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Here are 1-3 brief analogies to describe Victory Capital (VCTR):

• Like a smaller Franklin Templeton (BEN), managing diverse investment strategies under one roof.
• Think of it as a "Berkshire Hathaway (BRK.A/B) for asset managers," acquiring and managing specialized investment firms.

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• Mutual Funds: Actively managed investment funds offered to a broad range of retail and institutional investors, providing diversified exposure to various asset classes and strategies.
• Exchange Traded Funds (ETFs): Publicly traded investment funds, including both actively managed and passively indexed strategies, accessible on stock exchanges.
• Institutional Separate Accounts: Customized investment portfolios managed directly for institutional clients, such as pension funds, endowments, and foundations.
• Sub-Advisory Services: Providing specialized investment management expertise to other financial institutions, which then integrate these strategies into their own branded products.

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Victory Capital (VCTR) - Major Customers

Victory Capital (VCTR) is an asset management firm that primarily sells its investment advisory services to institutional clients and through various financial intermediaries. Due to the nature of their business and client confidentiality agreements, specific names of customer companies are not publicly disclosed. Their customer base is diversified across the following major categories of "other companies" or entities:

• Institutional Investors: This category includes large organizations and entities that entrust Victory Capital with managing significant pools of capital. These typically include:
  • Corporate defined benefit plans
  • Public pension funds
  • Taft-Hartley plans (multi-employer plans)
  • Endowments
  • Foundations
• Financial Intermediaries: Victory Capital partners with various financial institutions that then offer Victory Capital's investment products (such as mutual funds, ETFs, and separate accounts) to their own underlying clients. These intermediaries include:
  • Broker-dealers
  • Registered Investment Advisors (RIAs)
  • Retirement platforms (e.g., 401(k) plans and other defined contribution plans)
  • Bank trust departments

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Major suppliers for Victory Capital (VCTR):

• PricewaterhouseCoopers LLP
• FactSet Research Systems Inc. (FDS)
• S&P Global Inc. (SPGI)
• Amazon.com, Inc. (AMZN)
• The Bank of New York Mellon Corporation (BK)

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David C. Brown, Chairman and Chief Executive Officer

David C. Brown has served as the Chief Executive Officer of Victory Capital Holdings, Inc. since August 2013 and Chairman of the Board of Directors since April 2014. He joined Victory Capital Management (VCM) in 2004 and held senior roles including President and Chief Operating Officer. Before joining VCM, he spent five years at Gartmore Global Investments, Inc., in senior management positions, including Chief Financial Officer and Chief Operating Officer of Gartmore Emerging Managers, LLC. Prior to Gartmore, he worked for Ernst & Young LLP as a Manager in Assurance & Advisory Business Services, focusing on investment management businesses. Mr. Brown was instrumental in the 2013 management buyout of Victory Capital from KeyCorp, with New York-based Crestview Partners (a private equity firm) playing a key role, indicating his experience managing a private equity-backed company. He has also served on the Boards of Directors for Alderwood Partners LLP and Cerebellum Capital.

Michael D. Policarpo, President, Chief Financial Officer and Chief Administrative Officer

Michael D. Policarpo is President, Chief Financial Officer, and Chief Administrative Officer for Victory Capital. He joined the firm in 2005 and has held several senior-level roles, including Chief Operating Officer and Chief Financial Officer. Before joining Victory Capital, Mr. Policarpo served as Vice President of Finance for Gartmore Global Investments, Inc., where he was responsible for strategic planning and held positions such as Chief Financial Officer of Advisor Services and corporate controller. He also worked for Ernst & Young LLP as a senior accountant, focusing on investment management companies.

Mannik S. Dhillon, President, Investment Franchises & Solutions and Head of Product & Strategy

Mannik S. Dhillon serves as President of Investment Franchises & Solutions and Head of Product & Strategy for Victory Capital. He joined Victory Capital in 2015 to lead and oversee the firm's ETF and Solutions business. Prior to Victory Capital, he was a managing director and head of manager research with Wilshire Associates. He also has a strong background in institutional consulting, having spent nine years as a manager research and defined contribution consultant with Hewitt.

Nina Gupta, Chief Legal Officer and Head of Human Resource Administration

Nina Gupta is Chief Legal Officer and Head of Human Resource Administration of Victory Capital. She joined Victory Capital in 2016 following its acquisition of RS Investments, where she served as General Counsel and Secretary. Before her time at RS Investments, Ms. Gupta was Deputy General Counsel at BlackRock Institutional Trust Company N.A., and an associate at the law firm of Shearman & Sterling LLP, specializing in general corporate, structured finance, and banking matters.

Tom Sipp, Executive Vice President

Tom Sipp serves as Executive Vice President for Victory Capital, with overall responsibility for operations, technology, trading, and the direct investor business, as well as enterprise risk management. He also supports M&A and corporate strategy. Prior to joining Victory Capital in 2025, Mr. Sipp served as Executive Vice President for Envestnet and was Chief Financial Officer of Sculptor Capital Management. His career also includes senior executive positions at Credit Suisse, Fidelity, and Gartmore, and he was the founder of NWD Investment Management, Inc. in 1998.

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The key risks to Victory Capital's business are:

1. Market and Investment Performance Risks: A significant portion of Victory Capital's revenues is directly tied to its assets under management (AUM), meaning any reduction in AUM, whether due to market downturns or underperformance of investment strategies, would directly decrease its revenues and profitability.
2. Acquisition and Integration Risks: Victory Capital has recently undertaken significant acquisitions, such as Amundi US. These transactions introduce risks related to the successful integration of the acquired businesses, the realization of expected synergies, and potential impacts on financial results due to acquisition-related costs and restructuring.
3. Cybersecurity and Operational Risks: Like all financial institutions, Victory Capital is exposed to risks related to information and cybersecurity breaches, as well as broader operational disruptions. Effective implementation of cybersecurity policies, procedures, and capabilities, along with robust internal controls, are critical to mitigate these risks.

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The addressable markets for Victory Capital's main products and services are detailed below:

• Overall Asset Management Services:
  • Global: The global asset management industry's assets under management (AUM) reached a record $128 trillion in 2024. Another report indicates that total assets under management at the world's 500 largest asset managers reached $139.9 trillion at the end of 2024. The global asset management market size was estimated at $458.02 billion in 2023 and is expected to reach $3,677.39 billion by 2030, growing at a compound annual growth rate (CAGR) of 36.4% from 2024 to 2030.
  • U.S.: The USA asset management market was valued at $48 trillion. It is estimated at $63.28 trillion in 2025 and is forecast to expand to $112.17 trillion by 2030, reflecting a 12.13% CAGR.
• Mutual Funds:
  • Global: The global mutual fund assets market size was estimated at $56.2 trillion in 2022. Open-end mutual fund assets worldwide were $69.0 trillion at the end of 2023. This market was worth around $67481.52 billion in 2022 and is predicted to grow to around $145236.98 billion by 2030 with a CAGR of roughly 10.06%.
  • U.S.: In the United States, mutual fund assets were $38.8 trillion at the end of 2023. The U.S. mutual fund market commands assets of $30.09 trillion in 2025 and is forecasted to reach $39.22 trillion by 2030, expanding at a 5.44% CAGR.
• Exchange-Traded Funds (ETFs):
  • Global: The global ETF market holds $13.74 trillion of assets under management as of June 2025 and is expected to double in size by 2030. The global Exchange-traded Fund Market was valued at $13828.9 billion in 2021 and is projected to reach $108234.7 billion by 2031, growing at a CAGR of 23.2% from 2022 to 2031.
  • U.S.: Total net assets of U.S. ETFs were $10.3 trillion as of December 2023. Nearly 70% of the global ETF assets under management reside in the U.S.
• Separately Managed Accounts (SMAs):
  • U.S.: Assets in separately managed accounts (SMAs) are expected to reach $3.6 trillion in 2026, up from $2.2 trillion in 2023. Assets under management in SMAs reached $2.4 trillion in the first quarter of 2024.
• 529 Plans: null
• Individual Retirement Accounts (IRAs): null

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Victory Capital (VCTR) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market dynamics:

1. Strategic Acquisitions and International Expansion: The acquisition of Amundi US and the reintroduction of the Pioneer Investments brand significantly expanded Victory Capital's assets under management (AUM) and provided access to an extensive international distribution network across Europe and Asia. This is anticipated to lead to higher long-term asset inflows and revenue growth. The company has already seen increased AUM from clients outside the U.S., representing a larger proportion of total assets. Victory Capital also continues to explore potential acquisitions.
2. Growth of the ETF Platform: The VictoryShares ETF platform has consistently demonstrated positive net flows and a significant increase in AUM, with a 28% increase quarter-over-quarter and 67% year-over-year in Q1 2025. The company plans to launch several new ETFs in 2025 and continues to invest resources to accelerate momentum on this platform.
3. Enhanced Organic Growth through Expanded Distribution Capabilities: Victory Capital is actively investing in and expanding its institutional and intermediary sales forces, as well as marketing and sales-related resources, to enhance coverage across the U.S. market. This expanded distribution team is gaining traction and contributing to strong long-term gross flows in various investment franchises, including Victory Income Investors, RS Global, Integrity, and Pioneer.
4. Realization of Expense Synergies: While not a direct revenue driver, the substantial net expense synergies achieved from the Amundi US acquisition are expected to enhance profitability, which can then be reinvested into growth initiatives. The company is firmly on track to deliver $110 million in net expense synergies, with a significant portion expected by the end of 2025 and into early 2026. This improved financial flexibility supports further strategic investments and organic growth.

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1. Share Repurchases

• Victory Capital repurchased 1.8 million shares during Q3 2025, contributing to over $272 million returned to shareholders year-to-date in 2025, and surpassing $1 billion returned since its 2018 IPO.
• In August 2025, the Board of Directors increased the share repurchase authorization to $500 million and extended it through December 31, 2027.
• A new $200 million share repurchase program was approved in December 2024, valid through December 31, 2026, succeeding a completed $100 million program from Q4 2023.

2. Share Issuance

• In Q2 2025, the weighted average shares outstanding increased due to the issuance of shares to Amundi as part of an acquisition, delivered in multiple tranches.
• Specifically, 5.4 million shares of preferred stock were issued to Amundi S.A. on May 23, 2025, raising the total fully diluted shares to approximately 88.3 million.

3. Inbound Investments

• Victory Capital completed a strategic partnership with Amundi in April 2025, which included the acquisition of Amundi's U.S. business, known as Pioneer Investments.
• This acquisition significantly expanded Victory Capital's total assets under management (AUM) by $114.6 billion as of June 30, 2025.

4. Outbound Investments

• Victory Capital's strategic partnership with Amundi, which closed in April 2025, serves to globalize the company through worldwide distribution of its products and expands its distribution and marketing efforts.