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1. Company Snapshot

1.a. Company Description

Virtus Investment Partners, Inc.is a publicly owned investment manager.The firm primarily provides its services to individual and institutional clients.


It launches separate client focused equity and fixed income portfolios.The firm launches equity, fixed income, and balanced mutual funds for its clients.It invests in the public equity, fixed income, and real estate markets.


The firm also invests in exchange traded funds.It employs a multi manager approach for its products.The firm employs quantitative analysis to make its investments.


It benchmarks the performance of its portfolios against the S&P 500 Index.The firm conducts in-house research to make its investments.Virtus Investment Partners, Inc.


was founded in 1988 and is based in Hartford, Connecticut.

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1.b. Last Insights on VRTS

Virtus Investment Partners' recent performance was negatively driven by an 11% decline in revenues and an 8% decrease in operating expenses. The company's Q4 earnings surpassed estimates, but net outflows in U.S. retail funds and institutional accounts offset positive net flows in exchange-traded funds, according to the Q4 2025 earnings call transcript. Market performance and net outflows also impacted assets under management, which totaled $159.5 billion as of December 31, 2025.

1.c. Company Highlights

2. Virtus Investment Partners' Q4 2025 Earnings: A Challenging Environment

Virtus Investment Partners reported a revenue of $168.9 million for Q4 2025, down 4% due to lower average Assets Under Management (AUM). The company's adjusted EPS came in at $6.5, slightly below the estimated $6.58. The investment management fees were impacted by a 3% decline in average AUM to $165.2 billion and a modestly lower average fee rate of 40.6 basis points, down from 41.1 basis points in the previous quarter.

Publication Date: Mar -04

📋 Highlights
  • AUM Declined:: Assets under management fell to $159.5B as of December 31, a $10B drop from $169B due to $8.1B net outflows and market performance.
  • ETF Expansion:: Launched three new ETFs (growth opportunities, U.S./international dividends) and plans for more ETFs across Stone Harbor, Duff & Phelps, and Silvent.
  • Capital Deployment:: Repurchased 60K shares ($10M in Q4) and $60M annually (5% of shares), with $386M cash and a $250M undrawn revolver for flexibility.
  • Keystone Acquisition:: Acquired 56% stake in Keystone National ($200M closing payment), a private credit manager with $2.5B AUM, enhancing private market exposure.
  • Fee Rate Adjustments:: Average fee rate dipped to 40.6 bps (vs. 41.1 bps prior quarter), with expectations of 43–45 bps post-Q1 as AUM normalizes.

AUM and Sales Performance

The company's AUM stood at $159.5 billion as of December 31, 2025, down from $169 billion in the previous quarter, primarily due to net outflows and market performance. Total sales were $5.3 billion, down from $6.3 billion in the third quarter, while total net outflows were $8.1 billion, driven almost entirely by equities. The company's quality-oriented equity strategies, which represent half of its AUM, remained out of favor, resulting in increased net outflows.

Strategic Priorities and Growth Initiatives

Despite the challenging environment, Virtus continued to execute its strategic priorities, including broadening its product offerings and expanding into private markets. The company launched three new actively managed funds in Q4 2025, including a growth opportunities ETF from Silven. The acquisition of a 56% majority interest in Keystone National, a boutique private credit manager, is expected to provide significant growth opportunities across both retail and institutional channels.

Balance Sheet and Capital Management

Virtus ended Q4 2025 with significant liquidity, including $386 million in cash and equivalents and an undrawn $250 million revolver. The company repurchased approximately 60,000 shares for $10 million during the quarter, bringing the total repurchases for the full year to over 347,000 shares for $60 million. The company's net debt to EBITDA ratio stood at 0.24, indicating a healthy balance sheet.

Valuation and Outlook

With a P/E ratio of 6.82 and a dividend yield of 6.66%, Virtus appears to be attractively valued. The company's ROE of 15.2% suggests a decent return on equity. Analysts estimate revenue growth of 2.4% for the next year. Given the company's strategic priorities and growth initiatives, it is well-positioned to capitalize on opportunities in the private markets and growth equity spaces.

3. NewsRoom

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Virtus Investment Partners Reports Preliminary March 31, 2026 Assets Under Management

Apr -13

Source: businesswire.com

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Vertiqal Studios Closes Private Placement of Secured Debentures

Apr -13

Source: newsfilecorp.com

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Virtus Investment Partners (NASDAQ:VRTS) Hits New 1-Year Low on Analyst Downgrade

Apr -03

Source: defenseworld.net

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Vertiqal Studios Files Continuous Disclosure Documents and Reports 2025 Annual Financial Results

Mar -31

Source: newsfilecorp.com

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Vertiqal Studios Provides Notice of Default

Mar -24

Source: newsfilecorp.com

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14 Ideal 'Safer' Dividend Buys From 70 Mid-March Graham Value All-Stars (GVAS)

Mar -12

Source: seekingalpha.com

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Virtus Investment Partners Reports Preliminary February 28, 2026 Assets Under Management

Mar -11

Source: businesswire.com

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Virtus Investment Partners (NASDAQ:VRTS) Reaches New 1-Year Low – Time to Sell?

Mar -08

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.27%)

6. Segments

Open-end Funds

Expected Growth: 8.97%

Virtus Investment Partners' open-end funds exhibit 8.97% growth driven by strong investment performance, strategic acquisitions, and expanding distribution channels. Additionally, the company's diversified product offerings, including equity, fixed income, and alternative investments, appeal to a broad range of investors, contributing to the growth momentum.

Institutional Accounts

Expected Growth: 8.5%

Virtus Investment Partners' Institutional Accounts growth of 8.5% is driven by increasing demand for actively managed equity and fixed income strategies, expansion into new markets, and strategic partnerships. Additionally, the company's focus on ESG and sustainable investing, as well as its ability to attract and retain top investment talent, have contributed to its growth momentum.

Retail Separate Accounts

Expected Growth: 7.4%

Virtus Investment Partners' Retail Separate Accounts growth of 7.4% is driven by increasing demand for customized investment solutions, expansion of distribution channels, and a strong sales force. Additionally, the company's diverse product offerings, including equity, fixed income, and alternative investments, have resonated with investors seeking diversification and yield in a low-interest-rate environment.

Administration and Shareholder Service

Expected Growth: 8.85%

Virtus Investment Partners' Administration and Shareholder Service segment growth of 8.85% is driven by increasing demand for outsourced investment solutions, expansion of existing client relationships, and strategic acquisitions. Additionally, the company's focus on operational efficiency and cost savings initiatives have contributed to the segment's growth.

Closed-end Funds

Expected Growth: 4.83%

Virtus Investment Partners' Closed-end Funds' 4.83% growth is driven by increasing demand for income-generating investments, expansion into new markets, and strategic acquisitions. Additionally, the company's diversified product offerings, strong distribution network, and experienced investment management team contribute to its growth.

Distribution and Service

Expected Growth: 9.08%

Virtus Investment Partners' Distribution and Service segment growth of 9.08% is driven by increasing demand for investment products, expansion of distribution channels, and strategic partnerships. Additionally, the company's focus on digital transformation, enhanced customer experience, and cost savings initiatives have contributed to the growth.

Other Income and Fees

Expected Growth: 8.97%

Virtus Investment Partners, Inc.'s 8.97% growth in Other Income and Fees is driven by increasing demand for investment management services, expansion into new markets, and strategic partnerships. Additionally, the company's diversified product offerings, including mutual funds and exchange-traded funds, have contributed to the growth. Furthermore, the company's ability to attract and retain high-net-worth clients has also boosted revenue.

7. Detailed Products

Equity Strategies

Virtus Investment Partners offers a range of equity strategies that cater to different investment objectives and risk tolerance, including large-cap, mid-cap, small-cap, and international equities.

Fixed Income Strategies

Virtus offers a variety of fixed income strategies, including government, corporate, and municipal bonds, as well as high-yield and emerging market debt.

Alternative Investments

Virtus provides alternative investment strategies, including real assets, private equity, and hedge funds, to help investors diversify their portfolios and manage risk.

Sustainable and ESG Investing

Virtus offers sustainable and ESG (Environmental, Social, and Governance) investment strategies that integrate non-financial factors into the investment process.

Multi-Asset Solutions

Virtus provides multi-asset solutions that combine different asset classes and strategies to help investors achieve their investment objectives.

Index-Based Strategies

Virtus offers index-based strategies that track various market indices, providing investors with broad market exposure and diversification.

8. Virtus Investment Partners, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Virtus Investment Partners, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's diversified product offerings and strong brand recognition.

Bargaining Power Of Customers

Virtus Investment Partners, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are highly specialized, making it difficult for customers to switch to alternative providers.

Bargaining Power Of Suppliers

Virtus Investment Partners, Inc. relies on a network of suppliers to provide various services and products. While the company has some bargaining power due to its size and scale, suppliers still have some negotiating power due to the specialized nature of their services.

Threat Of New Entrants

The asset management industry is highly competitive, and new entrants can easily enter the market. However, Virtus Investment Partners, Inc. has a strong brand and established relationships with customers, which provides some barriers to entry.

Intensity Of Rivalry

The asset management industry is highly competitive, with many established players competing for market share. Virtus Investment Partners, Inc. must continually innovate and improve its products and services to remain competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 71.58%
Debt Cost 10.84%
Equity Weight 28.42%
Equity Cost 11.34%
WACC 10.98%
Leverage 251.83%

11. Quality Control: Virtus Investment Partners, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Stellus Capital

A-Score: 6.6/10

Value: 5.8

Growth: 5.6

Quality: 5.3

Yield: 10.0

Momentum: 3.5

Volatility: 9.7

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Diamond Hill Investment

A-Score: 5.9/10

Value: 7.8

Growth: 3.2

Quality: 7.9

Yield: 10.0

Momentum: 2.5

Volatility: 4.0

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BlackRock TCP Capital

A-Score: 5.7/10

Value: 8.6

Growth: 3.2

Quality: 3.4

Yield: 10.0

Momentum: 1.0

Volatility: 8.0

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Virtus Investment Partners

A-Score: 5.6/10

Value: 6.2

Growth: 5.1

Quality: 5.3

Yield: 8.0

Momentum: 2.0

Volatility: 7.0

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WisdomTree

A-Score: 5.5/10

Value: 3.8

Growth: 6.3

Quality: 7.0

Yield: 3.0

Momentum: 5.0

Volatility: 7.7

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PhenixFIN

A-Score: 5.1/10

Value: 5.7

Growth: 5.0

Quality: 5.6

Yield: 3.0

Momentum: 3.0

Volatility: 8.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

141.63$

Current Price

141.63$

Potential

-0.00%

Expected Cash-Flows