David Brown and his team at Victory [profile] are making another acquisition.

Today Brown, chairman and CEO of Cleveland, Ohio-based Victory Capital Management, unveiled a deal to buy Brentwood, Tennessee-based smart beta shop Compass Efficient Model Portfolios (Compass EMP) [profile]. The deal is slated to close in the second quarter of 2015.

The pricing and terms of the deal were not disclosed.

"Investors are increasingly looking for strategies that provide better risk-adjusted returns than traditional cap-weighted indexes and Compass EMP has been at the forefront of understanding and responding to this trend," Brown states.

Compass manages nearly $1 billion as of October 31. Its product suite includes 16 mutual funds and five ETFs (which track indexes created by the shop's founders). Victory manages about $36 billion and offers 29 mutual funds. Compass will fit into Victory's multi-boutique model.

Stephen Hammers and David Moore co-founded Compass. Victory confirms that Hammers will continue to serve as Compass' chief investment officer.

The Compass deal comes a month after Victory closed on its purchase of Munder Capital Management. Private equity shop Crestview Partners backs Victory. 

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