Victory Capital Partners with Amundi: A Transformational Move for Global Expansion

David Brown, Chairman and CEO of Victory Capital, emphasized the transformational nature of this agreement, stating, “Closing this transaction, entering into 15-year reciprocal global distribution agreements, and forming our strategic partnership with Amundi are transformational events for Victory Capital.” The partnership is expected to globalize Victory Capital's business, allowing access to clients across various international markets.

The press release also spotlighted the impressive financial performance of Pioneer Investments prior to the rebranding. In 2024, Pioneer Investments generated revenue of $544 million and recorded positive net flows of $5.5 billion. As of February 28, 2025, Pioneer had $119 billion in Assets Under Management (AUM), with year-to-date net flows reaching a positive $2.7 billion. Notably, 62% of mutual fund AUM received ratings of 4 or 5 stars from Morningstar, underscoring the strength of investment performance.

Victory Capital is also enhancing its operational efficiency. Brown disclosed that the company is increasing its net expense synergies target from $100 million to $110 million, with expectations to achieve these synergies sooner than initially planned. “As of the close, we will have achieved approximately $50 million of net expense synergies and expect to achieve another $30 million over the next six months,” he added. By the end of the first year of ownership, Victory Capital anticipates exceeding $100 million in net expense synergies.

With this partnership, Victory Capital’s strategies will soon be available through Amundi's extensive global distribution network. The company has already begun the registration process for multiple Victory Capital strategies in retail product structures aimed at international markets, with plans to launch these alongside existing Pioneer strategies.

In conjunction with the transaction, two appointees from Amundi have joined the Victory Capital Board of Directors, filling previous vacancies and ensuring a collaborative governance structure. The total number of directors remains at nine, reflecting a stable leadership team during this pivotal transition.

As part of the agreement, Amundi has become a strategic shareholder in Victory Capital, acquiring 17.6 million shares at closing, which represents 21.2% of fully diluted equity, including a 4.9% voting interest. Following the completion of post-closing adjustments, Amundi’s total equity interest is expected to rise to 26.1% over the next six months.

Victory Capital’s management is optimistic about the future, anticipating strong sales domestically and internationally for Pioneer Investments. The company is set to leverage its new partnership to enhance growth opportunities and expand its product offerings globally.

In light of these developments, Victory Capital will host a conference call at 8:00 a.m. ET today to further discuss the transaction and its implications for investors. The call aims to engage analysts and investors in a Q&A session, providing a platform for deeper insights into this transformative partnership.

The partnership between Victory Capital and Amundi marks a significant milestone in the asset management landscape. With a focus on global distribution, performance synergies, and a commitment to investment excellence, Victory Capital is poised to enhance its competitive edge and broaden its reach in the international market. Investors and analysts alike will be closely monitoring the outcomes of this strategic move as the company embarks on a new chapter of growth and innovation.