Victory Capital has signed an agreement to acquire derivative asset manager Harvest Volatility Management for nearly $300m.
Founded in 2008, Harvest focuses in yield enhancement overlay, risk reduction, alternative beta and absolute return investment strategies.
The New York City-based company had approximately $12bn in assets under management (AUM) as of 31 July 2018.
Following the completion of the deal, Victory Capital will manage $75bn.
Victory Capital chairman and CEO David Brown said: “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.
“The addition of Harvest as our 10th Investment Franchise aligns squarely with our stated acquisition strategy.
“The firm is a strong organic grower with highly specialised investment capabilities, which are outcome-oriented, highly customisable and address a specific need in client portfolios.”
Victory Capital said that Harvest will continue to operate as an independent brand post acquisition.
Harvest CEO and portfolio manager Richard Selvala, Jr said: “We are excited to become part of Victory Capital’s platform, with its substantial operational resources, highly complementary distribution network, and track record of supporting boutique investment firms.
“As always, our team will continue to seek to generate attractive risk-adjusted returns for our clients.”
Victory Capital is planning to finance the transaction through a combination of debt, equity and cash.
The acquisition is expected to close by the first quarter of next year, subject to regulatory and other customary closing conditions.