MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Friday, January 12, 2018 A $61.8B-AUM Fund Firm Prepares to IPO Dave Brown, CEO of Cleveland Ohio-based Victory Capital [profile], is taking the multiboutique public.
Asset manager valuations often range from one to four percent of AUM. Victory had $61.8 billion in AUM as of December 31, 2017, so the rule of thumb implies that it's worth between $618 million and $2.472 billion. 83 percent of their asset mix leans towards equity, including 71 percent in small, mid or large cap equities. Crestview Partners, the private equity firm that helped Victory spin out of KeyCorp in 2013 in a $246-million deal, will continue to control a majority of the voting rights after the IPO. (That 2013 price tag translated into 1.11 percent of Victory's AUM at the time.) Meanwhile, 70 percent of Victory Capital employees own approximately 29 percent of the company's shares as of September 30, 2017. JP Morgan, Barclays, BofA Merrill Lynch, Goldman Sachs & Co. LLC, Morgan Stanley, RBC Capital Markets, Keefe, Bruyette & Woods, Inc., and William Blair & Company, LLC. are all underwriters involved in the IPO process. With Crestview's help, Victory has been acquisitive since leaving the KeyCorp family five years ago. Victory bought Munder, another Crestview-backed asset manager, in 2014, adding on $18.1 billion in AUM across small- and mid-cap equities. Victory then bought Compass Efficient Model Portfolios in 2015, adding solutions- driven products and ETF capabilities. And in 2016 Victory acquired RS Investments, adding on $16.7 billion in AUM across small cap, mid-cap and emerging markets equities and niche fixed income products. Printed from: MFWire.com/story.asp?s=57526 Copyright 2018, InvestmentWires, Inc. All Rights Reserved |
