Victory Capital Secures $4.65 Billion Financing for First Eagle Acquisition

Victory Capital Holdings has announced plans to acquire First Eagle through a two-step merger. The deal, which is subject to regulatory approvals and client consents, will see Victory Capital issue cash, new common shares, and Series B non-voting convertible preferred stock to fund the acquisition.

The consideration for the acquisition comprises 4.9% of post-close shares in new common shares, as well as Series B non-voting convertible preferred stock. To finance the deal, Victory Capital has secured up to $4.65 billion in committed financing from Bank of America and Royal Bank of Canada.

The two-step merger process will involve a first step where GC Ferry Parent, a Genstar affiliate, merges with First Eagle, followed by a second step where GC Ferry Parent is merged into Victory Capital.