Victory Capital Holdings reported assets under management of $154.9 billion at the end of the second quarter, a 13% decline from the end of the first quarter and a 4.3% drop from a year earlier, the firm said in a Friday earnings release.
David Brown, chairman and CEO, noted in the release that the "recent market environment has not slowed our inorganic growth strategy," adding that "we are currently in various stages of diligence with multiple acquisition prospects."
In an earnings call with analysts, Mr. Brown said of potential M&A deals: "Our focus here remains the same as it has for the last decade, every potential acquisition we look at must have a strategic aspect that will make us a better company."
Victory saw total net outflows in the second quarter of $683 million, compared with net inflows of $3 billion in the first quarter and net inflows of $176 million in the year-ago quarter.
Victory attributed the second quarter outflows primarily to "unprecedented pullbacks in the market."
By asset type, U.S. small-cap equity, U.S. midcap equity, U.S. large-cap equity, fixed income and money markets witnessed net outflows of $1.1 billion, $174 million, $270 million, $1.3 billion and $53 million, respectively, in the second quarter. Meanwhile, global non-U.S. equity, the solutions platform and alternative investments saw net inflows of $50 million, $488 million and $1.65 billion in the second quarter, respectively.
Market depreciation and acquired assets/net transfers further lowered AUM by $21.7 billion and $797 million, respectively, in the second quarter.
The firm reported revenues of $216 million in the second quarter, a 6.1% drop from the first quarter, and a 2.7% decline from the year-ago quarter.
Victory attributed the sequential decline in revenue primarily to a "decrease in average AUM and revenue realization partially offset by one extra day in the quarter."
Net income as $71.4 million, down 12% from the first quarter and an 11% decline from second quarter 2021.
