Victory Capital Management and Munder Capital Management announced that Victory’s parent company, Victory Capital Holdings, is to acquire Munder, including its wholly-owned subsidiary, Integrity Asset Management.

Victory Capital Management and Munder Capital Management have announced that the former firm's parent company, Victory Capital Holdings, is to acquire Munder and its wholly-owned subsidiary, Integrity Asset Management.

The all-cash purchase will form a new independent investment advisory firm headquartered in Cleveland, OH, with some $37 billion in assets under management. The transaction combines two Midwest-based investment management firms with multi-boutique business models. Financial terms were not disclosed.

“Victory and Munder are a natural fit culturally and from a business model perspective,” said David Brown, chairman and chief executive of Victory.

“The scale that results from forming the new company will allow our portfolio managers to continue having access to best-in-class resources and support to maintain their singular focus on money management,” said Tony Dong, Munder’s vice chairman, chief investment officer and lead manager of Munder’s mid-cap investment team.

Senior executives and investment management personnel from Victory, Munder and Integrity will be significant investors in the new entity.

Additional equity financing will be led by funds managed by Crestview Partners and Reverence Capital Partners, whose investors include US, international institutional and high net worth investors.

Upon completion of the transaction, Victory’s Brown will be appointed as chairman and CEO of the new company while Christopher Ohmacht, current president of Victory, will serve as president. Jim FitzGerald, current president of Munder, will become vice chairman.

The new company's board of directors will be management-led, with Brown as its chairman and Ohmacht as an employee director. Other board appointments will be made and announced at a later date, as will the name of the new holding company.

Victory, Munder and Integrity investment teams and other personnel will continue to operate from their respective locations in Cleveland, OH; Birmingham, MI; Cincinnati, OH; New York, NY; Boston, MA; Denver, CO; Tampa, FL; and Rocky River, OH.

The transaction, which is expected to close by the end of the third quarter of 2014, is subject to customary closing conditions and consents.