Victory Capital Holdings Inc. has entered into a definitive purchase agreement to acquire USAA Asset Management Co., including its mutual fund and exchange-traded fund (ETF) businesses and USAA 529 college savings plan.
USAA Asset Management Co., in San Antonio, was formed to serve the investment needs of the military community and their families. It will become Victory Capital’s 11th investment franchise and will have the rights to offer products and services using the USAA brand. As part of Victory Capital, USAA’s investment teams will continue assisting the investment needs of the military community and their families. Victory Capital also plans to develop a nationwide financial literacy platform designed to support the military community, USAA members and their families.
The acquisition of USAA Asset Management Co. represents a substantial expansion and diversification of Victory Capital’s investment platform, particularly in the fixed-income and solutions asset classes. Victory Capital will extend its solutions platform to include target-date and target-risk strategies, managed volatility mutual funds and active fixed-income ETFs. It will also add to its lineup of asset allocation portfolios and smart beta equity ETFs. USAA Asset Management Co. also offers sub-advised and multi-manager equity funds that will expand the choices for Victory Capital clients. The transaction also provides an opportunity for Victory Capital to offer its products to USAA members through a direct member-based channel.
“The acquisition of USAA Asset Management Co. is a strong diversifier for us with the addition of quality investment teams and products and provides us entry into a new distribution channel with a loyal member base,” says David Brown, chairman and CEO of Victory Capital. “It increases our size and scale, enhances our ability to attract and retain top investment talent, and leverages our investments in critical components of our business, such as technology, operations, investment support and client service, across a broader base of assets.”