We signed yesterday a Memorandum of Understanding (MoU) with the US firm, Victory Capital to establish a strategic partnership.  We plan to combine Amundi US into Victory in exchange for shares which will make us their largest shareholder, and to establish a long-term reciprocal distribution partnership between Amundi and Victory Capital.

As a reminder, Amundi US manages today more than $104bn of assets, including 1/3 for non-US clients.

The proposed transaction is also an unique opportunity to strengthen our presence in the US.

We would become a strategic shareholder in this reputable US-based asset management firm, listed on Nasdaq with a stake of 26.1%.

Victory Capital, a fast-growing, reputable American partner

Victory Capital is a fast-growing asset manager with almost $180bn of AuM boasting deep investment expertise and an excellent performance track record. Victory Capital, operates through well-diversified Investment Franchises each with its own unique brand and independent investment process supported by a fully integrated, centralised operating and distribution platform.

A strengthened management platform for the benefit of our customers

This MoU enables us to further two strategic objectives:

First, this proposed transaction would expand our access to a larger US investment platform of $280bn for the benefit of our clients globally. By combining Amundi US into Victory Capital, our clients will benefit from a broader range of US asset classes including actively managed fixed income, equity, multi-asset investment strategies, as well as infrastructure assets offered through a variety of investment vehicles (separately managed accounts, ETFs, mutual funds, UCITs, collective investment trusts, and model portfolios).

Additionally, we would greatly benefit from expanded distribution strength in the US market.

While we will be the distributor of Victory’s products outside of the US, Victory will become the distributor of our solutions in the US. It will be formalized through a 15-year reciprocal distribution agreement.

A value-creating operation to be finalised

Overall, if confirmed, this operation will provide a significant boost to Amundi’s growth and will be a compelling proposition for our clients and our employees. It will also be a value-creating deal for our shareholders with significant prospects for both revenue growth and synergies. As usual, completion of this transaction remains subject to due diligences and regulatory approvals.