Amundi makes biggest foray into US with Victory tie-up

PARIS, Apr 16 (Reuters): Amundi, Europe's largest asset manager, said on Tuesday it was making its biggest foray into the United States by selling its US arm to Victory Capital in exchange for a 26per cent stake in the US company.
Amundi's US arm currently manages $104 billion - less than 5per cent of the group's 2 trillion euros ($2.1 trillion) in assets - and the deal is aimed at giving the Paris-based manager more access to clients in the world's largest financial market.
The tie-up involves 15-year exclusive distribution deals that will enable Amundi to sell its non-US fund products to US clients via Victory, while the latter will be able to sell to more clients in the United States and use Amundi's distribution networks to access customers in Europe and Asia.
"It's the biggest deal we've ever done in the United States," Amundi CEO Valerie Baudson told reporters on a call.
The 26per cent stake would make the French asset manager Victory's biggest shareholder, ahead of the US company's employees, which own about 20per cent. The deal does not involve a cash payment. Victory manages $175 billion in total client assets and has a market value of about $2.7 billion.
Shares in Amundi were down 1.7per cent at 0744 GMT, outperforming sharper falls across European markets on Tuesday.
"We believe this partnership reinforces Amundi's position in the US, as well as its leadership position among the biggest global asset managers," JP Morgan analysts said in a research note.