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Laxman Pai, Opalesque Asia: Multi-boutique asset manager Victory Capital has agreed to acquire the $12 billion derivative specialist Harvest Volatility Management for $300 million, making it 10th boutique purchased by Victory.
The transaction was financed through a combination of debt, equity and balance sheet cash.
According to a press release, Harvest, which had approximately $12 billion in assets under management (AUM) as of July 31, 2018, is a leader in derivative asset management, specializing in yield enhancement overlay, risk reduction, alternative beta and absolute return investment strategies.
Based on AUM for both firms as of July 31, 2018, Victory Capital would on the closing of the transaction have approximately $75 billion in firm-wide AUM. This includes approximately $16 billion, or 21% of total AUM, in its Solutions Platform strategies.
The release quoted David Brown, Chairman and Chief Executive Officer of Victory Capital as saying: "Harvest offers a cutting-edge suite of strategies that are designed to provide investors with risk-managed sources of income, absolute return and varying levels of market exposure."
He added that the addition of Harvest as its 10th Investment Franchise aligns squarely with its stated acquisition strategy.
Harvest, which is based in New York City, was founded in 2008 by Chief Executive Officer and Portfolio Manager Richard L. Selvala, Jr. and Managing Partner and Chief Risk Officer Curtis F. Brockelman...................... To view our full article Click here
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