VCTR - Earnings call transcript Q3 2024 | Victory Capital Holdings, Inc.

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Operator

Good morning, and welcome to the Victory Capital Third Quarter 2024 Earnings Conference Call. [Operator Instructions] I will now turn the call over to Mr. Matthew Dennis, Chief of Staff and Director of Investor Relations. Please go ahead, Mr. Dennis.

Matthew Dennis

you. Thank

forward-looking the you David call, from that make Amundi number to turn like I we subject these over actual remains of a remind Capital's a note to during of ultimate statements. call Furthermore, I differ that Brown, to would may of a the approvals. Please regulatory factors certain results assumes closing please Before call. not list may Victory to the obligation update does materially completion SEC actual statements. of filings well today's with Victory undertake and conference some materially expressed to cause conditions may any refer for differ from risk our that as Capital to statements. on forward-looking duty any as results no those transaction today's

pleasure was website these measures Our believe results. financial after in of our our press and are measures closed business enhance understanding call tables the David? the most We ir.vcm.com. It's GAAP found both included Chairman yesterday, Investor that in release the Relations and on both accompanying of CEO. non-GAAP are this earnings over that call, section and to our issued press David and be between release the disclosed comparable non-GAAP in GAAP of my the measures non-GAAP market the the our now which can to and slides turn available at Brown, performance. Reconciliations

David Brown

Chief After Financial Capital's over I Administrative of overview to start our to quarter in will Michael the to of financial detail. will Relations. I'm welcome turn Matt. Staff the and earnings as of Investor Victory call our today today third by Policarpo, Director providing well Matt greater results Officer; Good review and Mike and the an morning, Chief Thanks, that, quarter. by joined XXXX as Dennis, President, call. I

total second highest momentum in quarterly I on Mike, the to end with ended earnings we resulting EBITDA quarter earnings expanded Matt helped X. during Continuing our in per remarks, to year, of client is We This the the begins propel third quarter. the business overview and our well with Slide assets your quarter. first our questions. Quarterly billion, the half the which in level and very and will business available Following had share, be records prepared performed margin, revenue more take the new $XXX of the period, XX.X% than quarter for history. in adjusted which in

become will on their institutional this their as of business retail of positive international related made it with began a of supported transaction. quarter. anticipated closing closing, does meeting We progress to agreement were Amundi strong We fund strong which $X business to multifaceted close, businesses. and mutual in definitive September addition first business having very proxy continue franchise is quarter the we greatly transaction passed. appreciate to our execute where July well. a a Amundi. in We mind, by excellent approve and signed our asked a of and the approximately growth the occur to as in performance, in filed were which for toward In achieved for U.S. XXth has does proposals shareholders several long-term stockholders billion early net strategic on institutional immediately to proposals our flows of Keep we include long-term. The as include XXXX. third strategy business, is data, nor and not available the of XXXX the in toward the Based All majority special investment publicly support a the shareholders the working U.S. upon our year end their

AUM in advanced which distinction remains is projected X, back and Their take to of diversification key is tracking Slide capabilities successful our we of significant and in due action. On that us starting company of them to coupled the execute, these capability greater to comes to to our When what point corporate acquisition performance, believe management enhanced has growth sets and with both management is better-than-expected investment that elements distribution positively of distinct their acquisitions both market included with Every a the track channels. a strong we we and of is record XXXX. well organic milestones the the investment like for ahead made our making Another growth proven very better. originally consolidation and would with strategic industry. in it highlight have we Victory I evolved several our strategic some Capital buyout just from July up step investment history industry, we scale in transactions feel year-to-date. transactions goal since in for

are platform where who passionate ownership their the long-term. succeed professionals what want provides about culture a investment can they For and outcome, our to they over do own

is platform professionals we investment permanent the ideal for investment an where optimal deliver clients. Our our create environment to to excellence home

years, have investment with for a evolved platform. industry centralized is even consolidation platform, our long-term distribution unchanged. The and effective strategy more apparent remained our strategy scaled and and management company operating the combining we and core boutique for than developed operating necessity over the principles our originally now While has style-focused when profitable growth

make well of acquisitions. be $XXX assets the positioned domestically distribution closing, as under high Amundi of to outside have distribution as management we strong attractive billion balance exclusive accretive more us offer to stronger make firms agreement all will U.S. With investment and even strategic year quality a we'll XX that well both post an choice plus additional Our of nearly seeking exceptionally acquirer sheet with for

last can move our environment. positive X, continue are and organization to in has to growth achieved more value compounded continue while This built meaningful to over about due being you earnings the to and forward our of optimistic very am adjusted Slide entering significant creation expanded we've to execute a prospects have and our in I we for margin believe by strategy flow years. specifically in platform we that XXXX, this free by proven into a operating thrive more acceleration EBITDA also EBITDA period our Today, and purposefully August, our and public cash our our company when during $XXX X,XXX in on points. we million I a annualized driver our mentioned a way. On of grown see I designed to industry call became scale leverage shareholders. firmly As We Since increasing comes adjusted consolidation. than basis it

environments. in this and a market one of experience it Even we the speaking. that like turned COVID platform was our from as good more that see out resilient remaining degradation different margin volatile with of many this the A the not with example the did market also backdrop, market historically can struggled is margins industry pandemic, during in to graphic consistently You strong be did. periods

Turning to Slide An current to share. and adjusted X. is many important prospective shareholders per metric earnings

to skewed has growth capital have You Slide of our and initiatives flow, over to provides can tax allocation fuel This, we capital updated We million significant details, growth towards years. see earnings with remain value. cash past we more our we again strategy share cash been capital earnings benefit grow rate have our Due than compound shareholder X that the than of $XX is per driver returns. returns were to million proxy tripled annual The This the quarter. and quarter to shareholders. On our sheet, flow total which strategic inorganic growth free shareholder designed over also end period. a prohibited ended adjusted while a with of on which process, plus shares X, increasing cash more growth the the $XXX the that our XX% is repurchasing June. balance up during from the from ultimately,

perform market Now our to activity we proxy the around the repurchase process activity. this that will over, is appropriate analysis open ability share resume and evaluate

Slide XX. to Moving

performance of XX investment with our broadly encompassing X ratings. remains This Our overall earning mutual is and AUM products. diversified, funds different in strong X star ETFs, or XX%

respective rated stars and XX by which XX AUM. AUM the X Victory their X Over fixed Income benchmarks. X periods, of are represents either Investors by funds of the total overall total of income our Franchise Morningstar, key XX% X outperformed managed XX% and XX% or Investment their year

year-to-date and go the greater investors rates We to franchise positive flows the fixed have for interest continued net Mike? quarter's detail. the this call expect and to organic in for financial asset are period see will very allocating to classes. With pleased turn Mike the results through outlook the I income given growth that, over

Michael Policarpo

second quarter. quarter $XXX.X assets points from good and on the XX. realization Slide the Dave, in XX.X The quarter was up from X% Revenue Average also the under to management in review rose begins morning, $XXX.X million $XXX the billion. million, Thanks, to results rose financial for second basis X% Revenue everyone. quarter.

XXXX. average period, XX% under assets compared were period with year-to-date management the in up the For same

rose operating a XX.X%. share to million second share. and was $X.XX an per than Third million. on margin Earnings high both share the income operating and quarter $XXX.X X% the a in GAAP reached up per same a from than This widened more GAAP quarter XX% reached is record record quarter from the EBITDA X% was at EBITDA quarter, third adjusted adjusted per Adjusted XX.X%. $X.XX well diluted widened basis XXXX, GAAP diluted margin higher in $XXX.X basis at the to in as which quarter, on second as and

bringing quarter, end $XX cash balance We the to the sheet. at the $XXX the during the balance cash of million Turning to quarter. million accumulated in

are quarter, As contributed cash which to during mentioned, the the from shares we prohibited repurchasing buildup.

a of the associated share ratio returned Our settlements of form in we net to improved shareholders repurchase and X.Xx, net and awards. amount equity cash employee $XX small to activity of quarterly leverage with dividends million

bringing year. X. for to a on record the the close share December authorized to shareholders quarter of increase, Board final per of of will December business dividend on XX dividend Our the this $X.XX quarterly at paid dividend The be X%

to XX. Turning Slide

$XXX.X from rose that X% or of total $X.X to billion $XXX.X end September. at see can billion of You the by the June client billion more end assets at than

period. perspective both AUM cover third diversified ETF XX, of as of the in the net vehicle. On net Investors Our channel posted flows asset various as has year-to-date flows. and our continue investment generate client a long-term to to franchises significant in long-term positive platform, channels positive for class VictoryShares our Several to from we consecutive the well flows net and Victory and asset quarter. its quarter investment flows made by continues be contribution and Slide Income a by

for the are the strong very franchise environment given current selling and investment outlook We performance this encouraged by fixed income products. for

September. long-term period, clients Global, August the net flows existing the net rebalancing month For NEC have also post RS in clients achieved some positive Net activity, activity. flows. in pressured flows VictoryShares We year-to-date and by improvement remain the saw with of portfolio rebalancing for July were Sophus, and Integrity, who an

funded has yet franchise not but pipeline is one perspective. well from it diversified our over is X larger in years channel Lastly, and than been a and

quarter part of mandates sequential funding We some with year past in the revenue be year. Slide increase next the expect quarters. of XX most fourth shows of in several the to these steady for in this first funded

average third the is from rate XX.X quarter, the quarter range. in basis shift, fee due X.X within to and points point mix asset basis which channel second expected Our class was but down our product,

periods are Total $XXX.X margin compensation million accruals on the X% is declining expenses we attributable XX%. recorded second reminder, our platform. Slide reversal the to quarter. A XX led portion taken of the quarter. compared our of related unique given compensation a rate, prior non-cash first decline As in of the to with products by to highlights profit than reported in expenses the by expenses operating the declined fee earnout million focused during that $XXX.X

relatively the steady slide on percentage see this we our from compensation of metrics. XX, as graph highlight was that our can non-GAAP revenue. On You a Slide cash

record margin benefit to, share from Our per goal the quarter. are second long-term guided Despite we guidance. margin $XXX.X our and million reported EBITDA income we X% Adjusted diluted tax highest our the company at EBITDA $X.XX changing and with net not level per share prior also exceeding history and $X.XX were XX% of is adjusted have the respectively. is records adjusted up reported in for diluted the XX.X%,

to we Slide from X.Xx end and million X.Xx, $XX.X to for at the is XX, generated year. X.Xx cash turning the of consecutive at during beginning down from improved June. third quarter, down This the the the Finally, of from operations ratio our quarter, in leverage

the in our to synergies was extended expect I million this synergies realized half first to and realize year the facility The fully reiterate remains within $XXX credit realized of with of from the in being expense them will undrawn. years Our close, million majority of be the first X Amundi want $XXX of transaction. we year.

remarks. from with as Lastly, back guidance comes now the we move our to prepared in exclusive questions. over give closing. That operator will agreement will it the concludes revenue towards the to we future when for synergies it distribution Amundi, turn I

Operator

your And Ben Instructions] Budish [Operator from first Barclays. question with comes

Benjamin Budish

starting flows. just income fixed Maybe on

Investors quarter Victory highlighted this positive so has year You far. Income been every

going So net the into can perhaps what's think you how do as franchise? in year? And fare outflows maybe well that going that's not sort talk of about may driving that you next

David Brown

the and we the with look we and what fixed excellent franchise. access It's has performance, consistent. Victory I which really the investment for look think a the look environment for flows happy really And things flows. in Thanks We're our investment prepared question. We've that few one-off it remarks, Income when Dave. we But performance fixed of macro we're referenced good the income, really fixed and at we forward distribution at occur Investors, seeing. income income is the impacted had

In then separate have fund also accounts ETFs. we also addition, institutional offerings, mutual and

bullish pretty the on what's participate We're we're happening income. franchise. pretty for the So us in fixed opportunity on bullish in to

no pretty when positive really a and So we forward. look concern outlook

Benjamin Budish

remarks, like consolidation the kind little unpack of there your it. higher-level wondering if question. in it of sort still about a prepared the of over being in could industry you strategic talked a stages was like bit, some you Got for paying in another -- How for your say, And early Maybe an you readiness past I seems has or been for debt think Amundi that several industry-wide perspective? consolidation. not about do you're that the specific over, years. acquisition from next do to acquisition. this cash the How X? looks Victory, like another do think then David, operational you XXXX

David Brown

on So perspective will for I an environmental certainty from which the give constructive. I'm people election, future. industry, had think an the extremely We've

more for the where lower accelerating. potentially people the the need driving rates. industry, think think challenges transparency are in consolidation have I I also which only And is some environment rate a and

is I put all that to transactions, together, entering consistent we think the look has into a I forward. to more There ever of some are I've been have but going been on as going that there seen. be have pretty we phase You that. believe really that consolidation lot than more industry a are

consolidation. positioned to far are take As specific to as Victory, advantage of we the I think superiorly

of think We kinds very good executing track common record be have of a really, these really I on acquisitions forward. will going that

going as and we and prepared have have offering close, than out ready then in laid our great a a for we'll From and as much remarks post perspective, really ready. have sheet We a be in position we'll we're And a we're be in to operationally, investment we today. And professionals, great balance access, are we're distribution scale. we today, better good position well.

And unique platform to one. just conducive We is onboarding Amundi and really a the latest have that really acquisitions. acquisitions is

doing of record track and long great a have this, team. have we We a

And we've offerings. our an about value. been able So and acquisition to able for operating We've standpoint. We've be create been create to from leverage. clients really create the shareholder encouraged value additional able couldn't future more been I to

positioned opportunity how I unbelievably are So team forward. our excited and the looking just and about we're

Operator

next question Etienne Capital Your BMO of from Markets. Ricard comes

Etienne Ricard

On the has significant partnership, you've joint via its in distribution in ventures. that topic the raised the of of emerging some Dave, presence Amundi economies past a

economies these presence relative developed Amundi products So thinking in markets? to Victory's how distributing in and you about are Amundi's

David Brown

between the different agreement distribution geographies. distinguish So doesn't

in to you've XX% surrounding in areas. assets Asia As large of other a distribution stated, pretty and believe offering the in I are Europe and Europe. Amundi has XX% their close is

a what make to just regions. way. to if the different the for our will and today really a JV. which from then into structures, plan We structuring, or teams them of there, with We're with products And on working it's not all the it's sense their on work countries we'll go same at areas products get JV if

versus there's actions So to another. taking distinguishing really no one something region in different we're that do

areas going is and some I important really investment infrastructure of up U.S. areas is set think countries distribution and the they in take I good into the country. especially to areas. most these these emerging as allow all those have are time what's believe in really, emerging their access

bit areas long-term, it's and really But the So they in to and going have joint time. in well going little I think other of that to think in China I do Europe take then India. we're a emerging ventures in

Etienne Ricard

these Okay. VictoryShares, well future And worked replicate a free it terms have topics, with Interesting. inflows. for What strong of had launches? of do Switching distribution cash really product plan you has couple your flow how ETFs products? in to

David Brown

is our referring traction the the the our that These in and I which of force, based -- style ETF. V-F-L-O stages. have really is we're are But we're business thing distribution And our early said, distribution to ETFs. our and stages, I S-F-L-O we we're all then unique and force, ETF, of based performance style sales ETFs intermediary you're think on investment which VFLO, on and I ETF. newer SFLO, So of have the our our the think like that's sell salespeople I a gained think about is, in one early

kinds And to understand with that really come advisors advisors and trying really -- down of really the with solutions and up part so solutions and of the they're financial advisors trying and those issues, products. and to face what sitting are RIAs, these

the And so I I see with of results penetrate quickly. And those of by these can advisors pretty allows doing to it that, think you products. it think us some

growing that's area a just our that a getting a launch an of we part we to forward, It's It's really to also have going It's business. of that's see that accelerated an I ETFs -- and we have bigger to more, exciting at growing. that date back started. part And have our platform. be part XXXX that a we part number We we're an launched an look acquisition. are pace. from plans of believe it's new as And

the been ETF X So for years over now. business we've in

Operator

comes next Your question from with Sachs. Alex Goldman Blostein

Alexander Blostein

you be made years. the to strategy, out I 'XX? you would in fee could it's, expand guys strongest in growth organic think a commentary channel of guess you you the broadly, whole color in one several sort you and by be type do as on getting positive zoom of the type said was Maybe of the that I hoping composition a the little And on these and pipeline institutional door enough of think just more little when mandates I associated Victory helpful. rate will then a into closing finally get the the

David Brown

on as or So X not really we have funded one one it pipeline, one, spans our the institutional deep side. not of is It's but -- with X. lot large one They But a of it's on our of of referring on just across different The not yet fee And a the number and specific which a book. pretty our I'm it we pipeline, isn't franchises, mandates. are to pipeline probably what charge the different but yet rates it's But yet. in pipeline, well. larger and client. institutional funded one typically a wide type line number franchises. are isn't institutional

the margin how the concerned opportunities look all of our requirements. focused but we business know, fee you platform and we we we're the that's as adhere think to and on look I rate, our with are at margin. the at And very

fee erode either. going rate going and isn't erode to it margins it to So our our isn't

business with scale agreement in looking quarter very U.S., Amundi hard predict as distribution But I the coupled the flows. activity us more to we As with force, U.S. in that forward, our with closing as the us And intermediary best U.S. because channel for think on quarter-by-quarter up the opening that we'll size have think of the then the business we is coupled the our have the Amundi size in in sales new we growth outside unbelievable and an have parts and been best about the puts ever force institutional force, to happen of and close. our outside sales organically. It the first puts we'll what's here see, world, grow our far after to U.S., I salespeople, than we've the scale an a position position organization the are enlarging it not more ever us going transaction we've that of sales access then had. and And a is U.S. distribution intermediary Amundi new totally that the U.S. had we the outside of one the in

position. will predict I going position us and So but market it I to think puts flows don't a the be what's I to the because put in it industry, us successful. happen a great like to with know don't great in

Alexander Blostein

Got it.

constructive just And their pretty hoping sense. markets Makes expenses update was and guys good. you Okay. I have where currently. flows Amundi's revenues Obviously, on and could been the question, second stand have the been very

what So like that be helpful. on an today would update looks

Michael Policarpo

has the not Alex. $XXX Amundi at comments, growth the U.S. business Thanks, Yes, I tailwinds approaching is believe as And we've in high-XXs. Yes. It's fee that well disclosed. guidance organic close. total Victory's the provided as Dave's in we the U.S. for the are the rates But is past provided I business and publicly Amundi AUM we'll probably market the for think the business. be billion Mike. Amundi in he Obviously, post that shared AUM, U.S. think in

the to lower rates slightly than margins, the extraction long-term post we So feel achieving which the very million confident XX% also $XXX with the of then guided expense fee at we've synergies. Victory. And of

tailwind of lot businesses. in a both So

remarks, they've Amundi the prepared on fund year-to-date in as had data growth Dave for performance the public very strong As his businesses mutual mentioned and U.S. organic well. the period,

Alexander Blostein

you. Yes. I got Great.

David Brown

is it an perspective. it from perspective, growth that, to an the is, expectations other just performance add different to investment we number a outperformed of comment when today, we would when on positive the our diligence evaluated to one doing I business, were from our organic has And where areas

results impressed them organization. So we're really to with the and part with excited happy our impressed and really we're and the really, team, of have really we're

Operator

UBS. Brennan with Hawken next comes Your question from

Brennan Hawken

last point. that on Follow-up

mean give -- you accretion outperforming spoke does us would expect? maybe of expectation. You And greater? to that magnitude or -- be deal would on we to little that possible it should your that an update a you color Amundi order from maybe perspective give Is expect speaking on the in could

Michael Policarpo

And be lock making I performance the mentioned, still as to is we're ownership. flow stick of year Dave sure day outperformed in post and guidance Brennan. operate double-digit full accretion We've on point, expense synergies. Yes, ready ready past. that kind focused will the mentioned, we'll investment on some the close the the clarity that of some think the phase, we've than on But kind to we'd guidance have. to X, the coming low to they've of first we're Thanks, then confident of think provide I different kind we'll But really in synergies the And get as tailwinds. respect which playbook guidance It's AUM closing. And perspective, based anything that provided we've we're to we which QX, provide which that to closer don't I with think transaction. that in both in Mike. provided, getting Dave fully more at we the execute we with provided revenue kind this the confirmed of the business an able execution with was as

Brennan Hawken

run with let just away it. my imagination I'll Okay.

you market the or or maybe you to interesting that opportunity the to hand or capability there find or but from spoke also you geographic I'm not either asking think whatnot a are any here, parts to perspective consolidate. of mispriced? your like tip or particularly compelling You particular are

David Brown

company gave Amundi capabilities, to acquisitions us We size with going our investment there don't gave it's question off an company distribution better. way. and us a make our through to to acquisition. answer additional start that approach And that gave of dozen are scale, ways access and better. We us acquisitions lot make

matter for periods And the future over make class. industry looking like company. time. the we'll We're that going do match. you and We're sure make how of think cultural so of company We're future looking as for a looking to to a excellence investment not asset it. I approach That's the looking scale We're long maturing. about to think there's our acquisitions not We're type is approach specific looking size better. for a in specific that. we'll

don't grow, So to do, definitely scale of I a lens that to wanting continue competitive longer-term. going to looking that outside have are other really of have be aware will important or that's be will well and to be we in course, There the because going -- to I our anything I think growth, think do. through market size the wanting exactly think than we're anything to to We is areas want specific. that. exactly driving -- of that be going there areas. of unique be factor faster get to we are, areas We're growing to But that larger in of but get and what of isn't that,

Operator

from comes Morgan Stanley. Cyprys Michael question Your with next

Michael Cyprys

M&A desk give of over the into that some What across types better scope a to scale? years, are I extend their greater where today? deals on Where do is just sense like to areas appetite is you you continuing there. to have private that Difficulty] guess, Victory topic the maybe you your Maybe [Technical the evaluating? want coming And of markets? are that could those us of growthier guys make

David Brown

Thanks, Mike.

First, we larger. I we before, want to get said -- like

probably big scale. size going and want and going at today. think to But for post be I years to forward, scaled isn't Amundi there to competitive to billion, that be sized way be have we the firms a enough $XXX that will to we X the be And need competitive. close is be

that that training, around marketing, intermediary on distribution. set to matter. data, with having think and It size will that out the you're selling. It investments you to U.S. the about offer will product the to as just So matter to matter partners channel. And able scale technology you're have distribution and going people will have your you make -- collateral,

So accomplish to you have to be larger those things. all of

and So our us. to have we set able larger going than to to partner be to to existing potential have a that want clients today with matters We're product clients. our

certain So yes, going asset there. expand we'll want private in that deeper do traditional to markets management, We'll on creatively. areas,

on been the do to working hard very We have that. strategically scenes want behind how we

gone and have firms Some done out acquisitions.

We've observed results all those of a of the have partnered. and have Some for strategy that.

we operating we'll unique. still clients, the we'll so going who it's and made launches. that the And model. getting pivot is closer model but just And what's our and product done think product and we've same from our same through that accomplish to away around lastly, and to we business are then acquisition stick past. set our with I successful, we're And What the do do in want with and all things our us model with those won't we mindset of expand

Michael Cyprys

just And transaction. that have Maybe key transactions of sort toward learned partnerships. and sort mentioned any to go-forward speak private a of of that close question, [ follow-up bit a take markets does -- others to as perhaps differently? not here Great. Amundi of that then here in you that over -- of prior as the could lessons how the to from you're years What the others your and sort ] inform with terms moving you've looking as that, maybe do then perhaps an interest actions key area ] related do done [ you acquisitions actions that to take to at avoid And you done? or

private you what curious have others lessons Just from gone approaches. [Technical Difficulty] approaches market that with take those away

David Brown

previous lessons the -- So on learned I'd say acquisitions. our lessons

all and we businesses that we our and we're are putting these we onto -- patient, patient I the the think we over I done. are platform, are And of an we've refined of XX do also open-minded. work, all And are and company those it conservative our ultimately, that think through do independent our and approach, acquisitions deliberate comes our and being things years in work, and We we've of in and through execution. diligence, in our comes

pretty We same people the part And and integration that's had the most have the on learned we're working we'll that's decade execution, next this on to a learned, the on the working when lessons this one for the to one. we all that key the team important of acquisitions lessons really applying this transaction, model. And we've experienced have we and ago. of transaction. apply to our element we've complete And a the

I mentioned And success in as I'm the far had lack happy areas. success observed we've We've As that some partnerships. ability private acquisitions. certain or observe that we've to the observed of markets, of the

is I unique. think company each

so will And work markets a our our to product would acquisition private type company with partnership or how unique be company.

to of like that future, growth. lot And so And product in with parts our the done tell ability and another to and being future. more we an are acquisition, an important. in -- we've a talking to very our up to I business of in I It's is partnership, I a said, us that other come information the the things will build at back private with ability make think benefit lessons. what all the a a to participate and our business. market not observe happy of it hard are we're similar go at area observe, It's I with of look area and But the people strategically our exact would it you about. to traditional market with launch potentially it's we'll an in very not that the ability successful. The we'll to investing when that's look that look think where way And company part having company we

Operator

comes RBC Markets. with Your Lee next Kenneth from Capital question

Kenneth Lee

relatedly, could on frame wondering getting Just done. if spreads sellers looking from you Broadly motivation among a your I wonder M&A. one how are just about in just transaction if is you could potential what discussions? also bid/ask like more the speaking, like talk And

David Brown

Yes.

the coming I together. is bid/ask think

are to people is Market ready think transact. strong. I

can next administration a years from look government somewhat perspective and plan the the you X game now. can at You future

a can rates the at pretty opinion. and Fed look strong have You and

I think to that's want an environment where people transact.

So consolidation. like said I I be to lot that of earlier, a there's think going

would I transact, not think probably an the from more they're that is why rates, from on conducive be and away, organization to organization, the intense. -- becoming depending issues that type they're fact, not those going is policy in of environment the of are motivation to going reasons all an

of put -- we're well on time realistic it's going really pricing. I going a go be I lot to and be positioned where I are all you for together, that to And people think think so And back consolidation. think there's And it. to I a

Kenneth Lee

Great. Very I And one just there. helpful may. follow-up, if

with wonder conversations expect color or investors, could perhaps around institutional I you allocations certainty more you activity flows terms have little whether provide you had and may ] there. if more In just bit recent a [ net of post-election sentiment the help could drive

David Brown

Yes.

too just the would kind But many a trade. We we desire do haven't there a had more do imagine of to to that -- on ago, election be will couple and the haven't of conversations. I allocations risk had was days the given

out. can of I even if stay is rates, where be. the environment are the be people A they Although today, lot taken think uncertainty for one of rid that And future uncertainty will think what to understand of was it's the our they might do the some and general that industry election. of investment to the for really there I good the in before be business management get going

Operator

with Your last question comes from Ken JPMorgan. Worthington

Y. Cho

on operational This for coming. quickly off with revenue you ground focused can this wanted Michael to respect as I us just products are I Cho synergies sales I will just get you the guess with Victory the follow-up ] realize initial in But priorities [ is from where Amundi for be the distribution Ken. an effort perspective, partnership? your to update here. just

Michael Policarpo

for Thanks Mike. it's Michael, the question.

Amundi place. global the respect in global being I infrastructure distributed this product The Amundi is Amundi partnership throughout with said is think as Dave earlier, network. distribution at the to U.S.

around on work global think products some part doing have And structuring. of respect those to vehicles evaluating be network, which about And that with with priority distribution. retail to commingled respect should a been education product are will so some our Victory focused then There to also be that efforts the a starting really or high products.

U.S. So be to and are current a not products, new bring lining those those perspective. really, post just then closing, the in we're focused from execution from leveraging that contacts relationships, leveraging with existing up network products the ourselves perspective Victory Amundi prioritization but to an products forth Victory

So structuring product around education design. really and been it has

Y. Cho

on a Great. And then follow-up just flows. quick

You monthly quarter. gave commentary for some the

a I little was a you better. July little August September and said maybe soft, were think

comments XQ. constructive You October? pretty sounded on on Any

Michael Policarpo

part we're highlight say I part are probably of earlier, we've in it's into September as we I'd been provide Nothing we'd information. But up here monthly as next for the saw early October. necessarily quarter. don't that we got at that fourth to But pipeline funded closer for this than QX. think what additional we And a some flow get point the significant that Dave got one opportunities year. excited us the lined of early in then about we've not mentioned

Operator

closing There Dave questions. over I to are no conference more Brown will turn remarks. back for the now

David Brown

Thank you Victory in your Capital. for interest

We and City Financials will we Conference York Global there. see Goldman thank the and month, to you be of all Sachs wonderful Have attending next you. New hope in a day,

Operator

gentlemen, concludes for and call. that Thank Ladies all joining. today's you

now may You disconnect.

Victory Capital (VCTR) 8 Nov 242024 Q3 Earnings call transcript