Victory Capital Management, KeyCorp's asset management arm, said Friday that it has a definitive agreement to buy an Austin, Tex., hedge fund company.
Austin Capital Management Ltd. is an investment firm that offers four funds of hedge funds. Funds of hedge funds give investors the benefits of diversification through multiple hedge funds, access to top managers, professional selection and monitoring of investments, lower investment minimums, and lower volatility. The purchase, whose terms were not disclosed, is expected to close this quarter.
Robert Wagner, Victory's chief executive officer, said in a press release that Austin Capital's management team will continue to manage its investing from the offices in Texas. The deal will increase distribution for the Texas company, he said, and provide funds for its infrastructure, human capital, and administration.
Founded in 1993, Austin Capital had $900 million under management at Dec. 31. Victory, which is based in Cleveland and has divisions in New York and Cincinnati, is a registered investment adviser with $56 billion under management at Dec. 31.
