On September 24, 2018, Victory Capital announced it had entered into a definitive purchase agreement to acquire Harvest Volatility Management, a Seward & Kissel client.
The transaction is expected to be accretive to earnings per share and will be financed through a combination of debt, equity and cash on the balance sheet, with the potential for an earn-out over time if certain growth objectives are met. Following the acquisition, the senior management of Harvest Volatility Management, LLC (“Harvest”) will be meaningful equity investors in Victory Capital Holdings, Inc. (“Victory”), and further will continue to be invested in the strategies Victory/Harvest manages. The acquisition is expected to close by the end of the first quarter of 2019, and is subject to regulatory and other customary approvals, conditions and consents, including approval by Harvest’s clients. Further terms of the deal were not disclosed. A Seward & Kissel team led by Business Transactions partners Craig Sklar and Gary Anderson, along with Investment Management partner Steve Nadel, Employment partner Anne Patin, Tax partner Jon Brose, counsels Mike O’Brien and Keri Riemer and associates Danielle Lemberg, Kristy Choi, Sophia Agathis, Matthew Gollub, Katherine Porter, Bradley Fay and Brett Cotler represented Harvest in connection with the transaction.
Victory is an investment management firm which provides institutions, financial advisors and retirement platforms with a variety of asset classes and investment vehicles, including separately managed accounts, collective trusts, mutual funds, ETFs, UCITs and UMA/SMA vehicles. Victory has $63.2 billion in assets under management as of July 31, 2018.
Harvest is a New York City-based derivative asset management firm focusing on structuring and managing volatility and option related strategies. Harvest has approximately $12 billion in assets under management as of July 31, 2018.
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