Victory Capital Explained

Victory Capital Holdings, Inc
Former Name:Key Asset Management
Type:Public
Traded As:NASDAQ:
Industry:Financial services
Predecessor:Cleveland Trust
Hq Location City:San Antonio, Texas
Hq Location Country:United States
Revenue: US$854.80 million (2022)
Operating Income: US$399.11 million (2022)
Net Income: US$275.51 million (2022)
Aum:US$163.6 billion
(April 2024)
Assets: US$2.54 billion (2022)
Equity: US$1.07 million (2022)
Num Employees: 512 (2022)
Footnotes:[1]

Victory Capital Holdings, Inc. is an American financial services company headquartered in San Antonio, Texas that focuses on investment management. Outside the US, it also has investment professionals in London, Hong Kong and Singapore.

History

The origins of Victory Capital are traced back to Cleveland Trust, a bank that was established in 1894 in Cleveland, Ohio with $500,000 in capital. In 1903, it merged with the Western Reserve Trust Company.[2] [3]

In the early 1970, it formed a holding company for itself named CleveTrust which was not subject to the same limitations of individual banks and was able establish to affiliates throughout the state. By 1977, the trust company of it managed $7 billion in trust funds for its client. In 1979, CleveTrust was renamed to AmeriTrust Corporation and in 1983, it changed to a national charter allowing it to expand outside the state of Ohio.

In the 1980s, AmeriTrust Corporation was weakened by the real estate market collapse and in September 1991, was acquired by Society Corporation.[4]

In 1993, the trust company under Society Corporation was established as its own registered investment adviser under the name Society Asset Management.[5]

In March 1994, Society Corporation merged with Keycorp and Society Asset Management was renamed to Key Asset Management. Gradison McDonald Investments and Spears, Benzak, Salomon & Farrell, both investment firms also acquired by KeyCorp were subsidiaries of Key Asset Management. William G. Spears was the chairman and CEO of Key Asset management from 1996 to 1999. In 1999, Key Asset Management had managed $72 billion in total assets.[6] [7] [8] [9]

In 2001, Key Asset Management was renamed to Victory Capital. Its subsidiaries Gradison McDonald and Spears, Benzak, Salomon & Farrell also took the Victory Capital brand name although their operations would remain independent.

In February 2013, Victory Capital partnered with Crestview Partners to complete a management buyout from KeyCorp for $246 million to become an independent firm. The sale included its broker-dealer affiliate, Victory Capital Advisers. At the time it had $22 billion in assets under management.[10] [11]

In October 2014, Victory Capital acquired Munder Capital Management and its subsidiary Integrity Asset Management.[12]

In May 2015, Victory Capital completed its acquisition of Compass EMP and started offering exchange-traded funds (ETFs).[13]

In July 2016, Victory Capital acquired RS investments from The Guardian Life Insurance Company of America and its emerging markets team was rebranded as Sophus Capital.[14]

In January 2017, Victory Capital rebranded its Compass EMP ETF business as VictoryShares.[15]

On February 8, 2018, Victory Capital held its initial public offering and became a listed company on the Nasdaq with an offering price at $13 per share.[16] [17]

In November 2018, Victory Capital announced it would acquire USAA Asset Management Company for $850 million.[18] As a result, in January 2019, Victory Capital announced it would move its headquarters from Cleveland, Ohio to San Antonio, Texas.[19] Both actions were completed in 2019.[20]

In 2021, Victory Capital made a series of acquisitions where it acquired THB Asset Management, New Energy Capital Partners and WestEnd Advisors.[21]

In 2023, it rebranded USAA Investments as Victory Income Investors.

Notes and References

  1. Web site: 2022 Annual Report . Victory Capital.
  2. Web site: Toledo . Charlotte Nicole . Roy . Chris . Cleveland Trust Company . August 24, 2023 . Cleveland Historical . en-US.
  3. Web site: May 31, 2019 . AMERITRUST Encyclopedia of Cleveland History Case Western Reserve University . August 24, 2023 . case.edu . en.
  4. News: Quint . Michael . September 14, 1991 . Society Corp. in Ohio to Acquire Ameritrust . en-US . The New York Times . August 24, 2023 . 0362-4331.
  5. Web site: February 7, 1995 . Response of the office of chief counsel division of investment management . SEC.
  6. News: Associated Press . February 17, 1994 . COMPANY NEWS; SHAREHOLDERS APPROVE KEYCORP-SOCIETY DEAL . en-US . The New York Times . August 24, 2023 . 0362-4331.
  7. Web site: December 13, 2006 . TARGETS SIGHTED: KEY ASSET TAKES ITS INVESTMENTS SHOW ON THE ROAD . August 24, 2023 . Pensions & Investments . en.
  8. Book: Communications, Emmis . Cincinnati Magazine . October 1999 . Emmis Communications . en.
  9. Web site: December 14, 2006 . KeyCorp Asset Management is changing its name to Victory Capital... . August 24, 2023 . Pensions & Investments . en.
  10. Web site: Teresa Dixon Murray . The Plain Dealer . February 22, 2013 . KeyCorp sells Victory Capital to management, employees in $246 million deal . August 24, 2023 . cleveland . en.
  11. Web site: February 21, 2013 . Victory Capital Management being sold to management, Crestview Partners . August 24, 2023 . Pensions & Investments . en.
  12. News: Or . Amy . April 17, 2014 . Crestview, Reverence Back Victory Capital's Purchase of Munder . en-US . Wall Street Journal . August 24, 2023 . 0099-9660.
  13. Web site: May 5, 2015 . Victory Capital completes acquisition of Compass EMP - ETF Express . August 24, 2023 . en-US.
  14. Web site: July 29, 2016 . Victory Capital Announces Close of Acquisition of RS Investments . August 24, 2023 . www.businesswire.com . en.
  15. Web site: Lydon . Tom . January 23, 2017 . Victory Capital Unveils VictoryShares Platform, Plans New ETFs . August 24, 2023 . ETF Trends . en-US.
  16. Web site: February 6, 2018 . Victory Capital Gears Up for IPO . August 24, 2023 . Yahoo Finance . en-US.
  17. News: February 8, 2018 . U.S. IPOs start scraping through despite market jitters . en . Reuters . August 24, 2023.
  18. Web site: Piper . Nicole . January 11, 2019 . Victory Capital moving HQ to Texas following USAA deal . August 24, 2023 . citywire.com.
  19. Web site: November 7, 2018 . Victory Capital Buys USAA Asset Management For $850 Million . August 24, 2023 . Institutional Investor . en.
  20. Web site: Mendoza-Moyers . Diego . February 13, 2020 . Victory Capital, following relocation to S.A., reports strong 2019 . San Antonio Express-News.
  21. Web site: August 24, 2023 . Victory Capital - Asset Management Company Morningstar . August 24, 2023 . https://web.archive.org/web/20230824143652/https://www.morningstar.com/asset-management-companies/victory-capital-BN00000MDZ . August 24, 2023 .