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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 impacted by a 5% decline in revenues to $216.4 million and a 1% decrease in operating expenses to $169.3 million compared to the same period last year. The company's Q3 earnings missed estimates, with EPS of $6.69 versus the $6.71 consensus estimate. Assets under management (AUM) decreased to $166.2 billion as of October 31, 2025, due to net outflows in U.S. retail funds and institutional accounts. Additionally, the company's preliminary AUM and fee-earning assets declined.

1.c. Company Highlights

2. Virtus Investment Partners' Q3 2025 Earnings: A Resilient Performance

Virtus Investment Partners reported a robust financial performance for the third quarter of 2025, driven by a combination of higher average assets under management and favorable market momentum. The company's operating margin stood at 33%, while earnings per share, as adjusted, came in at $6.69, representing a 7% increase from the second quarter. The actual EPS was slightly below estimates of $6.71. Revenue growth is expected to be modest at 1.1% next year, indicating a stable outlook. The company's financial metrics demonstrate a strong ability to generate earnings, with a Return on Equity (ROE) of 20.28%.

Publication Date: Oct -28

📋 Highlights
  • ETF Growth:: ETF assets surged to $4.7 billion (79% YoY) with $0.9 billion in sales/flows each, a record high.
  • Financial Performance:: Operating margin at 33%, adjusted EPS rose 7% to $6.69, and dividend increased 7% to $2.40/share.
  • Assets Under Management:: Total AUM $169 billion, with $6.3 billion in sales (12% QoQ) but $3.9 billion net outflows.
  • Liquidity & Capital Returns:: Debt refinancing boosted liquidity; $50 million buybacks mid-year and $1 million in discrete inorganic expenses.

ETF Business: A Key Growth Driver

The ETF business was a significant highlight, with ETF assets reaching $4.7 billion, marking a 79% increase over the prior year. Both ETF sales and flows peaked at $0.9 billion during the quarter, underscoring the growing popularity of the company's ETF offerings. The company is focused on expanding its ETF distribution, particularly in key channels such as wirehouses, RIAs, and model providers, to further drive growth.

Assets Under Management and Sales Performance

Total assets under management stood at $169 billion as of September 30, slightly below the prior quarter due to net outflows. However, total sales increased by 12% to $6.3 billion, driven by higher sales of fixed income and alternative strategies. The company's diversified product offerings helped mitigate the impact of net outflows in certain areas.

Valuation and Dividend

With a Price-to-Sales Ratio of 1.32 and an EV/EBITDA of 3.1, the company's valuation appears reasonable. The Dividend Yield stands at 5.26%, making it an attractive option for income-seeking investors. The company has a history of returning capital to shareholders, having raised its quarterly dividend by 7% to $2.40 per share, marking the eighth consecutive annual increase.

Growth Priorities and Inorganic Growth

Virtus Investment Partners is focused on growing its retail separate account offerings, expanding ETF availability, and developing its wealth management business. The company remains active in evaluating opportunities for inorganic growth, adopting a disciplined approach to ensure strategic fit and long-term value creation. With a strong track record of integrating new assets and capabilities, the company is well-positioned to capitalize on emerging opportunities.

Market Outlook and Quality Strategies

The company is optimistic about its positioning, particularly in quality-oriented strategies, which are expected to perform well when the market cycle inverts. Historically, quality strategies have outperformed during such periods, as evidenced by the S&P MidCap Quality Index trailing the S&P MidCap momentum by about 32%. The company's significant overweight in quality-oriented equity strategies has led to elevated net outflows, but other areas such as fixed income, alternatives, and ETFs have seen positive flows.

3. NewsRoom

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Virtus Investment Partners, Inc. (VRTS) Shareholder/Analyst Call Transcript

Dec -05

Source: seekingalpha.com

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Virtus Investment Partners Announces Agreement to Add Keystone National Group as an Investment Manager

Dec -05

Source: businesswire.com

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Fisher Asset Management LLC Sells 4,181 Shares of Virtus Investment Partners, Inc. $VRTS

Dec -04

Source: defenseworld.net

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Creative Planning Has $1.34 Million Holdings in Virtus Investment Partners, Inc. $VRTS

Nov -29

Source: defenseworld.net

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Vertiqal Studios Appoints Acclaimed Media Executive Nikki Stone to Board of Directors

Nov -20

Source: newsfilecorp.com

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Connor Clark & Lunn Investment Management Ltd. Purchases 4,194 Shares of Virtus Investment Partners, Inc. $VRTS

Nov -17

Source: defenseworld.net

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Vertiqal Studios Announces Q3 2025 Results

Nov -13

Source: newsfilecorp.com

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Virtus Investment Partners Reports Preliminary October 31, 2025 Assets Under Management

Nov -12

Source: businesswire.com

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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Growth: 6.8

Quality: 6.1

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Momentum: 4.0

Volatility: 9.7

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Yield: 9.0

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WisdomTree

A-Score: 5.9/10

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Quality: 7.4

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Quality: 3.8

Yield: 10.0

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Virtus Investment Partners

A-Score: 5.9/10

Value: 5.6

Growth: 5.1

Quality: 7.2

Yield: 7.0

Momentum: 3.5

Volatility: 6.7

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A-Score: 5.7/10

Value: 7.3

Growth: 4.2

Quality: 7.0

Yield: 3.0

Momentum: 4.5

Volatility: 8.0

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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

165.64$

Current Price

165.64$

Potential

-0.00%

Expected Cash-Flows