Victory Capital is an investment management firm operating a next-generation, integrated multi-boutique business model with $62 billion in assets under management as of June 30, 2018. Victory Capital serves both institutional and retail investors.
Crestview is effective operationally and a value-add partner. The focus is always on growth and value creation.Dave Brown, Chairman & CEO
Seeing Through the Noise
Victory was a bank-owned captive asset management business that was undergoing a transformation to an independently operated multi-boutique. In addition, Victory faced additional headwinds as a result of outflows in one of its flagship products. Crestview was able to see through the noise to the long-term potential of the company’s diverse product offering, scalable investment platform and strong management team.
Gaining Scale to Enhance Value
Victory acquired Munder Capital Management in 2014. Both Victory and Munder have the same multi-boutique models, and the acquisition added four new platforms to Victory, creating a broader, more scalable business. In April 2015, Victory acquired Compass EMP, a smart beta firm, adding another unique strategy to the platform. In late 2015, the company also announced plans to acquire RS Investments to further enhance its scale, product diversification and distribution capabilities.
Value of the Multi-Boutique Model
Victory’s growth reflects the value of its multi-boutique model. Management has been able to attract best-in-class investment talent who value the ability to focus solely on investment management while leveraging the support of a robust distribution and operational platform.
Martin Currie is a specialist active equity manager. It manages assets for financial institutions, charities, foundations, pensions, trusts, banking and insurance companies, family offices and offshore funds. It was acquired by Legg Mason in October 2014.
PartnerRe is a global multi-line reinsurer specializing in property and casualty, life and health and alternative risk products. Crestview initially invested in Paris Re (formerly AXA Re) in 2006, which subsequently merged with PartnerRe in 2009.
Fidelis is a global provider of specialty insurance and reinsurance products. The company has offices in Bermuda and London.
Capital Bank Financial Corporation was established by Crestview and management in 2009 and grew to $10.1 billion in assets through eight bank acquisitions. Capital Bank completed its $2.2 billion merger with First Horizon National Corporation in November 2017.
FBR provides investment banking, merger and acquisition advisory, institutional brokerage and research services. It focuses on the consumer, energy & natural resources, financial institutions, healthcare, industrials, insurance, real estate and TMT sectors.
Munder is an investment advisory firm offering actively managed investment products to institutional and retail clients. It offers a broad array of equity, fixed income and balanced investment disciplines and was acquired by Victory Capital in October 2014.
Lancashire is a global provider of specialty insurance and reinsurance, focusing on short-tail risks in property, energy, marine, aviation and Lloyd’s. The company was established in 2005.
Venerable Holdings is a leading consolidator of closed variable annuity blocks and operates the legacy variable annuity business of Voya Financial, Inc.
Arxis was an electronic trading firm specializing in the automated market-making of global securities. Its goal was to develop and utilize technological innovations that intelligently analyze data in order to deliver liquidity across asset classes.