Amundi and Victory Capital are announcing that they have signed a Memorandum of Understanding to combine Amundi US into Victory Capital, for Amundi to become a strategic shareholder of Victory Capital, and to establish long-term global distribution agreements. The proposed transaction would create a broader US investment platform for clients of both firms, provide Amundi with access to a wider set of US-managed capabilities, and expand worldwide distribution for Victory Capital. The proposed transaction would benefit clients of both firms with a broader range of asset classes including actively managed fixed income, equity, and multi-asset investment strategies offered through a variety of investment vehicles including separately managed accounts, ETFs, mutual funds, UCITs, collective investment trusts, and model portfolios.

Victory Capital is a fast growing, diversified US-based asset management firm with $175bn of total client assets, and a proven acquisition track record. The company?s differentiated platform preserves the investment autonomy of a variety of independent investment teams, all of whom leverage the benefits of a fully integrated, centralized operating and distribution platform. Amundi US currently manages $104bn of assets across a broad array of asset classes, including US and global equity, fixed income and multi-asset investment capabilities for individuals and institutions worldwide.

Amundi US leverages Amundi?s expansive international distribution footprint, managing a significant amount of assets and portfolios on behalf of non-US retail and institutional clients. The addition of Amundi US as Victory Capital?s Investment Franchise would meaningfully enhance Victory Capital?s scale, expand its global client base, and further diversify its investment capabilities, given Amundi US's broad investment capabilities and strong long-term investment performance. Under the proposed transaction: Amundi US would be combined into Victory Capital in exchange for a 26.1% economic stake for Amundi in Victory Capital, with no cash payment involved.

Amundi would become a strategic shareholder of Victory Capital with two of its representatives joining the Victory Capital Board of Directors when the transaction closes. Both parties would simultaneously enter into 15-year reciprocal distribution agreements. Under these proposed distribution agreements: Amundi would be the distributor of Victory Capital?s investment offering outside of the US.

This would allow Victory Capital to further expand its reach beyond the US through Amundi?s global client base, which would benefit from Victory Capital?s deep investment expertise and strong investment performance track record across a wider range of US-manufactured solutions. Victory Capital would become the distributor of Amundi?s non-US manufactured products in the US. As a result, Amundi would gain access to an expanded distribution platform in the US, while providing Victory Capital?s clients with its wide range of high-performing non-US investment capabilities.

The proposed transaction would enable both parties to further their respective strategic goals: It would allow Amundi to strengthen its access to the US market via a larger US investment and distribution platform, as well as to provide Amundi?s clients with access to a broader and even more differentiated range of US investment solutions; It would enable Victory Capital to strategically extend its platform with the addition of its Investment Franchise, which would meaningfully expand and diversify its client base both in the US and outside the US. It also would present Victory Capital with a unique opportunity to sell the combined Victory Capital and Amundi US strategies to non-US clients through Amundi?s entire global distribution network and joint ventures. Victory Capital?s clients would benefit from expanded US and non-US investment capabilities and products in complementary asset classes.

As contemplated, the transaction is expected to be accretive for the shareholders of both Victory Capital and Amundi, increasing adjusted net income and earnings per share for both companies.