Victory Capital Management, Inc. (NASDAQ:VCTR) Q2 2021 Earnings Conference Call August 6, 2021 8:00 AM ET Company Participants Matthew Dennis - CoS, Director of IR David Brown - Chairman, CEO Michael Policarpo - President, CF&AO Conference Call Participants Alex Blostein - Goldman Sachs Kenneth Lee - RBC Capital Markets Robert Lee - KBW Cullen Johnson - B. Riley Securities Ken Worthington - JPMorgan Michael Cyprys - Morgan Stanley Owen Lau - Oppenheimer Operator Good morning, and welcome to the Victory Capi ...

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 June 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: | Title of each class | Trading Symbol(s) | Name of each exchange on which re ...

Victory Capital Holdings, Inc. (NASDAQ:VCTR) Q1 2021 Earnings Conference Call May 7, 2021 8:00 AM ET Company Participants Matthew Dennis - Chief of Staff, Director Investor Relations David Brown - Chairman and Chief Executive Officer Michael Policarpo - President, Chief Financial Officer and Chief Administrative Officer Conference Call Participants Kenneth Lee - RBC Capital Markets Michael Carrier - Bank of America Merrill Lynch Alexander Blostein - Goldman Sachs Ken Worthington - JPMorgan Chase & Co. Culle ...

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, 2021 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) Indicate by check mark ...

Assets Under Management (AUM) - As of December 31, 2020, the company has $147.2 billion in assets under management (AUM), a significant increase from $17.9 billion in August 2013[24]. - The company has diversified its AUM, with no single Franchise accounting for more than 22% of total AUM as of December 31, 2020[45]. - As of December 31, 2020, the company had total AUM of $147.2 billion, with 88% of this amount in fixed income, U.S. small- and mid-cap equities, and global/non-U.S. equities[70]. - As of December 31, 2020, about 73% of AUM was invested in U.S. and international equity, with 30% concentrated in small- and mid-cap equities[160][162]. - Approximately 2% of the company's AUM as of December 31, 2020, consisted of assets in money market funds, which seek to preserve a stable net asset value[138]. Investment Strategies and Performance - The company operates nine autonomous Investment Franchises and a Solutions Platform, collectively managing 117 investment strategies[17]. - Approximately 76% of the company's strategies by AUM outperformed their respective benchmarks over a ten-year period, while 67% outperformed over both five-year and three-year periods[74]. - The performance of the company's investment strategies is critical, as poor performance could lead to client redemptions and a decline in AUM[131]. Client Base and Revenue Sources - The client base is diversified, with 46% from direct investors, 28% from institutional clients, and 26% from retail clients as of December 31, 2020[33]. - For the year ended December 31, 2020, 80% of total revenues were derived from services to investment companies registered under the 1940 Act, including mutual funds and ETFs[104]. - Approximately 91% of total revenues for the year ended December 31, 2020, were generated from mutual funds and other pooled investment vehicles advised by the company[151]. Employee Ownership and Structure - Approximately 79% of employees beneficially own about 21% of the company's shares, aligning their interests with those of clients[23]. - Employee ownership stood at approximately 21% as of December 31, 2020, with employees collectively investing around $190 million in managed products[52][53]. - The company has established an equity awards program that a majority of employees participate in, with 429 employees as of December 31, 2020[94]. Growth and Acquisition Strategy - The company has completed four acquisitions since 2013, enhancing its growth and financial profile[24]. - The company plans to continue organic growth through strategic acquisitions, focusing on investment management firms that enhance growth and diversification[55]. - The company believes there are significant opportunities for profitable growth through additional acquisitions in the investment management industry[25]. Regulatory Environment and Compliance - The company is subject to extensive regulation, with agencies having broad administrative powers to enforce compliance with investment adviser laws[100]. - The company is subject to extensive regulation by the SEC, FINRA, and various states, with potential material adverse effects on business if compliance is not maintained[105]. - The company maintains a legal and compliance team of 16 professionals responsible for regulatory compliance and monitoring adherence to client investment guidelines[114]. Operational Efficiency and Expenses - Approximately two-thirds of the company's operating expenses are variable, which is expected to drive industry-leading margins and facilitate free cash flow conversion[90]. - The company outsources certain middle- and back-office activities to recognized service providers on a variable-cost basis, enhancing scalability[87]. - The company’s expenses are subject to fluctuations, which could negatively impact its results of operations if revenues decrease without a corresponding decrease in expenses[159]. Market Risks and Challenges - The ongoing COVID-19 pandemic has negatively impacted the global economy and may continue to interrupt normal business activity[121]. - A significant proportion of existing AUM is managed in long-only investments, which may expose the company to market risks[123]. - The company faces risks of AUM decline due to investor redemptions, which can be triggered by poor investment performance or adverse market conditions[151][163]. Stock and Shareholder Structure - Crestview GP beneficially owns 52.2% of the company's common stock and 66.2% of the total voting power as of December 31, 2019, allowing it to control board elections and company policies[199]. - The dual class structure of the company's common stock concentrates voting control with Class B shareholders, who hold 96.8% of the total voting power as of December 31, 2020[197]. - The company may issue additional shares or securities, which could result in substantial dilution to existing shareholders[208]. Technology and Innovation - The company has made recent investments in data, technology, and marketing to enhance organic growth and improve operational efficiencies[54]. - The company launched a new digital platform for direct investors in 2020, featuring client-centric design and investment tools[82].

Financial Data and Key Metrics Changes - Victory Capital achieved record financial performance in Q4 2020, with adjusted EBITDA margin increasing to 52% and adjusted earnings of $1.07 per share, up 7% from Q3 2020 [7][39] - Total revenue for Q4 2020 was $200 million, a 6% increase from Q3, while full-year revenue reached a record $775 million, up 27% from $612 million in 2019 [39] - GAAP net income for Q4 was $54.9 million, a 46% increase year-over-year, while full-year GAAP net income jumped 130% to $213 million [42][43] Business Line Data and Key Metrics Changes - Firm-wide assets under management (AUM) rose to $147.2 billion at year-end, an 11% increase from Q3 2020, with long-term AUM at $143.7 billion [8][48] - Long-term growth flows increased by 12% quarter-over-quarter to $5.7 billion, indicating substantial improvement in net flow performance [9] - The direct investor business saw approximately 115,000 new funded account registrations since its launch in July 2019, with positive growth in the USAA 529 College Savings Plan [22] Market Data and Key Metrics Changes - Investment performance remained strong, with 67% of AUM outperforming respective benchmarks over one, three, and five-year periods [7] - The company established new institutional relationships and selling agreements, enhancing its market presence and distribution capabilities [10][28] Company Strategy and Development Direction - Victory Capital is focused on strategic acquisitions, including the pending acquisition of THB Asset Management, which will enhance its ESG investment strategies and broaden distribution opportunities [16][29] - The company aims to balance debt reduction with returning capital to shareholders through dividends and share buybacks, while continuing to invest in product development and digital transformation [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the post-pandemic environment, highlighting the potential for talented active managers to outperform in changing market conditions [37] - The outlook for 2021 includes expectations for continued growth in AUM and net flows, driven by strong investment performance and new product offerings [101] Other Important Information - The quarterly cash dividend was increased from $0.07 to $0.09, marking a 29% increase, reflecting the company's commitment to enhancing financial flexibility [12] - The company reduced its leverage ratio to 1.8 times at year-end, with plans for further debt repayments in 2021 [11][47] Q&A Session Summary Question: Insights on Optimal Leverage Level - Management clarified that evaluating optimal leverage does not indicate the size of potential acquisitions, emphasizing a strategic approach to acquisitions regardless of size [74] Question: Rollout of Separately Managed Accounts - Management confirmed the ability to offer a range of products to USAA members, including customized portfolios and fixed income estimates [76] Question: Solutions Business Outlook - Management indicated that the solutions business is expected to grow, with fluctuations in flows being a natural market occurrence [82] Question: Compensation Line Clarification - Management explained that the mark-to-market adjustment for the deferred compensation plan is offset in non-operating expenses, having no impact on the bottom line [83] Question: USAA Earnouts for 2021 - Management confirmed that there are up to three additional earnout payments expected over the next three years, based on revenue retention [85] Question: Intermediary Placement to Flows Timeline - Management indicated that it typically takes about a year to see significant flows from new intermediary placements [90] Question: M&A Opportunities and Valuations - Management noted a busy M&A environment, focusing on finding the right strategic partners rather than volume [92] Question: ESG Integration in Future Acquisitions - Management acknowledged the importance of ESG integration in future acquisitions, reflecting a commitment to responsible investment practices [118]

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 ...