Financial Performance - Total revenue for Q3 2021 was $226.29 million, a 20% increase from $188.66 million in Q3 2020[14] - Net income for Q3 2021 reached $74.18 million, up 33% from $55.74 million in Q3 2020[14] - Earnings per share (EPS) for Q3 2021 were $1.09 (basic) and $1.00 (diluted), compared to $0.82 and $0.76 in Q3 2020, marking a 33% and 32% increase respectively[14] - Comprehensive income for Q3 2021 was $75.40 million, compared to $55.16 million in Q3 2020, indicating a 36.7% increase[16] - Net income for the nine months ended September 30, 2021, was $208.6 million, an increase of 32.4% compared to $157.6 million for the same period in 2020[22] - Total revenue for the three months ended September 30, 2021, was $226.29 million, an increase of 20% compared to $188.66 million for the same period in 2020[42] - Adjusted Net Income with tax benefit for the three months ended September 30, 2021, was $92.6 million, compared to $73.4 million for the same period in 2020, marking a year-over-year increase of 26.1%[152] - For the nine months ended September 30, 2021, total revenue was $661.1 million, compared to $575.0 million for the same period in 2020, indicating a year-over-year increase of 15.0%[152] Assets and Liabilities - Total assets as of September 30, 2021, were $1.79 billion, up from $1.73 billion at the end of 2020, reflecting a 3.5% increase[12] - Long-term debt decreased to $633.90 million from $769.01 million at the end of 2020, a reduction of approximately 17.5%[12] - Cash and cash equivalents at the end of the period on September 30, 2021, were $64.7 million, compared to $56.3 million at the end of September 2020[22] - The fair value of financial assets as of September 30, 2021, totaled $41.879 million, with liabilities of $103.1 million primarily from contingent consideration arrangements[78] - The fair value of long-term debt at September 30, 2021, is considered to be its carrying value due to the variable interest rate approximating current market rates[85] Investment Management - Investment management fees increased to $171.36 million in Q3 2021, compared to $137.24 million in Q3 2020, representing a 25% growth[14] - The Company’s investment management fees are calculated as a contractual percentage of assets under management (AUM), which can fluctuate due to market movements[46] - The Company’s revenue recognition is based on the transfer of services to customers, with variable consideration included only when it is probable that a significant reversal will not occur[43] - AUM as of September 30, 2021, was $159.9 billion, a significant increase from $17.9 billion in August 2013[133] - The company completed the acquisition of THB Asset Management on March 1, 2021, which added $547 million in AUM and expanded its investment platform[139] Dividends and Share Repurchases - The company declared dividends of $0.15 per share in Q3 2021, up from $0.06 per share in Q3 2020[14] - Total dividends paid in the nine months ended September 30, 2021, were $25.4 million, an increase from $11.5 million in 2020[22] - The company repurchased common stock totaling $25.9 million during the nine months ended September 30, 2021, compared to $22.8 million in the same period of 2020[22] - The company repurchased 188,525 shares of Class A common stock for $6.3 million during the three months ended September 30, 2021, at an average price of $33.29 per share[110] - Cumulative total of 3,946,187 shares of Class A common stock repurchased at a total cost of $69.6 million, averaging $17.63 per share[110] Costs and Expenses - Total operating expenses for the three months ended September 30, 2021 were $127.3 million, an increase of $19.2 million, or 17.8%, from $108.1 million for the same period in 2020[168] - Personnel compensation and benefits increased by $8.5 million, or 17.9%, to $55.8 million for the three months ended September 30, 2021, from $47.4 million for the same period in 2020[176] - Interest expense for the three months ended September 30, 2021, was $4.0 million, a decrease of 35.9% from $6.2 million in the same period of 2020[107] - Total interest expense and other financing costs for the nine months ended September 30, 2021, was $18.9 million, down 35.4% from $29.3 million in the same period of 2020[107] - Acquisition-related costs for the three months ended September 30, 2021 were $6.0 million, compared to $1.1 million for the same period in 2020[187] Acquisitions - The company completed the acquisition of New Energy Capital Partners on November 1, 2021, expanding its investment franchise to eleven[151] - The company completed the acquisition of THB Asset Management on March 1, 2021, with total assets under management (AUM) acquired amounting to $547 million[25] - The company has entered into a definitive agreement to acquire WestEnd Advisors for an aggregate purchase price of $480 million in cash, with potential earn-out payments of up to $320 million[129] - The company paid $37.5 million in cash for the second annual earn-out period related to the USAA AMCO Acquisition on October 12, 2021[126] Cash Flow - Cash provided by operating activities for the nine months ended September 30, 2021, was $264.1 million, up from $182.7 million in 2020, reflecting a 44.5% increase[22] - The company reduced outstanding debt by $35.0 million for the three months ended September 30, 2021, and by $142.0 million for the nine months ended September 30, 2021, totaling a reduction of $453.8 million since July 1, 2019[208] - The company maintained a $100.0 million revolving credit facility as of September 30, 2021, with approximately $100.0 million undrawn[207] Tax and Regulatory - The provision for income taxes for the three months ended September 30, 2021, was $18.2 million, or 19.7% of pre-tax income, compared to $17.0 million, or 23.4% in the same period of 2020[98] - The effective tax rate for the three months ended September 30, 2021 was 19.7%, down from 23.4% in 2020, primarily due to an increase in excess tax benefits on share-based compensation[197] - The company plans to eliminate its dual-class share structure, pending shareholder approval at a special meeting scheduled for November 19, 2021[28]

Victory Capital Management, Inc. (NASDAQ:VCTR) Q3 2021 Earnings Conference Call November 5, 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 Robert Lee - KBW Alex Blostein - Goldman Sachs Cullen Johnson - B. Riley Securities Kenneth Lee - RBC Capital Markets Owen Lau - Oppenheimer Michael Cyprys - Morgan Stanley Ken Worthington - JPMorgan Operator Good morning, and welcome to the Victory ...

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 ...

Financial Data and Key Metrics Changes - Total AUM reached $154.3 billion, with long-term AUM at $151 billion, both record highs [10] - Revenues increased by 6% quarter-over-quarter to $213 million, driven by higher AUM and improved average fee rates [11][43] - Adjusted earnings per share rose by 6% to $1.13, reflecting a tax benefit [12][56] - Adjusted EBITDA margins remained above 50% for the third consecutive quarter, recorded at 50.2% [12][44] - GAAP net income increased to $65.2 million or $0.88 per diluted share, up from $54.9 million or $0.75 per diluted share in the previous quarter [45] Business Line Data and Key Metrics Changes - Investment performance remained strong, with the majority of AUM outperforming benchmarks [14] - The acquisition of THB Asset Management added a 5-star rated Micro Cap Fund to the product lineup [15] - The number of mutual funds and ETFs with 4 or 5-star ratings by Morningstar grew to 45, representing 62% of AUM in mutual fund and ETF wrappers [16] Market Data and Key Metrics Changes - Long-term gross sales increased by 18% during the quarter, while net long-term outflows improved to $983 million, a 33% reduction from the previous quarter [49] - The floating rate fund and high-yield fund performed well, attracting positive net flows due to the evolving interest rate environment [20][104] Company Strategy and Development Direction - The company is optimistic about long-term organic growth, particularly through the integration of THB and investments in Alderwood [16][18] - Focus on expanding distribution channels and enhancing product offerings in response to changing market conditions [19][24] - Active pursuit of acquisitions to enhance scale and distribution capabilities, with a favorable environment for M&A [41][100] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about organic growth prospects, citing improved net flows and strong investment performance [49][76] - The company is well-positioned to benefit from shifts in investor preferences and potential changes in interest rates and tax policies [115] - The management highlighted the importance of maintaining a flexible balance sheet to capitalize on M&A opportunities [41][106] Other Important Information - The company paid down an additional $50 million in debt during the quarter, reducing the net debt to annualized adjusted EBITDA leverage ratio to 1.6 times [12][58] - A quarterly dividend of $0.12 per share was declared, representing a 140% increase since the same time last year [13] Q&A Session Summary Question: Can you elaborate on the components within compensation expense? - Management noted seasonal increases in payroll taxes and employee benefits, with a $2.9 million quarter-over-quarter increase attributed to seasonality [62][63] Question: What is the potential ramp-up of AUM within THB? - Management indicated that it will take time to fill the $15 billion capacity in THB products, with expectations for gradual growth starting in 2021 [66][67] Question: How do you quantify the shift from outflows to inflows? - Management acknowledged a lessening impact from the USAA Schwab transaction and highlighted investments in distribution as key contributors to improved flows [72][74] Question: Can you provide details on the impact of fulcrum fees? - The negative impact of fulcrum fees was noted as negative 0.4 basis points in the first quarter, with potential upside of 1 to 2 basis points as performance improves [78][80] Question: What is the current M&A environment like? - Management described the M&A environment as favorable, with many firms considering transactions due to ongoing industry challenges [99][100] Question: What drove positive net flows in fixed income this quarter? - Management attributed positive net flows in fixed income to strong product performance and increased distribution capabilities [104]

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 ...