Victory Capital to Acquire First Eagle Investments as Polar Asset Management’s New Fund Hits First Close

Victory Capital Holdings today confirmed a definitive agreement to acquire First Eagle Investments, in a move that will combine to form a $571 billion global asset manager. The acquisition, announced August 26, 2026, will bring First Eagle’s $222 billion in assets under management (as of July 31, 2026) into Victory’s fold, significantly expanding Victory’s scale, distribution capabilities and product offerings.

Victory Capital Acquisition of First Eagle

Under the terms, Victory Capital will pay approximately $7 billion in total consideration: around $4.4 billion in cash and $2 billion in newly issued corporate equity. The transaction also includes an assumption of $575 million of First Eagle’s existing 7.25% senior secured notes maturing in 2032. Upon closing, Genstar Capital—First Eagle’s current owner—will retain approximately 14.6% of Victory’s equity on a fully diluted basis, subject to a three-year lock-up, and with only a 4.9% voting interest.

The merger is projected to be approximately 35% accretive to Victory’s adjusted earnings per share in 2027, driven by about $280 million in anticipated net expense synergies. Combined annual revenue post-closing is expected to reach roughly $3.2 billion. Management said First Eagle will maintain its brand, investment autonomy and processes while operating on Victory’s platform. The deal is expected to close by the end of the first quarter of 2027, pending regulatory approval and client consents.

This transaction will position the combined entity as one of the largest publicly traded traditional asset managers in the U.S. — a significant consolidation that amplifies scale across equity, fixed income, multi-asset, alternative credit and CLO platforms.

Polar Asset Management’s CRS Fund‑II Achieves Strong First Close

In separate activity within the private credit markets, Toronto-based Polar Asset Management Partners announced the first close for its CRS Fund‑II, raising over US$215 million. The fund, dedicated to Significant Risk Transfer (SRT) structures, marks Polar’s second vehicle in this strategy. It targets institutional investors seeking exposure to structured credit solutions that support capital efficiency and balance sheet flexibility for Canadian financial institutions.

Polar’s experience is extensive: it has managed more than US$1.3 billion across 20 prior SRT transactions, including via co-investment vehicles. The successful initial close of CRS Fund‑II positions the firm for deployment into an active pipeline of SRT opportunities slated for execution in the second half of 2026.

Investor Implications and Market Context

The Victory–First Eagle deal signals continued consolidation in the asset management industry, driven by scale economics and a desire to broaden product suites. For investors, the expanded firm could offer greater diversification and distribution reach, while also offering enhanced cost and operational efficiencies.

Meanwhile, Polar’s CRS Fund‑II highlights growing interest in structured credit and regulatory capital solutions as banks face tightening constraints. Investors seeking differentiated fixed income exposure may find the SRT strategy appealing for its balance of yield and bespoke structuring benefits.

What Comes Next

• Victory Capital shareholders will vote on the transaction, and regulatory review will be required before the deal’s expected close in Q1 2027.
• Polar Asset Management will begin deploying CRS Fund‑II into qualified SRT transactions later in 2026, with further fundraising anticipated down the line.

Both developments underscore the evolving dynamics of capital allocation: on one hand, through strategic scale expansion in asset management, and on the other, through targeted structured credit innovations offering novel return profiles and institutional flexibility.