Victory Capital Holdings, Inc. (VCTR): Business Model Canvas [Dec-2025 Updated]

You're trying to make sense of Victory Capital Holdings, Inc. after that huge Amundi deal, right? Honestly, their business model is now a fascinating hybrid: boutique investment autonomy backed by a global distribution powerhouse. With $315.8 billion in client assets as of October 2025 and an impressive 50.8% EBITDA margin in Q2 2025, they are clearly executing on scale and efficiency. To see exactly how they generate revenue-from their 47.2 basis point average fee rate to their expanded global channels-dive into the full Business Model Canvas below to map out their strategy.

Victory Capital Holdings, Inc. (VCTR) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that power Victory Capital Holdings, Inc.'s distribution and scale as of late 2025. These aren't just vendors; they are structural components of the business model.

Amundi SA

The strategic partnership with Amundi SA, which closed on April 1, 2025, is central to Victory Capital Holdings, Inc.'s global reach.

• Entered into 15-year reciprocal global distribution agreements.
• Amundi US business was combined into Victory Capital Holdings, Inc., adding $114.6 billion in AUM at closing.
• Amundi became a strategic shareholder, initially receiving 17.6 million shares, representing 21.2% of fully diluted equity at closing.
• The total expected economic stake for Amundi is projected to reach 26.1%.
• Victory Capital Holdings, Inc. now serves as Amundi's U.S. manufacturing platform.
• Net expense synergy target was increased to $110 million, with approximately $86 million achieved on a run-rate basis by the end of the third quarter 2025.

Autonomous Investment Franchises

These external portfolio management teams operate with investment autonomy, supported by Victory Capital Holdings, Inc.'s centralized platform. The number of strategies offered has grown significantly following the Amundi US integration.

The firm's total client assets stood at $315.8 billion as of October 31, 2025.

Broker-Dealers and Custodial Platforms

This network is critical for accessing intermediary and retail clients. The expanded distribution capability is showing traction internationally.

• Long-term gross flows in the third quarter of 2025 rose 10% quarter-over-quarter to $17 billion, reflecting the ramp-up of the expanded U.S. distribution team.
• Sales outside of the U.S. reached an annualized rate of $68 billion, which is 23% of long-term AUM as of Q3 2025.

Third-party data providers for investment research and analytics

Victory Capital Holdings, Inc. relies on external data and analytics to support its investment franchises and centralized operations. For example, as of February 28, 2025, 62% of Pioneer Investments' mutual fund AUM was rated 4- or 5-stars by Morningstar.

Strategic acquisition targets to increase scale and capabilities

Inorganic growth remains a stated objective to enhance competitive positioning. The internal goal for size is a $1 trillion firm. The most recent historical acquisition mentioned was WestEnd Advisors in November 2021.

Finance: review Q4 2025 synergy realization against the $110 million target by end of next year.

Victory Capital Holdings, Inc. (VCTR) - Canvas Business Model: Key Activities

You're looking at the core engine of Victory Capital Holdings, Inc. (VCTR) right now-the things they absolutely must do well to keep the whole operation running and growing. It's all about execution on the investment side and the infrastructure supporting it.

Active and passive investment management across 189 strategies

Victory Capital Holdings, Inc. maintains a vast product shelf. As of September 30, 2025, the firm offered 189 investment strategies through its various Investment Franchises and Solutions Platform. This breadth is key to serving a diverse client base, spanning both traditional and alternative asset classes.

Operating a centralized, integrated technology and distribution platform

The platform is the backbone that allows those 189 strategies to scale efficiently. You can see the scale in the assets managed. As of September 30, 2025, Total Client Assets stood at $313.4 billion, with Assets Under Management (AUM) at $310.6 billion. This integrated system supports the flow of assets, which saw long-term gross sales reach $17 billion in the third quarter of 2025.

Here's a snapshot of the platform's scale as of the end of the third quarter of 2025:

Realizing $110 million in net expense synergies from the Pioneer acquisition

A major ongoing activity is capturing the cost savings from the Pioneer Investments integration. Management is firmly on track to deliver a total of $110 million in net expense synergies. By the end of June 2025, Victory Capital Holdings, Inc. had already achieved approximately $70 million of that target. To be fair, the Pioneer business itself is contributing significantly to revenue; it brought in $135.3 million in revenue just in Q3 2025.

Global distribution and sales expansion, especially non-U.S.

The partnership with Amundi was transformational for global reach. This is a clear focus area. In the third quarter of 2025, sales outside of the U.S. were running at an annualized rate of $68 billion, which represented 23% of long-term AUM. The firm is actively investing in these non-U.S. sales efforts.

Regulatory compliance and risk management across multiple jurisdictions

Managing risk across different regulatory environments is non-negotiable. A key indicator of financial health and risk management success is the balance sheet leverage. At the end of the third quarter of 2025, the net debt to leverage ratio improved to 1.1x. Furthermore, the commitment to shareholders, a function of stable operations and risk control, is underscored by the regular quarterly cash dividend, which was authorized at $0.49 per share.

You should watch these operational metrics closely:

• Adjusted EBITDA margin for Q3 2025 was 52.7%.
• Year-to-date operating cash flow through Q3 2025 was $240,409 thousand.
• The firm returned approximately $163 million to shareholders in Q3 2025 through dividends and repurchases.

Finance: draft 13-week cash view by Friday.

Victory Capital Holdings, Inc. (VCTR) - Canvas Business Model: Key Resources

Total client assets of $315.8 billion as of October 31, 2025, form a foundational resource for Victory Capital Holdings, Inc.. This figure comprises Total Assets Under Management (AUM) of $313.0 billion and Other Assets of $2.8 billion on that date.

The firm's intellectual capital resides within its multiple autonomous Investment Franchises. These franchises manage specialized investment strategies across various asset classes. For instance, during the second quarter of 2025, several franchises, including Integrity, Pioneer Investments, RS Global, and VictoryShares ETFs, contributed positive long-term net flows.

Efficiency is driven by a centralized operating platform, evidenced by the Adjusted EBITDA margin of 50.8% achieved in Q2 2025. This margin was supported by an Adjusted EBITDA of $178.5 million in that same quarter.

Established brand names provide significant resource value. The Pioneer Investments brand was reintroduced, which had $119 billion of Assets Under Management as of February 28, 2025. The VictoryShares brand is associated with ETFs that showed positive net flows in Q2 2025.

The global distribution network is cemented by the strategic partnership with Amundi, which includes 15-year reciprocal global distribution agreements.

Here's a quick look at the scale of the asset base as of the end of October 2025:

The Amundi partnership solidifies the distribution reach. You get access to a global network, and they get access to your products. This relationship is structured around specific terms:

• Distribution agreements term: 15-year.
• Amundi distributes Victory Capital US-manufactured products: outside of the US.
• Amundi acts as supplier for Victory Capital distribution: non-US manufactured products in the US.
• Amundi's equity interest at closing: 21.2% of fully diluted equity.
• Anticipated final equity interest for Amundi: 26.1%.

The intellectual capital is further represented by the strategies under management. For the third quarter of 2025, the firm reported long-term AUM net flows of -$244 million.

Victory Capital Holdings, Inc. (VCTR) - Canvas Business Model: Value Propositions

You're looking at the core reasons clients choose Victory Capital Holdings, Inc. over the competition, focusing on what they actually get for their money as of late 2025.

Diversified product set across equity, fixed income, and alternatives.

Victory Capital Holdings, Inc. offers a broad spectrum of investment options, which helps spread risk and meet varied mandates. As of October 31, 2025, Total Assets Under Management (AUM) stood at $313.0 billion, with Total Client Assets at $315.8 billion. This AUM is spread across asset classes and investment vehicles, giving you a clear picture of the breadth.

Here's the breakdown of Long-Term Assets by Asset Class as of October 31, 2025 (in millions):

The delivery method is also diverse, with Mutual Funds accounting for $173,579 million, Separate Accounts and Other Pooled Vehicles at $125,310 million, and ETFs at $14,150 million as of that same date. That's a lot of ways to access the market.

Boutique investment autonomy backed by a robust, centralized platform.

The firm's approach is to give investment managers independence-the boutique feel-while centralizing the heavy lifting of operations and distribution. Victory Capital Holdings, Inc. operates with 12 autonomous Investment Franchises. This structure is supported by a fully integrated operational and distribution platform. The goal is to combine specialized talent with scale benefits.

Strong long-term performance: 73% of AUM outperformed benchmarks over 10 years.

Performance is a key value driver, and the numbers back up the long-term focus. Through the end of June 2025, the percentage of AUM outperforming benchmarks over the respective 3-, 5-, and 10-year periods was 58%, 67%, and 73%. Also, 64% of AUM in mutual funds and ETFs held a four- or five-star overall rating from Morningstar at that time.

Access to specialized investment strategies for all client types.

Victory Capital Holdings, Inc. serves a wide range of clients, including institutional, intermediary, and individual investors. The firm's structure, featuring multiple Investment Franchises, means specialized strategies are available across traditional and alternative asset classes. For example, multiple franchises, including Victory Income Investors, Pioneer Investments, and RS Global, generated positive net long-term flows during the third quarter of 2025. This shows the breadth of client interest across their offerings.

Cost-efficient structure due to synergy realization.

The integration of acquisitions, like Pioneer Investments, is designed to create efficiencies. At the end of the third quarter of 2025, Victory Capital Holdings, Inc. achieved approximately $86 million of net expense synergies on a run-rate basis, which was slightly ahead of the timing plan. The company has an internal goal to eventually manage $1 trillion in assets, suggesting further scale benefits are anticipated. The Adjusted EBITDA margin for Q1 2025 was 53%, which is a strong indicator of operational leverage. This focus on scale and synergy realization helps maintain a cost-efficient structure, defintely.

Finance: draft 13-week cash view by Friday.

Victory Capital Holdings, Inc. (VCTR) - Canvas Business Model: Customer Relationships

You're looking at how Victory Capital Holdings, Inc. keeps its client base engaged and growing across its various segments as of late 2025. It's a multi-pronged approach, balancing direct sales efforts with scalable digital access.

Dedicated institutional sales teams for large mandates

Victory Capital Holdings, Inc. deploys specialized institutional sales and client-service professionals to manage relationships with large mandates. This team focuses on securing business from key segments including corporations, public funds, non-profit organizations, Taft-Hartley plans, sub-advisory clients, international clients, and insurance companies. The firm's total client assets stood at $313.4 billion as of September 30, 2025. Furthermore, sales outside of the U.S. were significant, running at an annualized rate of $68 billion, representing 23% of long-term AUM for the period ending September 30, 2025. The company noted that its institutional sales force was augmented with additional professionals to enhance U.S. market coverage.

High-touch relationship management with financial intermediaries

For financial intermediaries-like banks, broker-dealers, wirehouses, and Registered Investment Advisor (RIA) networks-Victory Capital Holdings, Inc. maintains a dedicated retail sales team structure. This team includes regional external wholesalers and national account specialists, all supported by an internal calling desk. The firm's strategy emphasizes gathering assets through these intermediaries. The total Assets Under Management (AUM) reached $310.6 billion at the close of September 2025. The company explicitly states that its professionals manage existing client relationships and serve consultants and prospects in this channel.

Self-service and digital tools for individual investors

Individual investors get access to tools designed for self-service management. Victory Capital Holdings, Inc. offers several digital resources to help them manage their investments without always needing a direct call. These tools are central to serving the retail segment of their client base.

• Mobile App for on-the-go account management and biometric sign-in.
• Document Center for online access to account documents.
• Device Recognition for simple and secure sign-in on personal devices.
• Automatic Investment Planning for scheduled fund contributions.
• Portfolio Planning tool for goal-based investment structuring.

Consultative approach to offer customized Solutions platform products

The Solutions Platform is designed to deliver tailored outcomes, engineering innovative products, and developing customized portfolios. This requires a consultative interaction to match client needs with the firm's offerings, which include multi-asset, multi-manager, quantitative, and rules-based strategies, alongside VictoryShares ETFs. The Solutions asset class held $86.963 billion in AUM as of September 30, 2025. The firm's overall business model combines investment autonomy with a centralized operational and distribution platform to support these customized offerings.

Building trust through consistent, transparent investment performance

Trust is built on results, and Victory Capital Holdings, Inc. highlights its investment performance across its franchises. For the three-year period ending March 31, 2025, 65% of Pioneer Investments' mutual fund AUM outperformed its benchmark. Across the firm, as of March 31, 2025, more than 74% of Pioneer Investments' mutual fund AUM held either a four or five-star Morningstar rating. The firm also received eight 2025 U.S. LSEG Lipper Fund awards based on risk-adjusted returns in Q1 2025. Long-term gross flows for the third quarter of 2025 rose 10% quarter-over-quarter to $17 billion.

Finance: draft 13-week cash view by Friday.

Victory Capital Holdings, Inc. (VCTR) - Canvas Business Model: Channels

You're looking at how Victory Capital Holdings, Inc. (VCTR) gets its investment products into the hands of clients as of late 2025. It's a multi-pronged approach, blending traditional wholesale efforts with direct institutional access and a growing global footprint following the Amundi transaction.

The Intermediary channel, covering wirehouses, Registered Investment Advisors (RIAs), and broker-dealers, remains a core focus. Victory Capital explicitly mentioned its expanded intermediary sales team continues to ramp up as of Q2 2025. This channel supports the distribution of their mutual funds and ETFs. For context on the scale being pushed through these channels, Total Client Assets stood at $315.8 billion as of October 31, 2025.

For Direct institutional sales to pension funds and endowments, the firm serves these clients through its Investment Franchises and Solutions Platform. While specific institutional sales figures aren't broken out from total revenue, the 'Other Assets' category, which includes low-fee (2 to 4 bps) institutional assets, was reported at $2.762 billion on October 31, 2025. Furthermore, institutional investors hold a significant stake in the company itself, with 87.71% of Victory Capital's stock owned by institutional investors.

Amundi's extensive international distribution network became a major channel following the strategic partnership closing on April 1, 2025. This is reflected in the Non-U.S. segment of their client base, which reached $53.225 billion in Total Client Assets as of October 31, 2025. The firm is actively investing in its non-US sales efforts.

The VictoryShares ETF platform is a distinct and growing distribution vehicle for both passive and solutions products. As of May 31, 2025, the platform had grown to 26 ETFs with Assets Under Management (AUM) of more than $14 billion. The ETF AUM specifically held by third parties was reported at $14.150 billion as of October 31, 2025. The platform also generated positive net long-term flows in Q3 2025.

Victory Capital also explicitly serves the Retirement platforms and 529 Education Savings Plans, grouping them with intermediary and individual clients. The Solutions asset class, which often houses these types of pooled or retirement-focused assets, represented $88.725 billion in AUM as of September 30, 2025.

Here's a look at the asset mix flowing through the various vehicles as of the end of October 2025:

The distribution effectiveness is also visible in the top-line results. Gross sales in the third quarter of 2025 reached $17 billion, and the firm reported total revenue of $361.2 million for the three months ended September 30, 2025.

Key distribution channel metrics as of late 2025 include:

• VictoryShares ETF platform AUM: over $14 billion as of May 31, 2025.
• Number of VictoryShares ETFs on the platform: 26.
• Total Client Assets as of October 31, 2025: $315.8 billion.
• Long-term net flows for Q3 2025: -$244 million.
• Non-U.S. Client Assets as of October 31, 2025: $53.225 billion.

You should track the growth of the Solutions AUM, which was $88.725 billion in September 2025, as a proxy for retirement and pooled vehicle success. Finance: draft 13-week cash view by Friday.

Victory Capital Holdings, Inc. (VCTR) - Canvas Business Model: Customer Segments

Victory Capital Holdings, Inc. serves a diversified client base through its Investment Franchises and Solutions Platform. You're looking at a firm that explicitly targets four main client types: institutional, intermediary, retirement platforms, and individual investors.

The overall scale of the client base as of late 2025 provides the context for these segments. As of October 31, 2025, Victory Capital Holdings, Inc. reported Total Client Assets of $315.801 billion.

The client base is segmented geographically, with the Non-U.S. segment being a noted area of growth, especially following the Amundi partnership. Here is the regional breakdown from the October 31, 2025 figures:

The Non-U.S. segment is a key focus, positioning Victory Capital Holdings, Inc. as essentially Amundi's U.S. manufacturing arm for traditional active asset management products. During the Q3 2025 earnings call, the firm noted having $52 billion of AUM from clients outside the U.S. across 60 countries, with net flows remaining positive.

The core domestic client segments are channeled through various means. You should expect the distribution network to be heavily reliant on third parties:

• Financial Intermediaries (RIAs, broker-dealers) who distribute products.
• Institutional Clients (pensions, foundations, endowments).
• Retirement Platforms (401k, defined contribution plans).
• Individual Investors, often accessed through intermediaries.

The firm's product vehicles also give insight into how these segments are served. As of October 31, 2025, Total Assets Under Management (AUM) of $313.039 billion were allocated across vehicles such as Mutual Funds, Separate Accounts and Other Pooled Vehicles, and ETFs. The category 'Separate Accounts and Other Pooled Vehicles' typically encompasses a significant portion of institutional and retirement assets, including wrap program accounts, CITs (Collective Investment Trusts), and private funds.

The Solutions Business asset class, which includes low-fee institutional assets, stood at $88,725 million as of October 31, 2025. This points to a substantial institutional component within the overall client base.

Victory Capital Holdings, Inc. (VCTR) - Canvas Business Model: Cost Structure

Employee compensation and benefits for investment professionals, on a cash basis, represented 24.3% of the relevant base in the first quarter of 2025, inclusive of seasonally higher payroll tax and employee benefits. The average estimated annual salary, including base and bonus, at Victory Capital was cited as $115,205 as of late 2025. For roles specifically at Victory Capital Management, the average annual salary was estimated at $94,972.

Distribution and marketing expenses saw lower realization in Q1 2025, calibrating with lower average Assets Under Management (AUM) for that quarter. However, distribution fees from mutual funds were reported at $23.5 million for the three months ended September 30, 2025. The company continues to strategically invest in all distribution channels, including an expanded intermediary sales team and non-US sales efforts following the Amundi partnership.

Technology and operational costs are embedded within the broader expense structure. Total GAAP expenses for the first quarter of 2025 were $138.6 million. Operating expenses for Q1 2025 were $126.7 million, a 3.3% decrease compared to the first quarter of 2024. Administration fees from mutual funds were $33.7 million for the three months ended September 30, 2025. The company also highlighted a partnership in early 2025 with the University of Texas at San Antonio to enhance technology within the Financial Studies Center.

Interest expense on total debt, which stood at approximately $972 million as of Q1 2025, is a significant fixed cost component. By June 30, 2025, the total debt was reported at $972 million, which resulted in a net leverage ratio improvement to 1.2x from 1.7x in the previous quarter.

Acquisition and integration costs were a factor in Q1 2025 GAAP expenses, specifically due to the Amundi transaction restructuring and integration. The company reported achieving approximately $70 million of the expected total net expense synergies of $110 million associated with the Amundi transaction by the end of the second quarter of 2025. The consolidated fee rate realization beginning in the second quarter of 2025 was projected to be in the range of 46 to 47 basis points.

Here is a breakdown of some key expense and cost-related figures from 2025 reporting periods:

You should note the following specific expense line items from the Q3 2025 report:

• ETFs (VictoryShares) administration fees: $1.3 million for the three months ended September 30, 2025.
• ETFs (VictoryShares) administration fees: $3.6 million for the nine months ended September 30, 2025.
• Distribution fees from mutual funds: $50.4 million for the nine months ended September 30, 2025.

Finance: draft 13-week cash view by Friday.

Victory Capital Holdings, Inc. (VCTR) - Canvas Business Model: Revenue Streams

The primary revenue driver for Victory Capital Holdings, Inc. remains asset-based management fees, which are charged on the total assets under management (AUM) across its various investment franchises and solutions platform. This fee structure is the bedrock of the firm's top line.

For the third quarter of 2025, Victory Capital Holdings, Inc. reported total revenue of $361.2 million. This revenue is directly tied to the firm's asset base, which stood at total client assets of $313.4 billion as of September 30, 2025. The average fee rate applied to this asset base for Q3 2025 was approximately 47.2 basis points.

The composition of the reported Q3 2025 revenue shows the contribution from different fee types:

Victory Capital Holdings, Inc. also generates revenue from performance fees, which are contingent upon certain investment strategies achieving specified return hurdles. While the exact amount for Q3 2025 performance fees is not explicitly broken out in the primary revenue figures, it contributes to the overall top line alongside the asset-based fees.

A significant area of growth contributing to the fee base is the ETF business, specifically the VictoryShares platform. Fees derived from this segment are growing due to strong investor demand. Through the first three quarters of 2025, the ETF business generated positive net flows of $5.4 billion.

The key metrics defining the revenue stream performance for Q3 2025 include:

• Reported Total Revenue for Q3 2025: $361.2 million.
• Average Fee Rate for Q3 2025: 47.2 basis points.
• Total Client Assets as of September 30, 2025: $313.4 billion.
• YTD Q3 2025 Net Flows in ETF Products: $5.4 billion.
• Investment Management Fees Component of Revenue: $288.51 million.