Victory Capital Holdings Inc - Ordinary Shares (VCTR) 9 Aug 24 2024 Q2 Earnings call transcript
AInvestSaturday, Aug 10, 2024 3:12 pm ET
1min read
VCTR --

In the latest earnings call for the second quarter of 2024, Victory Capital's leadership team, including CEO David Brown, President and CFO Michael Policarpo, and Chief of Staff and Director of Investor Relations Matthew Dennis, discussed the company's financial performance, strategic initiatives, and future outlook. The call was marked by a focus on the company's recent strategic partnership with Amundi, financial achievements, and plans for continued growth.

Strategic Partnership with Amundi

The highlight of the call was the announcement of Victory Capital's intention to form a strategic partnership with Amundi, which is expected to strengthen the company's position in the asset management industry. The deal, which is currently in the process of being finalized, is projected to yield significant synergies in terms of expense and revenue, contributing to the company's overall growth and profitability.

Financial Performance

Victory Capital reported exceptional financial results for the second quarter, with total client assets reaching $174 billion, marking another quarterly record. The company's earnings per share, EBITDA, and adjusted EBITDA margin all expanded, reflecting the strength of its investment franchises and solutions platform. The momentum in the fixed income products managed by the Victory Income Investors franchise and the ETF platform continued, with both reporting positive net flows for the quarter and year-to-date.

Growth Plans and Strategic Investments

The call also touched on the company's strategic investments in areas such as new products, new vehicle wrappers for existing strategies, and its ETF platform. These investments are aimed at driving growth and increasing shareholder value. The company's track record of strategic acquisitions since its IPO in 2018, totaling $1.6 billion, underscores its commitment to growth through inorganic means.

Outlook and Future Plans

Looking ahead, Victory Capital remains optimistic about the market environment, particularly with the potential easing of interest rates by the Fed, which could lead to a rotation out of large-cap stocks into the broader market. This could create a favorable tailwind for many of the asset classes the company manages. The company's plans for strategic acquisitions and continued investment in technology and people are expected to further enhance its competitive position and drive long-term growth.

Conclusion

Victory Capital's Q2 earnings call provided a comprehensive update on the company's financial performance, strategic initiatives, and future outlook. The announcement of the strategic partnership with Amundi and the company's exceptional financial results underscore its strength and commitment to growth. With a focus on strategic acquisitions, innovative product launches, and a strong balance sheet, Victory Capital is well-positioned for continued success in the asset management industry.

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