KeyCorp announced that it closed on its agreement to sell Victory Capital Management and its broker dealer affiliate Victory Capital Advisers to the employees of Victory and Crestview Partners, a private equity firm based in New York.

KeyCorp’s net after-tax realized gain from the sale is expected to be in the range of $100 million to $115 million. The cash portion of this gain will be between $75 million and $90 million, and Key intends to use these cash proceeds for common share repurchases.

Victory is now an independent firm with employees of the firm owning a significant percentage of the outstanding equity.

As of June 30, 2013, Victory managed approximately $20 billion in assets under management and advisement in equity and fixed income assets on behalf of its institutional, intermediary and retirement clients. Victory will operate under its highly respected brand name and remain headquartered in Cleveland, Ohio with offices in New York, NY, Cincinnati, OH, Denver, CO and Tampa, FL.

David Brown, chief executive officer, and Christopher Ohmacht, president, will continue to lead Victory and have been appointed to the new board of directors along with two representatives from Crestview, Rich DeMartini and Alex Binderow, and three independent directors with significant asset management experience: Milton Berlinski, former global head of Financial Sponsors at Goldman Sachs, Alan Rappaport, former chairman and president of the Private Bank at Bank of America, and James Hawkes, former chairman and CEO of Eaton Vance.

Brown stated, “Today is a very exciting one for Victory and we are delighted to be partnering with Crestview. As we said at the time this transaction was announced in late February, one of its important features is that it preserves our successful multi-boutique operating model and provides our employees real equity ownership, aligning our interests with those of our clients, today and well into the future. We find this to be a compelling and motivating proposition for success going forward.”

DeMartini, a partner at Crestview, added, “We are pleased that this transaction has closed. Crestview is excited to be investing alongside Victory management and employees, who are now significant equity owners of the business. Our focus now will be the important work of supporting Victory and its outstanding management team in its next phase of growth.”

Victory Capital Management provides investment advisory services to institutional clients including corporations, endowment, foundation, public funds, Taft-Hartley and sub-advisory clients.