Victory Capital Management has agreed to acquire the business of Compass Efficient Model Portfolios, a smart beta investment firm, said James FitzGerald, vice chairman of Victory.
Financial terms of the transaction were not disclosed. The deal is expected to close in the second quarter of 2015.
Compass EMP, which had nearly $1 billion in assets under management as of Oct. 31, was founded by Stephen M. Hammers and David J. Moore. Mr. Hammers will continue as Compass EMP’s chief investment officer; Mr. Moore, currently Compass’ chairman, will continue to focus on business development.
Mr. FitzGerald said it’s too early to tell if Compass EMP will experience any staff additions or reductions, but noted that no changes to the investment team are planned.
Compass EMP will keep its name. “Bringing Compass EMP on to our platform will allow us to broaden the range of investment solutions that we are able to offer to our clients. Clients will also be able to choose from an expanded set of investment vehicles, including ETFs,” said David Brown, Victory Capital’s chairman and CEO, in a news release.
“Being part of Victory Capital allows us to maintain our investment focus while leveraging (Victory’s) client servicing and operational capabilities,” added Mr. Hammers in the same release. “By partnering with Victory Capital, we will be much better positioned to serve our expanding client base.”
The acquisition is part of the Victory Capital’s plan to acquire and manage multiple autonomous boutiques that offer services across a variety of asset classes. The franchises are supported by a client servicing, distribution, operations and technology platform.
Victory Capital recently expanded its investment capabilities with the acquisition of Munder Capital Management earlier this year and its wholly owned subsidiary, Integrity Asset Management.
Victory Capital had about $36 billion in assets under management and advisement as of Oct. 31.