KeyCorp (KEY +1.79%) expects to net $100 million to $115 million, of which an estimated $75 million to $90 million will be in cash, after closing the sale of Victory Capital Management to a group comprised of Victory employees and private equity firm Crestview Partners, Key announced today.
KeyCorp intends to use the proceeds from the sale of Victory and its broker/dealer affiliate Victory Capital Advisers, first announced in February, to repurchase outstanding shares of KeyCorp stock, the bank said.
According to Crestview Partners, Victory employees own "a significant percentage of the outstanding equity," and will continue to hold key senior management positions, including retaining existing Victory CEO David Brown and president Christopher Ohmacht. Brown and Ohmacht have also been named to Victory's board of directors, along with two Crestview representatives.
