Scott Ball / Rivard Report
Just over two months to the day that Victory Capital acquired USAA's investment division, the Ohio-based company announced Thursday it is moving to San Antonio.
Victory Capital will relocate its corporate headquarters for the firm's global investment management business from Cleveland to San Antonio later this year. The relocation follows the Nov. 7, 2018, announcement that Victory Capital would acquire San Antonio-based financial services provider USAA's Asset Management Company in a deal worth $850 million.
Victory Capital is a global investment management firm with $52.8 billion in assets under management as of Dec. 31, 2018. The firm is acquiring USAA’s mutual fund and exchange-traded fund businesses as well as the USAA 529 College Savings Plan, and will own the rights to offer products and services using the USAA brand. The deal is expected to close in the second quarter of 2019 and is subject to regulatory approval.
A statement from the Victory Capital said it plans to maintain a significant presence in Cleveland. The firm currently operates nine other offices in cities across the country and three outside the United States – in London, Hong Kong, and Singapore. Victory Capital, which is listed on NASDAQ, expects to open its San Antonio headquarters in mid-2019.
A spokeswoman for Victory Capital said it is still too early to know where the headquarters will be located within San Antonio. "We are exploring potential locations that would be ideally suited to serve as our headquarters," she said.
David Brown, chairman and CEO for Victory Capital, and several senior-level executives will move to San Antonio, and Victory Capital plans to create new jobs as well as retain others in San Antonio.
“Victory Capital’s decision to make San Antonio its headquarters reinforces the benefits that our city and state have to offer major employers from both a business environment and quality-of-life perspective,” said Jenna Saucedo-Herrera, CEO of the San Antonio Economic Development Foundation. “We are proud to be a city of choice for major employers such as Victory Capital.”
City Council will vote Jan. 17 on an incentive package that includes a grant of $500,000. In exchange, Victory Capital will agree to relocate six executive team members, retain 300 existing jobs, create 51 new high-paying jobs, partner with the City on internships and financial literacy programs, and invest at least $500,000 in real estate property.
Victory Capital's move to San Antonio creates or retains 357 jobs paying an average annual salary of $96,000 for a minimum of 10 years.
“From financial services and cybersecurity to manufacturing and bioscience, more companies are realizing their headquarters growth potential in San Antonio," Mayor Ron Nirenberg stated. "We’re proud to welcome Victory Capital to San Antonio and stand ready to support your future growth in our community."
On Jan. 15, Bexar County commissioners will also consider an incentives package, which includes a $250,000 grant.
“All our economic development wins are hard-fought and important, but landing a corporate headquarters for a publicly traded company is especially valuable," stated Bexar County Judge Nelson Wolff. He added that Victory's headquarters will bring many executive-level positions with exceptional salaries, "which also means real career advancement opportunities for our local workforce to aspire for those positions."
“San Antonio will play an important role in the future growth of our organization," Brown stated. "It will enhance our ability to access new pools of talent and further develop the technology and operational platforms that support our integrated multi-boutique business model.
“We believe that San Antonio offers our employees the opportunity to live in an innovative and culturally rich city with an exceptional climate and competitive cost of living,” Brown added. “We are excited to join the community.”