U.S. Victory Capital to buy USAA Asset Management for $850 mln

U.S.-based investment management firm Victory Capital has signed its second deal to acquire USAA Asset Management Company, an investment unit of USAA Investment Corp., for $850 million.

The deal will be financed through a combination of debt and cash on hand. The deal brings Victory’s assets under management to $144.4 billion. All proceeds from the deal will be used to benefit members.

As a result of the deal, Victory Capital will rank among the top 50 money managers in the United States based on assets under management. It will also become one of the top 25 mutual fund providers in the United States.

The deal is expected to close in the next six or seven months, the firm will take roughly a year to integrate USAA into its offerings before seeking another deal.