Victory Capital buying New Energy for $65M
San Antonio-based Victory Capital Holdings Inc. said Monday it’s making its first deal for an asset management firm that concentrates exclusively on alternative investments.
Victory has an agreement to acquire New Energy Capital Partners, a Hanover, N.H, asset management firm focused on debt and equity investments in clean energy infrastructure projects and companies.
Victory is paying $65 million in a transaction expected to close in the next quarter. There may be future payments based on revenue growth over a sixyear period.
David Brown, Victory’s chairman and CEO, said in a statement that launching an alternative investment platform creates
another path for the company’s growth.
“NEC perfectly embodies all of the characteristics we seek, and we particularly like their specialization in clean and renewable energy, which is a fastgrowing market segment,” he said.
New Energy Capital is the 11th franchise for Victory. Its most notable is USAA Investments. Victory acquired USAA Asset Management Co. from the San Antonio financial services company in a 2019 transaction valued at about $950 million. The
deal included 47 mutual funds, six exchange-traded funds and a college savings plan.
It’s also Victory’s second deal this year. In March, it closed on its acquisition of THB Asset Management of Norwalk, Conn. THB had about $547 million in assets under management.
Victory said New Energy Capital is invested in more than 40 transactions valued at more than $3 billion. It has 12 investment professionals and was launched in 2004 by CEO Scott Brown. They oversee four private funds with a combined capital commitment of more than $1.1 billion.
“Technology advancements have led to material declines in production costs and the industry’s economics have now reached a tipping point,” Scott Brown said. “This — coupled with increasing attention on climate change and rapidly evolving government standards — bodes well for solar, wind, and hydro technologies to increase their respective shares of the growing electrical generation market.”
There is no relation between David Brown and Scott Brown, a Victory representative said.
In 2020, projects funded by New Energy Capital offset more than 4.4 million metric tons of carbon dioxide equivalents. This greenhouse gas abatement equates to planting more than 73 million trees, according to Victory’s statement.
Victory had nearly $163 billion in assets under management as of July 31.
Its shares rose 61 cents to close Monday at $33.85.