CLEVELAND, Jan. 13 - Victory Capital Management, the asset management subsidiary of KeyCorp (NYSE: KEY), today announced a definitive agreement to acquire Austin Capital Management, Ltd. Austin Capital Management is a Texas-based investment firm that brings to Victory a new product line and a seasoned team of investment professionals.
Austin Capital Management has developed and launched four funds of hedge funds -- actively monitored and diversified portfolios of various hedge funds. Funds of hedge funds offer investors the benefits of diversification across multiple hedge funds, accessibility to top managers, professional selection and monitoring of investments, lower investment minimums and lower volatility.
The transaction, the financial terms of which were not disclosed, is expected to close in the first quarter of 2006.
"Austin's management team will continue to manage its investment process from its offices in Austin, Texas," said Victory CEO Robert Wagner. "For Victory, this transaction will add a hedge fund of funds capability. For Austin, it increases distribution and enables further investment in infrastructure, human capital and administration."
Founded in 1993, Austin Capital Management is a limited partnership with approximately $900 million in assets under management.
About Victory Capital Management
Victory Capital Management is a registered investment advisor with $56 billion under management as of December 31, 2005. The firm is headquartered in Cleveland, Ohio, and also has operating divisions in New York City and Cincinnati.
About KeyCorp
Cleveland-based KeyCorp is one of the nation's largest bank-based financial services companies, with assets of approximately $92 billion. Key companies provide investment management, retail and commercial banking, consumer finance, and investment banking products and services to individuals and companies throughout the United States and, for certain businesses, internationally.
AT-A-GLANCE COMPANY STATS
Victory Capital Management and Austin Capital Management
Victory Austin
Founding 1894 1993
Assets Under Management* $56 billion $900 million
Employees 218 15
Headquarters Cleveland, OH Austin, TX
* Approximate, as of Dec. 31, 2005
