10-Q 1 vrts-20240930.htm 10-Q VRTS 09.30.2024 vrts-20240930
false2024Q30000883237--12-31P1Yxbrli:sharesiso4217:USDiso4217:USDxbrli:sharesxbrli:purevrts:collateralized_loan_obligation00008832372024-01-012024-09-3000008832372024-10-310000883237vrts:ConsolidatedEntityExcludingVariableInterestEntitiesVIEandVotingInterestEntitiesVOEMember2024-09-300000883237vrts:ConsolidatedEntityExcludingVariableInterestEntitiesVIEandVotingInterestEntitiesVOEMember2023-12-3100008832372024-09-3000008832372023-12-310000883237vrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMember2024-09-300000883237vrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMember2023-12-310000883237vrts:InvestmentManagementFeesMember2024-07-012024-09-300000883237vrts:InvestmentManagementFeesMember2023-07-012023-09-300000883237vrts:InvestmentManagementFeesMember2024-01-012024-09-300000883237vrts:InvestmentManagementFeesMember2023-01-012023-09-300000883237vrts:DistributionAndServiceFeesMember2024-07-012024-09-300000883237vrts:DistributionAndServiceFeesMember2023-07-012023-09-300000883237vrts:DistributionAndServiceFeesMember2024-01-012024-09-300000883237vrts:DistributionAndServiceFeesMember2023-01-012023-09-300000883237vrts:AdministrationAndShareholderServiceFeesMember2024-07-012024-09-300000883237vrts:AdministrationAndShareholderServiceFeesMember2023-07-012023-09-300000883237vrts:AdministrationAndShareholderServiceFeesMember2024-01-012024-09-300000883237vrts:AdministrationAndShareholderServiceFeesMember2023-01-012023-09-300000883237vrts:OtherIncomeAndfeesMember2024-07-012024-09-300000883237vrts:OtherIncomeAndfeesMember2023-07-012023-09-300000883237vrts:OtherIncomeAndfeesMember2024-01-012024-09-300000883237vrts:OtherIncomeAndfeesMember2023-01-012023-09-3000008832372024-07-012024-09-3000008832372023-07-012023-09-3000008832372023-01-012023-09-300000883237vrts:ConsolidatedEntityExcludingVariableInterestEntitiesVIEandVotingInterestEntitiesVOEMember2024-07-012024-09-300000883237vrts:ConsolidatedEntityExcludingVariableInterestEntitiesVIEandVotingInterestEntitiesVOEMember2023-07-012023-09-300000883237vrts:ConsolidatedEntityExcludingVariableInterestEntitiesVIEandVotingInterestEntitiesVOEMember2024-01-012024-09-300000883237vrts:ConsolidatedEntityExcludingVariableInterestEntitiesVIEandVotingInterestEntitiesVOEMember2023-01-012023-09-300000883237vrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMember2024-07-012024-09-300000883237vrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMember2023-07-012023-09-300000883237vrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMember2024-01-012024-09-300000883237vrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMember2023-01-012023-09-3000008832372022-12-3100008832372023-09-300000883237us-gaap:CommonStockMember2023-06-300000883237us-gaap:AdditionalPaidInCapitalMember2023-06-300000883237us-gaap:RetainedEarningsMember2023-06-300000883237us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300000883237us-gaap:TreasuryStockCommonMember2023-06-300000883237us-gaap:ParentMember2023-06-300000883237us-gaap:NoncontrollingInterestMember2023-06-3000008832372023-06-300000883237us-gaap:RetainedEarningsMember2023-07-012023-09-300000883237us-gaap:ParentMember2023-07-012023-09-300000883237us-gaap:NoncontrollingInterestMember2023-07-012023-09-300000883237us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300000883237us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300000883237us-gaap:CommonStockMember2023-07-012023-09-300000883237us-gaap:TreasuryStockCommonMember2023-07-012023-09-300000883237us-gaap:CommonStockMember2023-09-300000883237us-gaap:AdditionalPaidInCapitalMember2023-09-300000883237us-gaap:RetainedEarningsMember2023-09-300000883237us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300000883237us-gaap:TreasuryStockCommonMember2023-09-300000883237us-gaap:ParentMember2023-09-300000883237us-gaap:NoncontrollingInterestMember2023-09-300000883237us-gaap:CommonStockMember2024-06-300000883237us-gaap:AdditionalPaidInCapitalMember2024-06-300000883237us-gaap:RetainedEarningsMember2024-06-300000883237us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-300000883237us-gaap:TreasuryStockCommonMember2024-06-300000883237us-gaap:ParentMember2024-06-300000883237us-gaap:NoncontrollingInterestMember2024-06-3000008832372024-06-300000883237us-gaap:RetainedEarningsMember2024-07-012024-09-300000883237us-gaap:ParentMember2024-07-012024-09-300000883237us-gaap:NoncontrollingInterestMember2024-07-012024-09-300000883237us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-300000883237us-gaap:AdditionalPaidInCapitalMember2024-07-012024-09-300000883237us-gaap:CommonStockMember2024-07-012024-09-300000883237us-gaap:TreasuryStockCommonMember2024-07-012024-09-300000883237us-gaap:CommonStockMember2024-09-300000883237us-gaap:AdditionalPaidInCapitalMember2024-09-300000883237us-gaap:RetainedEarningsMember2024-09-300000883237us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-09-300000883237us-gaap:TreasuryStockCommonMember2024-09-300000883237us-gaap:ParentMember2024-09-300000883237us-gaap:NoncontrollingInterestMember2024-09-300000883237us-gaap:CommonStockMember2022-12-310000883237us-gaap:AdditionalPaidInCapitalMember2022-12-310000883237us-gaap:RetainedEarningsMember2022-12-310000883237us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000883237us-gaap:TreasuryStockCommonMember2022-12-310000883237us-gaap:ParentMember2022-12-310000883237us-gaap:NoncontrollingInterestMember2022-12-310000883237us-gaap:RetainedEarningsMember2023-01-012023-09-300000883237us-gaap:ParentMember2023-01-012023-09-300000883237us-gaap:NoncontrollingInterestMember2023-01-012023-09-300000883237us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300000883237us-gaap:AdditionalPaidInCapitalMember2023-01-012023-09-300000883237us-gaap:CommonStockMember2023-01-012023-09-300000883237us-gaap:TreasuryStockCommonMember2023-01-012023-09-300000883237us-gaap:CommonStockMember2023-12-310000883237us-gaap:AdditionalPaidInCapitalMember2023-12-310000883237us-gaap:RetainedEarningsMember2023-12-310000883237us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310000883237us-gaap:TreasuryStockCommonMember2023-12-310000883237us-gaap:ParentMember2023-12-310000883237us-gaap:NoncontrollingInterestMember2023-12-310000883237us-gaap:RetainedEarningsMember2024-01-012024-09-300000883237us-gaap:ParentMember2024-01-012024-09-300000883237us-gaap:NoncontrollingInterestMember2024-01-012024-09-300000883237us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-09-300000883237us-gaap:AdditionalPaidInCapitalMember2024-01-012024-09-300000883237us-gaap:CommonStockMember2024-01-012024-09-300000883237us-gaap:TreasuryStockCommonMember2024-01-012024-09-300000883237vrts:OpenEndFundsMember2024-07-012024-09-300000883237vrts:OpenEndFundsMember2023-07-012023-09-300000883237vrts:OpenEndFundsMember2024-01-012024-09-300000883237vrts:OpenEndFundsMember2023-01-012023-09-300000883237vrts:ClosedEndFundsMember2024-07-012024-09-300000883237vrts:ClosedEndFundsMember2023-07-012023-09-300000883237vrts:ClosedEndFundsMember2024-01-012024-09-300000883237vrts:ClosedEndFundsMember2023-01-012023-09-300000883237vrts:RetailSeparateAccountsMember2024-07-012024-09-300000883237vrts:RetailSeparateAccountsMember2023-07-012023-09-300000883237vrts:RetailSeparateAccountsMember2024-01-012024-09-300000883237vrts:RetailSeparateAccountsMember2023-01-012023-09-300000883237vrts:InstitutionalAccountsMember2024-07-012024-09-300000883237vrts:InstitutionalAccountsMember2023-07-012023-09-300000883237vrts:InstitutionalAccountsMember2024-01-012024-09-300000883237vrts:InstitutionalAccountsMember2023-01-012023-09-300000883237vrts:AlphaSimplexGroupLLCMember2023-04-012023-04-010000883237vrts:AlphaSimplexGroupLLCMember2023-04-010000883237srt:ParentCompanyMember2024-09-300000883237srt:ParentCompanyMember2023-12-310000883237vrts:SponsoredFundsMember2024-09-300000883237vrts:SponsoredFundsMember2023-12-310000883237us-gaap:EquitySecuritiesMember2024-09-300000883237us-gaap:EquitySecuritiesMember2023-12-310000883237vrts:TradingDebtSecuritiesMember2024-09-300000883237vrts:TradingDebtSecuritiesMember2023-12-310000883237us-gaap:FairValueInputsLevel1Member2024-09-300000883237us-gaap:FairValueInputsLevel2Member2024-09-300000883237us-gaap:FairValueInputsLevel3Member2024-09-300000883237us-gaap:FairValueInputsLevel1Membervrts:SponsoredFundsMember2024-09-300000883237us-gaap:FairValueInputsLevel2Membervrts:SponsoredFundsMember2024-09-300000883237us-gaap:FairValueInputsLevel3Membervrts:SponsoredFundsMember2024-09-300000883237us-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMember2024-09-300000883237us-gaap:FairValueInputsLevel2Memberus-gaap:EquitySecuritiesMember2024-09-300000883237us-gaap:FairValueInputsLevel3Memberus-gaap:EquitySecuritiesMember2024-09-300000883237us-gaap:FairValueInputsLevel1Membervrts:NonqualifiedRetirementPlanAssetsMember2024-09-300000883237us-gaap:FairValueInputsLevel2Membervrts:NonqualifiedRetirementPlanAssetsMember2024-09-300000883237us-gaap:FairValueInputsLevel3Membervrts:NonqualifiedRetirementPlanAssetsMember2024-09-300000883237vrts:NonqualifiedRetirementPlanAssetsMember2024-09-300000883237us-gaap:FairValueInputsLevel1Membervrts:ContingentConsiderationLiabilityMember2024-09-300000883237us-gaap:FairValueInputsLevel2Membervrts:ContingentConsiderationLiabilityMember2024-09-300000883237us-gaap:FairValueInputsLevel3Membervrts:ContingentConsiderationLiabilityMember2024-09-300000883237vrts:ContingentConsiderationLiabilityMember2024-09-300000883237us-gaap:FairValueInputsLevel1Member2023-12-310000883237us-gaap:FairValueInputsLevel2Member2023-12-310000883237us-gaap:FairValueInputsLevel3Member2023-12-310000883237us-gaap:FairValueInputsLevel1Membervrts:SponsoredFundsMember2023-12-310000883237us-gaap:FairValueInputsLevel2Membervrts:SponsoredFundsMember2023-12-310000883237us-gaap:FairValueInputsLevel3Membervrts:SponsoredFundsMember2023-12-310000883237us-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMember2023-12-310000883237us-gaap:FairValueInputsLevel2Memberus-gaap:EquitySecuritiesMember2023-12-310000883237us-gaap:FairValueInputsLevel3Memberus-gaap:EquitySecuritiesMember2023-12-310000883237us-gaap:FairValueInputsLevel1Membervrts:NonqualifiedRetirementPlanAssetsMember2023-12-310000883237us-gaap:FairValueInputsLevel2Membervrts:NonqualifiedRetirementPlanAssetsMember2023-12-310000883237us-gaap:FairValueInputsLevel3Membervrts:NonqualifiedRetirementPlanAssetsMember2023-12-310000883237vrts:NonqualifiedRetirementPlanAssetsMember2023-12-310000883237us-gaap:FairValueInputsLevel1Membervrts:ContingentConsiderationLiabilityMember2023-12-310000883237us-gaap:FairValueInputsLevel2Membervrts:ContingentConsiderationLiabilityMember2023-12-310000883237us-gaap:FairValueInputsLevel3Membervrts:ContingentConsiderationLiabilityMember2023-12-310000883237vrts:ContingentConsiderationLiabilityMember2023-12-310000883237us-gaap:FairValueInputsLevel3Memberus-gaap:DebtSecuritiesMember2024-06-300000883237us-gaap:FairValueInputsLevel3Memberus-gaap:DebtSecuritiesMember2023-06-300000883237us-gaap:FairValueInputsLevel3Memberus-gaap:DebtSecuritiesMember2023-12-310000883237us-gaap:FairValueInputsLevel3Memberus-gaap:DebtSecuritiesMember2022-12-310000883237us-gaap:FairValueInputsLevel3Memberus-gaap:DebtSecuritiesMember2024-07-012024-09-300000883237us-gaap:FairValueInputsLevel3Memberus-gaap:DebtSecuritiesMember2023-07-012023-09-300000883237us-gaap:FairValueInputsLevel3Memberus-gaap:DebtSecuritiesMember2024-01-012024-09-300000883237us-gaap:FairValueInputsLevel3Memberus-gaap:DebtSecuritiesMember2023-01-012023-09-300000883237us-gaap:FairValueInputsLevel3Memberus-gaap:DebtSecuritiesMember2024-09-300000883237us-gaap:FairValueInputsLevel3Memberus-gaap:DebtSecuritiesMember2023-09-300000883237us-gaap:FairValueInputsLevel3Membervrts:ContingentConsiderationLiabilityMember2024-06-300000883237us-gaap:FairValueInputsLevel3Membervrts:ContingentConsiderationLiabilityMember2023-06-300000883237us-gaap:FairValueInputsLevel3Membervrts:ContingentConsiderationLiabilityMember2022-12-310000883237us-gaap:FairValueInputsLevel3Membervrts:ContingentConsiderationLiabilityMember2024-07-012024-09-300000883237us-gaap:FairValueInputsLevel3Membervrts:ContingentConsiderationLiabilityMember2023-07-012023-09-300000883237us-gaap:FairValueInputsLevel3Membervrts:ContingentConsiderationLiabilityMember2024-01-012024-09-300000883237us-gaap:FairValueInputsLevel3Membervrts:ContingentConsiderationLiabilityMember2023-01-012023-09-300000883237us-gaap:FairValueInputsLevel3Membervrts:ContingentConsiderationLiabilityMember2023-09-300000883237vrts:WestchesterCapitalManagementMemberus-gaap:FairValueInputsLevel3Member2024-09-300000883237vrts:WestchesterCapitalManagementMemberus-gaap:MeasurementInputDiscountRateMembersrt:MinimumMember2024-09-300000883237vrts:WestchesterCapitalManagementMemberus-gaap:MeasurementInputDiscountRateMembersrt:MaximumMember2024-09-300000883237vrts:WestchesterCapitalManagementMemberus-gaap:MeasurementInputComparabilityAdjustmentMember2024-09-300000883237vrts:NFJInvestmentGroupMemberus-gaap:FairValueInputsLevel3Member2024-09-300000883237vrts:NFJInvestmentGroupMemberus-gaap:MeasurementInputDiscountRateMembersrt:MinimumMember2024-09-300000883237vrts:NFJInvestmentGroupMemberus-gaap:MeasurementInputDiscountRateMembersrt:MaximumMember2024-09-300000883237vrts:NFJInvestmentGroupMemberus-gaap:MeasurementInputComparabilityAdjustmentMember2024-09-300000883237us-gaap:AccumulatedTranslationAdjustmentMember2023-12-310000883237us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310000883237us-gaap:AccumulatedTranslationAdjustmentMember2024-01-012024-09-300000883237us-gaap:AccumulatedTranslationAdjustmentMember2023-01-012023-09-300000883237us-gaap:AccumulatedTranslationAdjustmentMember2024-09-300000883237us-gaap:AccumulatedTranslationAdjustmentMember2023-09-300000883237us-gaap:RestrictedStockUnitsRSUMemberus-gaap:CommonStockMember2024-01-012024-09-300000883237us-gaap:RestrictedStockUnitsRSUMembersrt:MinimumMember2024-01-012024-09-300000883237us-gaap:RestrictedStockUnitsRSUMembersrt:MaximumMember2024-01-012024-09-300000883237us-gaap:RestrictedStockUnitsRSUMember2023-12-310000883237us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-09-300000883237us-gaap:RestrictedStockUnitsRSUMember2024-09-300000883237us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-09-300000883237vrts:RestrictedStockUnitsRSUsPerformanceBasedMember2024-01-012024-09-300000883237vrts:RestrictedStockUnitsRSUsPerformanceBasedMember2023-01-012023-09-300000883237vrts:PerformanceStockUnitsIncentiveMember2024-01-012024-09-300000883237vrts:RestrictedStockUnitsandPerformanceSharesUnitsMember2024-09-300000883237vrts:RestrictedStockUnitsandPerformanceSharesUnitsMember2024-01-012024-09-300000883237us-gaap:RestrictedStockUnitsRSUMember2024-07-012024-09-300000883237us-gaap:RestrictedStockUnitsRSUMember2023-07-012023-09-300000883237us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-09-300000883237us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-09-300000883237vrts:CreditAgreementMembervrts:TermLoanMember2021-09-280000883237vrts:CreditAgreementMembervrts:TermLoanMember2021-09-282021-09-280000883237vrts:CreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2021-09-280000883237vrts:CreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2021-09-282021-09-280000883237vrts:TermLoanMemberus-gaap:SecuredDebtMember2024-01-012024-09-300000883237vrts:TermLoanMemberus-gaap:SecuredDebtMember2024-09-300000883237vrts:CreditFacility2017Membervrts:TermLoanMember2024-09-300000883237srt:AffiliatedEntityMember2023-12-310000883237srt:AffiliatedEntityMember2024-01-012024-09-300000883237us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMembervrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMember2024-01-012024-09-300000883237us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMembersrt:AffiliatedEntityMember2024-01-012024-09-300000883237us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember2024-01-012024-09-300000883237srt:AffiliatedEntityMember2024-09-300000883237vrts:VotingInterestEntityVOEMember2024-09-300000883237vrts:VariableInterestEntityPrimaryBeneficiaryCollateralizedLoanObligationMember2024-09-300000883237vrts:VariableInterestEntityPrimaryBeneficiaryGlobalAndPrivateFundsMember2024-09-300000883237vrts:VotingInterestEntityVOEMember2023-12-310000883237vrts:VariableInterestEntityPrimaryBeneficiaryCollateralizedLoanObligationMember2023-12-310000883237vrts:VariableInterestEntityPrimaryBeneficiaryGlobalAndPrivateFundsMember2023-12-310000883237vrts:VariableInterestEntityPrimaryBeneficiaryCollateralizedLoanObligationMemberus-gaap:SubordinatedDebtMember2024-09-012024-09-300000883237vrts:SubordinatedNotesNewfleetCLO20161Membervrts:VariableInterestEntityPrimaryBeneficiaryCollateralizedLoanObligationMember2024-09-300000883237vrts:SeniorSecuredFloatingRateNotesNewfleetCLO20161Membervrts:VariableInterestEntityPrimaryBeneficiaryCollateralizedLoanObligationMemberus-gaap:SeniorNotesMember2024-09-300000883237vrts:SubordinatedNotesNewfleetCLO20161Membervrts:VariableInterestEntityPrimaryBeneficiaryCollateralizedLoanObligationMemberus-gaap:SubordinatedDebtMember2024-09-300000883237vrts:VariableInterestEntityPrimaryBeneficiaryCollateralizedLoanObligationMember2024-01-012024-09-300000883237us-gaap:FairValueInputsLevel1Membervrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:FairValueMeasurementsRecurringMember2024-09-300000883237us-gaap:FairValueInputsLevel2Membervrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:FairValueMeasurementsRecurringMember2024-09-300000883237us-gaap:FairValueInputsLevel3Membervrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:FairValueMeasurementsRecurringMember2024-09-300000883237us-gaap:FairValueMeasurementsRecurringMembervrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMember2024-09-300000883237us-gaap:FairValueInputsLevel1Membervrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DebtSecuritiesMember2024-09-300000883237us-gaap:FairValueInputsLevel2Membervrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DebtSecuritiesMember2024-09-300000883237us-gaap:FairValueInputsLevel3Membervrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DebtSecuritiesMember2024-09-300000883237vrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DebtSecuritiesMember2024-09-300000883237us-gaap:FairValueInputsLevel1Membervrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2024-09-300000883237us-gaap:FairValueInputsLevel2Membervrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2024-09-300000883237us-gaap:FairValueInputsLevel3Membervrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2024-09-300000883237vrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2024-09-300000883237us-gaap:FairValueInputsLevel1Membervrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000883237us-gaap:FairValueInputsLevel2Membervrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000883237us-gaap:FairValueInputsLevel3Membervrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000883237us-gaap:FairValueMeasurementsRecurringMembervrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMember2023-12-310000883237us-gaap:FairValueInputsLevel1Membervrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DebtSecuritiesMember2023-12-310000883237us-gaap:FairValueInputsLevel2Membervrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DebtSecuritiesMember2023-12-310000883237us-gaap:FairValueInputsLevel3Membervrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DebtSecuritiesMember2023-12-310000883237vrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DebtSecuritiesMember2023-12-310000883237us-gaap:FairValueInputsLevel1Membervrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2023-12-310000883237us-gaap:FairValueInputsLevel2Membervrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2023-12-310000883237us-gaap:FairValueInputsLevel3Membervrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2023-12-310000883237vrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2023-12-310000883237vrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:DebtSecuritiesMember2023-12-310000883237vrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:DebtSecuritiesMember2022-12-310000883237vrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:DebtSecuritiesMember2024-01-012024-09-300000883237vrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:DebtSecuritiesMember2023-01-012023-09-300000883237vrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:DebtSecuritiesMember2024-09-300000883237vrts:VariableInterestEntityPrimaryBeneficiaryandVotingInterestEntityMemberus-gaap:DebtSecuritiesMember2023-09-300000883237us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2024-09-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2024
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission File Number: 001-10994  
vrtslogo2019a02.jpg
VIRTUS INVESTMENT PARTNERS, INC.
(Exact name of registrant as specified in its charter)
Delaware 26-3962811
(State or other jurisdiction of
incorporation or organization)		 (I.R.S. Employer
Identification No.)
One Financial Plaza, Hartford, CT 06103
(Address of principal executive offices, including Zip Code)
(800) 248-7971
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value VRTSNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒ No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐ 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒
The number of shares outstanding of the registrant’s common stock was 7,018,480 as of October 31, 2024.









VIRTUS INVESTMENT PARTNERS, INC.
INDEX
 
  Page
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 5.
Item 6.
"We," "us," "our," the "Company," and "Virtus" as used in this Quarterly Report on Form 10-Q (the "10-Q") refer to Virtus Investment Partners, Inc., a Delaware corporation, and its subsidiaries.


PART I – FINANCIAL INFORMATION
 
Item 1.    Financial Statements
Virtus Investment Partners, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands, except share data)September 30,
2024		December 31,
2023
Assets:
Cash and cash equivalents$195,533 $239,602 
Investments164,671 132,696 
Accounts receivable, net112,158 109,076 
Assets of consolidated investment products ("CIP")
Cash and cash equivalents of CIP114,956 100,732 
Cash pledged or on deposit of CIP1,424 680 
Investments of CIP2,075,410 2,082,713 
Other assets of CIP32,625 43,235 
Furniture, equipment and leasehold improvements, net23,331 26,216 
Intangible assets, net388,703 432,119 
Goodwill397,098 397,098 
Deferred taxes, net27,937 25,024 
Other assets67,839 89,438 
Total assets$3,601,685 $3,678,629 
Liabilities and Equity
Liabilities:
Accrued compensation and benefits$180,078 $200,837 
Accounts payable and accrued liabilities30,073 38,756 
Dividends payable19,545 17,291 
Contingent consideration 59,404 90,938 
Debt237,467 253,412 
Other liabilities60,374 91,471 
Liabilities of CIP
Notes payable of CIP1,940,085 1,922,243 
Securities purchased payable and other liabilities of CIP83,826 90,523 
Total liabilities2,610,852 2,705,471 
Commitments and Contingencies (Note 14)
Redeemable noncontrolling interests98,111 104,869 
Equity:
Equity attributable to Virtus Investment Partners, Inc.:
Common stock, $0.01 par value, 1,000,000,000 shares authorized; 12,240,990 shares issued and 7,016,433 shares outstanding at September 30, 2024; and 12,163,228 shares issued and 7,087,728 shares outstanding at December 31, 2023
122 122 
Additional paid-in capital1,314,228 1,300,999 
Retained earnings (accumulated deficit)251,298 207,356 
Accumulated other comprehensive income (loss)230 (87)
Treasury stock, at cost, 5,224,557 and 5,075,500 shares at September 30, 2024 and December 31, 2023, respectively
(676,832)(644,464)
Total equity attributable to Virtus Investment Partners, Inc.889,046 863,926 
Noncontrolling interests3,676 4,363 
Total equity 892,722 868,289 
Total liabilities and equity$3,601,685 $3,678,629 

The accompanying notes are an integral part of these condensed consolidated financial statements.
1
Virtus Investment Partners, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in thousands, except per share data)2024202320242023
Revenues
Investment management fees$193,843 $184,869 $573,855 $529,326 
Distribution and service fees13,567 14,333 41,007 42,618 
Administration and shareholder service fees18,560 19,069 55,546 55,668 
Other income and fees1,059 1,000 3,047 3,069 
Total revenues227,029 219,271 673,455 630,681 
Operating Expenses
Employment expenses105,555 101,587 326,385 304,895 
Distribution and other asset-based expenses24,175 24,157 72,218 73,332 
Other operating expenses30,363 30,494 94,788 94,707 
Other operating expenses of consolidated investment products ("CIP")465 553 4,064 1,613 
Change in fair value of contingent consideration(4,000)— (7,300)(6,800)
Restructuring expense— 691 1,487 691 
Depreciation expense2,330 1,504 6,628 4,134 
Amortization expense12,883 15,382 43,416 45,581 
Total operating expenses171,771 174,368 541,686 518,153 
Operating Income (Loss)55,258 44,903 131,769 112,528 
Other Income (Expense)
Realized and unrealized gain (loss) on investments, net4,552 (1,918)6,415 2,469 
Realized and unrealized gain (loss) of CIP, net(5,128)(1,013)(16,529)(2,853)
Other income (expense), net548 128 1,695 (1,062)
Total other income (expense), net(28)(2,803)(8,419)(1,446)
Interest Income (Expense)
Interest expense(5,807)(6,222)(17,099)(17,444)
Interest and dividend income2,913 2,872 9,025 8,785 
Interest and dividend income of investments of CIP50,628 49,803 154,128 144,501 
Interest expense of CIP(38,063)(38,218)(120,035)(112,153)
Total interest income (expense), net9,671 8,235 26,019 23,689 
Income (Loss) Before Income Taxes64,901 50,335 149,369 134,771 
Income tax expense (benefit)15,797 12,181 36,376 31,794 
Net Income (Loss)49,104 38,154 112,993 102,977 
Noncontrolling interests(8,124)(7,248)(24,541)(3,190)
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.$40,980 $30,906 $88,452 $99,787 
Earnings (Loss) per Share—Basic$5.80 $4.26 $12.45 $13.72 
Earnings (Loss) per Share—Diluted$5.71 $4.19 $12.23 $13.50 
Weighted Average Shares Outstanding—Basic7,071 7,258 7,105 7,272 
Weighted Average Shares Outstanding—Diluted7,176 7,379 7,234 7,393 

The accompanying notes are an integral part of these condensed consolidated financial statements.
2
Virtus Investment Partners, Inc.
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
 
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in thousands)2024202320242023
Net Income (Loss)$49,104 $38,154 $112,993 $102,977 
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of tax of $(144) and $82 for the three months ended September 30, 2024 and 2023, respectively, and $(106) and $5 for the nine months ended September 30, 2024 and 2023, respectively
430 (226)317 (15)
Other comprehensive income (loss)430 (226)317 (15)
Comprehensive income (loss)49,534 37,928 113,310 102,962 
Comprehensive (income) loss attributable to noncontrolling interests(8,124)(7,248)(24,541)(3,190)
Comprehensive Income (Loss) Attributable to Virtus Investment Partners, Inc.$41,410 $30,680 $88,769 $99,772 
The accompanying notes are an integral part of these condensed consolidated financial statements.
3
Virtus Investment Partners, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 Nine Months Ended
September 30,
(in thousands)20242023
Cash Flows from Operating Activities:
Net income (loss)$112,993 $102,977 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation expense, intangible asset and other amortization52,851 52,278 
Stock-based compensation24,259 20,072 
Equity in earnings of equity method investments(2,097)810 
Distributions from equity method investments3,227 1,789 
Realized and unrealized (gains) losses on investments, net(6,417)(2,459)
Change in fair value of contingent consideration(7,300)(6,800)
Lease termination(1,318)— 
Deferred taxes, net2,226 2,735 
Changes in operating assets and liabilities:
Sales (purchases) of investments, net(16,322)(24,881)
Accounts receivable, net and other assets9,994 2,336 
Accrued compensation and benefits, accounts payable, accrued liabilities and other liabilities(60,793)(38,966)
Operating activities of consolidated investment products ("CIP"):
Realized and unrealized (gains) losses on investments of CIP, net10,073 (1,769)
Purchases of investments by CIP(924,052)(905,184)
Sales of investments by CIP907,925 1,028,251 
Net proceeds (purchases) of short-term investments and securities sold short by CIP(353)(168)
Change in other assets and liabilities of CIP(2,221)(1,181)
Amortization of discount on notes payable of CIP1,887 — 
Net cash provided by (used in) operating activities104,562 229,840 
Cash Flows from Investing Activities:
Capital expenditures(3,658)(6,438)
Acquisition of businesses, net of cash acquired of $4,395
— (108,999)
Change in cash and cash equivalents of CIP due to consolidation (deconsolidation), net(1,158)(267)
Purchase of equity method investment— (11,645)
Net cash provided by (used in) investing activities(4,816)(127,349)
Cash Flows from Financing Activities:
Borrowings on credit agreement— 50,000 
Repayments on credit agreement(17,063)(32,063)
Common stock dividends paid(42,256)(38,385)
Repurchase of common shares(32,368)(25,000)
Payment of contingent consideration(24,234)(27,179)
Taxes paid related to net share settlement of restricted stock units(11,271)(13,436)
Affiliate equity sales (purchases)(29,014)(20,784)
Net contributions from (distributions to) noncontrolling interests23,894 5,967 
Financing activities of CIP:
Payments on borrowings by CIP(735,258)(317,362)
Borrowings by CIP738,064 132,473 
Net cash provided by (used in) financing activities(129,506)(285,769)
Effect of exchange rate changes on cash, cash equivalents and restricted cash659 (68)
Net increase (decrease) in cash, cash equivalents and restricted cash(29,101)(183,346)
Cash, cash equivalents and restricted cash, beginning of period341,014 589,179 
Cash, cash equivalents and restricted cash, end of period$311,913 $405,833 
Non-Cash Financing Activities:
Increase (decrease) to noncontrolling interests due to consolidation (deconsolidation) of CIP, net$(26,276)$(7,170)
Common stock dividends payable$15,950 $13,788 

(in thousands)September 30,
2024		December 31, 2023
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents$195,533 $239,602 
Cash and cash equivalents of CIP114,956 100,732 
Cash pledged or on deposit of CIP1,424 680 
Cash, cash equivalents and restricted cash at end of period$311,913 $341,014 



The accompanying notes are an integral part of these condensed consolidated financial statements.
4
Virtus Investment Partners, Inc.
Condensed Consolidated Statements of Changes in Stockholders' Equity
(Unaudited)
Permanent EquityTemporary Equity
 Common StockAdditional
Paid-in
Capital		Retained Earnings (Accumulated
Deficit)		Accumulated
Other
Comprehensive
Income (Loss)		Treasury StockTotal
Attributed To
Virtus Investment Partners, Inc.		Non-
controlling
Interests		Total
Equity		Redeemable
Non-
controlling
Interests
(in thousands, except per share data)SharesPar ValueSharesAmount
Balances at June 30, 20237,254,786 $122 $1,286,775 $174,011 $(147)4,903,533 $(609,248)$851,513 $5,196 $856,709 $110,399 
Net income (loss)— — — 30,906 — — — 30,906 671 31,577 6,577 
Foreign currency translation adjustments— — — — (226)— — (226)— (226)— 
Net subscriptions (redemptions) and other— — 3,218 — — — — 3,218 (419)2,799 (20,710)
Cash dividends declared ($1.90 per common share)
— — — (14,302)— — — (14,302)— (14,302)— 
Repurchases of common shares(74,015)— — — — 74,015 (15,000)(15,000)— (15,000)— 
Issuance of common shares related to employee stock transactions1,992 — — — — — — — — — — 
Taxes paid on stock-based compensation— — (214)— — — — (214)— (214)— 
Stock-based compensation— — 6,209 — — — — 6,209 — 6,209 — 
Balances at September 30, 20237,182,763 $122 $1,295,988 $190,615 $(373)4,977,548 $(624,248)$862,104 $5,448 $867,552 $96,266 
Balances at June 30, 20247,082,071 $122 $1,304,176 $226,540 $(200)5,151,707 $(661,963)$868,675 $3,443 $872,118 $129,450 
Net income (loss)— — — 40,980 — — — 40,980 401 41,381 7,723 
Foreign currency translation adjustments— — — — 430 — — 430 — 430 — 
Net subscriptions (redemptions) and other— — 5,187 — — — — 5,187 (168)5,019 (39,062)
Cash dividends declared ($2.25 per common share)
— — — (16,222)— — — (16,222)— (16,222)— 
Repurchases of common shares(72,850)— — — — 72,850 (14,869)(14,869)— (14,869)— 
Issuance of common shares related to employee stock transactions7,212 — — — — — — — — — — 
Taxes paid on stock-based compensation— — (827)— — — — (827)— (827)— 
Stock-based compensation— — 5,692 — — — — 5,692 — 5,692 — 
Balances at September 30, 20247,016,433 $122 $1,314,228 $251,298 $230 5,224,557 $(676,832)$889,046 $3,676 $892,722 $98,111 
Permanent EquityTemporary Equity
 Common StockAdditional
Paid-in
Capital		Retained Earnings (Accumulated
Deficit)		Accumulated
Other
Comprehensive
Income (Loss)		Treasury StockTotal
Attributed To
Virtus Investment Partners, Inc.		Non-
controlling
Interests		Total
Equity		Redeemable
Non-
controlling
Interests
(in thousands, except per share data)SharesPar ValueSharesAmount
Balances at December 31, 20227,181,554 $120 $1,286,244 $130,261 $(358)4,851,693 $(599,248)$817,019 $5,917 $822,936 $113,718 
Net income (loss)— — — 99,787 — — — 99,787 786 100,573 2,404 
Foreign currency translation adjustments— — — — (15)— — (15)— (15)— 
Net subscriptions (redemptions) and other— — 3,218 — — — — 3,218 (1,255)1,963 (19,856)
Cash dividends declared ($5.20 per common share)
— — — (39,433)— — — (39,433)— (39,433)— 
Repurchases of common shares(125,855)— — — — 125,855 (25,000)(25,000)— (25,000)— 
Issuance of common shares related to employee stock transactions127,064 2 (2)— — — — — — — — 
Taxes paid on stock-based compensation— — (13,436)— — — — (13,436)— (13,436)— 
Stock-based compensation— — 19,964 — — — — 19,964 — 19,964 — 
Balances at September 30, 20237,182,763 $122 $1,295,988 $190,615 $(373)4,977,548 $(624,248)$862,104 $5,448 $867,552 $96,266 
Balances at December 31, 20237,087,728 $122 $1,300,999 $207,356 $(87)5,075,500 $(644,464)$863,926 $4,363 $868,289 $104,869 
Net income (loss)— — — 88,452 — — — 88,452 119 88,571 24,422 
Foreign currency translation adjustments— — — — 317 — — 317 — 317 — 
Net subscriptions (redemptions) and other— — 5,249 — — — — 5,249 (806)4,443 (31,180)
Cash dividends declared ($6.05 per common share)
— — — (44,510)— — — (44,510)— (44,510)— 
Repurchases of common shares(149,057)— — — — 149,057 (32,368)(32,368)— (32,368)— 
Issuance of common shares related to employee stock transactions77,762 — — — — — — — — — — 
Taxes paid on stock-based compensation— — (11,271)— — — — (11,271)— (11,271)— 
Stock-based compensation— — 19,251 — — — — 19,251 — 19,251 — 
Balances at September 30, 20247,016,433 $122 $1,314,228 $251,298 $230 5,224,557 $(676,832)$889,046 $3,676 $892,722 $98,111 







The accompanying notes are an integral part of these condensed consolidated financial statements.

5
Virtus Investment Partners, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
1. Organization and Business
Virtus Investment Partners, Inc. (the "Company," "we," "us," "our" or "Virtus"), a Delaware corporation, operates in the investment management industry through its subsidiaries.

The Company provides investment management and related services to institutions and individuals. The Company's investment strategies are offered to institutional clients through institutional separate and commingled accounts, including subadvisory services to other investment advisers and Company sponsored structured products. The Company’s retail investment management services are provided to individuals through products consisting of: mutual funds registered pursuant to the Investment Company Act of 1940, as amended that include U.S. retail funds, exchange-traded funds ("ETFs") and variable insurance funds; Undertaking for Collective Investment in Transferable Securities and Qualifying Investor Funds ("global funds" and collectively with U.S. retail funds, ETFs and variable insurance funds the "open-end funds"); closed-end funds (collectively with open-end funds, the "funds"); and retail separate accounts that include intermediary-sold and wealth management accounts.


2. Basis of Presentation and Significant Accounting Policies
Basis of Presentation
The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the Company’s financial condition and results of operations. Operating results for the nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Annual Report on Form 10-K") filed with the Securities and Exchange Commission (the "SEC"). The Company’s significant accounting policies, which have been consistently applied, are summarized in its 2023 Annual Report on Form 10-K.

New Accounting Standards Not Yet Implemented
In November 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280). This standard updates reportable segment disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss and provides new segment disclosure requirements for entities with a single reportable segment. This standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, with the amendments to be applied retrospectively to all prior periods presented in the financial statements. The Company is in the process of evaluating the impact of adopting this standard and, at this time, does not anticipate it will have a material impact on its consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740). This standard updates income tax disclosure requirements by requiring disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. This standard is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is in the process of evaluating the impact of adopting this standard and, at this time, does not anticipate it will have a material impact on its consolidated financial statements.

In March 2024, the FASB issued ASU 2024-01, Compensation - Stock Compensation (Topic 718), Scope Application of Profits Interest and Similar Awards. This standard provides clarity regarding whether profits interest and similar awards are within the scope of Topic 718 of the Accounting Standards Codification. This standard is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is in the process of evaluating the impact of adopting this standard and, at this time, does not anticipate it will have a material impact on its consolidated financial statements.



6
3. Revenues
The Company's revenues are recognized when a performance obligation is satisfied, which occurs when control of the services is transferred to clients. Investment management fees, distribution and service fees, and administration and shareholder service fees are generally calculated as a percentage of average net assets of the investment portfolios managed. The net asset values from which these fees are calculated are variable in nature and subject to factors outside of the Company's control, such as additional investments, withdrawals and market performance. Because of this, these fees are considered constrained until the end of the contractual measurement period (monthly or quarterly), which is when asset values are generally determinable.

Investment Management Fees by Source    
The following table summarizes investment management fees by source:
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in thousands)2024202320242023
Investment management fees
Open-end funds$79,428 $80,294 $237,991 $229,721 
Closed-end funds14,942 14,673 43,741 44,025 
Retail separate accounts52,068 44,441 153,265 127,323 
Institutional accounts47,405 45,461 138,858 128,257 
Total investment management fees$193,843 $184,869 $573,855 $529,326 
    

4. Acquisitions
AlphaSimplex Group, LLC
On April 1, 2023, the Company completed the acquisition of AlphaSimplex Group, LLC ("AlphaSimplex"), which was accounted for in accordance with Accounting Standards Codification ("ASC") 805, Business Combinations ("ASC 805"). The total purchase price paid of $113.4 million was allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of the acquisition. Goodwill of $48.3 million and intangible assets of $55.4 million were recorded for the acquisition.


5. Intangible Assets, Net
Below is a summary of intangible assets, net:
Definite-LivedIndefinite-LivedTotal
(in thousands)Gross Book ValueAccumulated AmortizationNet Book ValueNet Book ValueNet Book Value
Balances at December 31, 2023$806,655 $(416,834)$389,821 $42,298 $432,119 
Intangible amortization— (43,416)(43,416)— (43,416)
Balances at September 30, 2024$806,655 $(460,250)$346,405 $42,298 $388,703 
Definite-lived intangible asset amortization for the remainder of fiscal year 2024 and succeeding fiscal years is estimated as follows:
Fiscal Year
Amount
(in thousands)
Remainder of 2024$12,883 
202551,532 
202650,552 
202747,450 
202841,787 
2029 and thereafter142,201 
Total$346,405 

7

6. Investments
Investments consist primarily of investments in the Company's sponsored products. The Company's investments, excluding the assets of consolidated investment products ("CIP") discussed in Note 16, at September 30, 2024 and December 31, 2023 were as follows:
(in thousands)September 30,
2024		December 31, 2023
Investment securities - fair value$127,914 $97,304 
Equity method investments (1)21,830 22,710 
Nonqualified retirement plan assets14,927 12,682 
Total investments$164,671 $132,696 
(1)    The Company's equity method investments are valued on a three-month lag based upon the availability of financial information.

Investment Securities - fair value
Investment securities - fair value consist of investments in the Company's sponsored funds and separately managed accounts. The composition of the Company’s investment securities - fair value was as follows:
September 30, 2024December 31, 2023
(in thousands)CostFair ValueCostFair Value
Investment Securities - fair value
Sponsored funds$77,211 $80,303 $80,794 $77,433 
Equity securities17,674 21,693 16,353 19,871 
Debt securities25,887 25,918 — — 
Total investment securities - fair value$120,772 $127,914 $97,147 $97,304 
For the three and nine months ended September 30, 2024, the Company recognized net realized gains of $0.5 million and $1.2 million, respectively, related to its investment securities - fair value. For the three and nine months ended September 30, 2023, the Company recognized net realized losses of $0.1 million and net realized gains of $2.1 million, respectively, related to its investment securities - fair value.


7. Fair Value Measurements
The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of CIP discussed in Note 16, as of September 30, 2024 and December 31, 2023 by fair value hierarchy level were as follows:
September 30, 2024  
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$164,878 $— $— $164,878 
Investment securities - fair value
Sponsored funds80,303 — — 80,303 
Equity securities21,693 — — 21,693 
Debt securities259 1,216 24,443 25,918 
Nonqualified retirement plan assets14,927 — — 14,927 
Total assets measured at fair value$282,060 $1,216 $24,443 $307,719 
Liabilities
Contingent consideration$— $— $34,408 $34,408 
Total liabilities measured at fair value$— $— $34,408 $34,408 

8
December 31, 2023  
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$197,240 $— $— $197,240 
Investment securities - fair value
Sponsored funds77,433 — — 77,433 
Equity securities19,871 — — 19,871 
Nonqualified retirement plan assets12,682 — — 12,682 
Total assets measured at fair value$307,226 $— $— $307,226 
Liabilities
Contingent consideration$— $— $56,200 $56,200 
Total liabilities measured at fair value$— $— $56,200 $56,200 
The following is a discussion of the valuation methodologies used for the Company’s assets measured at fair value:

Cash equivalents represent investments in money market funds. Cash investments in money market funds are valued using published net asset values and are classified as Level 1.

Sponsored funds represent investments in open-end funds and closed-end funds for which the Company acts as the investment manager. The fair values of U.S. retail funds and global funds are determined based on their published net asset values and are categorized as Level 1. The fair value of closed-end funds and ETFs is determined based on the official closing price on the exchange on which they are traded and are categorized as Level 1.

Equity securities represent securities traded on active markets, are valued at the official closing price (typically the last sale or bid) on the exchange on which the securities are primarily traded and are categorized as Level 1.

Debt securities represent investments in corporate and government bonds and the note securities of collateralized loan obligations. The fair values of corporate and government bonds traded on active markets are valued at the official closing price on the exchange on which the securities are primarily traded and are categorized as Level 1. Debt securities for which closing prices are not readily available or are deemed to not reflect readily available market prices, and are valued using an independent pricing service, are categorized as Level 2. The fair values of note securities of collateralized loan obligations ("CLO") are based on valuations received from an independent valuation firm and are categorized as Level 3.

The following table presents a reconciliation of beginning and ending balances of the Company's Level 3 debt securities:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in thousands)2024202320242023
Debt securities, beginning of period$— $— $— $— 
Purchases (sales), net24,443 24,339 24,443 24,339 
Debt securities, end of period$24,443 $24,339 $24,443 $24,339 
Nonqualified retirement plan assets represent mutual funds within the Company's nonqualified retirement plan whose fair value is determined based on their published net asset value and are categorized as Level 1.

Contingent consideration represents liabilities associated with contingent payment arrangements made in connection with the Company’s business combinations. In these contingent payment arrangements, the Company agrees to pay additional transaction consideration to the seller based on future performance. Contingent consideration is remeasured at fair value each reporting date using a simulation model with the assistance of an independent valuation firm and approved by management and are categorized as Level 3.

9
The following table presents a reconciliation of beginning and ending balances of the Company's contingent consideration liabilities:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in thousands)2024202320242023
Contingent consideration, beginning of period$38,408 $54,910 $56,200 $78,100 
Reduction for payments made— — (14,492)(16,390)
Increase (reduction) of liability related to re-measurement of fair value(4,000)— (7,300)(6,800)
Contingent consideration, end of period$34,408 $54,910 $34,408 $54,910 
The contingent consideration related to the Westchester Capital Management transaction as of September 30, 2024 was $3.8 million, measured using an options pricing model valuation technique. The most significant unobservable inputs used relate to revenue growth rates, discount rates (range of 5.9%-6.1%) and the market price of risk adjustment (8.7%). The NFJ Investment Group contingent consideration liability as of September 30, 2024 was $30.6 million, measured using an options pricing model valuation technique. The most significant unobservable inputs used relate to the revenue growth rates, discount rates (range of 6.4% - 7.1%) and the market price of risk adjustment (7.1%).

Cash, accounts receivable, accounts payable and accrued liabilities equal or approximate fair value based on the short-term nature of these instruments.


8. Equity Transactions
Dividends Declared
On August 14, 2024, the Company declared a quarterly cash dividend of $2.25 per common share to be paid on November 13, 2024 to shareholders of record at the close of business on October 31, 2024.

Common Stock Repurchases
During the three and nine months ended September 30, 2024, the Company repurchased 72,850 and 149,057 common shares, respectively, at a weighted average price of $204.07 and $217.12 per share, respectively, for a total cost, including fees and expenses, of $14.9 million and $32.4 million, respectively, under its share repurchase program. As of September 30, 2024, 455,488 shares remained available for repurchase. Under the terms of the program, the Company may repurchase shares of its common stock from time to time at its discretion through open market repurchases, privately negotiated transactions and/or other mechanisms, depending on price, prevailing market and business conditions, tax and other financial considerations. The program, which has no specified term, may be suspended or terminated at any time.


9. Accumulated Other Comprehensive Income (Loss)
The changes in accumulated other comprehensive income (loss) were as follows:
Nine Months Ended
September 30,
(in thousands)20242023
Balance at beginning of period$(87)$(358)
Net current-period other comprehensive income (loss) (1)317 (15)
Balance at end of period$230 $(373)
(1)    Consists of foreign currency translation adjustments, net of tax of $(106) and $5 for the nine months ended September 30, 2024 and 2023, respectively.


10. Stock-Based Compensation
Equity-based awards, including restricted stock units ("RSUs"), performance stock units ("PSUs"), and unrestricted shares of common stock, have been granted to officers, employees and directors of the Company pursuant to the Company's Omnibus Incentive and Equity Plan (the "Omnibus Plan"). At September 30, 2024, 829,554 shares of common stock remained available for issuance of the 3,825,000 shares that are authorized for issuance under the Omnibus Plan.
10
Stock-based compensation expense is summarized as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2024202320242023
Stock-based compensation expense$8,239 $7,668 $24,259 $20,072 

Restricted Stock Units
Each RSU entitles the holder to one share of common stock when the restriction expires. RSUs may be time-vested or performance-contingent PSUs that convert into RSUs after performance measurement is complete and generally vest in one to three years. Shares that are issued upon vesting are newly issued shares from the Omnibus Plan and are not issued from treasury stock.

RSU activity, inclusive of PSUs, for the nine months ended September 30, 2024 is summarized as follows: 
Number
of Shares		Weighted Average
Grant Date
Fair Value
Outstanding at December 31, 2023344,717 $204.48 
Granted123,232 $234.43 
Forfeited(22,739)$193.29 
Settled(123,679)$234.81 
Outstanding at September 30, 2024321,531 $205.08 
For the nine months ended September 30, 2024 and 2023, a total of 49,086 and 77,583 RSUs, respectively, were withheld by the Company as a result of net share settlements to settle minimum employee tax withholding obligations and for which the Company paid $11.3 million and $13.4 million, respectively, in minimum employee tax withholding obligations. These net share settlements had the effect of share repurchases by the Company as they reduced the number of shares that would have otherwise been issued as a result of the vesting.

During the nine months ended September 30, 2024 and 2023, the Company granted 26,757 and 44,583 PSUs, respectively, that contain performance-based metrics in addition to a service condition. Compensation expense for PSUs is generally recognized over a three-year service period based upon the value determined using a combination of (i) the intrinsic value method for awards that contain a performance metric that represents a "performance condition" in accordance with ASC 718, Stock Compensation ("ASC 718") and (ii) the Monte Carlo simulation valuation model for awards that contain a "market condition" performance metric under ASC 718. Compensation expense for PSU awards that contain a market condition is fixed at the date of grant and will not be adjusted in future periods based upon the achievement of the market condition. Compensation expense for PSU awards with a performance condition is recorded each period based upon a probability assessment of the expected outcome of the performance metric with a final adjustment upon measurement at the end of the performance period.

As of September 30, 2024, unamortized stock-based compensation expense for unvested RSUs and PSUs was $33.3 million with a weighted-average remaining contractual life of 1.3 years.


11. Earnings (Loss) Per Share
Earnings (loss) per share ("EPS") is calculated in accordance with ASC 260, Earnings per Share. Basic EPS is computed by dividing net income (loss) attributable to Virtus Investment Partners, Inc. by the weighted-average number of common shares outstanding for the period, excluding dilution for potential common stock issuances. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, including shares issuable upon the vesting of RSUs and stock option exercises using the treasury stock method, as determined under the if-converted method.
11
The computation of basic and diluted EPS is as follows: 
 Three Months Ended September 30,Nine Months Ended
September 30,
(in thousands, except per share amounts)2024202320242023
Net Income (Loss)$49,104 $38,154 $112,993 $102,977 
Noncontrolling interests(8,124)(7,248)(24,541)(3,190)
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.$40,980 $30,906 $88,452 $99,787 
Shares:
Basic: Weighted-average number of shares outstanding7,071 7,258 7,105 7,272 
Plus: Incremental shares from assumed conversion of dilutive instruments105 121 129 121 
Diluted: Weighted-average number of shares outstanding7,176 7,379 7,234 7,393 
Earnings (Loss) per Share—Basic$5.80 $4.26 $12.45 $13.72 
Earnings (Loss) per Share—Diluted$5.71 $4.19 $12.23 $13.50 

The following table details the securities that have been excluded from the above computation of weighted-average number of shares for diluted EPS, because the effect would be anti-dilutive.
 Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2024202320242023
Restricted stock units12 2 —3 
Total anti-dilutive securities12 2 —3 


12. Income Taxes
In calculating the provision for income taxes, the Company uses an estimate of the annual effective tax rate based upon the facts and circumstances at each interim period. On a quarterly basis, the estimated annual effective tax rate is adjusted, as appropriate, based upon changes in facts and circumstances, if any, compared to those forecasted at the beginning of the fiscal year and at each interim period thereafter.

The provision for income taxes reflected U.S. federal, state and local taxes at an estimated effective tax rate of 24.4% and 23.6% for the nine months ended September 30, 2024 and 2023, respectively. The higher estimated effective tax rate for the nine months ended September 30, 2024 was primarily due to a change in excess tax benefits associated with stock-based compensation.


13. Debt
Credit Agreement
The Company's credit agreement, as amended (the "Credit Agreement"), comprises (i) a $275.0 million term loan with a seven-year term (the "Term Loan") expiring in September 2028, and (ii) a $175.0 million revolving credit facility with a five-year term expiring in September 2026. The Company repaid $17.1 million outstanding under the Term Loan during the nine months ended September 30, 2024 and had $241.8 million outstanding under the Term Loan at September 30, 2024. In accordance with ASC 835, Interest, the amounts outstanding under the Company's Term Loan are presented on the Condensed Consolidated Balance Sheet net of related debt issuance costs, which were $4.3 million as of September 30, 2024.


14. Commitments and Contingencies
Legal Matters
The Company is involved from time to time in litigation and arbitration, as well as examinations, inquiries and investigations by various regulatory bodies, involving its compliance with, among other things, securities laws, client investment guidelines, laws governing the activities of broker-dealers and other laws and regulations affecting its products and other activities.

12
The Company records a liability when it believes that it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. Based on information currently available, available insurance coverage, indemnities and established reserves, the Company believes that the outcomes of its legal and regulatory proceedings are not likely, either individually or in the aggregate, to have a material adverse effect on the Company's results of operations, cash flows or consolidated financial condition. However, in the event of unexpected subsequent developments, and given the inherent unpredictability of these legal and regulatory matters, the Company can provide no assurance that its assessment of any legal matter will reflect the ultimate outcome, and an adverse outcome in certain matters could have a material adverse effect on the Company's results of operations or cash flows in particular quarterly or annual periods.


15. Redeemable Noncontrolling Interests
Redeemable noncontrolling interests represent third-party investments in the Company's CIP and minority interests held in a consolidated affiliate. Minority interests held in the affiliate are subject to holder put rights and Company call rights at pre-established multiples of earnings before interest, taxes, depreciation and amortization and, as such, are considered redeemable at other than fair value. The rights are exercisable at pre-established intervals or upon certain conditions, such as retirement. The put and call rights are not legally detachable or separately exercisable and are deemed to be embedded in the related noncontrolling interests. The Company, in purchasing affiliate equity, has the option to settle in cash or shares of the Company's common stock and is entitled to the cash flow associated with any purchased equity. These minority interests in the affiliate are recorded at estimated redemption value within redeemable noncontrolling interests on the Company's Condensed Consolidated Balance Sheets, and any changes in the estimated redemption value are recorded on the Condensed Consolidated Statements of Operations within noncontrolling interests.

Redeemable noncontrolling interests for the nine months ended September 30, 2024 included the following amounts:
(in thousands)CIPAffiliate Noncontrolling InterestsTotal
Balances at December 31, 2023$