SCHEDULE 13G/A: Crestview Entities Maintain Significant 11.7% Stake in Victory Capital Holdings

Crestview Partners II GP, L.P., Crestview Victory, L.P., and Crestview Advisors, L.L.C. have jointly filed an amended Schedule 13G, disclosing a combined beneficial ownership of 11.7% in Victory Capital Holdings, Inc.'s Class A Common Stock as of December 31, 2024.

Summary

• Crestview Partners II GP, L.P., Crestview Victory, L.P., and Crestview Advisors, L.L.C. collectively reported beneficial ownership of 7,615,089 shares of Victory Capital Holdings, Inc.'s Class A Common Stock.
• This represents an 11.7% stake in the company, based on 65,034,009 shares outstanding as of October 31, 2024.
• Crestview Partners II GP, L.P. and Crestview Victory, L.P. each reported 11.7% beneficial ownership, while Crestview Advisors, L.L.C. reported 0.0% beneficial ownership of 23,106 shares.
• The filing is an Amendment No. 7 to a Schedule 13G, indicating an update to a previously disclosed significant ownership position.
• The majority of the shares (7,591,983) are directly owned by Crestview Victory, L.P., with Crestview Partners II GP, L.P. having indirect beneficial ownership through its role as general partner.
• An additional 23,106 shares are directly held by Crestview Advisors, L.L.C., which were assigned to it by current and former board members of Victory Capital Holdings, Inc. (Robert V. Delaney, Jr., Robert J. Hurst, Richard M. DeMartini, and Alex J. Binderow) who received them under the 2018 Stock Incentive Plan.

Sentiment

Score: 5

Explanation: The document is a factual disclosure of beneficial ownership and does not contain information that would inherently convey positive or negative sentiment regarding the company's performance or prospects. It is a routine regulatory filing.

Positives

• The continued significant ownership by Crestview, a private equity firm, suggests a long-term strategic interest in Victory Capital Holdings, Inc.
• The involvement of Crestview partners on the Issuer's board of directors (Robert V. Delaney, Jr., Robert J. Hurst, Richard M. DeMartini) indicates alignment of interests and potential strategic guidance.

Negatives

• No explicit negatives are present in this type of filing, as it is a factual disclosure of ownership.

Risks

• Concentrated ownership by a single investment group (Crestview) could potentially lead to significant influence over corporate decisions, which may not always align with the interests of all shareholders.
• The assignment of shares from board members to Crestview Advisors, L.L.C. could raise questions about potential conflicts of interest, although the filing states the shares were fully vested upon issuance.

Future Outlook

NA

Industry Context

This Schedule 13G filing indicates that Crestview Partners, a private equity firm, maintains a significant passive investment in Victory Capital Holdings, Inc., an asset management company. Such filings are common for institutional investors holding substantial, non-controlling stakes in publicly traded companies, reflecting their investment strategy and confidence in the company's long-term prospects. The continued presence of Crestview-affiliated individuals on Victory Capital's board suggests ongoing strategic involvement.

Management Changes

Corporate Governance

Related Party Transactions

• The assignment of 23,106 shares of Class A Common Stock by current and former board members (who are also affiliated with Crestview) to Crestview Advisors, L.L.C. can be considered a related party transaction, as it involves transfers between individuals and entities with common control or significant influence.

Stakeholder Impact

• Shareholders: The significant 11.7% stake held by Crestview Partners indicates a major institutional investor's continued confidence, which could be viewed positively. However, it also implies a concentration of voting power.
• Management: The presence of Crestview-affiliated individuals on the board suggests a degree of oversight and strategic input from a major investor.

Key Dates

Keywords

Victory Capital Holdings, Crestview Partners, Schedule 13G, Beneficial Ownership, Class A Common Stock, SEC Filing, Institutional Investor, Asset Management, Investment Firm, Shareholder Stake