Victory Capital Holdings, Inc. (NASDAQ:VCTR) Q2 2023 Earnings Call Transcript

Matthew Howlett: So there’s no need to step in and sort of guide someone that may not be up to what the others are doing, you just sort of let them — it’s worked for you in the past, and that’s the way it stands when you look to run the company.

David Brown: Yes. It’s all about providing them all of the necessary tools that they need to build portfolios and to manage client assets. And so our focus is on providing them all of the tools to do that. They take those tools. They build the portfolios. And then our job as well is to go out and make sure that we secure them clients and that we service those clients. And we let them focus as much as their time as possible on the portfolio and making the decisions around the portfolio.

Matthew Howlett: Makes a lot of sense. And that leads into my next question. You run the gamut in terms of what you’re looking at in terms of M&A. How do you narrow it down? Does it come down to sort of the best value out there, the needs of the company or a geography we’d like to be in. I mean you’re going to presumably see a lot of potential deals out there. I mean what can you tell us in terms of how you prioritize all that’s out there?

David Brown: Yes. I think we have a really good track record with our M&A over the last decade. How we prioritize isn’t really around asset class or size or scale or even financial accretion, it’s really around the best fit for the company. This industry is going to go through — in my opinion, going to go through continued consolidation for the foreseeable future. There’s going to be a lot of opportunity. And I do think sorting out the best fit for your organization is one of the challenges for leadership teams. And so part of that is science and you can go through all of the investment performance, analytics and other things. And then the other part is our — and I think we draw upon our experience of doing acquisitions.

Matthew Howlett: Yes. Absolutely. Thank you so much.

Operator: And there are no further questions at this time. Mr. Dave Brown. I turn the call back over to you for some final closing remarks.

David Brown: Thank you and we appreciate everybody’s interest in Victory Capital. We look forward to keeping you posted on our progress as we execute on our strategy through the second half of the year. Thanks for attending, and have a great day.

Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.