Victory Capital Reports December 2024 Total Client Assets

Rhea-AI Summary

Victory Capital Holdings (NASDAQ: VCTR) reported Total Client Assets of $176.1 billion as of December 31, 2024, comprising $171.9 billion in Assets Under Management (AUM) and $4.2 billion in Other Assets. The company experienced net outflows of -$1.7 billion in long-term AUM during the fourth quarter.

The AUM breakdown by asset class shows: Solutions at $62.6 billion, Fixed Income at $24.4 billion, U.S. Mid Cap Equity at $30.6 billion, U.S. Small Cap Equity at $14.8 billion, U.S. Large Cap Equity at $14.1 billion, Global/Non-U.S. Equity at $19.1 billion, and Alternative Investments at $3.0 billion. By vehicle type, Mutual Funds led with $113.6 billion, followed by Separate Accounts at $50.8 billion, and ETFs at $7.5 billion.

Positive

• Total Client Assets reached $176.1 billion
• Diversified asset management across multiple classes and vehicles
• Strong mutual fund presence with $113.6 billion AUM

Negative

• Net outflows of -$1.7 billion in long-term AUM during Q4 2024
• Month-over-month decline in Total Client Assets from $184.0 billion to $176.1 billion

Insights

Financial Analyst

This monthly AUM report reveals concerning trends for Victory Capital. The company experienced a -$1.7 billion in net outflows during Q4 2024, while total AUM declined from $179.7 billion in November to $171.9 billion in December - a significant 4.3% monthly decrease. The decline was broad-based across asset classes, with notable weakness in U.S. Mid Cap Equity (-8.2%) and U.S. Small Cap Equity (-10.7%).

The asset mix shift shows increasing pressure on higher-fee active management products, with mutual funds declining by 4.3% month-over-month. This could negatively impact revenue and margins in upcoming quarters, as mutual funds typically generate higher fees compared to passive vehicles. With a market cap of $4 billion, VCTR's valuation could face pressure if outflows persist and fee compression continues.

Market Research Analyst

Breaking down the vehicle distribution provides critical insights into Victory's business trajectory. Traditional mutual funds still dominate at 66% of AUM ($113.6 billion), while ETFs remain a relatively small 4.4% portion at $7.5 billion. This heavy reliance on mutual funds amid an industry-wide shift toward lower-cost passive options presents a strategic challenge.

The $4.2 billion in Other Assets (institutional mandates with 2-4 bps fees) highlights pressure to compete on pricing. The 4.3% month-over-month decline in total client assets exceeds typical seasonal patterns, suggesting deeper competitive challenges beyond market movements. This data points to potential market share erosion in key segments.

Schedules Fourth-Quarter Financial Results Conference Call for February 7

SAN ANTONIO--(BUSINESS WIRE)-- Victory Capital Holdings, Inc. (NASDAQ: VCTR) (“Victory Capital” or the “Company”) today reported Total Assets Under Management (AUM) of $171.9 billion, Other Assets of $4.2 billion, and Total Client Assets of $176.1 billion, as of December 31, 2024.

For the month of December, average Total AUM was $175.8 billion, average Other Assets was $4.2 billion, and average Total Client Assets was $174.5 billion.

For the fourth quarter, the Company reported long-term AUM net flows of -$1.7 billion.

Victory Capital Holdings, Inc.
Total Client Assets (unaudited; in millions) 1
	As of:
By Asset Class	December 31, 2024				November 30, 2024
Solutions	$	62,593			$	64,510
Fixed Income		24,402				24,855
U.S. Mid Cap Equity		30,584				33,317
U.S. Small Cap Equity		14,785				16,562
U.S. Large Cap Equity		14,148				14,813
Global / Non-U.S. Equity		19,095				19,223
Alternative Investments		2,980				3,007
Total Long-Term Assets	$	168,586			$	176,286
Money Market / Short Term Assets		3,344				3,385
Total Assets Under Management2	$	171,930			$	179,672
By Vehicle
Mutual Funds3	$	113,645			$	118,755
Separate Accounts and Other Pooled Vehicles4		50,777				53,352
ETFs5		7,508				7,564
Total Assets Under Management	$	171,930			$	179,672
Other Assets6
Institutional	$	4,165			$	4,311
Total Other Assets	$	4,165			$	4,311
Total Client Assets
Total Assets Under Management	$	171,930			$	179,672
Total Other Assets		4,165				4,311
Total Client Assets	$	176,096			$	183,982

1Due to rounding, numbers presented in these tables may not add up precisely to the totals provided.

2Total AUM includes both discretionary assets under management and non-discretionary assets under advisement and excludes Other Assets.

3Includes institutional and retail share classes, money market and VIP funds.

4Includes wrap program accounts, CITs, UMAs, UCITS, private funds, and non-U.S. domiciled pooled vehicles.

5Represents only ETF assets held by third parties and excludes ETF assets held by other Victory Capital products.

6Includes low-fee (2 to 4 bps) institutional assets, previously reported in the Solutions asset class within the by asset class table and in Separate Accounts and Other Pooled Vehicles within the by vehicle table. These assets are included as part of Victory’s Regulatory Assets Under Management reported in Form ADV Part 1.

Fourth-Quarter Conference Call and Webcast Details

Victory Capital will report fourth-quarter 2024 financial results after the market closes on Thursday, February 6, 2025. The Company will host a conference call the following morning, Friday, February 7, at 8:00 a.m. ET to discuss the results. Victory Capital’s earnings release and supplemental materials will be available on the investor relations section of the Company’s website at https://ir.vcm.com before the conference call begins.

To participate in the conference call, please call 1-800-715-9871 (domestic) or 1-646-307-1963 (international), shortly before 8:00 a.m. ET and reference the Victory Capital Conference Call. A live, listen-only webcast will also be available via the investor relations section of the Company’s website at https://ir.vcm.com. For anyone who is unable to join the live event, an archive of the webcast will be available for replay, at the same location, shortly after the call concludes.

About Victory Capital

Victory Capital is a diversified global asset management firm with total assets under management of $171.9 billion, and $176.1 billion in total client assets, as of December 31, 2024. The Company employs a next-generation business strategy that combines boutique investment qualities with the benefits of a fully integrated, centralized operating and distribution platform.

Victory Capital provides specialized investment strategies to institutions, intermediaries, retirement platforms and individual investors. With 11 autonomous Investment Franchises and a Solutions Business, Victory Capital offers a wide array of investment products and services, including mutual funds, ETFs, separately managed accounts, alternative investments, third-party ETF model strategies, collective investment trusts, private funds, a 529 Education Savings Plan, and brokerage services.

Victory Capital is headquartered in San Antonio, Texas, with offices and investment professionals in the U.S. and around the world. To learn more please visit www.vcm.com or follow Victory Capital on Facebook, Twitter, and LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250110552708/en/

Investors:

Matthew Dennis, CFA

Chief of Staff

Director, Investor Relations

216-898-2412

mdennis@vcm.com

Media:

Jessica Davila

Director of Global Communications

210-694-9693

Jessica_davila@vcm.com

Source: Victory Capital Holdings, Inc.

FAQ

What was Victory Capital's (VCTR) total AUM as of December 31, 2024?

Victory Capital's total Assets Under Management (AUM) was $171.9 billion as of December 31, 2024.

How much were Victory Capital's (VCTR) net flows in Q4 2024?

Victory Capital reported long-term AUM net flows of -$1.7 billion for the fourth quarter of 2024.

What is the breakdown of Victory Capital's (VCTR) assets by vehicle type?

As of December 2024, Victory Capital's assets by vehicle type were: Mutual Funds at $113.6 billion, Separate Accounts and Other Pooled Vehicles at $50.8 billion, and ETFs at $7.5 billion.

When will Victory Capital (VCTR) report its Q4 2024 financial results?

Victory Capital will report its fourth-quarter 2024 financial results after market close on Thursday, February 6, 2025, with a conference call on Friday, February 7, at 8:00 a.m. ET.