Victory Capital Announces $100 Million Share Repurchase – Buyback Wednesdays

Victory Capital (VCTR), an asset management firm with $157.7 billion in total assets under management (AUM), was spun out of KeyCorp (KEY) in 2013 and acquired by private equity firm Crestview Partners. The management team that was operating Victory Capital under the KeyCorp umbrella remained in place and continues to lead the company a decade after the spinoff with David Brown as the Chairman and CEO.

The company went public in February 2018 at $13 per share and has appreciated more than 137% to current levels. KeyCorp’s expected after tax gain on the sale to Crestview was in the range of just $100 to $115 million. The whole situation worked out very well for Crestview Partners, insiders and shareholders because the company has a market cap of $2.23 billion today. 

Victory Capital is a diversified global asset management firm with a portfolio of 12 autonomous investment franchises. The company also offers a Solutions Platform, featuring an array of multi-asset, multi-manager, quantitative and rules-based strategies as well as its VictoryShares ETFs. 

Victory Capital’s Investment Franchises

2022 proved to be a difficult year for asset management companies as multiple bubbles deflated and multiple asset classes fell in unison. The disruptions in both the equity and fixed income markets drove asset levels significantly lower with industry-wide declines in year-over-year revenue and operating margins. In this environment we were a little surprised to see that an asset management firm like Victory Capital Holdings, Inc. (VCTR) announced a buyback last week.

Only plus or premium subscribers can access this post. Subscribe today.