Victory Capital CEO Sees “Mass Consolidation” as Firm Targets $1T AUM at BofA Conference
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CEO Dave Brown predicts a coming “mass consolidation” in asset management and is positioning Victory as a consolidator with a long-term target of $1 trillion AUM (about three times its current ~$300B), following the Pioneer acquisition that added over $100B and is nearing full integration.
Victory is pushing distribution and international growth—doubling intermediary efforts, operating in 60 countries with roughly $55B in international AUM, and signing a 15-year Amundi partnership—and reported record gross flows of $17.1B in the quarter, which management says can drive a return to organic growth.
On M&A and product strategy, Victory prioritizes strategic fit, distribution and investment excellence before price, has raised Pioneer synergy targets to ~$110M with deal accretion near 20%, and views alternatives as a complementary manufacturing capability rather than its primary acquisition focus.
Victory Capital (NASDAQ:VCTR) CEO and Chairman Dave Brown outlined the firm’s growth priorities and view of industry consolidation during a presentation at Bank of America’s 34th Annual Financial Services Conference. Brown was interviewed on stage by Bank of America’s Craig Siegenthaler and Ivory Gao.
Bank of America introduced Victory Capital as a global, diversified investment firm operating a “multi-independent investment boutique” model with centralized resources such as distribution. The company ended 2025 with more than $300 billion in assets under management (AUM), according to the discussion.
Brown said he believes the asset management industry has started to consolidate and will go through “a mass consolidation,” arguing that size and scale will matter more over time. He said Victory has completed eight acquisitions since its management buyout in 2013 and is “coming off” the Pioneer acquisition announced in April 2025, which he said has closed and is close to being fully integrated.
Looking ahead, Brown described Victory as aiming to be a consolidator, noting the company has laid out a long-term objective of reaching $1 trillion in AUM—roughly three times its current size. Brown said he views that level as important for long-term competitiveness and added that consolidation could happen faster than expected as industry pressures become “more pronounced.”
Brown highlighted what he described as strong earnings growth since Victory’s 2018 IPO, citing a 21% cumulative annual growth rate and calling it the best in the sector over that period. However, the conversation also addressed recent negative net flows and broader industry headwinds, including $800 billion in net outflows from active mutual funds over the last year, as cited by the presenters.
Brown said the Pioneer acquisition enabled Victory to invest heavily in distribution, including doubling intermediary distribution efforts, adding partnerships with large platforms, and opening an international distribution channel. He said Victory now manages money for clients in 60 countries and cited about $55 billion in AUM tied to the international effort. He also pointed to a 15-year distribution agreement with Amundi as a key growth lever.
While Brown said Victory “wants” organic growth, he argued the firm is near an inflection point, citing record gross flows of $17.1 billion in the quarter ending 2025 and saying that level is sufficient to produce organic growth. He added that several areas have shown improving momentum, including:
Pioneer’s investment franchise, which Brown said has been net flow positive every quarter since the acquisition closed
The international distribution channel, which he said has been net flow positive
VictoryShares ETFs, which he said have had strong growth
West End Advisors, which he said has turned to positive flows
Brown said Victory expects to “turn the corner” on organic growth as it looks into 2026 and beyond, while acknowledging ongoing headwinds in active equity and mutual funds.
Asked what could drive an improvement in net flows, Brown emphasized international distribution as “white space” for Victory. He said the firm launched five UCITS vehicles at the end of 2025 and indicated Victory’s U.S.-listed ETFs are being sold or prepared for sale in Asia through Amundi’s sales group.
Brown also pointed to continued growth expectations for Victory’s ETF platform, describing it as oriented toward active solutions rather than “beta.” He cited an average fee rate of about 34 basis points for VictoryShares and said the platform includes 23 ETFs across areas such as active fixed income, a free cash flow series, and a volatility management series, with additional ETFs planned.
In addition, Brown said he sees potential benefits from U.S. investors allocating more to international and global strategies. He said Victory has strong offerings and performance in those areas, including global and international products and two scaled fixed income franchises available across mutual funds, ETFs, and institutional separate accounts. He also cited growth in Pioneer’s multi-asset offerings, including income-oriented components.
On M&A, Brown said Victory’s approach starts with whether a deal makes the platform better strategically—through broader client access, expanded distribution, increased scale, or an expanded product set—followed by cultural fit and “investment excellence,” with financial considerations coming last. He said Victory’s platform can make acquisitions financially attractive through cost takeouts and other structural benefits.
Discussing Pioneer as an example, Brown said the acquisition added more than $100 billion of scale and expanded capabilities in fixed income, equities, and multi-asset, while also opening a new distribution channel outside the U.S. He said Victory initially announced $100 million of net expense synergies, later raised the target to $110 million, and that the deal’s accretion is now “close to 20%,” compared with originally communicated “low, low double-digit” accretion.
Asked about alternatives managers, Brown said Victory has historically viewed alternatives as richly valued, though he noted a pullback in some valuations. He said he believes retail investors and advisors need some access to private markets, but described alternatives as not the primary driver of Victory’s acquisition strategy. Brown said Victory may participate by obtaining “manufacturing” to incorporate private markets exposure into offerings such as models or products like evergreen or interval structures, but he emphasized Victory is “a traditional asset manager” and is not aiming to become an alternatives specialist.
Brown provided additional detail on the Amundi arrangement, describing it as a strategic outcome of the Pioneer deal. He said the agreement runs for 15 years and ties Amundi’s non-U.S. distribution of U.S.-based traditional active management products to Victory’s platform. He called Amundi a $2.7 trillion manager with broad distribution reach in Europe, Asia, and the Middle East, and he identified Asia (including Japan) as a primary opportunity, followed by Europe and the Middle East. Brown also cited Amundi’s partnership with First Abu Dhabi Bank as a development that could support distribution progress.
On interest rates and record money market balances, Brown said he expects rates to come down in 2026, though he acknowledged uncertainty around whether that will drive a large shift from money market funds. If assets do move, he said he expects a meaningful portion to go into fixed income, pointing to Victory’s active fixed income ETFs and ultra-short offerings. He also suggested some assets could shift toward equities through strategies like Victory’s free cash flow series for investors seeking equity exposure away from concentrated themes.
In a discussion of performance, Brown attributed Victory’s aggregate investment results to the firm’s independent franchise structure, where teams do not share research and employ distinct processes. He said the model is designed to let investment professionals focus fully on managing money by removing administrative burdens and providing resources such as travel and research budgets, supported by transparent compensation systems.
Brown also addressed West End Advisors, which Victory acquired in 2021. He said West End has been cumulative net flow positive by a few billion dollars since the deal closed, ended the last quarter of 2025 with organic growth, and started 2026 strongly. Brown said Victory has expanded West End’s distribution on platforms, launched ETFs based on West End’s process—including an ETF called MODL—and is developing a tax-efficient offering. He also suggested private markets allocations could eventually be incorporated into certain model-based offerings.
Finally, in response to an audience question on retail SMAs, Brown said Victory is net flow positive in retail SMAs but not yet at desired levels, and that new SMA products are planned during 2026. On ETF share classes for mutual funds, Brown said he expects ETF share class innovation to benefit firms with sizable mutual fund complexes, but he does not expect every mutual fund strategy to have an ETF share class. He said operational work remains before the concept scales broadly, and that for Victory the development should be “net better” for flows, particularly by slowing headwinds in areas facing outflows. Brown added that Victory’s fee-rate guidance of 46 to 47 basis points would not change due to ETF share classes, based on his comments.
Victory Capital (NASDAQ:VCTR) is a global investment management firm that provides a broad range of strategies across equities, fixed income, multi-asset and alternative investments. Serving institutional, intermediary and retail clients, the company delivers tailored solutions through active, research-driven portfolio management. Its product lineup includes traditional mutual funds, separately managed accounts, sub-advisory services and specialized strategies such as ESG-focused and municipal bond portfolios.
Founded in 1988, Victory Capital has expanded its capabilities via both organic growth and strategic acquisitions, integrating experienced investment teams to enhance its offerings in areas like smart beta, global equity and fixed income.
