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1. Company Snapshot

1.a. Company Description

Victory Capital Holdings, Inc., together with its subsidiaries, operates as an asset management company worldwide.It offers investment advisory, fund administration, fund compliance, fund transfer agent, and fund distribution services.The company provides specialized investment strategies to institutions, intermediaries, retirement platforms, and individual investors.


As of December 31, 2021, its franchises and solutions platform managed a set of 130 investment strategies for a range of institutional and retail clients, and direct investors.The company has strategic alliance with Xavier University of Louisiana.Victory Capital Holdings, Inc.


was incorporated in 2013 and is headquartered in San Antonio, Texas.

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1.b. Last Insights on VCTR

Victory Capital Holdings, Inc.'s recent performance was positively driven by its record fourth-quarter results, with earnings of $1.78 per share beating estimates. The company's revenue and gross flows also reached record levels. Additionally, Victory Capital's proposed acquisition of Janus Henderson, with a 37% premium, has sparked a bidding war, showcasing its growth strategy. Analysts have a "Moderate Buy" consensus rating on the stock, with six buy recommendations. The company's strong earnings and expansion efforts have garnered attention from institutional investors, including Rhumbline Advisers and Aurora Investment Counsel.

1.c. Company Highlights

2. Victory Capital's Transformative 2025: A Year of Record Financial Performance

Victory Capital's fourth quarter 2025 earnings call highlighted a year marked by significant operating and financial milestones. The company's revenue reached $374.1 million, up 3.6% sequentially, driven by a 3.1% increase in average AUM to $312.9 billion. Adjusted EBITDA reached a record $197.5 million, with an adjusted EBITDA margin of 52.8%, one of the highest in the industry. The company's adjusted earnings per diluted share was $1.78, beating estimates of $1.66. For the full year 2025, Victory Capital achieved record financial performance across key metrics, surpassing $1 billion in annual revenue for the first time.

Publication Date: Feb -15

📋 Highlights
  • Record AUM and Flows:: Q4 2025 AUM reached $317 billion, with long-term gross flows of $17.1 billion, the highest quarterly inflow.
  • Adjusted EBITDA Milestone:: Generated record adjusted EBITDA of $197.5 million at a 52.8% margin, the highest in the industry.
  • Annual Revenue Breakthrough:: Full-year 2025 revenue surpassed $1 billion for the first time, driven by 80% growth in client assets to $316.6 billion.
  • Strategic Acquisition Impact:: Pioneer acquisition added $268.8 billion in average AUM for 2025, enhancing global scale and investment capabilities.
  • Strong Shareholder Returns:: Returned $366 million to shareholders in 2025, including a $0.49 quarterly dividend, with a net leverage ratio of 1x post-debt restructuring.

Strategic Partnerships and Acquisitions

The acquisition of Amundi's U.S. business, Pioneer Investments, was deemed transformational, enhancing scale, investment capabilities, and global presence. The company has demonstrated a repeatable playbook for identifying, acquiring, integrating, and creating shareholder value from transformational transactions, with the Pioneer acquisition exceeding its original accretion estimates. Victory Capital expects continued growth, driven by its diversified platform, international expansion, and product launches.

Valuation and Growth Prospects

With a P/E Ratio of 22.63 and an EV/EBITDA of 14.21, the market is pricing in a certain level of growth for Victory Capital. Analysts estimate next year's revenue growth at 5.2%. The company's strong balance sheet, with a net leverage ratio of 1x, and substantial liquidity position it well for future inorganic growth. The company's focus on strategic M&A and its track record of consistently achieving stepwise growth through acquisitions are expected to drive future value creation.

Capital Management and Future Plans

The company has a new consolidated Term Loan B with a 7-year term, effectively pushing out its debt maturity to 2032, and has lowered its borrowing costs. Victory Capital plans to launch more UCITS products in 2026, and expects these to contribute to an improvement in non-U.S. flows. The company is also investing in distribution platforms through partnerships, which are providing benefits and will be a key part of its future growth.

3. NewsRoom

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VCTR Proposes the Acquisition of JHG, Sees $500M in Cost Synergies

Mar -03

Source: zacks.com

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Victory Capital Chairman and CEO Pens Open Letter to Janus Henderson Employees

Mar -02

Source: businesswire.com

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Molly Weiss Named Chief Technology Officer and Head of Digital Innovation

Mar -02

Source: businesswire.com

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Victory Capital Tops Trian's Bid for Janus Henderson

Feb -26

Source: youtube.com

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Victory Capital submits $57 per share rival bid for Janus Henderson

Feb -26

Source: reuters.com

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Victory Capital Bids to Acquire Janus Henderson

Feb -26

Source: wsj.com

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Victory Capital swoops in with counterbid for Janus Henderson

Feb -26

Source: marketwatch.com

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Victory Capital Affirms Fully Financed, Clearly Superior Proposal to Acquire Janus Henderson

Feb -26

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Investment Management Fees - Mutual Funds (Victory Funds)

Expected Growth: 5.0%

Victory Funds' 5.0% growth in investment management fees is driven by increasing assets under management (AUM) from successful fund launches, strong investment performance, and strategic acquisitions. Additionally, the company's diversified product offerings, expanding distribution channels, and growing demand for actively managed funds also contribute to the growth.

Investment Management Fees - Separate Accounts and Other Vehicles

Expected Growth: 5.0%

Victory Capital Holdings, Inc.'s 5.0% growth in Investment Management Fees - Separate Accounts and Other Vehicles is driven by increasing assets under management, expansion of distribution channels, and a growing demand for customized investment solutions. Additionally, the company's strategic acquisitions and partnerships have enhanced its product offerings, contributing to the growth.

Fund Administration and Distribution Fees - Administration Fees - Mutual Funds (Victory Funds)

Expected Growth: 5.0%

Victory Funds' 5.0% growth in administration fees is driven by increasing assets under management (AUM), fueled by strong investment performance, successful product launches, and strategic acquisitions. Additionally, the company's focus on operational efficiency and cost savings initiatives have contributed to the growth.

Fund Administration and Distribution Fees - Transfer Agent Fees - Mutual Funds (Victory Funds III)

Expected Growth: 5.0%

Victory Funds III's 5.0% growth in Fund Administration and Distribution Fees, driven by increased assets under management, is attributed to strong investment performance, effective distribution channels, and a growing retail investor base. Additionally, the transfer agent fees benefit from the fund's expanding presence in the market, resulting in higher transaction volumes.

Fund Administration and Distribution Fees - Distribution Fees - Mutual Funds (Victory Funds)

Expected Growth: 5.0%

Victory Funds' 5.0% growth in Distribution Fees is driven by increasing assets under management (AUM) from successful fund launches, strategic partnerships, and expanding distribution channels. Additionally, the company's focus on investment performance, risk management, and customer service has led to increased investor confidence, resulting in higher sales and revenue growth.

Investment Management Fees - Exchange Traded Funds (Victory Shares)

Expected Growth: 5.0%

Victory Shares' 5.0% growth in Investment Management Fees is driven by increasing adoption of ETFs, expansion into new markets, and strategic partnerships. Strong investment performance, competitive pricing, and a diverse product suite also contribute to growth. Additionally, Victory Capital's robust distribution network and advisor engagement efforts support the segment's expansion.

Investment Management Fees - Performance-based Fees - Mutual Funds (Victory Funds III)

Expected Growth: 5.0%

Victory Funds III's 5.0% growth in performance-based fees is driven by strong investment performance, increasing assets under management, and a competitive fee structure. The fund's ability to attract and retain investors, coupled with its successful investment strategies, has led to an increase in revenue from performance-based fees.

Fund Administration and Distribution Fees - Administration Fees - Exchange Traded Funds (Victory Shares)

Expected Growth: 5.0%

Victory Shares' 5.0% growth in administration fees is driven by increasing demand for ETFs, expansion of distribution channels, and strategic partnerships. The rise of passive investing and growing adoption of ETFs among institutional and retail investors also contribute to this growth. Additionally, Victory Capital's strong brand reputation and competitive pricing strategy support the segment's growth.

Investment Management Fees - Performance-based Fees - Separate Accounts and Other Vehicles

Expected Growth: 5.0%

Victory Capital Holdings, Inc.'s 5.0% growth in Investment Management Fees, driven by Performance-based Fees and Separate Accounts and Other Vehicles, is attributed to strong investment performance, increased assets under management, and strategic acquisitions. Additionally, the company's diversified product offerings, robust distribution network, and cost discipline have contributed to its growth momentum.

7. Detailed Products

Institutional Asset Management

Victory Capital Holdings, Inc. offers institutional asset management services to institutional clients, including pension funds, endowments, and foundations.

Retail Asset Management

The company provides retail asset management services to individual investors, financial advisors, and broker-dealers.

US Equity

Victory Capital Holdings, Inc. offers a range of US equity investment strategies, including large-cap, mid-cap, and small-cap equities.

Fixed Income

The company provides fixed income investment strategies, including high-yield bonds, investment-grade bonds, and municipal bonds.

Solutions Platform

Victory Capital Holdings, Inc. offers a solutions platform that provides investors with access to a range of investment strategies and products.

Exchange-Traded Funds (ETFs)

The company offers a range of ETFs that track various market indices, sectors, and asset classes.

8. Victory Capital Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Victory Capital Holdings, Inc. is medium due to the presence of alternative investment products and services offered by competitors.

Bargaining Power Of Customers

The bargaining power of customers for Victory Capital Holdings, Inc. is low due to the company's diversified client base and lack of concentration of clients.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Victory Capital Holdings, Inc. is medium due to the company's dependence on a few key suppliers for certain services.

Threat Of New Entrants

The threat of new entrants for Victory Capital Holdings, Inc. is high due to the relatively low barriers to entry in the investment management industry.

Intensity Of Rivalry

The intensity of rivalry for Victory Capital Holdings, Inc. is high due to the highly competitive nature of the investment management industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 48.56%
Debt Cost 8.57%
Equity Weight 51.44%
Equity Cost 8.57%
WACC 8.57%
Leverage 94.39%

11. Quality Control: Victory Capital Holdings, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Federated Hermes

A-Score: 7.5/10

Value: 6.0

Growth: 6.6

Quality: 8.5

Yield: 6.0

Momentum: 8.0

Volatility: 9.7

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Hercules Capital

A-Score: 7.1/10

Value: 5.7

Growth: 3.4

Quality: 8.8

Yield: 10.0

Momentum: 5.0

Volatility: 9.7

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Golub Capital BDC

A-Score: 7.0/10

Value: 6.4

Growth: 6.0

Quality: 6.6

Yield: 10.0

Momentum: 3.0

Volatility: 10.0

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Ares Capital

A-Score: 7.0/10

Value: 5.9

Growth: 4.7

Quality: 7.3

Yield: 10.0

Momentum: 4.0

Volatility: 10.0

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Victory Capital Holdings

A-Score: 6.3/10

Value: 5.8

Growth: 6.7

Quality: 7.8

Yield: 6.0

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

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FS KKR Capital

A-Score: 6.3/10

Value: 6.2

Growth: 4.6

Quality: 5.8

Yield: 10.0

Momentum: 2.0

Volatility: 9.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

69.18$

Current Price

69.18$

Potential

-0.00%

Expected Cash-Flows