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Virtus Investment Partners
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Virtus Investment Partners, Inc. is an American company which operates as a multi-manager asset management business, comprising a number of individual affiliated managers, each having its own investment process and brand, and the services of unaffiliated sub advisers.
Key Information
History
[edit]Virtus Investment Partners, formerly known as Phoenix Investment Partners, Ltd., was formed on November 1, 1995, through a reverse merger with Duff & Phelps Investment Management Co., at the time the investment management affiliate of Duff & Phelps Corporation.[citation needed]
1995–2006
[edit]From 1995 to 2001, Virtus was a majority-owned indirect subsidiary of Phoenix Life Insurance Co. During this period, the company purchased a majority interest in several boutique investment management companies to establish its multi-manager business model. In addition to Duff & Phelps Investment Management, Virtus’ affiliates during this time included Kayne Anderson Rudnick Investment Management, LLC, Seneca Capital Management, and Zweig Advisers LLC, which was founded by Martin Zweig, a well-known Wall Street investor.
On January 11, 2001, a subsidiary of Phoenix acquired the outstanding shares of Phoenix Investment Partners not already owned, and the company became an indirect wholly owned subsidiary of Phoenix.
In May 2005, Phoenix Investment Partners acquired the remaining minority interest in Seneca Capital Management and in September of that year acquired the remaining minority interest in Kayne Anderson Rudnick, thereby increasing ownership of both companies to 100%. In May 2006, Phoenix Investment Partners adopted the Harris Insight Funds from Harris Investment Management, Inc.
2006–2009
[edit]In February 2008, Phoenix announced it would spin off Phoenix Investment Partners as an independent asset management company through a pro rata dividend of Phoenix Investment Partners' common stock to Phoenix's shareholders.[1] On October 30, 2008, Harris Bankcorp Inc., a U.S. subsidiary of Bank of Montreal, announced it would acquire $45 million in convertible preferred stock, representing a 23 percent equity position in Virtus.[2]
Virtus became an independent publicly traded company on December 31, 2008, upon completion of its spin-off from Phoenix. The first day of trading of VRTS was January 2, 2009, and company officials rang the opening bell at NASDAQ Market Site on January 5, 2009.[3]
2010–present
[edit]The years 2011 through 2018 were a period of expansion for Virtus as it established or acquired several affiliated managers, beginning in June 2011, when it established Newfleet Asset Management as a fixed income affiliate with approximately $5.2 billion of assets under management. David L. Albrycht, formerly executive managing director of Goodwin Capital Advisors, an investment management company that previously was a subsidiary of Virtus, became chief investment officer of Newfleet.[4]
In October 2012, Virtus completed the acquisition of Rampart Investment Management, a registered investment adviser specializing in options strategies. In 2013, the company established a Dublin-based UCITS, and in 2015 acquired a majority interest in ETF Issuer Solutions (ETFis), a New York City-based company that operates a platform for listing, operating, and distributing exchange-traded funds. It was renamed Virtus ETF Solutions.
In December 2016, Virtus agreed to acquire multi-boutique asset manager RidgeWorth Investments from private equity firm Lightyear Capital and Ridgeworth's employees for $472 million. That transaction, which was completed in June 2017, added approximately $40 billion in assets managed by Ridgeworth's three wholly owned affiliates, Ceredex Value Advisors, Seix Investment Advisors, and Silvant Capital Management.[5]
Virtus completed a majority investment in Sustainable Growth Advisers (SGA), an investment manager headquartered in Stamford, Connecticut that specializes in high-conviction U.S. and global growth equity portfolios, in July 2018.[6]
Natixis Investment Managers agreed to sell AlphaSimplex Group to Virtus in October 2022.[7][8] The acquisition completed in April 2023.[9]
Business overview
[edit]Retail products (available to individual investors) include open-end mutual funds, closed-end funds, exchange-traded funds, and retail separate accounts. The Virtus Mutual Funds family consists of 58 open-end mutual funds that are distributed primarily through intermediaries, including national and regional broker-dealers, independent broker-dealers, and independent financial advisory firms. Virtus' closed-end funds are managed by four affiliated managers. The closed-end funds trade on the New York Stock Exchange.
Retail separately managed accounts comprise intermediary programs, sponsored and distributed by unaffiliated brokerage firms, and private client accounts, which are offered to the high-net-worth clients of the affiliated managers.
Virtus also manages institutional accounts for corporations, multi-employer retirement funds, foundations, endowments, and special purpose funds.[10]
Unaffiliated sub advisers
[edit]Virtus supplements the investment capabilities of its affiliated managers with select unaffiliated sub advisers whose strategies are not available to retail mutual fund customers. [11]
References
[edit]- ^ "Phoenix Announces Intention to Spin Off Phoenix Investment Partners", phx.corporate-ir.net, Feb. 7, 2008
- ^ "Harris Bankcorp to Take Minority Equity Position In Virtus Investment Partners", bnet.com, Oct. 30, 2008.
- ^ "Virtus Gains in Debut Amid Acquisition Speculation", Hartford Courant via pqasb.pqarchiver.com, Jan. 3, 2009.
- ^ "Investor Relations".
- ^ "Virtus to acquire RidgeWorth Investments, expand institutional offerings". 16 December 2016.
- ^ "Virtus Investment Partners to take 70% ownership of Sustainable Growth Advisers". 2 February 2018.
- ^ "Virtus to acquire alternatives manager AlphaSimplex from Natixis". Pensions & Investments. 2022-10-20. Retrieved 2022-11-24.
- ^ SCHMITT, WILL (21 October 2022). "Natixis to sell $11bn alts boutique to Virtus". citywire.com. Retrieved 2022-11-24.
- ^ Larson, Andrew (2023-04-04). "Virtus Investment Partners closes on acquisition of Boston firm". Hartford Business Journal.
- ^ Virtus Investment Partners, facebook.com.
- ^ "About Us" Archived 2014-07-14 at the Wayback Machine, virtus.com.
Virtus Investment Partners
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Company overview
Profile and operations
Virtus Investment Partners, Inc. commenced operations on November 1, 1995, through a reverse merger between the investment management operations of Phoenix Home Life Mutual Insurance Company and Duff & Phelps Investment Management Co., initially operating as Phoenix Investment Partners, Ltd.[10] The company is headquartered at One Financial Plaza in Hartford, Connecticut, USA.[11] As a publicly traded multi-manager asset management firm listed on the NYSE under the ticker symbol VRTS, Virtus focuses on delivering investment solutions to individual, financial professional, and institutional clients.[2] Its official website is www.virtus.com.[](https://s1.q4cdn.com/142358076/files/doc_financials/2024/ar/Virtus-2024-Annual-Report-and-10-K.pdf) As of December 31, 2024, the firm employed 805 full-time staff members.[11] Virtus's core operations center on managing a diverse array of investment vehicles, including mutual funds, closed-end funds, exchange-traded funds (ETFs), and separate accounts, spanning equity, fixed income, multi-asset, and alternative strategies.[11] The firm employs a multi-boutique model that grants autonomy to its affiliated investment managers while supplying centralized support for distribution, administration, and operational services to enhance efficiency and market reach.[11]Leadership
George R. Aylward serves as President and Chief Executive Officer of Virtus Investment Partners, Inc., overseeing the firm's strategic direction and operations.[12] With over 25 years in asset management, Aylward joined the company's predecessor in 1996, advancing through roles including Chief of Staff to the CEO (2002–2004), Chief Operating Officer (2004–2006), and President since 2006.[12] He holds a BS in Accounting from the University of Connecticut, an MBA from the University of Massachusetts, and is a Certified Public Accountant; he also serves on the Board of Governors of the Investment Company Institute.[12] Other key executives include Michael A. Angerthal, Executive Vice President and Chief Financial Officer, responsible for financial strategy and reporting; Richard Smirl, Executive Vice President and Chief Operating Officer; and Barry Mandinach, Executive Vice President and Head of Distribution.[13][14] Prior to Aylward's expanded role, Mark S. Flynn served as CEO until 2021.[15] Timothy A. Holt acts as non-executive Chairman of the Board, providing independent oversight on governance and strategy.[12] The Board of Directors comprises eight members, seven of whom are independent, with backgrounds in finance, asset management, and corporate leadership to guide the company's multi-manager platform.[16] Notable independent directors include Susan S. Fleming, Ph.D., Chair of the Governance Committee with expertise in strategic advisory and education; Paul G. Greig, Chair of the Audit Committee and former CEO of FirstMerit Corp.; Melody L. Jones, Chair of the Compensation Committee with experience in human resources and governance; Peter L. Bain, a Compensation Committee member and retired investment executive; W. Howard Morris, an Audit Committee member with private equity and advisory roles; and John C. Weisenseel, an Audit Committee member appointed in December 2024, bringing over 20 years of senior financial leadership from roles at Duff & Phelps.[17][18] Aylward, as the sole non-independent director, chairs relevant committees aligned with his executive duties.[12] Governance practices emphasize ethical standards through a comprehensive Code of Conduct, mandatory employee training on ethics and compliance, and adherence to legal regulations.[16] The Board promotes diversity by actively recruiting candidates with varied perspectives and experiences, ensuring all committees consist of independent directors.[16] Alignment with shareholder interests is achieved via Corporate Governance Guidelines that require director stock ownership and tie compensation to performance metrics.[16]History
Formation and early growth (1995–2008)
Virtus Investment Partners, originally known as Phoenix Investment Partners, Ltd., was established on November 1, 1995, through a reverse merger between Phoenix Securities Group, a subsidiary of Phoenix Home Life Mutual Insurance Company, and Duff & Phelps Corporation, an investment management firm.[10][19] This transaction combined Phoenix's approximately $19 billion in assets under management with Duff & Phelps' $16 billion, creating a new entity with roughly $35 billion in total assets and positioning it as one of the 20 largest asset managers at the time.[19][20] The merger aimed to build a diversified multi-manager platform by integrating complementary investment capabilities in equities and fixed income, with an initial focus on expanding mutual fund offerings and institutional services under the Phoenix Duff & Phelps name.[10][21] From 1995 to 2001, Phoenix Investment Partners operated as a majority-owned indirect subsidiary of The Phoenix Companies, Inc. (PNX), following PNX's demutualization of Phoenix Home Life.[10] On January 11, 2001, a PNX subsidiary acquired the remaining minority interest, making the firm wholly owned by PNX.[10] During this period, the company pursued strategic acquisitions to develop its affiliated manager network and enhance its multi-manager structure. In 1997, it entered a letter of intent for an initial stake in GMG/Seneca Capital Management, adding value-driven fixed income expertise, and acquired full ownership in May 2005.[22][23] In December 1998, Phoenix completed the acquisition of the retail mutual fund and closed-end fund businesses from the Zweig Group, incorporating growth-at-a-reasonable-price equity strategies and high-quality fixed income approaches.[24] In January 2002, it purchased a 60% interest in Kayne Anderson Rudnick Investment Management for its quality-at-a-reasonable-price equity style, increasing to full ownership in September 2005.[25][26] These moves solidified the platform's emphasis on specialized affiliated managers for diverse equity and fixed income strategies.[10] In May 2006, Phoenix acquired the advisory, distribution, and administration rights to the Harris Insight Funds from Harris Investment Management, Inc., renaming them Phoenix-Insight Funds and bolstering its equity and fixed income mutual fund lineup with approximately $3.5 billion in additional assets.[23][27] These affiliations added approximately $7.6 billion in assets, contributing to total assets under management of $61.2 billion as of December 31, 2001, reflecting expansion through affiliations amid volatile markets.[28] However, the firm faced significant challenges from the late 1990s dot-com bust, which eroded asset values and inflows as equity markets declined sharply between 2000 and 2002, impacting revenues and prompting a focus on diversified fixed income strategies for stability.[10] By 2007, AUM had rebounded to $40.4 billion, demonstrating resilience in the pre-spin-off era through its multi-manager model.[29]Spin-off and public listing (2009–2010)
On December 31, 2008, Virtus Investment Partners completed its spin-off from The Phoenix Companies, Inc. (PNX), through a pro rata distribution of 100% of its common stock to PNX shareholders at a ratio of 1:20, excluding the net assets and business of Goodwin Capital Advisers, Inc.[4][30] As part of the transaction, Phoenix forgave $23.2 million in intercompany liabilities and provided a $3.1 million cash contribution to Virtus.[30] The company rebranded as Virtus Investment Partners and transitioned to operating as an independent entity, relocating offices and hiring dedicated staff to support its multi-manager platform.[31][30] Prior to the spin-off, on October 30, 2008, Harris Bankcorp, Inc., a subsidiary of Bank of Montreal, acquired a 23% equity position in Virtus for $45 million via Series B Convertible Preferred Stock, which carried an 8% annual dividend and was convertible at a rate of 38.3139 common shares per preferred share.[32][30] Virtus common stock began trading on the NASDAQ Global Market under the ticker symbol "VRTS" on January 2, 2009, marking its public listing, with company officials ringing the opening bell at the NASDAQ Market Site on January 5, 2009.[1][31] This listing provided Virtus with access to public capital markets and established it as a standalone publicly traded asset manager.[30] Following the public listing, Virtus navigated the ongoing 2008–2009 financial crisis, which caused assets under management (AUM) to decline sharply from $40.4 billion at the end of 2007 to $22.6 billion at the end of 2008, driven by $8.3 billion in net outflows and $7.5 billion in market depreciation.[30] The company focused on stabilizing operations through cost reductions, including a $26.0 million decrease in employment expenses, consolidation of investment strategies, closure of two locations with $3.9 million in associated severance costs, and repayment of an $18 million note using a new $15 million credit facility.[30] Efforts to retain affiliates centered on leveraging the multi-manager model to maintain distinct investment styles and achieve positive net flows of $525.5 million in long-term mutual funds, helping AUM recover to $25.4 billion by the end of 2009 amid $3.1 billion in market appreciation.[30] Post-spin-off strategic shifts emphasized independent governance, with Virtus establishing its own board of directors and management team separate from Phoenix, alongside adjustments to its capital structure such as securing a $30 million revolving credit facility on September 1, 2009.[30] As a newly public entity, it prioritized regulatory compliance, registering with the SEC under the Investment Advisers Act of 1940 and the Investment Company Act of 1940, while maintaining effective internal controls over financial reporting and ensuring its broker-dealer subsidiary, Virtus Partners Distribution, met net capital requirements under SEC Rule 15c3-1.[30] In 2010, key milestones included operational restructuring through debt refinancing on improved terms, conversion of 9,783 Series B preferred shares into 378,446 common shares to reduce annual dividend obligations by $0.8 million, implementation of a $0.9 million share repurchase program authorizing 350,000 shares, and a new fund administration agreement that shifted $6.2 million in third-party fees directly to funds.[33] Initial expansion planning involved adopting the Virtus Variable Insurance Trust, adding $1.2 billion to AUM, and acquiring advisory rights to the Phoenix Edge Series Funds for an estimated fair value of $2.1 million, contributing to 16% AUM growth to $29.5 billion and a shift to positive operating income of $9.3 million.[33]Expansion and acquisitions (2011–present)
Following its public listing, Virtus Investment Partners pursued aggressive expansion through targeted acquisitions and organic initiatives to diversify its multi-manager platform and broaden its product offerings. In June 2011, the firm established Newfleet Asset Management via a team lift-out from ING Investment Management, creating a dedicated fixed income affiliate that initially managed over $8 billion in assets across multi-sector strategies.[34] This move enhanced Virtus's capabilities in intermediate-term debt securities, focusing on relative value opportunities to generate income and total return. In October 2012, Virtus completed the acquisition of Rampart Investment Management, adding approximately $1.4 billion in assets under management and expertise in domestic and international options-based strategies for institutional and retail clients.[35] The company continued its international and product diversification in 2013 by launching a Dublin-based UCITS platform under Virtus Global Funds ICAV, enabling access to European and offshore investors through regulated collective investment schemes structured as umbrella funds.[36] This organic expansion supported the distribution of strategies like multi-sector fixed income and growth equity to non-U.S. markets. In January 2015, Virtus acquired a majority interest in ETF Issuer Solutions (ETFis), a provider of white-label ETF manufacturing services, which was subsequently renamed Virtus ETF Solutions; this bolstered the firm's active and passive ETF capabilities, including listing and operational support for specialized products.[37] A pivotal transaction occurred in June 2017 with the $472 million acquisition of RidgeWorth Investments, incorporating affiliates such as Ceredex Value Advisors, Silvant Capital Management, and Seix Investment Advisors, and adding roughly $40 billion in assets under management focused on value equity, systematic strategies, and credit.[38] The deal, valued at a total consideration of $533.9 million including investments, significantly scaled Virtus's institutional reach and complementary boutiques.[39] In July 2018, Virtus took a 70% majority stake in Sustainable Growth Advisers (SGA), a growth equity manager overseeing $11.6 billion in U.S., global, and international portfolios using a team-based, high-conviction approach.[40] This acquisition expanded institutional and international client bases while aligning with Virtus's emphasis on sustainable, long-term growth themes. However, the period was marked by a significant legal challenge: between 2013 and 2018, Virtus faced securities litigation stemming from fraud at sub-adviser F-Squared Investments, which involved misrepresented track records for AlphaSector funds; the firm settled all claims for $22 million in May 2018, avoiding further costs and disruptions.[41] Subsequent years saw accelerated M&A activity, including the 2021 acquisition of Westchester Capital Management ($5.1 billion in event-driven assets) and advisory roles for AllianzGI retail products, followed by Stone Harbor Investment Partners in January 2022 ($14.7 billion in emerging markets debt and multi-asset credit) and AlphaSimplex Group in April 2023 ($7.8 billion in quantitative alternatives).[36] These deals strategically diversified expertise in alternatives, credit, and global strategies, with a focus on high-conviction, risk-managed approaches to navigate volatile markets. From 2024 to 2025, Virtus emphasized integration of prior acquisitions and organic enhancements, such as offering specialized ETFs, such as the Virtus Newfleet ABS/MBS ETF, in response to opportunities in undervalued securitized credit amid interest rate fluctuations.[42] The firm also refinanced debt in 2025 to strengthen its balance sheet, doubling working capital to $288.4 million by September 30, supporting ongoing platform development and distribution in retirement and RIA channels.[43] Overall, these initiatives reflected Virtus's rationale of building a resilient multi-boutique ecosystem through selective M&A, prioritizing manager autonomy and expertise to drive AUM diversification and investor outcomes in evolving economic conditions like persistent inflation and rate adjustments.Business model
Multi-manager platform
Virtus Investment Partners operates a multi-boutique model that combines the agility of independent investment managers with the scale of a centralized platform, enabling a multi-manager, multi-style approach to asset management. This structure allows affiliates to maintain their distinct investment philosophies and operational independence while benefiting from shared enterprise resources such as distribution channels, technology infrastructure, and compliance support.[6] The core philosophy emphasizes preserving the entrepreneurial culture of each boutique affiliate, fostering innovation through autonomy in day-to-day decision-making and investment processes. Centralized oversight is provided for key functions like product development and risk management, ensuring consistent standards across the platform without compromising individual manager identities. This setup promotes resource sharing in areas like operations and IT, allowing affiliates to focus on specialized strategies while mitigating operational burdens.[5] Key benefits of the model include access to a diverse array of specialized investment strategies from independent managers, which enhances risk diversification by incorporating varied philosophies and approaches across asset classes. Clients gain exposure to boutique-level expertise without the need to engage multiple single-manager firms, streamlining portfolio construction. The platform's components, such as robust risk management frameworks and collaborative product development, further support this by integrating affiliate capabilities into cohesive offerings.[6] Since its inception, the multi-boutique model has evolved to encompass a broader range of asset types, including alternatives and exchange-traded funds (ETFs), adapting to changing market demands while retaining its focus on affiliate independence. This expansion has strengthened the platform's ability to deliver dynamic, multi-asset solutions. Competitively, Virtus differentiates itself from single-manager firms by providing one-point access to a network of specialized boutiques, offering greater breadth of expertise and flexibility in strategy selection.[5]Products and distribution
Virtus Investment Partners offers a diverse lineup of investment products designed to meet varied client needs, including approximately 68 open-end mutual funds, multiple closed-end funds, 21 exchange-traded funds (ETFs) issued through its Virtus ETF Solutions platform as of September 30, 2025, retail separate accounts, and institutional mandates such as collective investment trusts (CITs). These products also encompass variable insurance funds and CollegeAccess 529 portfolios.[44][45][46] The product strategies span key categories such as equity (including domestic, international, and global approaches), fixed income (encompassing multi-sector, investment-grade, and emerging markets debt), alternatives (featuring event-driven, managed futures, infrastructure, and real estate), and multi-asset solutions. Representative examples include sector-specific funds focused on technology or healthcare equities and ESG-integrated fixed income strategies, providing targeted exposure without overlapping into manager-specific tactics.[44][47] Distribution occurs primarily through intermediary channels for retail products, including national and regional broker-dealers, independent broker-dealers, registered investment advisors (RIAs), and platforms, while institutional mandates are handled via direct relationships with endowments, foundations, consultants, and other large investors. Virtus does not offer direct-to-consumer retail access, emphasizing partnerships with financial professionals. Retail products, which form the majority of assets under management through funds and separate accounts, target individual investors via these intermediaries, whereas institutional offerings focus on customized, large-scale mandates.[47][48][49] Recent innovations include the launch of UCITS-compliant funds, such as those under Virtus Global Funds ICAV and Stone Harbor Investment Funds plc, to provide international access for non-U.S. investors, alongside new ETF introductions like the Virtus Private Credit Strategy ETF for alternative credit exposure. These enhancements expand global reach and product variety while aligning with the multi-manager platform's outputs.[50][51]Investment managers
Affiliated managers
Virtus Investment Partners maintains a portfolio of affiliated managers that it owns or holds majority stakes in, enabling deep integration while preserving each firm's entrepreneurial culture and investment autonomy. These affiliates span equity, fixed income, and alternative strategies, contributing significantly to Virtus's overall offerings as of September 30, 2025.[52]Equity Managers
Key equity affiliates include Kayne Anderson Rudnick Investment Management, LLC, founded in 1989 and specializing in quality-focused growth equity strategies across various market capitalizations and geographies, managing approximately $63.8 billion in assets.[53][52] Sustainable Growth Advisers, LP, established in 2003 with Virtus acquiring a stake in 2018, focuses on ESG-integrated global growth equity, overseeing about $20.5 billion in assets through high-conviction portfolios in U.S., international, and emerging markets.[54][52] Other notable equity affiliates encompass NFJ Investment Group, LLC, which emphasizes global value equity from its Dallas base, managing $5.2 billion; Ceredex Value Advisors, LLC, specializing in large-cap value equity strategies with $4.5 billion; and Silvant Capital Management, LLC, targeting growth equity opportunities with $3.3 billion; as well as Zevenbergen Capital Investments LLC (30% owned by Virtus), focusing on growth equity with $2.2 billion.[55][52]Fixed Income Managers
In fixed income, Newfleet Asset Management, launched in 2011 as a Virtus initiative, provides multi-sector bond strategies with a focus on intermediate-term and core-plus approaches, managing around $16.7 billion in assets.[34][52] Seix Investment Advisors, founded in 1992 and operating as a division of Virtus Fixed Income Advisers, LLC (VFIA), specializes in investment-grade and high-yield fixed income, including core bond and leveraged finance, with approximately $12.4 billion under management.[56][52] Stone Harbor Investment Partners, established in 2006 and also under VFIA, concentrates on emerging markets debt and global credit opportunities, handling about $6.2 billion in assets.[57][52] Another key fixed income affiliate is Duff & Phelps Investment Management, focusing on credit and investment-grade fixed income strategies, managing $12.8 billion.[52]Other Affiliates
Affiliates in alternative and quantitative strategies include Rampart Investment Management Company, LLC, founded in 1983 and acquired by Virtus in 2012, which develops options-based strategies for equity enhancement and risk management.[35] AlphaSimplex Group, LLC, originated in 1999 and fully acquired by Virtus in 2023, employs systematic, quantitative approaches to alternatives, managing roughly $4.8 billion in assets attuned to market dynamics.[58][52] Additional affiliates include Westchester Capital Management, LLC, specializing in closed-end fund management and alternatives with $2.8 billion, and Virtus Systematic Investment Management, focusing on quantitative strategies with $0.6 billion.[52] These affiliates operate independently in their investment decision-making and portfolio management, drawing on specialized teams and proprietary processes, while benefiting from Virtus's centralized resources in distribution, marketing, compliance, and technology to scale their reach.[52] Collectively, they have established strong track records in delivering consistent risk-adjusted returns within their respective niches, emphasizing disciplined, research-driven approaches over market cycles.[55]Unaffiliated sub-advisers
Virtus Investment Partners utilizes unaffiliated sub-advisers to supplement its affiliated managers by providing access to specialized investment strategies that may be difficult to replicate internally, particularly in areas such as global factors, fixed income, and alternatives targeted at retail mutual funds and ETFs.[47] These external partners manage distinct portfolios within Virtus products, allowing the firm to offer a broader range of options without direct ownership or control over the sub-advisers' operations.[3] The selection process for unaffiliated sub-advisers involves rigorous due diligence, focusing on the candidates' historical performance, investment philosophy, operational infrastructure, and alignment with Virtus' overall objectives and client interests.[59] Virtus Fund Advisers, LLC, as the primary adviser, evaluates potential sub-advisers through compliance reviews, performance attribution analysis, and assessments of risk management practices before recommending them to the board for approval.[59] Once selected, ongoing monitoring is conducted quarterly by the Investment Oversight Committee, which reviews adherence to investment guidelines, portfolio compliance, and any material business changes, with underperforming strategies potentially placed on a watch list or replaced.[59] Examples of unaffiliated sub-advisers include Voya Investment Management, which provides expertise in fixed income and convertible securities strategies for several closed-end funds; Wellington Management Company LLP, specializing in global multi-factor equity approaches; and Infrastructure Capital Advisors, LLC, focusing on energy infrastructure and alternative income strategies within ETFs like the Virtus InfraCap U.S. Preferred Stock ETF.[60][61][62] These partnerships enable Virtus to incorporate hard-to-replicate capabilities in areas like emerging markets debt or event-driven alternatives through select external managers.[63] The use of unaffiliated sub-advisers enhances portfolio diversification by introducing diverse styles and expertise that complement the firm's affiliated managers, ultimately broadening investor access to specialized opportunities while maintaining Virtus' multi-manager platform.[47] However, this approach carries risks such as potential performance variability or reputational impacts from sub-adviser issues, which are mitigated through structured oversight, including regular compliance testing and the ability to terminate relationships if alignment falters.[59] As of September 30, 2025, unaffiliated sub-advisers manage approximately $13.2 billion in assets, accounting for 8% of Virtus' total assets under management of $169.3 billion, primarily within retail funds and ETFs.[47]Financial performance
Assets under management
Virtus Investment Partners' assets under management (AUM) have grown significantly since its spin-off from The Phoenix Companies in 2008. As of December 31, 2008, immediately prior to the spin-off and public listing in early 2009, the firm's AUM stood at approximately $22.6 billion, excluding assets from the divested subsidiary Goodwin Capital Advisers. By March 31, 2009, AUM had declined to $20.8 billion amid the global financial crisis, reflecting market depreciation and net outflows. Over the subsequent years, AUM experienced fluctuations tied to equity and fixed income market performance, reaching approximately $50 billion by late 2016 before the RidgeWorth Investments acquisition in June 2017, which added about $40 billion in assets and boosted total AUM to $90.3 billion on a pro forma basis. Subsequent peaks included $170.7 billion at June 30, 2025, while troughs occurred during periods of market volatility, such as the early stages of the COVID-19 pandemic in 2020, when AUM dipped to $89.5 billion in March before recovering to $130.7 billion by year-end through market rebound and modest net inflows.[64] As of October 31, 2025, Virtus reported preliminary AUM of $166.2 billion, alongside $1.8 billion in other fee-earning assets for total client assets of $168.0 billion. This marked a decline from $169.3 billion at September 30, 2025, primarily due to negative market performance in October. Quarterly fluctuations have been common, with AUM rising to $170.7 billion by June 30, 2025, before moderating amid broader market adjustments. The composition of Virtus' AUM reflects its multi-manager platform, diversified across products and strategies. As of September 30, 2025, funds accounted for $66.6 billion (39%), including $44.9 billion in U.S. retail mutual funds, $10.9 billion in closed-end funds, $5.3 billion in global funds, $4.7 billion in ETFs, and $0.8 billion in variable insurance funds. Retail separate accounts contributed $46.8 billion (28%), while institutional separate accounts added $55.9 billion (33%), encompassing institutional mandates ($32.2 billion), subadvisory relationships ($18.4 billion), structured products ($3.1 billion), and commingled vehicles ($2.3 billion).| Asset Class | AUM ($ billions) | Percentage |
|---|---|---|
| Equity | 92.1 | 54% |
| Fixed Income | 39.7 | 23% |
| Multi-Asset and Alternatives | 37.5 | 22% |
| Total | 169.3 | 100% |