Virtus Investment Partners acquisition history

Virtus acquired the business and assets of Boston-based Rampart Investment Management, an adviser specializing in systematic, disciplined options-based strategies. Rampart became one of Virtus's affiliated managers, extending the platform into options-overlay and volatility-oriented solutions. Terms were not disclosed.

In April 2015 Virtus took a majority ownership position in ETF Issuer Solutions, an operator of a platform for listing, operating and distributing exchange-traded funds. The business was rebranded Virtus ETF Solutions and gave Virtus an in-house ETF sponsorship and servicing capability. Deal terms were not disclosed.

Virtus acquired RidgeWorth Investments, a multi-boutique asset manager with about $40 billion in assets across affiliated and unaffiliated managers, via merger. The deal added RidgeWorth's boutiques Ceredex Value Advisors, Seix Investment Advisors and Silvant Capital Management, which continued to operate independently. It lifted Virtus's pro forma assets under management to roughly $90 billion and materially expanded its institutional and fixed-income reach. The stated purchase price was $472 million plus the fair market value of certain RidgeWorth investments at closing. $472 million (plus fair market value of certain RidgeWorth investments at closing).

We are pleased to complete this transaction and add the strategies from Ceredex, Seix and Silvant to the distinctive equity and fixed income offerings from our other boutique managers.George R. Aylward — President and CEO, Virtus Investment Partners

Through subsidiary Virtus Partners, Virtus agreed to acquire 70% of the limited partnership interests of Sustainable Growth Advisers plus 100% of the interests of its general partner, with SGA's management partners retaining the remaining 30%. SGA is a global large-cap growth equity manager; at close it managed about $11.3 billion. Outside minority owner Estancia Capital Partners sold its full stake to Virtus. The base purchase price was $129.5 million in cash, subject to client-consent and working-capital adjustments. $129.5 million base purchase price (cash, subject to adjustment) for 70% of SGA plus 100% of its general partner.

Under a strategic partnership with Allianz Global Investors U.S., Virtus became the investment adviser, distributor and/or administrator for a large book of AGI's U.S. open-end, closed-end, institutional and retail separate-account assets (about $23 billion announced, roughly $29.5 billion effective at the February 2021 agreement), with AGI teams continuing to manage strategies as subadvisers. As part of the transaction, AGI's Dallas-based Value Equity team, formerly NFJ Investment Group, joined Virtus as a new affiliated manager. Consideration was not disclosed and included contingent payments.

This new partnership with AllianzGI is strategically meaningful for us in terms of scale, fit and growth potential.George R. Aylward — President and CEO, Virtus Investment Partners

This partnership is truly complementary.Tobias C. Pross — CEO, Allianz Global Investors

Through subsidiary Virtus Partners, Virtus acquired 100% of the membership interests of Westchester Capital Management, a Valhalla, NY manager recognized for global event-driven and merger-arbitrage strategies with about $5 billion in assets. The base purchase price was $135 million in cash, with up to $20 million in revenue-retention payments and additional earn-outs; the total purchase price recorded was $169.3 million, generating $23.0 million of goodwill and $144.4 million of intangibles. $169.3 million total purchase price ($135 million base cash plus retention and earn-out payments).

Virtus acquired Stone Harbor Investment Partners, a New York manager of emerging-markets debt, multi-asset credit, global corporate and related strategies with roughly $14.7 billion in assets at year-end 2021. Stone Harbor added a 30-year emerging-markets-debt track record, a largely non-U.S. institutional client base, and a proprietary end-to-end investment and risk-management technology platform. Total consideration was $30.1 million, consisting of $28.9 million in cash and $1.2 million of contingent earn-out payments tied to revenue retention and growth. $30.1 million total consideration ($28.9 million cash plus $1.2 million contingent earn-out).

We are pleased to add Stone Harbor as an affiliated manager. Their culture and approach is strongly aligned with our core beliefs of providing high-quality, attractive investment strategies and exceptional service to clients.George R. Aylward — President and CEO, Virtus Investment Partners

Through new subsidiary Virtus Private Markets Holdings, Virtus acquired 56% of the equity of Keystone National Group, a Salt Lake City private-credit manager specializing in asset-backed lending (equipment finance, real-estate finance, financial assets and asset-backed corporate loans). Keystone managed about $2.5 billion and had deployed over $6 billion across more than 750 transactions. Consideration was $200 million cash at closing, $65 million after year one, $30 million after year two, and up to $75 million of revenue-based contingent payments; put/call options allow Virtus to acquire up to an additional 19% (to 75%). Keystone's management retained meaningful equity and long-term employment agreements. $200 million cash at close plus up to $170 million deferred/earn-out (up to ~$370 million) for a 56% interest, with options to reach up to 75%.

Keystone adds a highly specialized private markets capability that aligns well with our multi-boutique model and our clients' growing demand for alternative sources of income and diversification.George R. Aylward — President and CEO, Virtus Investment Partners