On May 13, Lubbock-based Victory Bank announced that it has entered a definitive agreement to acquire a 40 percent ownership stake in McDonald Capital Management (MCM), a Lubbock-based, fee-only investment management firm with more than $350 million in assets under management. The agreement marks Victory Bank’s formal entry into wealth management.
Established in 1990, McDonald Capital Management will retain operational independence under the agreement. Founder Eric McDonald and MCM leadership will hold 60 percent ownership and direct all investment decisions, client relationships and day-to-day operations. The firm will continue operating under the McDonald Capital Management name.
“Our significant investment in McDonald Capital Management is a testament to both our strategic focus as well as our non-linear approach to building a durable, high-performing, Texas banking enterprise. We handle the banking. They handle the investments, and our clients get a real wealth manager with a 36-year track record,” says C. Brett McDowell, Victory Bank co-founder and CEO.
“Some bank-affiliated wealth management programs in the region operate through broker-dealer arrangements with national firms, in which advisors may receive commissions on the products they recommend,” McDowell adds. “Victory Bank’s alignment with McDonald Capital Management takes a fundamentally different approach, one in which the wealth manager’s only financial interests are aligned with client success.”
Established in 1971, Victory Bank is a Texas state-chartered community bank serving customers across West Texas with locations in Lubbock, Abilene, the Big Country and the Texas Hill Country. Victory Financial Corp., the bank’s holding company, was formed in 2022.
