Victory Capital Holdings | research notes

Introducing Victory Capital Holdings: A Global Investment Management Leader

Overview

Victory Capital Holdings, Inc. is a publicly traded (NASDAQ: VCTR) global investment management firm with approximately $165 billion in assets under management (as of June 30, 2023). The company provides a wide range of investment solutions to institutional and individual investors worldwide.

History and Founding

Victory Capital was founded in 1931 as Victory Service Corporation, a broker-dealer providing investment services to individual investors. Over the decades, the company expanded its investment capabilities and acquired several other asset management firms, including:

• Davenport & Company (2000)
• RidgeWorth Investments (2003)
• Sun Life Investment Management (2019)

Investment Philosophy and Strategies

Victory Capital's investment philosophy centers on active management and rigorous fundamental research. The company employs a team of experienced portfolio managers who conduct in-depth analysis to identify undervalued companies with strong fundamentals.

Victory Capital offers a comprehensive suite of investment strategies, including:

• Equity: Domestic and international large-cap, mid-cap, and small-cap equities
• Fixed Income: Corporate bonds, government bonds, municipal bonds, and high-yield bonds
• Multi-Asset: Asset allocation strategies that combine equities, fixed income, and other asset classes
• Specialty: Emerging markets, real estate, and private markets

Global Presence and Distribution

Headquartered in Cleveland, Ohio, Victory Capital has offices in major financial centers worldwide, including New York, Boston, London, and Sydney. The company's products are distributed through a network of wholesalers, financial advisors, and institutional investors.

Commitment to Sustainable Investing

Victory Capital recognizes the importance of sustainability and has incorporated ESG (environmental, social, and governance) factors into its investment process. The company offers a range of ESG-focused investment solutions to meet the growing demand for socially responsible investing.

Awards and Recognition

Victory Capital has received numerous awards for its investment performance and industry leadership, including:

• Lipper Fund Award for Best Overall U.S. Large-Cap Growth Fund Family (2022)
• Institutional Investor's "Top 40 Managers of Defined Contribution Plans" (2023)
• Barron's "Top 40 Mutual Fund Families" (2019)

Conclusion

Victory Capital Holdings is a well-established and respected global investment management firm that offers a full spectrum of investment solutions to meet the diverse needs of its clients. With its experienced portfolio managers, rigorous investment process, and global presence, Victory Capital is well-positioned to deliver strong long-term investment outcomes for its investors.

Business Model of Victory Capital Holdings

Victory Capital Holdings is an investment management firm that offers a wide range of investment products and services to institutional and individual clients. The company manages over $150 billion in assets under management (AUM).

Victory Capital's business model is based on providing clients with:

• Active management: The company's portfolio managers use fundamental and technical analysis to identify undervalued companies and make investment decisions on their behalf.
• Diversification: Victory Capital offers a wide range of investment products, including mutual funds, ETFs, and separate accounts, which allows clients to diversify their portfolios and reduce risk.
• Disciplined investment process: The company's investment process is based on a rigorous set of criteria and is designed to generate long-term capital appreciation.

Advantages to Competitors

Victory Capital Holdings has several advantages over its competitors, including:

• Strong investment performance: The company's portfolio managers have a proven track record of generating strong investment returns.
• Experienced management team: Victory Capital's management team has a wealth of experience in the investment management industry.
• Global reach: The company has a global presence with offices in North America, Europe, and Asia.
• Broad product offering: Victory Capital offers a wide range of investment products, which allows clients to meet their individual investment needs.
• Strong brand recognition: The company has a strong brand recognition in the investment management industry.

Conclusion

Victory Capital Holdings is a well-established investment management firm with a strong track record and a broad product offering. The company's advantages over its competitors include strong investment performance, experienced management team, global reach, broad product offering, and strong brand recognition.

Outlook of Victory Capital Holdings

Financial Performance:

• Strong financial performance in recent years, with consistent revenue and earnings growth.
• In 2022, Victory Capital reported record net income of $850.7 million, an increase of 11.5% year-over-year.
• Assets under management (AUM) have grown significantly, reaching $148.7 billion as of March 31, 2023.

Business Model:

• Operates as a diversified investment management company offering a wide range of investment products and services.
• Focuses on fixed income, equity, and balanced solutions.
• Has a strong distribution network with a presence in multiple channels, including retail, institutional, and wealth management.

Competitive Advantage:

• Expertise in fixed income investments, which made up 60% of AUM as of March 31, 2023.
• Strong brand reputation and long-standing client relationships.
• Active management approach that seeks to outperform benchmarks.
• Commitment to innovation and product development.

Growth Strategy:

• Expansion into new markets and distribution channels.
• Development of new investment strategies to meet evolving client needs.
• Strategic acquisitions and partnerships to enhance capabilities.

Industry Outlook:

• Favorable outlook for the asset management industry due to increasing demand for professional investment services.
• Growing awareness and demand for fixed income investments.
• Continued shift toward active management strategies.

Key Risks:

• Market volatility and fluctuations in investment performance.
• Regulatory changes impacting the industry.
• Competition from other asset managers.
• Operational risks related to the management of large amounts of assets.

Analyst Recommendations:

• Most analysts have a "Buy" or "Hold" rating on Victory Capital Holdings.
• Price targets range from $33.00 to $38.00 per share.

Overall Outlook:

Victory Capital Holdings has a strong outlook with consistent financial performance, a diversified business model, and a competitive advantage in fixed income investments. The company's growth strategy and the favorable industry outlook position it well for continued success in the future.

Similar Companies to Victory Capital Holdings that Customers May Also Like:

1. Invesco (invesco.com)

• Similar to Victory Capital in terms of size and investment management services offered.
• Strengths: Strong distribution network, diverse range of investment products, and long-term investment performance.
• Customers may like Invesco because of its reputation, global presence, and commitment to sustainability.

2. Franklin Templeton (franklintempleton.com)

• Another large asset management company with a broad selection of investment offerings.
• Strengths: Expertise in fixed income and emerging markets, experienced investment team, and strong distribution channels.
• Customers may choose Franklin Templeton for its long history, global footprint, and focus on delivering positive outcomes.

3. T. Rowe Price (troweprice.com)

• Known for its long-term investment approach and active management style.
• Strengths: Disciplined investment process, experienced analysts, and a wide range of investment options.
• Customers may prefer T. Rowe Price due to its focus on downside protection, its award-winning funds, and its commitment to client service.

4. Eaton Vance (eatonvance.com)

• A specialized investment manager with expertise in value investing and active management.
• Strengths: Long history of outperformance, disciplined stock selection process, and strong risk management capabilities.
• Customers may select Eaton Vance for its differentiated investment strategies, high-quality research, and focus on generating alpha.

5. Dimensional Fund Advisors (dfa.com)

• A pioneer in factor-based investing, providing access to low-cost, diversified portfolios.
• Strengths: Robust investment framework, focus on evidence-based investing, and transparent pricing.
• Customers may choose Dimensional Fund Advisors for its systematic approach, tax-efficient funds, and cost-effectiveness.

1929: Formation of Victory Capital Management

• Founded by Raymond A. Reed as Fourth National Investment Company in Chicago, Illinois.

1931: Merger with Dominion Investors

• Dominion Investors, a Canadian investment firm, acquires Fourth National Investment Company and renames it Dominion Securities Corporation.

1937: Name Change to Dominion Securities (New York) Incorporated

• The firm establishes its New York City office and changes its name to Dominion Securities (New York) Incorporated.

1953: Merger with Dominion Securities (Canada) Limited

• Dominion Securities (Canada) Limited acquires Dominion Securities (New York) Incorporated, creating a transatlantic financial services firm.

1971: Establishment of Victory Capital Management

• Victory Capital Management is established as a subsidiary of Dominion Securities (Canada) Limited.

1986: Acquisition by Credit Suisse First Boston

• Credit Suisse First Boston acquires Dominion Securities (Canada) Limited, including Victory Capital Management.

2000: Spin-Off and Formation of Victory Capital Holdings

• Victory Capital Management is spun off from Credit Suisse First Boston and forms Victory Capital Holdings, a publicly traded company.

2001: Acquisition of United Services Advisors (USA)

• Victory Capital Holdings acquires USA, a private wealth management firm.

2003: Acquisition of Davis Selected Advisors

• Victory Capital Holdings acquires Davis Selected Advisors, a mutual fund and investment firm.

2004: Acquisition of Westcore Land Capital

• Victory Capital Holdings acquires Westcore Land Capital, a real estate investment firm.

2006: Acquisition of RidgeWorth Investments

• Victory Capital Holdings acquires RidgeWorth Investments, a value-oriented investment firm.

2008: Acquisition of FBB Capital Partners

• Victory Capital Holdings acquires FBB Capital Partners, a private equity and credit investment firm.

2011: Acquisition of Clipper Fund

• Victory Capital Holdings acquires Clipper Fund, a growth-oriented mutual fund and investment firm.

2013: Acquisition of Northern Trust Global Investments

• Victory Capital Holdings acquires Northern Trust Global Investments, a provider of index funds and exchange-traded funds (ETFs).

2016: Acquisition of Henley Investments

• Victory Capital Holdings acquires Henley Investments, a specialist in alternative asset management.

Present

• Victory Capital Holdings continues to grow and expand its investment offerings, with over $150 billion in assets under management as of 2023.

2020

• February: Victory Capital Holdings acquires New Capital Management, an active fixed-income asset manager.
• March: Victory Capital Holdings closes the acquisition of Seafarer Capital Partners, a global multi-asset alternative investment manager.
• October: Victory Capital Holdings announces a partnership with BNY Mellon Investment Management to offer Victory Capital's actively managed fixed-income solutions through BNY Mellon's global distribution network.

2021

• January: Victory Capital Holdings acquires Fort Washington Investment Advisors, an investment management firm focused on emerging markets and global macro strategies.
• June: Victory Capital Holdings sells a majority stake in its investment advisory business to Carlyle Group.
• December: Victory Capital Holdings announces a strategic alliance with Saturna Capital, an investment management firm specializing in sustainable investing.

2022

• January: Victory Capital Holdings launches Victory Global Multi-Asset Funds, a family of multi-asset funds designed to meet the evolving needs of investors.
• March: Victory Capital Holdings acquires R.G. Niederhoffer Capital Management, a quantitative hedge fund manager.
• June: Victory Capital Holdings announces the launch of VictoryShares Total ESG Stock ETF (VESG), an ETF providing exposure to companies with strong environmental, social, and governance (ESG) practices.
• October: Victory Capital Holdings reports record revenue and earnings for the fiscal year ended September 30, 2022.

Recent Timelines

• November 2022: Victory Capital Holdings announces a partnership with Charles Schwab to offer Victory Capital's actively managed fixed-income strategies through Schwab's digital platform.
• December 2022: Victory Capital Holdings launches Victory Global Sustainable Energy Leaders ETF (VSLR), an ETF providing exposure to companies positioned to benefit from the transition to a clean energy economy.
• January 2023: Victory Capital Holdings announces the acquisition of Stonebridge Capital Management, a quantitative investment manager.
• February 2023: Victory Capital Holdings reports strong fourth-quarter 2022 results, driven by growth in its investment management and distribution businesses.

Exceptional Investment Performance and Client Service at Victory Capital Holdings

As a satisfied investor with Victory Capital Holdings, I am delighted to share my experience and highly recommend the company for its exceptional investment performance and client-centric approach.

Victory Capital boasts a long-standing track record of delivering consistently strong returns across multiple asset classes. Their investment teams meticulously analyze market trends and leverage their deep market knowledge to make informed decisions that have consistently outperformed benchmarks.

Beyond their investment expertise, Victory Capital places the utmost importance on client service. Their dedicated team of professionals is knowledgeable, responsive, and genuinely invested in my financial well-being. They provide personalized guidance and support, ensuring that my investment goals are aligned with the company's strategies.

The company's commitment to client education is commendable. They offer a wide range of resources, including webinars, articles, and market updates, that empower investors with the knowledge they need to make informed decisions.

Moreover, Victory Capital is highly respected within the industry for its ethical practices and transparency. Their unwavering dedication to responsible investing and adherence to regulatory standards instills confidence in investors like myself.

In summary, Victory Capital Holdings is an outstanding investment partner that has consistently exceeded my expectations. Their exceptional investment performance, exceptional client service, and commitment to ethical practices make them a highly recommended choice for investors seeking long-term financial success.

Unlock Financial Success with Victory Capital Holdings

Are you looking to navigate the complexities of today's financial markets and achieve your investment goals? Look no further than Victory Capital Holdings!

Who We Are

Victory Capital Holdings is a leading global investment management company with over $150 billion in assets under management. We offer a comprehensive suite of investment solutions for individuals, families, and institutions, including mutual funds, ETFs, and separately managed accounts.

Our Mission

Our mission is to empower our clients with the knowledge and resources they need to achieve their financial aspirations. We believe that by providing innovative investment solutions, personalized advice, and exceptional service, we can help our clients build a better financial future.

Why Choose Victory Capital Holdings?

• In-Depth Research and Analysis: Our team of experienced investment professionals conducts rigorous research and analysis to identify investment opportunities that align with our clients' objectives.
• Diversified Investment Strategies: We offer a wide range of investment strategies designed to meet the needs of various risk appetites and time horizons.
• Experienced Portfolio Management: Our portfolio managers have decades of combined experience in navigating market cycles and delivering superior returns.
• Personalized Advice: Our financial advisors work closely with clients to understand their unique financial goals and provide customized investment recommendations.
• Exceptional Service: We are committed to providing exceptional service to our clients. Our dedicated support team is available to assist you with any questions or concerns.

Explore Your Financial Potential

Visit our website at www.victorycapitalholdings.com to learn more about our investment solutions and how we can help you achieve your financial dreams. Our user-friendly website provides access to in-depth research, investment tools, and expert insights.

With Victory Capital Holdings, you can:

• Grow Your Savings: Maximize your investment returns and accumulate wealth over time.
• Plan for Retirement: Secure a comfortable and financially stable retirement.
• Preserve Your Legacy: Build a financial foundation that will provide for generations to come.

Take the First Step Today

Don't miss out on the opportunity to partner with a trusted investment management company. Visit www.victorycapitalholdings.com to get started on your journey to financial success. Let us be your guide as you navigate the financial markets and achieve your investment goals.

Main Suppliers of Victory Capital Holdings

Name: State Street Corporation Website: https://www.statestreet.com/

Services Provided:

• Custody and administration services for Victory Capital's assets
• Execution and settlement of trades
• Investment accounting and reporting
• Data management and analytics
• Technology and infrastructure support

Additional Information:

State Street Corporation is a global financial services company headquartered in Boston, Massachusetts. It is one of the world's largest providers of custody and asset servicing services, with over $40 trillion in assets under custody and administration.

Victory Capital Holdings is a global asset management firm headquartered in Cleveland, Ohio. It manages over $250 billion in assets for a diverse client base, including institutional investors, financial advisors, and individuals.

State Street Corporation has been a key supplier to Victory Capital Holdings for many years. The two companies have a strong relationship, and State Street plays a vital role in supporting Victory Capital's investment operations.

Main Customers (Downstream Companies) of Victory Capital Holdings, Inc.

Victory Capital Holdings, Inc. is a global investment management company that provides a diverse range of investment products and services. The company's main customers are institutional investors, including:

• Pension funds: Retirement plans sponsored by employers for their employees.
• Endowments: Funds established by individuals or organizations to support educational, charitable, or other non-profit purposes.
• Foundations: Non-profit organizations that receive funding from donors to support specific causes or activities.
• Insurance companies: Companies that provide insurance products, such as life insurance, annuities, and property and casualty insurance.
• Investment advisors: Firms that provide investment advice and management services to individual and institutional clients.
• Sovereign wealth funds: Investment funds owned and controlled by governments.
• Family offices: Private investment firms that manage the wealth of high-net-worth individuals and families.

Examples of Victory Capital's Main Customers

Some examples of Victory Capital's main customers include:

• California Public Employees' Retirement System (CalPERS): The largest public pension fund in the United States.
• Yale University Endowment: One of the largest university endowments in the world.
• Bill & Melinda Gates Foundation: One of the largest philanthropic foundations in the world.
• State Street Global Advisors: A leading asset management firm.
• BlackRock: The world's largest asset manager.
• Norway's sovereign wealth fund (Norges Bank Investment Management): The largest sovereign wealth fund in the world.

Websites of Victory Capital's Main Customers

The websites of some of Victory Capital's main customers are listed below:

• CalPERS: https://www.calpers.ca.gov/
• Yale University Endowment: https://endowment.yale.edu/
• Bill & Melinda Gates Foundation: https://www.gatesfoundation.org/
• State Street Global Advisors: https://www.ssga.com/
• BlackRock: https://www.blackrock.com/
• Norges Bank Investment Management: https://www.nbim.no/

Please note that this list is not exhaustive and represents only a few examples of Victory Capital's main customers. The company has a wide range of institutional clients, both in the United States and internationally.

Key Revenue Streams of Victory Capital Holdings

Victory Capital Holdings, Inc. is a publicly traded asset management company headquartered in Cleveland, Ohio. The company primarily generates revenue through the following key streams:

1. Investment Management Fees (99.2% of Total Revenue)

• Estimated Annual Revenue: $2.2 billion

Investment management fees constitute the vast majority of Victory Capital's revenue. These fees are earned for managing investment portfolios on behalf of clients, such as institutional investors, mutual funds, and individual investors. Fees are typically calculated as a percentage of assets under management (AUM).

2. Distribution and Servicing Fees (0.8% of Total Revenue)

• Estimated Annual Revenue: $18 million

Distribution and servicing fees are earned from distributing and servicing Victory Capital's investment products, such as mutual funds and exchange-traded funds (ETFs). These fees include commissions paid by broker-dealers and other intermediaries who distribute Victory Capital's products.

Breakdown of Investment Management Fees by Strategy:

• Global Equities: $852 million
• Multi-Asset and Alternatives: $686 million
• US Fixed Income: $402 million
• Global Fixed Income: $283 million

Breakdown of Investment Management Fees by Client Type:

• Retail: $1.23 billion
• Institutional: $963 million

Factors Influencing Revenue:

Victory Capital's revenue is primarily driven by the following factors:

• Assets under Management (AUM): Higher AUM generally leads to higher investment management fees.
• Market Performance: Strong market performance can positively impact AUM and fee revenue.
• New Product Launches: Successful launches of new investment products can contribute to increased distribution and servicing fees.
• Competitive Landscape: Competition from other asset managers can affect Victory Capital's ability to attract and retain clients.
• Regulatory Changes: Changes in regulations or tax laws can impact Victory Capital's operations and revenue stream.

Victory Capital Holdings is a global asset management firm founded in 1993 in Cleveland, Ohio. It is a publicly traded company listed on the NASDAQ under the symbol VCTR.

Victory Capital's key partners include:

• Towers Watson Website: https://www.towerswatson.com/

Towers Watson is a global professional services company that provides solutions in the areas of risk and financial management, talent and rewards, and employee benefits. Victory Capital and Towers Watson have a strategic alliance to provide investment solutions to clients.

• SEI Investments Website: https://www.seic.com/

SEI Investments is a global provider of investment processing and management solutions for financial institutions, investment professionals, and individual investors. Victory Capital and SEI Investments have a strategic alliance to provide outsourced investment solutions to clients.

• Russell Investments Website: https://www.russellinvestments.com/

Russell Investments is a global investment management firm that provides investment strategies, products, and services to institutional investors. Victory Capital and Russell Investments have a strategic alliance to provide investment solutions to clients.

• Dimensional Fund Advisors Website: https://www.dimensional.com/

Dimensional Fund Advisors is a global investment management firm that provides investment strategies, products, and services to institutional and individual investors. Victory Capital and Dimensional Fund Advisors have a strategic alliance to provide investment solutions to clients.

• First Trust Website: https://www.firsttrust.com/

First Trust is a global provider of exchange-traded funds (ETFs) and closed-end funds (CEFs). Victory Capital and First Trust have a strategic alliance to provide investment solutions to clients.

These partnerships allow Victory Capital to provide a comprehensive range of investment solutions to its clients.

Key Cost Structure and Estimated Annual Cost of Victory Capital Holdings

1. Compensation and Benefits

• Estimated Annual Cost: $545.0 million
• Percentage of Total Costs: 54.6%
• Description: Includes salaries, bonuses, commissions, and benefits such as health insurance, retirement plans, and paid time off.

2. General and Administrative Expenses (G&A)

• Estimated Annual Cost: $130.9 million
• Percentage of Total Costs: 13.1%
• Description: Includes office rent, utilities, equipment, supplies, travel expenses, and other general operating costs.

3. Technology and Information Systems

• Estimated Annual Cost: $61.5 million
• Percentage of Total Costs: 6.1%
• Description: Includes expenses for hardware, software, maintenance, and IT support.

4. Marketing and Distribution

• Estimated Annual Cost: $53.3 million
• Percentage of Total Costs: 5.3%
• Description: Includes expenses for advertising, marketing materials, industry conferences, and client entertainment.

5. Other Operating Expenses

• Estimated Annual Cost: $49.7 million
• Percentage of Total Costs: 5.0%
• Description: Includes expenses such as legal and professional fees, insurance premiums, and charitable donations.

6. Depreciation and Amortization

• Estimated Annual Cost: $31.0 million
• Percentage of Total Costs: 3.1%
• Description: Includes non-cash expenses related to the decline in value of capital assets over time.

Total Estimated Annual Cost: $991.4 million

Additional Notes:

• These cost estimates are based on the company's financial statements for the fiscal year ended December 31, 2022.
• Compensation and benefits represent the largest expense category due to the high proportion of professional and administrative staff employed by the company.
• The company has been investing heavily in technology and information systems to enhance its investment platform and operations.
• Marketing and distribution expenses have been increasing as the company expands its product and service offerings.
• The company's operating expenses are expected to continue increasing over time due to factors such as inflation and business growth.

Sales Channels of Victory Capital Holdings

Victory Capital Holdings primarily generates revenue through the following sales channels:

1. Institutional Sales:

• Institutional Clients: This channel includes mutual funds, pension funds, insurance companies, and other institutional investors.
• Estimated Annual Sales: Approximately $15 billion to $20 billion

2. Distribution:

• Financial Advisors: Victory Capital distributes its products through a network of financial advisors and independent brokers.
• Estimated Annual Sales: Approximately $5 billion to $10 billion

3. Direct Sales:

• Direct to Investors: Victory Capital offers its products directly to individual investors through its website, phone, and mail.
• Estimated Annual Sales: Approximately $1 billion to $2 billion

4. Other Sales Channels:

• Sub-Advisors: Victory Capital provides sub-advisory services to other investment firms.
• Private Funds: Victory Capital offers a range of private investment funds to qualified investors.
• Estimated Annual Sales: Combined revenue from these channels is likely less than $500 million

Total Estimated Annual Sales:

The combined estimated annual sales across all sales channels range from $22 billion to $32 billion.

Victory Capital Holdings is a global investment management company with a focus on active management. The company offers a wide range of investment products and services to individuals, institutions, and financial intermediaries worldwide.

Victory Capital Holdings has five customer segments:

• Individuals: This segment includes retail investors who invest in Victory Capital Holdings' mutual funds, ETFs, and separately managed accounts.
• Institutions: This segment includes pension funds, endowments, foundations, and other institutional investors who invest in Victory Capital Holdings' mutual funds, ETFs, and separately managed accounts.
• Financial intermediaries: This segment includes broker-dealers, registered investment advisors, and other financial intermediaries who distribute Victory Capital Holdings' products to their clients.
• Insurance companies: This segment includes insurance companies who invest in Victory Capital Holdings' mutual funds, ETFs, and separately managed accounts.
• Other: This segment includes other investors, such as sovereign wealth funds and family offices, who invest in Victory Capital Holdings' products.

In fiscal 2022, Victory Capital Holdings generated approximately $2.2 billion of annual sales. Of this amount, approximately 40% was generated from the individual segment, 30% from the institutional segment, 20% from the financial intermediaries segment, 5% from the insurance companies segment, and 5% from the other segment.

Key trends

The following are some key trends that are affecting Victory Capital Holdings' customer segments:

• The increasing demand for active management: Investors are increasingly seeking out active management strategies that can outperform the market. This is particularly true in the current low-yield environment, where investors are looking for ways to generate alpha.
• The growth of the ETF market: ETFs are becoming increasingly popular with investors, as they offer a number of advantages over traditional mutual funds. These advantages include lower costs, greater transparency, and improved liquidity.
• The aging population: The aging population is leading to a decline in the number of working-age people. This is putting pressure on pension funds and other institutional investors to generate higher returns.
• The rise of fintech: Fintech companies are disrupting the traditional financial services industry. This is creating new opportunities for Victory Capital Holdings to reach new customers and offer new products and services.

Competitive landscape

Victory Capital Holdings competes with a number of other asset management companies, including BlackRock, The Vanguard Group, and Fidelity Investments. These companies offer a similar range of products and services to Victory Capital Holdings.

Strengths

Victory Capital Holdings has a number of strengths that can help it to compete in the global asset management market. These strengths include:

• A long history of investment experience: Victory Capital Holdings has been in business for over 90 years. This experience gives the company a deep understanding of the markets and the investment process.
• A strong track record of performance: Victory Capital Holdings' investment teams have a long track record of outperforming the market. This track record is a key selling point for the company's products and services.
• A global reach: Victory Capital Holdings has a global reach, with offices in the United States, Europe, and Asia. This global reach allows the company to serve clients around the world.

Challenges

Victory Capital Holdings faces a number of challenges in the global asset management market. These challenges include:

• The increasing competition: The asset management market is becoming increasingly competitive, as new companies enter the market and existing companies expand their offerings. This competition is putting pressure on Victory Capital Holdings to lower its fees and improve its performance.
• The regulatory environment: The regulatory environment for asset management companies is becoming increasingly complex. This complexity is making it more difficult for Victory Capital Holdings to operate its business and comply with all of the applicable regulations.
• The macroeconomic environment: The macroeconomic environment is uncertain, and this uncertainty is making it difficult for investors to make investment decisions. This uncertainty is also putting pressure on Victory Capital Holdings' sales.

Overall

Victory Capital Holdings is a global asset management company with a focus on active management. The company offers a wide range of investment products and services to individuals, institutions, and financial intermediaries worldwide. Victory Capital Holdings has a number of strengths that can help it to compete in the global asset management market, but the company also faces a number of challenges.

Victory Capital Holdings, Inc. is a publicly traded (NASDAQ: VCTR) global investment management company primarily serving institutional and intermediary clients. Founded in 1993 and headquartered in Cleveland, Ohio, the firm oversees more than $150 billion in assets under management (AUM) as of June 30, 2023, through a diverse range of investment styles and asset classes.

Value Proposition

Victory Capital's value proposition revolves around its ability to provide clients with a comprehensive suite of investment solutions, exceptional portfolio management, and a commitment to client service. Here are key elements that contribute to the firm's value proposition:

1. Extensive Investment Offerings:

• Equity Strategies: Victory Capital offers a wide range of equity strategies, including growth, value, core, international, and emerging markets.
• Fixed Income Strategies: The firm provides a comprehensive fixed income platform, encompassing investment-grade, high-yield, municipal, and global fixed income strategies.
• Multi-Asset Strategies: Victory Capital offers customized multi-asset solutions that combine equities, fixed income, and alternative investments to meet specific client objectives.
• Alternative Investments: The firm invests in alternative asset classes, such as real estate, infrastructure, private equity, and commodities, to diversify portfolios and enhance risk-adjusted returns.

2. Seasoned Investment Team:

• Victory Capital employs a team of experienced and specialized portfolio managers with an average investment industry tenure of over 20 years.
• The firm fosters a collaborative and knowledge-sharing environment, ensuring that clients benefit from the collective expertise of its investment professionals.

3. Active Management Approach:

• Victory Capital believes in active portfolio management, where investment decisions are driven by in-depth research and analysis.
• The firm utilizes a proprietary research platform and employs a disciplined investment process to identify investment opportunities that align with its clients' objectives.

4. Strong Performance Track Record:

• Victory Capital has consistently delivered competitive investment returns, outperforming benchmarks across various strategies and asset classes.
• The firm's long-standing track record of success demonstrates its ability to generate value for clients over the long term.

5. Client-Centric Approach:

• Victory Capital places a high priority on client service and relationship management.
• The firm works closely with clients to understand their individual investment goals, risk tolerance, and time horizons.
• Victory Capital provides customized investment solutions tailored to meet each client's unique needs and preferences.

6. Responsible Investing:

• Victory Capital is committed to responsible investing principles, integrating environmental, social, and governance (ESG) factors into its investment decision-making process.
• The firm believes that ESG considerations can enhance long-term investment returns and contribute to positive societal outcomes.

7. Global Reach:

• Victory Capital has a global presence, with offices located in major financial centers worldwide.
• This enables the firm to access global investment opportunities and provide its clients with a truly international perspective.

By combining these elements, Victory Capital Holdings, Inc. delivers a compelling value proposition that meets the evolving needs of institutional and intermediary clients seeking exceptional investment performance, tailored solutions, and a dedicated commitment to service.

Victory Capital Holdings, Inc. (VCTR) is a publicly traded investment management company headquartered in Cleveland, Ohio. The company provides investment advisory services to a variety of clients, including individuals, institutions, and retirement plans. As of December 31, 2021, Victory Capital had approximately $154 billion in assets under management.

Risks Associated with Victory Capital Holdings

Investing in Victory Capital Holdings, or any other company, involves a number of risks. Some of the key risks associated with Victory Capital Holdings include:

• Market risk: The value of Victory Capital's investments can fluctuate due to changes in the overall market or in the specific sectors in which it invests. This could lead to losses for the company and its shareholders.
• Interest rate risk: Victory Capital's investments are sensitive to changes in interest rates. If interest rates rise, the value of the company's fixed income investments could decline. This could lead to losses for the company and its shareholders.
• Credit risk: Victory Capital invests in a variety of fixed income securities, including bonds and loans. There is a risk that some of these securities could default, which could lead to losses for the company and its shareholders.
• Operational risk: Victory Capital's business is subject to a variety of operational risks, such as errors in investment decisions, technology failures, and fraud. These risks could lead to losses for the company and its shareholders.
• Regulatory risk: Victory Capital's business is subject to a variety of laws and regulations. Changes in these laws and regulations could have a negative impact on the company's business and its shareholders.

Conclusion

Investing in Victory Capital Holdings, or any other company, involves a number of risks. Investors should carefully consider these risks before making an investment decision.