Fourth Quarter 2020 Earnings Presentation February 11, 2021 Forward Looking Statements This presentation may contain "forward-looking" statements that are based on our beliefs and assumptions and on information currently available to us. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, competitive position and potential organic and inorganic growth opportunities. Forward-looking statements include all statements that are not ...

Victory Capital Holdings, Inc. (NASDAQ:VCTR) Q3 2020 Earnings Conference Call November 8, 2020 8:00 AM ET Company Participants Matthew Dennis - Chief of Staff, Director of Investor Relations David Brown - Chairman and Chief Executive Officer Michael Policarpo - President, Chief Financial Officer and Chief Administrative Officer Conference Call Participants Christopher Shutler - William Blair Cullen Johnson - B. Riley Securities Alexander Blostein - Goldman Sachs Jeremy Campbell - Barclays Capital Gayathri R ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 001-38388 Victory Capital Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 32-040295 ...

Third Quarter 2020 Earnings Presentation November 5, 2020 Forward Looking Statements This presentation may contain "forward-looking" statements that are based on our beliefs and assumptions and on information currently available to us. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, competitive position and potential organic and inorganic growth opportunities. Forward-looking statements include all statements that are not h ...

Second Quarter 2020 Earnings Presentation August 6, 2020 Forward Looking Statements This presentation may contain "forward-looking" statements that are based on our beliefs and assumptions and on information currently available to us. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, competitive position and potential organic and inorganic growth opportunities. Forward-looking statements include all statements that are not hi ...

Victory Capital Holdings, Inc. (NASDAQ:VCTR) Q2 2020 Earnings Conference Call August 6, 2020 8:00 AM ET Company Participants Matthew Dennis - Chief of Staff Director and Investor Relations David Brown - Chairman & CEO Michael Policarpo - President, CFO & Chief Administrative Officer Conference Call Participants Kenneth Worthington - JPMorgan Alexander Blostein - Goldman Sachs Christopher Shutler - William Blair Jeremy Campbell - Barclays Kenneth Lee - RBC Capital Markets Michael Cyprys - Morgan Stanley Rand ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 001-38388 Victory Capital Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 32-0402956 (State or other jurisdiction of (I.R.S. Employer (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Fo ...

Victory Capital Holdings, Inc. (NASDAQ:VCTR) Q1 2020 Earnings Conference Call May 11, 2020 10:00 AM ET Company Participants Matthew Dennis - Chief of Staff Director and Investor Relations David Brown - Chairman and Chief Executive Officer Michael Policarpo - President, Chief Financial Officer and Chief Administrative Officer Conference Call Participants Alex Blostein - Goldman Sachs Randy Binner - B. Riley FBR Chris Shutler - William Blair Kenneth Lee - RBC Capital Markets Ken Worthington - JPMorgan Robert ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 001-38388 Victory Capital Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 32-0402956 (S ...

Part I [Business](index=3&type=section&id=Item%201.%20Business) Victory Capital is a diversified global asset manager with **$151.8 billion** AUM, operating a multi-boutique model and growing through strategic acquisitions - As of December 31, 2019, Victory Capital is a diversified global asset management firm with **$151.8 billion** in Assets Under Management (AUM)[17](index=17&type=chunk) - The business model combines nine autonomous Investment Franchises and a Solutions Platform with a fully integrated, centralized operating and distribution platform[17](index=17&type=chunk)[18](index=18&type=chunk) - The transformative acquisition of the USAA Mutual Fund Business (USAA AMCO) on July 1, 2019, increased AUM by **$81.1 billion** and significantly diversified the company's investment platform, particularly in fixed income and solutions[24](index=24&type=chunk)[25](index=25&type=chunk) - The company has grown AUM from **$17.9 billion** in August 2013 to **$151.8 billion** as of December 31, 2019, primarily through four completed acquisitions[27](index=27&type=chunk) AUM Diversification by Channel (as of Dec 31, 2019) | Channel | AUM Percentage | | :--- | :--- | | Direct Member | 49% | | Institutional | 26% | | Retail | 25% | - A high degree of employee ownership is a key cultural attribute, with approximately **87% of employees** beneficially owning about **23%** of the company's shares as of December 31, 2019[25](index=25&type=chunk) [Risk Factors](index=16&type=section&id=Item%201A.%20Risk%20Factors) The company faces multiple risks including AUM dependency, operational challenges, intense competition, and concentrated voting control - Substantially all revenues are based on AUM, which can decline due to poor investment performance, client withdrawals, or adverse market conditions, thereby reducing profitability[116](index=116&type=chunk) - Most client contracts, including those for registered funds, are terminable on short or no notice, posing a risk to revenue stability[118](index=118&type=chunk)[120](index=120&type=chunk) - The business depends on key investment professionals and senior management; their departure could lead to AUM reduction and an inability to execute business strategy[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) - The company's growth strategy is partly dependent on making and successfully integrating new acquisitions, which involves risks such as integration difficulties, unexpected liabilities, and failure to realize projected synergies[147](index=147&type=chunk)[148](index=148&type=chunk) - The investment management industry is intensely competitive, with pressure from firms with greater resources, a trend toward lower-fee passive products, and the need to retain talent[214](index=214&type=chunk)[200](index=200&type=chunk) - The dual-class stock structure concentrates **96.5%** of voting power with holders of Class B common stock, particularly Crestview GP, which controls **62.6%** of the total voting power[221](index=221&type=chunk)[223](index=223&type=chunk) - The success of the USAA AMCO Acquisition is subject to risks including difficulties in integrating personnel and operations, retaining clients and key employees, and realizing anticipated benefits and synergies[245](index=245&type=chunk)[246](index=246&type=chunk) [Unresolved Staff Comments](index=40&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the SEC - There are no unresolved staff comments[249](index=249&type=chunk) [Properties](index=40&type=section&id=Item%202.%20Properties) The company leases its principal executive offices in San Antonio, TX, and maintains additional leased office spaces across the United States and internationally - The Company's principal executive offices are leased and located in San Antonio, TX[249](index=249&type=chunk) - Additional office space is leased in various U.S. cities (Brooklyn, OH; New York, NY; Birmingham, MI; Boston, MA; Rocky River, OH; Cincinnati, OH; Denver, CO; Des Moines, IA; San Francisco, CA) and internationally (Singapore, Hong Kong, London)[249](index=249&type=chunk) [Legal Proceedings](index=40&type=section&id=Item%203.%20Legal%20Proceedings) The company states that it is not currently a party to any material legal proceedings - The Company is not currently a party to any material legal proceedings[250](index=250&type=chunk) [Mine Safety Disclosures](index=40&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[251](index=251&type=chunk) Part II [Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities](index=41&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Shareholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's Class A common stock trades on NASDAQ, initiated a quarterly cash dividend, and has an active share repurchase program - The Company's Class A common stock is listed on NASDAQ under the symbol "VCTR"[252](index=252&type=chunk) - In August 2019, the company initiated a quarterly cash dividend policy[257](index=257&type=chunk) Issuer Purchases of Equity Securities (Q4 2019) | Period | Total Shares Purchased | Average Price Paid Per Share | Approx. Dollar Value Remaining Under Program (in millions) | | :--- | :--- | :--- | :--- | | Oct 2019 | 146,930 | $15.29 | $11.3 | | Nov 2019 | 80,570 | $18.33 | $9.8 | | Dec 2019 | 65,230 | $20.85 | $8.5 | | **Total** | **292,730** | **$17.37** | **$8.5** | - A share repurchase program for up to **$15.0 million** of Class A common stock was authorized in August 2019, with **$8.5 million** remaining available as of December 31, 2019[256](index=256&type=chunk) [Selected Financial Data](index=42&type=section&id=Item%206.%20Selected%20Financial%20Data) This section presents the company's historical consolidated financial data, showing significant growth in revenue, assets, and debt, largely driven by acquisitions Selected Financial Data (2015-2019) | ($ in thousands, except per share data) | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | $612,373 | $413,412 | $409,629 | $297,883 | $240,763 | | **Income from operations** | $164,620 | $114,519 | $90,168 | $24,485 | $33,220 | | **Net income (loss)** | $92,491 | $63,704 | $25,826 | $(6,071) | $3,800 | | **Diluted earnings (loss) per share** | $1.26 | $0.90 | $0.43 | $(0.12) | $0.08 | | **Total assets** | $1,753,309 | $801,511 | $792,622 | $850,951 | $620,389 | | **Total debt** | $924,539 | $268,857 | $483,225 | $418,528 | $311,898 | - Financial results for 2019 reflect six months of operations from the USAA AMCO acquisition, which was completed on July 1, 2019[262](index=262&type=chunk) - Financial results for 2016 reflect five months of operations from the RS Investments acquisition, which closed on July 29, 2016[261](index=261&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, emphasizing the transformative USAA AMCO acquisition's impact on AUM, revenue, and cash flow - The USAA AMCO acquisition, effective July 1, 2019, was transformative, increasing AUM by **$81.1 billion** and significantly impacting 2019 financial results[272](index=272&type=chunk) Key Performance Indicators (2017-2019) | ($ in millions, except bps) | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | AUM at period end | $151,832 | $52,763 | $61,771 | | Average AUM | $102,719 | $61,390 | $57,823 | | Net flows | $1,860 | $(2,427) | $(853) | | Total revenue | $612.4 | $413.4 | $409.6 | | Adjusted EBITDA | $268.8 | $160.2 | $149.1 | | Adjusted EBITDA margin | 43.9% | 38.7% | 36.4% | - Total revenue for 2019 was **$612.4 million**, a **48% increase** from **$413.4 million** in 2018, primarily due to higher average AUM from the USAA AMCO acquisition[280](index=280&type=chunk)[327](index=327&type=chunk) - Net income increased to **$92.5 million** in 2019 from **$63.7 million** in 2018, with diluted EPS at **$1.26** in 2019 compared to **$0.90** in 2018[280](index=280&type=chunk) - The company generated **$227.4 million** in net cash from operating activities in 2019, a significant increase from **$134.3 million** in 2018[375](index=375&type=chunk)[376](index=376&type=chunk) - Subsequent to year-end, on January 17, 2020, the company repriced its term loan, reducing the interest rate by **75 basis points**, estimated to save approximately **$7.0 million** in annual interest expense[284](index=284&type=chunk)[372](index=372&type=chunk) [Qualitative and Quantitative Disclosures Regarding Market Risk](index=63&type=section&id=Item%207A.%20Qualitative%20and%20Quantitative%20Disclosures%20Regarding%20Market%20Risk) The company's primary market risk is AUM decline due to market depreciation, with additional exposure to exchange rate and interest rate fluctuations - The company's revenues are highly sensitive to market fluctuations; a **10%** increase or decrease in AUM would cause an annualized revenue change of approximately **$91.1 million**, based on the 2019 weighted-average fee rate of **60 basis points**[401](index=401&type=chunk) - Exchange rate risk exists as approximately **8%** of AUM is invested in non-U.S. dollar-denominated securities; a **10%** change in the U.S. dollar's value would impact AUM by **$1.2 billion** and annualized revenue by about **$7.3 million**[403](index=403&type=chunk)[405](index=405&type=chunk) - The company is exposed to interest rate risk due to outstanding variable-rate debt under its 2019 Credit Agreement[407](index=407&type=chunk) [Financial Statements and Supplementary Data](index=65&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the company's audited consolidated financial statements for 2019, including the unqualified audit opinion from Ernst & Young LLP and detailed financial notes - The independent registered public accounting firm, Ernst & Young LLP, issued an unqualified audit opinion on the consolidated financial statements[410](index=410&type=chunk) Consolidated Balance Sheet Highlights (as of Dec 31) | ($ in thousands) | 2019 | 2018 | | :--- | :--- | :--- | | Total Assets | $1,753,309 | $801,511 | | Goodwill | $404,750 | $284,108 | | Other intangible assets, net | $1,175,471 | $387,679 | | Long-term debt, net | $924,539 | $268,857 | | Total liabilities | $1,215,438 | $345,963 | | Total stockholders' equity | $537,871 | $455,548 | Consolidated Statement of Operations Highlights (Year Ended Dec 31) | ($ in thousands) | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | Total revenue | $612,373 | $413,412 | $409,629 | | Income from operations | $164,620 | $114,519 | $90,168 | | Net income | $92,491 | $63,704 | $25,826 | - The notes to the financial statements provide detailed information on accounting policies, the USAA AMCO acquisition, revenue recognition, goodwill and intangible assets, debt, share-based compensation, and other key financial components[428](index=428&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=106&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[673](index=673&type=chunk) [Controls and Procedures](index=106&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2019 - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2019[675](index=675&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2019, based on the COSO framework[676](index=676&type=chunk) - No changes in internal control over financial reporting occurred during the fourth quarter that have materially affected, or are reasonably likely to materially affect, internal controls[677](index=677&type=chunk) [Other Information](index=107&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[678](index=678&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, Executive Compensation, Security Ownership, and Principal Accountant Fees](index=108&type=section&id=Items%2010-14) Information for Items 10 through 14 is incorporated by reference from the company's definitive proxy statement for its 2020 annual meeting of shareholders - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the registrant's proxy statement for the 2020 Annual Stockholders' Meeting[679](index=679&type=chunk)[680](index=680&type=chunk)[681](index=681&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=109&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the exhibits filed as part of the Form 10-K, with financial statements contained in Item 8 and no separate schedules provided - This section contains the Exhibit Index, which lists all documents filed with the Form 10-K[685](index=685&type=chunk) - Financial statements are referenced to Item 8, and no financial statement schedules were filed[687](index=687&type=chunk) [Form 10-K Summary](index=109&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company indicates there is no Form 10-K summary - None[685](index=685&type=chunk)