Victory Capital's Strategic Navigation of Equity Markets Drives AUM Growth in September 2025

The third quarter of 2025 has been a period of both turbulence and opportunity for global equity markets. Amid a backdrop of artificial intelligence (AI) euphoria, a Federal Reserve rate cut, and a surge in international market participation, asset managers have faced the dual challenge of capitalizing on investor optimism while navigating short-term outflows. Victory Capital, a firm with a growing footprint in active asset management and ETF innovation, has demonstrated resilience in this environment. As of September 30, 2025, the firm reported Total Assets Under Management (AUM) of $310.6 billion and Total Client Assets of $313.4 billion, reflecting a modest but meaningful increase from August's figures of $303.7 billion and $306.4 billion, respectively, in its September 30, 2025 report and its August 2025 report. This growth, however, occurred against the backdrop of long-term AUM net outflows of -$244 million in Q3, underscoring the fragility of investor flows in a volatile market, a point noted in the September report.

Victory Capital's ability to maintain growth despite these outflows is rooted in its strategic alignment with broader market trends. The firm's partnership with Amundi, a global leader in asset management, has been a cornerstone of its expansion strategy. By leveraging Amundi's distribution channels and client base, Victory Capital has positioned itself as a key provider of active U.S. investment products in international markets, while also distributing Amundi's strategies domestically, according to Victory Capital's investor page. This cross-border collaboration not only diversifies Victory Capital's revenue streams but also taps into the growing demand for U.S. equity exposure in regions like Europe and Asia, where central bank rate cuts and trade policy easing have spurred risk-on sentiment, as noted in a January 2025 AUM report.

Equally significant is the firm's focus on active ETFs, a segment that has gained traction as investors seek cost-effective, thematic solutions. In 2024, Victory Capital introduced four new ETF strategies, and its 2025 roadmap includes ambitious targets: achieving $3 billion in positive net client cash flows and growing ETF AUM by 25%, goals outlined on the firm's investor page. These efforts align with the Q3 2025 market narrative, where AI-driven growth stocks and innovation-focused ETFs outperformed traditional sectors. For instance, the S&P 500 and Nasdaq Composite reached record highs, fueled by corporate earnings growth and the Fed's 25-basis-point rate cut in September. Victory Capital's ETF platform, with its emphasis on solutions-oriented products, is well-positioned to capture this demand, particularly as retail and institutional investors increasingly prioritize thematic exposure to AI and clean energy.

The firm's foray into alternative investments further underscores its forward-looking approach. With plans to expand alternative AUM from $5 billion to $8 billion, Victory Capital is addressing a market gap as investors seek diversification beyond traditional equities and bonds, a strategy discussed on the firm's investor page. This strategy resonates with Q3 trends, where non-U.S. markets-particularly in China, Japan, and India-outperformed their U.S. counterparts, driven by undervalued assets and trade policy optimism. By broadening its product suite to include alternatives, Victory Capital is not only catering to evolving investor preferences but also insulating itself from sector-specific volatility.

Yet, the path ahead is not without challenges. The Q3 net outflows of -$244 million highlight the fragility of long-term capital retention, particularly in a market where short-term macroeconomic uncertainties-such as the looming U.S. government shutdown-can trigger flight-to-quality behavior, a risk described in the September report. Moreover, while AI and tech stocks have been the darlings of 2025, their elevated valuations pose risks if growth expectations fail to materialize. Victory Capital's reliance on equity-driven strategies, therefore, necessitates a careful balance between innovation and risk management.

In conclusion, Victory Capital's September 2025 AUM growth reflects a firm that is strategically attuned to the dynamics of a rapidly evolving equity market. By leveraging global partnerships, expanding its ETF offerings, and diversifying into alternatives, the firm has positioned itself to capitalize on both near-term opportunities and long-term structural shifts. While Q3 outflows and macroeconomic headwinds remain concerns, the alignment of Victory Capital's initiatives with investor confidence in AI, global equities, and thematic investing suggests a resilient trajectory. As the firm prepares to discuss its third-quarter results in a November 7 conference call, the market will be watching closely to see how these strategies translate into sustained growth.