Following the all-cash purchase, Victory Capital is projected to have about $54 billion in assets under management and advisement. Victory Capital had $34.8 billion in AUM and AUA, and RS had AUM of $18.9 billion as of Nov. 30. Terms of the deal were not disclosed.
Victory Capital's multiboutique business model will enable the RS investment teams to remain autonomous and continue to employ their existing investment processes.
David Brown will continue to serve as chairman and CEO of Victory Capital following completion of the acquisition. There will be no changes to the board of directors of Victory Capital Holdings, parent company of Victory Capital Management.
RS will keep its offices. The manager is based in San Francisco and has offices in Des Moines, Iowa; Villanova, Pa.; Hong Kong and Singapore.
In August, Victory Capital was one of five firms said to be looking to buy RS, along with money managers DoubleLine Capital, Virtus Investment Partners, Ridgeworth Investments and private equity firm Lovell Minnick Partners.
The transaction is expected to close by the end of the second quarter of 2016, pending regulatory and shareholder approvals.