Victory Capital has responded to criticism from Nelson Peltz’s Trian Fund Management regarding its $8.6 billion proposal for Janus Henderson. The San Antonio, Texas-based asset manager accused Trian of attempting to ‘blanket the market with misinformation.’ Victory Capital believes recent reports about the views of Janus Henderson’s employees and clients are an attempt to ‘manufacture uncertainty’ regarding the firm’s ability to complete the proposed transaction. Victory Capital is an investment management firm operating a multi-boutique business model, with independent investment teams each managing distinct investment strategies. The company provides investment advisory services to institutions, intermediaries, retirement platforms and individual investors.
Trian, which is Janus Henderson’s largest shareholder with a 20.7% stake, had previously raised concerns about Victory Capital’s sweetened offer, which rivals Trian’s own deal to take Janus Henderson private. The increased tensions come after Victory Capital made its cash-and-stock offer public in late February. Despite previous rejections from the Janus Henderson board, Victory Capital has continued to pursue the asset manager. Last week, the firm increased its $8.6 billion bid with a greater proportion of cash.
Victory Capital addressed media reports suggesting that clients, including senior officials at Morgan Stanley and Citigroup’s wealth-management arms, had expressed concerns to Janus Henderson executives about Victory Capital’s plans and potential cost reductions. Victory Capital stated it had been advised that the press reports did not reflect the corporate positions of those institutions. The firm noted that the wealth management units of Morgan Stanley and Citigroup are clients of both Victory Capital and Janus Henderson, with familiarity of their products.
Victory Capital maintains that these attempts to create uncertainty are being orchestrated by those who stand to benefit from the transaction. Janus Henderson and Trian have declined to comment. General Catalyst has not yet responded to requests for comment.
