Victory Capital Holdings, Inc. (NASDAQ: VCTR) reported that its assets under management (AUM) fell 2.3% from January to $157.7 billion as of February 28. However, average AUM increased to $160.2 billion from $157.1 billion in the previous month.
The decline in AUM was seen across several asset classes. Solutions AUM dropped 3.3% month-over-month to $52.84 billion, while fixed income AUM slipped 1.8% to $26.36 billion. U.S. mid-cap equity AUM fell 1.5% to $29.51 billion, and U.S. small-cap equity AUM dipped 0.4% to $16.32 billion.
The Ohio-based investment management company reported 5.5% AUM growth in January, indicating that February’s decline was likely driven by market volatility and other external factors.
Victory Capital has been expanding its footprint through strategic acquisitions. In February, the company completed the acquisition of New York-based Alderwood Capital, a specialized asset management firm focused on global listed infrastructure. The acquisition will enable Victory Capital to expand its offerings in the infrastructure and real assets space.
In addition, the company has been actively launching new investment products to diversify its offerings and attract new clients. In January, Victory Capital launched a new actively managed exchange-traded fund (ETF) that invests in sustainable infrastructure companies. The fund aims to provide investors with exposure to companies that are expected to benefit from increasing demand for sustainable infrastructure projects.
Despite the decline in AUM in February, Victory Capital remains well-positioned to capitalize on growth opportunities through strategic acquisitions and product innovation. The company’s diverse offerings and experienced management team should enable it to weather market volatility and continue to deliver value to its clients.