Financial Data and Key Metrics Changes - Total AUM increased to $183.7 billion, up 25% year-over-year and 15% from the previous quarter [12][32] - Record revenue of $890 million for the year, a 15% increase from 2020, with Q4 revenue reaching $229.1 million, a 14% increase year-over-year [28][36] - Adjusted net income with tax benefit per diluted share was $1.27 in Q4 and $4.82 for the year, reflecting a 25% improvement from 2020 [12][30] Business Line Data and Key Metrics Changes - The direct investor business showed material improvement with new account registrations growing steadily, achieving net flow positive for the 529 plan since its acquisition in 2019 [13][14] - Gross long-term sales reached a record $27.9 billion in 2021, a 20% increase from the previous record in 2020, with long-term net flows improving by 64% year-over-year [33][34] Market Data and Key Metrics Changes - The company experienced net outflows in Q4 due to two large one-time redemptions, but was net flow positive in November and had modest outflows in December [33][52] - The average realized fee rate was 56.0 basis points in Q4, with expectations of a decrease due to the acquisition of WestEnd Advisors, which has a lower average fee rate [35][36] Company Strategy and Development Direction - The company aims to continue its growth strategy through acquisitions, having closed two strategic acquisitions in Q4 2021, and plans to maintain a similar pace in 2022 [7][25] - The elimination of the dual-class share structure is expected to enhance eligibility for inclusion in major indexes, potentially leading to increased buying from index funds [15][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current operating environment, noting that market volatility could benefit active managers and create opportunities for capturing assets in motion [72] - The company plans to maintain its adjusted EBITDA margin guidance of approximately 49% for 2022, despite ongoing investments in growth initiatives [38][75] Other Important Information - The company returned over $134 million to shareholders since its IPO, with a 178% increase in the cash dividend declared [19][41] - Employee ownership is significant, with approximately 20% of the company owned by employees, reflecting a strong ownership culture [22][23] Q&A Session Summary Question: Update on WestEnd Advisors acquisition and cross-sell opportunities - The acquisition is progressing well, with successful cross-selling and distribution opportunities being explored [44][45] Question: Potential for large index ETF and fund buying post dual-class structure elimination - The company anticipates eligibility for inclusion in the Russell 2000 and expects net buying from index funds in the next year [47][48] Question: Clarification on unusual outflows in October - Management indicated that the outflows were one-time events and expressed confidence in the momentum moving into 2022 [52][52] Question: Impact of market volatility on M&A conversations - Management noted that market volatility has not impacted M&A discussions, which are focused on improving business access and scalability [55][56] Question: Capital deployment priorities and dividend increase interpretation - The dividend increase is not indicative of a change in policy; excess capital will primarily be used for debt reduction [66][67] Question: Incremental margins for WestEnd Advisors - Integration onto the existing platform is expected to yield margins at parity or higher than current margins [68][69] Question: Guidance on expense trends post-pandemic - The company maintains its margin guidance and expects expenses to remain consistent, with ongoing investments in growth [74][75]

Fourth Quarter 2021 Earnings Presentation February 11, 2022 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 ...

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 ...

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].

Victory Capital Holdings, Inc. (NASDAQ:VCTR) Q4 2020 Results Earnings Conference Call February 11, 2021 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 Chris Shutler - William Blair Randy Binner - B Riley Kenneth Worthington - JPMorgan Kenneth Lee - RBC Capital Markets Jeremy Campbell - Barclays ...