Victory Capital Holdings, Inc. (NASDAQ: VCTR)

Victory Capital Holdings, Inc. (VCTR) is a diversified global asset management firm that manages $166.6 billion in total assets as of December 31, 2023. The company operates in the asset management industry and provides specialized investment strategies to institutions, intermediaries, retirement platforms, and individual investors.

Victory Capital's main business activities involve offering a wide array of investment products, including actively and passively managed mutual funds, rules-based and active exchange-traded funds (ETFs), institutional separate accounts, variable insurance products, alternative investments, private closed-end funds, and a 529 Education Savings Plan. The company's 11 Investment Franchises and Solutions Platform offer a diverse range of investment strategies, with the majority consisting of fixed income, U.S. small- and mid-cap equities, global/non-U.S. equities, model portfolios, and solutions. These asset classes collectively comprise 88% of the company's total AUM, and 90% of long-term AUM as of December 31, 2023.

The company generates revenue primarily from the fees it charges for managing its clients' assets. Its primary products include mutual funds, ETFs, and institutional separate accounts. Victory Capital's competitive advantage lies in its integrated platform, which provides centralized distribution, marketing, and support functions to the Investment Franchises, while allowing them to maintain complete investment autonomy. This structure enables the Franchises to focus on the investment process, providing them with a scaled platform to enhance their investment performance and consequently their growth prospects.

The company's key competitors include other global asset management firms such as BlackRock, Vanguard, and State Street Global Advisors. Victory Capital differentiates itself from its competitors through its unique business model, which combines the benefits of boutique investment managers with the scale and resources of a large organization. This model allows the company to provide specialized investment strategies while maintaining the agility and innovation of smaller investment firms.

Victory Capital's investment performance has been strong, with 79% of its strategies by AUM having returns in excess of their respective benchmarks over a ten-year period, 84% over a five-year period, 62% over a three-year period, and 49% over a one-year period. A high percentage of the company's mutual fund and ETF assets have four- or five-star Morningstar ratings.

The company's customers include institutional investors, financial advisors, and individual investors. Victory Capital's brand names and/or trade names of its products and services include VictoryShares ETF, a 529 Education Savings Plan, and its various mutual funds and institutional separate accounts.