On this page of StockholderLetter.com we present the latest annual shareholder letter from Victory Capital Holdings, Inc. — ticker symbol VCTR. Reading current and past VCTR letters to shareholders can bring important insights into the investment thesis.


Strategic Partnership with Amundi In 2024. Victory Capital announced plans to enter into a strategic and multifaceted transaction with Amundi that will positively t ransform and globalize our business and g ive us the opportunity to reach clients around the world. The partnership represents a significant milestone in ou r lo ng-term growth strategy and is expected to generate meaningful value creation for our shareholders. It includes t hree strategic components: 15-year global and reciprocal exclusive distribution agreements with Amundi Through t hese agreements. Victory Capital will be the exclusive provider of traditional active U.S. asset management products for Amundi. This will allow us to signif icantly expand our reach outside the U.S. t hrough Amundi's extensive global client base and distribution channels. Amundi's clients, in tur n, will benefit from Victory Capital's deep investment expertise and strong investment performance track record across a wider range of U.S. manufactured solutions. Victory Capital will also be t he exclusive distributor of Amundi investment strategies to clients in t he U.S. Victory Capital to acquire Amundi US A second dimension of the transaction is t he acquisition of Amundi's U.S. business by Victory Capital, which adds significant size and scale to our Company, enhances o ur investment capabilit ies. and diversifies our client base with an increased presence in and outside t he U.S. The size of our U.S. intermediary and institutional distribution and marketing teams will also expand, and t he transaction provides us wit h t he opportunity to reintroduce the Pioneer Investments brand as our 12th Investment Franchise. Bringing back the Pioneer brand reinforces the long history of excellence by the investment teams who manage the various Pioneer inv estment strategies and who will remain with Victory Capital after the t ransaction is completed. As consideration for t he Amundi US business, Amundi will receive up to a 26.1% economic stake in Victory Capital that carries voting rights of 4.9%. Two Amundi appointees will a lso jo in the Victory Capital Board of Director s at t he close of the transaction. Amundi's stake in our firm w ill align our respect ive economic interests and set the foundation for a successful long-term partnership. Attractive financial profile The t ransaction is both strategic in nature and attractive from a f inancial standpoint. Bringing Amundi US onto our platform aligns very well with our acquisition history and proven playbook. and we anticipate the transaction to be accretive to EPS. Additionally, the t ransaction will st rengthen our balance sheet and increase our financial flexibility to allow us to continue our growth strategy going forward.
Financial Performance Our business and f inanc ial performance for 2024 produced record results . We achieved the highest adjusted earnings per d i1luted share with tax benefit. adjusted EBITDA. and adjusted EBITDA margin in the history of our firm for the full-year period. We ended December wit h $176.1 billion of Total Client Assets. which was up $9.5 billion. or 6%. from the end of last year. For t he full year, we generated record-high revenue of $893 million, which was a 9% increase from 2023. the best-performing public traditional asset manager stock in the U.S. in terms of total shareholder return in calendar year 2024 and for t he period since our IPO in February 2018 through end of year 2024. Stock Price Appreciation Best-Performing Public Traditional Asset Manager Stock in the U.S. Year-over-year adjusted earnings per diluted share rose 19%. from $4.51 in 2023 to $5.36 in 2024. Also on a year-over-year basis. adjusted EBITDA grew by 14% t o $476 million in 2024. and adjusted EBITDA margin xpanded by 230 basis points to 53.2% . Turning to capital allocation, cash on t he balance sheet rose by $3 million during 2024. reaching $127 m illion at year-end. following the return of $231 million to shareholders in t he form of share repurchases and cash dividends for t he f ull year 2024. In December. the Victory Capital Holdings Board authorized a new $200 m illion share repurchase program. The Board also authorized a 7% increase in our qu arterly cash dividend to $0.47 per share. The dividend. which is payable in March 2025. is the highest quarterly dividend payout in our Company's hist ory. We increased our cash dividend every quarter in 2024. Value Creation for Shareholders Victory Capital has a strong history of value creation for shareholders t hat is attributable to our unwavering principles and differentiated business model coupled with superior execution. Our stock. (Nasdaq: VCTR), was ' ' Victory Capital has a strong history of value creation for shareholders that is attributable to our unwavering principles and d ifferentiated business model coupled with superior execution. 12/31120 23 12/31/2024 Since the I PO. we have grown annualized adjusted EBITDA by $344 million. an increase of 215%, and expanded our adjust ed EBITDA margin by 1.610 basis points. to 54.0% from 37.9%. Commitment to Investment Excellence See king long-t erm. risk-adjusted returns t hat drive better investor outcomes for our clients has been and will remain our highest priority. Our Investment Franchises continued to deliver against t his objective in 2024. At year-end. 66% of AUM in m utual f unds and ETFs received Overal l Morningstar Ratings of four o r five stars. Add itionally, 59% of f irmwide AU M outperformed benchmarks for the t hree-year period and 73% outperformed benchmarks for the five-year period ended December 31. 2024. Our funds received eight 2025 LSEG Lipper Fund Awards for consistently delivering strong riskadju sted performance relative to peers. For the period ended November 30. 2024. LSEG Lipper recognized two of our equity funds and two f ixed income funds for t he t hree-year period, two f ixed income funds for t he f ive-year period. and one equity and one f ixed income fund for t he 10-year period.
Victory Capital employees and UTSA students gather in the Financial Studies Center to celebrate our partnership. which is designed to help business students prepare for careers in t he investment and financial industries. These accolades. which measure our performance relative t o our industry peers, are a direct reflection of the tireless dedication of our investment professionals, who strive every day to deliver investment excellence on beha If of our clients and investors. Growth of Our ETF Platform We continue to invest in key areas of our business. includi ng product innovation and dedicated distribution resources. Investor demand for ETFs continues to grow and is a focus area for us. We started with less than $200 million of ETF AUM when we acquired the capability in 2015. As of the end of February 2025, AUM invested across t he 26 ETFs on our platform had grown to more than $12.4 billion. Invest or interest in solutions-oriented and act ive ETFs aligns with our core strength of delivering alpha and/or targeted outcomes through proven investment capabilities. We will continue to leverage the expertise of our Investment Franchises and Solutions Platform, coupled with dedicated distribution and marketing professionals, to grow this business in t he f uture. We also remain committed to introducing innovative new ETFs designed to meet the needs of our c lients. In 2024, we expanded our ETF offerings with four new strategies, and we are continuing to evaluative our product set and explore new investment ideas in 2025. Responsible Business and Community Engagement Our core values play a key role in influencing and supporting our business practices. In 2024, we published our f irst Responsible Business Report. which highlight s this commitment along with our dedication to our people. our clients and our communities. You can access t he most recent report on our website at vcm.com. We recent ly announced a newly established partnership w ith the University of Texas at San Antonio's (UTSA) Carlos Alvarez College of Business. The partnership includes a f inancial commitment by Victory Capital to enhance technology within the College's Financial Studies Center as well as to provide students across the University with access to finance-based tools and resou rces. ' ' I believe our employees are the best in the industry, and I am honored t o work alongside such a talented and dedicated group of professionals. ' ' iii
 • shareholder letter icon 3/28/2025 Letter Continued (Full PDF)
 • stockholder letter icon 3/30/2023 VCTR Stockholder Letter
 • stockholder letter icon 3/28/2024 VCTR Stockholder Letter
 • stockholder letter icon More "Investment Companies & Venture Capital" Category Stockholder Letters
 • Benford's Law Stocks icon VCTR Benford's Law Stock Score = 62


VCTR Shareholder/Stockholder Letter Transcript:



Strategic Partnership with Amundi
In 2024. Victory Capital announced plans to enter into a
strategic and multifaceted transaction with Amundi that
will positively t ransform and globalize our business and
g ive us the opportunity to reach clients around the world.
The partnership represents a significant milestone in
ou r lo ng-term growth strategy and is expected to
generate meaningful value creation for our shareholders.
It includes t hree strategic components:
15-year global and reciprocal exclusive distribution
agreements with Amundi
Through t hese agreements. Victory Capital will be
the exclusive provider of traditional active U.S. asset
management products for Amundi. This will allow us to
signif icantly expand our reach outside the U.S. t hrough
Amundi's extensive global client base and distribution
channels. Amundi's clients, in tur n, will benefit from
Victory Capital's deep investment expertise and strong
investment performance track record across a wider
range of U.S. manufactured solutions. Victory Capital will
also be t he exclusive distributor of Amundi investment
strategies to clients in t he U.S.
Victory Capital to acquire Amundi US
A second dimension of the transaction is t he acquisition
of Amundi's U.S. business by Victory Capital, which adds
significant size and scale to our Company, enhances o ur
investment capabilit ies. and diversifies our client base with
an increased presence in and outside t he U.S. The size of
our U.S. intermediary and institutional distribution and
marketing teams will also expand, and t he transaction
provides us wit h t he opportunity to reintroduce the Pioneer
Investments brand as our 12th Investment Franchise.
Bringing back the Pioneer brand reinforces the long history
of excellence by the investment teams who manage the
various Pioneer inv  estment strategies and who will remain
with Victory Capital after the t ransaction is completed.
As consideration for t he Amundi US business, Amundi
will receive up to a 26.1% economic stake in Victory Capital
that carries voting rights of 4.9%. Two Amundi appointees
will a lso jo in the Victory Capital Board of Director s at
t he close of the transaction. Amundi's stake in our firm
w ill align our respect ive economic interests and set the
foundation for a successful long-term partnership.
Attractive financial profile
The t ransaction is both strategic in nature and attractive
from a f inancial standpoint. Bringing Amundi US onto
our platform aligns very well with our acquisition history
and proven playbook. and we anticipate the transaction
to be accretive to EPS. Additionally, the t ransaction will
st rengthen our balance sheet and increase our financial
flexibility to allow us to continue our growth strategy
going forward.

Financial Performance
Our business and f inanc ial performance for 2024
produced record results . We achieved the highest
adjusted earnings per d i1luted share with tax benefit.
adjusted EBITDA. and adjusted EBITDA margin in
the history of our firm for the full-year period.
We ended December wit h $176.1 billion of Total
Client Assets. which was up $9.5 billion. or 6%. from
the end of last year. For t he full year, we generated
record-high revenue of $893 million, which was a
9% increase from 2023.
the best-performing public traditional asset manager
stock in the U.S. in terms of total shareholder return in
calendar year 2024 and for t he period since our IPO
in February 2018 through end of year 2024.
Stock Price Appreciation
Best-Performing Public Traditional Asset
Manager Stock in the U.S.
Year-over-year adjusted earnings per diluted share
rose 19%. from $4.51 in 2023 to $5.36 in 2024. Also
on a year-over-year basis. adjusted EBITDA grew by
14% t o $476 million in 2024. and adjusted EBITDA
margin    xpanded by 230 basis points to 53.2% .
Turning to capital allocation, cash on t he balance
sheet rose by $3 million during 2024. reaching $127
m illion at year-end. following the return of $231 million
to shareholders in t he form of share repurchases and
cash dividends for t he f ull year 2024.
In December. the Victory Capital Holdings Board
authorized a new $200 m illion share repurchase
program. The Board also authorized a 7% increase
in our qu arterly cash dividend to $0.47 per share.
The dividend. which is payable in March 2025. is the
highest quarterly dividend payout in our Company's
hist ory. We increased our cash dividend every
quarter in 2024.
Value Creation for Shareholders
Victory Capital has a strong history of value creation
for shareholders t hat is attributable to our unwavering
principles and differentiated business model coupled
with superior execution. Our stock. (Nasdaq: VCTR), was
' ' Victory Capital has a strong
history of value creation for
shareholders that is attributable
to our unwavering principles and
d ifferentiated business model
coupled with superior execution.

12/31120 23
12/31/2024
Since the I PO. we have grown annualized adjusted
EBITDA by $344 million. an increase of 215%, and
expanded our adjust ed EBITDA margin by 1.610
basis points. to 54.0% from 37.9%.
Commitment to Investment Excellence
See king long-t erm. risk-adjusted returns t hat drive
better investor outcomes for our clients has been
and will remain our highest priority. Our Investment
Franchises continued to deliver against t his
objective in 2024.
At year-end. 66% of AUM in m utual f unds and ETFs
received Overal l Morningstar Ratings    of four
o r five stars. Add itionally, 59% of f irmwide AU M
outperformed benchmarks for the t hree-year period
and 73% outperformed benchmarks for the five-year
period ended December 31. 2024.
Our funds received eight 2025 LSEG Lipper Fund
Awards for consistently delivering strong riskadju sted performance relative to peers. For the
period ended November 30. 2024. LSEG Lipper
recognized two of our equity funds and two f ixed
income funds for t he t hree-year period, two f ixed
income funds for t he f ive-year period. and one equity
and one f ixed income fund for t he 10-year period.

Victory Capital employees and UTSA students gather in the Financial Studies Center to celebrate our partnership. which is designed to
help business students prepare for careers in t he investment and financial industries.
These accolades. which measure our performance
relative t o our industry peers, are a direct reflection of
the tireless dedication of our investment professionals,
who strive every day to deliver investment excellence
on beha If of our clients and investors.
Growth of Our ETF Platform
We continue to invest in key areas of our business.
includi ng product innovation and dedicated
distribution resources. Investor demand for ETFs
continues to grow and is a focus area for us. We
started with less than $200 million of ETF AUM when
we acquired the capability in 2015. As of the end of
February 2025, AUM invested across t he 26 ETFs
on our platform had grown to more than $12.4 billion.
Invest or interest in solutions-oriented and act ive
ETFs aligns with our core strength of delivering
alpha and/or targeted outcomes through proven
investment capabilities. We will continue to leverage
the expertise of our Investment Franchises and
Solutions Platform, coupled with dedicated
distribution and marketing professionals, to grow
this business in t he f uture.
We also remain committed to introducing innovative
new ETFs designed to meet the needs of our c lients.
In 2024, we expanded our ETF offerings with four
new strategies, and we are continuing to evaluative
our product set and explore new investment ideas
in 2025.
Responsible Business and Community
Engagement
Our core values play a key role in influencing and
supporting our business practices. In 2024, we
published our f irst Responsible Business Report.
which highlight s this commitment along with
our dedication to our people. our clients and our
communities. You can access t he most recent
report on our website at vcm.com.
We recent ly announced a newly established
partnership w ith the University of Texas at
San Antonio's (UTSA) Carlos Alvarez College
of Business. The partnership includes a f inancial
commitment by Victory Capital to enhance
technology within the College's Financial Studies
Center as well as to provide students across the
University with access to finance-based tools
and resou rces.
' ' I believe our employees are the best
in the industry, and I am honored t o
work alongside such a talented and
dedicated group of professionals. ' '
iii



shareholder letter icon 3/28/2025 Letter Continued (Full PDF)
 

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