Victory Capital Holdings announced Monday that the deal to acquire USAA’s investing division, first announced in November, is complete.
Following regulatory approvals, Victory Capital, a global investment management firm, has acquired USAA’s mutual fund and exchange-traded fund businesses as well as the USAA 529 College Savings Plan in a deal worth $850 million.
The company also announced via social media July 8 that it has selected WestRidge at La Cantera, 15935 La Cantera Parkway, for its new headquarters in San Antonio. Reports show USAA Real Estate sold that property in 2017 to Preferred Office Properties of Atlanta.
The acquisition gives Victory Capital the rights to offer products and services using the USAA brand. It also more than doubles Victory Capital’s assets under management to over $142 billion. As of April 30, Victory Capital had over $61 billion in assets under management, and USAA Asset Management had $81 billion.
“The acquisition of USAA Asset Management Company significantly diversifies our investment capabilities and increases our size and scale,” stated David Brown, chairman and CEO of Victory Capital, in April. “It also broadens our distribution platform to include a direct channel through which we have the unique opportunity to serve USAA members.”
USAA will continue to provide products and services across the banking and life, auto, home, and health insurance businesses, according to a statement from the company, while USAA customers will gain access to a larger selection of mutual funds and ETFs through Victory Capital.
“Our mission is to support the long-term financial security of military members and their families,” stated USAA CEO Stuart Parker. “We will work with Victory Capital and our members to ensure a smooth transition.”
Victory Capital and its operational business providers hired 230 USAA employees, and some employees affected by the deal are now employed within other divisions at USAA. About 60 were laid off or separated from the company.
Victory Capital announced in January that it would relocate the firm’s global investment management business from Ohio to San Antonio later this year.
Victory Capital has said it will maintain a significant presence in the Cleveland suburb of Brooklyn, Ohio, one of its nine other offices in the U.S. and three overseas.
Also in January, City Council approved an incentive package for Victory Capital that includes a grant of $500,000. Bexar County extended another $250,000.
The agreement with the City calls for Victory Capital to relocate six executive team members, retain 300 existing jobs, create 51 new high-paying jobs, partner with the City on internships and financial literacy programs, and invest at least $500,000 in real estate property.