Victory Capital Gears Up for IPO

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Victory Capital Holdings has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company intends to price its 11.7 million shares in the range of $17 to $19, with an overallotment option for 1.755 million shares. At the maximum price, the entire offering is valued up to $255.65 million. The company intends to list its shares on the Nasdaq under the symbol VCTR.

The underwriters for the offering are JPMorgan, Merrill Lynch, Morgan Stanley, Barclays, Goldman Sachs, RBC Capital, Keefe Bruyette Woods, William Blair and Sandler O’Neill.

This is an independent investment management firm operating a next generation, integrated multi-boutique model with $59.0 billion in assets under management as of September 30, 2017. Its differentiated model features a scalable operating platform that provides centralized distribution, marketing and operations infrastructure to its select group of specialized and largely autonomous investment managers.

The firm’s franchises are operationally integrated but separately branded and make investment decisions independently from one another within guidelines established by their respective investment mandates. Its integrated multi-boutique model creates a supportive environment in which its investment professionals, largely unencumbered by administrative and operational responsibilities, can focus on their pursuit of investment excellence.

The firm described its finances as follows:

For the nine months ended September 30, 2017, our revenue was $304.0 million, an increase of 52.2% over our revenue of $199.8 million for the nine months ended September 30, 2016. RS Investments is included in our operating results for the nine months of 2017, but not for the first seven months of 2016. Our net income / (loss) was $14.6 million and ($3.4) million for the nine months ended September 30, 2017 and 2016, respectively. Our Adjusted EBITDA was $109.0 million for the nine months ended September 30, 2017, an increase of 65.1% over our Adjusted EBITDA of $66.0 million for the nine months ended September 30, 2016. Our Adjusted Net Income was $44.0 million for the nine months ended September 30, 2017, an increase of 67.9% over our Adjusted Net Income of $26.2 million for the nine months ended September 30, 2016.

Victory Capital intends to use the net proceeds to pay down its debt, as well as for working capital and general corporate purposes.