KeyCorp announced that it has agreed to sell the company’s investment management subsidiary Victory Capital Management and its broker dealer affiliate Victory Capital Advisers to a private equity fund sponsored by Crestview Partners for $246 million in cash and debt. Key said it intends to seek regulatory approval to use the gain from the sale to repurchase shares of its common stock.

Upon completion of the transaction, Victory will be an independent firm with the senior management team, portfolio managers and other employees owning a significant amount of the outstanding equity. The transaction is expected to close in the third quarter.

As of December 31, 2012, Victory managed and advised approximately $22.1 billion in equity and fixed income assets on behalf of its institutional and individual investors. Under the new ownership structure, David Brown and Christopher Ohmacht will continue to lead Victory and will be appointed to the company’s new board of directors along with two representatives from Crestview and three independent directors. Brown will become the chief executive officer, and ohmacht will become president.

Victory will continue to operate under its present brand name and remain headquartered in Cleveland, OH with offices in New York, Cincinnati, Denver and Tampa. As of 12/31/12, Victory had $22.1 billion in assets under management and advisement with 144 employees.