Virtus Investmen Stock Price, News & Analysis

Virtus Investment Partners, Inc. (NYSE: VRTS) is an asset management company in the finance and insurance sector, classified within securities and commodity exchanges. According to the company, Virtus operates a multi-manager asset management business and is organized as a partnership of boutique investment managers that focus on serving both individual and institutional investors.

The company provides investment management and related services and operates as a single business segment as an asset manager for individual and institutional clients. It uses a multi-manager, multi-style approach, offering investment strategies from its investment managers, each with a distinct investment style, autonomous investment process, and individual brand. Virtus also works with select unaffiliated managers or subadvisers for certain funds.

Business model and multi-manager structure

Virtus describes itself as a "distinctive partnership of boutique investment managers" that are "singularly committed to the long-term success of individual and institutional investors." Through its multi-manager model, Virtus provides its affiliated investment managers with distribution, business, and operational support. This structure allows each manager to maintain its own investment style and autonomous investment process while benefiting from centralized support at the Virtus level.

Investment solutions are made available across multiple disciplines and product types. Based on company disclosures, these include open-end funds, closed-end funds, exchange-traded funds, retail separate accounts, institutional separate and commingled accounts, and other fee-earning assets. Assets are managed across equity, fixed income, multi-asset, and alternatives strategies.

Client base and product types

Virtus states that it provides investment products and services to both institutions and individuals. Its open-end funds include U.S. retail funds, global funds, and exchange-traded funds. Retail separate accounts include strategies where investment models are provided to managed account sponsors. Institutional accounts include institutional separate and commingled accounts, including structured products.

By asset class, Virtus reports managing equity, fixed income, multi-asset, and alternatives strategies. Multi-asset offerings consist of strategies that are not included in equity, fixed income, or alternatives. Alternatives include real estate securities, managed futures, event-driven, infrastructure, and other strategies, as described in related fund disclosures.

Partnership with boutique managers

Virtus works with a range of affiliated and subadvised boutique investment managers. For example, Duff & Phelps Investment Management Co. is identified as an investment manager of Virtus Investment Partners that specializes in listed real asset strategies for institutional and individual clients. Duff & Phelps focuses on investment strategies such as U.S. and global real estate securities, global listed infrastructure, energy infrastructure, water, and clean energy.

Virtus Investment Advisers, LLC, a registered investment adviser affiliated with Virtus Investment Partners, serves as the investment adviser to several closed-end funds, including Virtus Total Return Fund Inc., Virtus Equity & Convertible Income Fund, Virtus Artificial Intelligence & Technology Opportunities Fund, and Virtus Diversified Income & Convertible Fund. These funds employ subadvisers such as Duff & Phelps Investment Management Co., Newfleet Asset Management, and Voya Investment Management, illustrating the multi-manager and subadvisory model Virtus uses across its product lineup.

Expansion into private markets

Virtus has disclosed activity in private markets through strategic investments. In a reported transaction, Virtus, through its wholly owned subsidiary Virtus Private Markets Holdings, LLC, acquired 35% of the equity of Crescent Cove Advisors, LP and Crescent Cove Opportunity GP, LP. Crescent Cove is described as an alternative investment firm that provides private capital solutions to middle market technology companies and manages assets across multiple private funds, including closed-end funds and an evergreen fund. Virtus states that this transaction broadens its offerings by adding a private markets capability focused on lending to high-growth technology companies.

Virtus also reported entering into an Equity Purchase Agreement, through Virtus Private Markets Holdings, LLC, to acquire a majority interest in Keystone National Group, LLC, with the potential to increase its ownership through put/call options. Keystone is described in the agreement context as a party to advisory contracts under the Investment Advisers Act of 1940, and the transaction is subject to client consents and regulatory approvals. This illustrates Virtus’ use of acquisitions and equity investments to expand its platform of investment managers and strategies.

Capital structure and financing

Virtus has reported entering into a credit agreement that provides for a term loan and a revolving credit facility. The company replaced a prior credit agreement by entering into a new credit agreement that includes a term loan with a multi-year term and a revolving credit facility with a separate term. Proceeds from the term loan were applied to refinance the outstanding term loan under the previous credit agreement, for general corporate purposes, and to pay fees and expenses associated with the new agreement. The credit agreement includes the ability to request additional revolving commitments and additional term loans, subject to conditions specified in the agreement.

Role in the asset management ecosystem

Within the securities and commodity exchanges industry classification, Virtus functions as an asset manager that aggregates a range of specialized investment managers and strategies under one corporate umbrella. The company emphasizes long-term investor outcomes and the autonomy of its underlying managers, while providing centralized business, distribution, and operational support. Its product lineup includes open-end mutual funds, closed-end funds, exchange-traded funds, separate accounts, and private funds, with strategies spanning public markets and, through partnerships such as Crescent Cove, private markets.

Representative affiliated and advised funds

Company and fund disclosures highlight several closed-end funds associated with Virtus and its affiliated managers:

• Duff & Phelps Utility and Infrastructure Fund Inc. (DPG) – A closed-end investment management company advised by Duff & Phelps Investment Management Co., an investment manager of Virtus. The fund’s investment objective is to seek total return, primarily from a high level of current income with an emphasis on tax-advantaged dividend income and growth in current income, and secondarily from capital appreciation. It invests primarily in equities of domestic and foreign utilities and infrastructure providers.
• DNP Select Income Fund Inc. (DNP) – A closed-end diversified investment management company advised by Duff & Phelps Investment Management Co. Its primary investment objectives are current income and long-term growth of income, achieved by investing primarily in a diversified portfolio of equity and fixed income securities of companies in the public utilities industry.
• DTF Tax-Free Income 2028 Term Fund Inc. (DTF) – A diversified closed-end investment management company whose investment objective is current income exempt from regular federal income tax consistent with preservation of capital. It invests in a diversified portfolio of investment-grade tax-exempt obligations and is advised by Duff & Phelps Investment Management Co., an investment manager of Virtus.
• Virtus Total Return Fund Inc. (ZTR) – A diversified closed-end fund whose investment objective is capital appreciation, with income as a secondary objective. Virtus Investment Advisers, LLC, an affiliate of Virtus Investment Partners, is the investment adviser, and Duff & Phelps Investment Management Co. and Newfleet Asset Management are subadvisers.
• Virtus Equity & Convertible Income Fund (NIE) – A diversified closed-end fund that seeks total return comprised of capital appreciation, current income, and gains. Under normal circumstances, it invests at least 80% of its net assets (plus any borrowings for investment purposes) in a combination of equity securities and income-producing convertible securities. Virtus Investment Advisers, LLC is the investment adviser, and Voya Investment Management is the subadviser.
• Virtus Artificial Intelligence & Technology Opportunities Fund (AIO) – A diversified closed-end fund that seeks total return through a combination of current income, current gains, and long-term capital appreciation. It uses a multi-asset approach based on fundamental research, dynamically allocating to segments of a company’s debt and equity. The fund has a limited term and is expected to terminate on or around October 29, 2031, absent an extension approved by its Board of Trustees. Virtus Investment Advisers, LLC is the investment adviser, and Voya Investment Management is the subadviser.
• Virtus Diversified Income & Convertible Fund (ACV) – A diversified closed-end fund that seeks to provide total return through a combination of current income and capital appreciation, while seeking to provide downside protection against capital loss. The fund normally invests at least 50% of total managed assets in convertibles and may write covered call options on stocks held in the equity portion. It has a limited term and is expected to terminate on the first business day following the 15th anniversary of the effective date of its registration statement, May 22, 2030, subject to a possible extension. Virtus Investment Advisers, LLC is the investment adviser, and Voya Investment Management is the subadviser.

Assets under management and product mix

Virtus periodically reports its preliminary assets under management (AUM) and other fee-earning assets. In a recent disclosure, the company reported total client assets composed of assets under management and other fee-earning assets. AUM is broken out by product type, including open-end funds, closed-end funds, retail separate accounts, and institutional accounts, and by asset class, including equity, fixed income, multi-asset, and alternatives. The company notes that changes in AUM reflect market performance and net flows across U.S. retail funds, institutional accounts, retail separate accounts, and exchange-traded funds.

Corporate governance and public company status

Virtus Investment Partners, Inc. is an independent public company listed on the New York Stock Exchange under the symbol VRTS. It files periodic and current reports with the U.S. Securities and Exchange Commission, including Forms 10-K, 10-Q, and 8-K. These filings provide information on financial condition, results of operations, material definitive agreements, capital structure, and corporate governance matters, such as board composition and director retirement plans.

FAQs about Virtus Investment Partners, Inc. (VRTS)

• What does Virtus Investment Partners, Inc. do?
  Virtus Investment Partners, Inc. is an asset management company that provides investment management and related services to individual and institutional clients. It operates a multi-manager, multi-style platform, offering investment strategies from affiliated boutique investment managers and select subadvisers across multiple disciplines and product types.
• How does Virtus’ multi-manager model work?
  Virtus describes itself as a partnership of boutique investment managers, each with a distinct investment style and autonomous investment process. Virtus supports these managers by providing distribution, business, and operational services, while the managers focus on their investment strategies and portfolio management.
• What types of investment products are associated with Virtus?
  Based on company and fund disclosures, Virtus’ platform includes open-end funds (such as U.S. retail funds, global funds, and exchange-traded funds), closed-end funds, retail separate accounts, institutional separate and commingled accounts, structured products, and private funds managed by affiliated or partially owned managers.
• Which asset classes does Virtus manage?
  Virtus reports managing assets across equity, fixed income, multi-asset, and alternatives. Multi-asset strategies are those not categorized as equity, fixed income, or alternatives, while alternatives include real estate securities, managed futures, event-driven, infrastructure, and other strategies.
• Who are some of the boutique managers and subadvisers on the Virtus platform?
  Examples disclosed in company and fund materials include Duff & Phelps Investment Management Co., Newfleet Asset Management, and Voya Investment Management. Virtus Investment Advisers, LLC, an affiliate of Virtus Investment Partners, serves as investment adviser to several closed-end funds, with these firms acting as subadvisers.
• How is Virtus expanding into private markets?
  Virtus, through its wholly owned subsidiary Virtus Private Markets Holdings, LLC, acquired a 35% equity interest in Crescent Cove Advisors, LP and related entities. Crescent Cove is an alternative investment firm that provides private capital solutions to middle market technology companies and manages assets across multiple private funds. Virtus has also entered into an Equity Purchase Agreement to acquire a majority interest in Keystone National Group, LLC, subject to client consents and regulatory approvals.
• What is Virtus’ stock exchange listing and ticker symbol?
  Virtus Investment Partners, Inc. is listed on the New York Stock Exchange under the ticker symbol VRTS.
• How does Virtus finance its operations and growth?
  Virtus has reported entering into a credit agreement that provides a term loan and a revolving credit facility. Proceeds from the term loan were used to refinance a prior term loan, fund general corporate purposes, and pay transaction-related fees and expenses. The company also uses existing financial resources to fund strategic equity investments, such as its minority interest in Crescent Cove.
• What role does Virtus play in closed-end funds?
  Virtus Investment Advisers, LLC, an affiliate of Virtus Investment Partners, serves as investment adviser to several diversified closed-end funds, including Virtus Total Return Fund Inc., Virtus Equity & Convertible Income Fund, Virtus Artificial Intelligence & Technology Opportunities Fund, and Virtus Diversified Income & Convertible Fund. In addition, Duff & Phelps Investment Management Co., an investment manager of Virtus, advises closed-end funds such as DNP Select Income Fund Inc., Duff & Phelps Utility and Infrastructure Fund Inc., and DTF Tax-Free Income 2028 Term Fund Inc.
• How can investors learn more about Virtus’ strategies and funds?
  Virtus indicates that additional information about the firm, its investment partners, and its strategies is available through its public communications, including press releases, fund reports, and regulatory filings with the U.S. Securities and Exchange Commission. These materials describe investment objectives, strategies, risks, and distribution policies for the funds and strategies associated with Virtus.