Compelo Banking is using cookies

We use them to give you the best experience. If you continue using our website, we'll assume that you are happy to receive all cookies on this website.

ContinueLearn More
Close
Dismiss

KeyCorp to offlaod Victory Capital Management and affiliate

KeyCorp has decided to dispose of its investment management subsidiary Victory Capital Management and broker dealer affiliate to a private equity fund sponsored by Crestview Partners for $246m in cash and debt.

Based on the terms of the agreement, the sale price includes $201m of cash at closing and a seller note, with initial face amount of $45m, while its final value will be determined at the end of 2013.

KeyCorp chairman and CEO Beth Mooney said, "In addition, this transaction partners Victory with a widely recognized acquirer, allowing Victory to operate as a pure play investment management business, with management owning an equity position."

The business, which has been put for sale, had contributed $112m in revenue and $88m in expense of KeyCorp’s financial results in 2012.

Having nearly $22bn of assets under management, Victory Capital Management provides various investment strategies and vehicles for institutional and individual clients.

Pending regulatory and Victory Mutual Fund shareholders’ approval, as well as certain customary closing conditions, the transaction is likely to complete during the third quarter of 2013.

Morgan Stanley & Co served as an exclusive financial advisor and Sullivan & Cromwell offered legal advice to KeyCorp, pertaining to the transaction.