is expected to close in early 2021.
SAN ANTONIO–(BUSINESS WIRE)–Victory Capital Holdings, Inc. (NASDAQ: VCTR) (“Victory Capital” or the “Company”) today announced that it has signed a definitive purchase agreement to acquire certain assets of THB Asset Management (“THB”).
The transaction is expected to close in early 2021 and be immediately accretive to earnings. Consistent with Victory Capital’s model, THB’s investment team will become employees of the Company and the newly created Franchise will be subject to a compensation agreement based on revenue sharing. No material consideration will be paid for the assets.
“We are pleased to welcome the THB investment team and their clients to Victory Capital,” said David Brown, Chairman and CEO. “With investment strategies in asset classes where we have extensive operating and distribution experience, we look forward to a seamless and efficient integration as we also continue to evaluate a wide variety of other acquisition prospects. Our scaled and integrated platform appeals to leading investment professionals by combining the benefits of an established operating and distribution infrastructure while preserving the autonomy of their investment process and unique brand.”
THB’s Chief Investment Officer, Christopher Cuesta, commented, “Our investment team is delighted to be joining forces with Victory Capital. Their entrepreneurial culture, strategic vision and appreciation of capacity constrained strategies aligns perfectly with our heritage. This transaction will not affect our investment philosophy or process, and we look forward to devoting all our attention to managing portfolios and serving clients from our current location in Norwalk, CT. We have significant capacity to grow assets in our products and believe Victory Capital’s broad and deep distribution network—coupled with its ability to develop in-demand products and investment vehicles—will accelerate our growth.”
“THB’s investment performance track record demonstrates a genuine edge,” Brown added. “Its strategies have consistently outperformed respective benchmarks throughout various market cycles and rank among the top tier of their strategy peer groups. Aligning with our responsible investing goals, THB has a 30-year history of managing socially responsible investment portfolios with ESG considerations fully integrated into the investment process for each of its strategies. In addition, the team also seeks investments in sustainable impact themes such as renewable energy, carbon capture and storage, green technologies, and environmentally friendly products.”
Founded in 1982, and formerly known as Thomson, Hortsmann & Bryant, THB Asset Management is based in Norwalk, CT, and will remain in its current location. The team currently manages approximately $435 million in equity assets in capacity constrained, micro-cap, small-cap, and mid-cap asset classes, including strategies managing U.S., international and global portfolios. THB serves clients in the U.S. and in Europe and Australia through long-established partnerships with Carolon Capital and Brookvine, providing Victory Capital with additional offshore distribution relationships and opportunities.