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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 June 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 filerAccelerated filer
Non-accelerated filerSmaller 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 7,082,071 as of August 1, 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)June 30,
2024
December 31,
2023
Assets:
Cash and cash equivalents$183,001 $239,602 
Investments122,316 132,696 
Accounts receivable, net105,638 109,076 
Assets of consolidated investment products ("CIP")
Cash and cash equivalents of CIP166,738 100,732 
Cash pledged or on deposit of CIP958 680 
Investments of CIP2,106,659 2,082,713 
Other assets of CIP39,187 43,235 
Furniture, equipment and leasehold improvements, net25,150 26,216 
Intangible assets, net401,586 432,119 
Goodwill397,098 397,098 
Deferred taxes, net24,471 25,024 
Other assets74,894 89,438 
Total assets$3,647,696 $3,678,629 
Liabilities and Equity
Liabilities:
Accrued compensation and benefits$132,261 $200,837 
Accounts payable and accrued liabilities30,275 38,756 
Dividends payable16,982 17,291 
Contingent consideration 63,404 90,938 
Debt247,605 253,412 
Other liabilities63,137 91,471 
Liabilities of CIP
Notes payable of CIP1,990,338 1,922,243 
Securities purchased payable and other liabilities of CIP102,126 90,523 
Total liabilities2,646,128 2,705,471 
Commitments and Contingencies (Note 14)
Redeemable noncontrolling interests129,450 104,869 
Equity:
Equity attributable to Virtus Investment Partners, Inc.:
Common stock, $0.01 par value, 1,000,000,000 shares authorized; 12,233,778 shares issued and 7,082,071 shares outstanding at June 30, 2024; and 12,163,228 shares issued and 7,087,728 shares outstanding at December 31, 2023
122 122 
Additional paid-in capital1,304,176 1,300,999 
Retained earnings (accumulated deficit)226,540 207,356 
Accumulated other comprehensive income (loss)(200)(87)
Treasury stock, at cost, 5,151,707 and 5,075,500 shares at June 30, 2024 and December 31, 2023, respectively
(661,963)(644,464)
Total equity attributable to Virtus Investment Partners, Inc.868,675 863,926 
Noncontrolling interests3,443 4,363 
Total equity 872,118 868,289 
Total liabilities and equity$3,647,696 $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
June 30,
Six Months Ended
June 30,
(in thousands, except per share data)2024202320242023
Revenues
Investment management fees$191,652 $179,979 $380,012 $344,457 
Distribution and service fees13,410 14,132 27,440 28,285 
Administration and shareholder service fees18,308 18,240 36,986 36,599 
Other income and fees1,014 1,185 1,988 2,069 
Total revenues224,384 213,536 446,426 411,410 
Operating Expenses
Employment expenses105,667 104,694 220,830 203,308 
Distribution and other asset-based expenses23,695 25,460 48,043 49,175 
Other operating expenses33,050 33,483 64,425 64,213 
Other operating expenses of consolidated investment products ("CIP")2,909 360 3,599 1,060 
Change in fair value of contingent consideration(3,300)(6,800)(3,300)(6,800)
Restructuring expense690  1,487  
Depreciation expense2,270 1,485 4,298 2,630 
Amortization expense15,198 15,808 30,533 30,199 
Total operating expenses180,179 174,490 369,915 343,785 
Operating Income (Loss)44,205 39,046 76,511 67,625 
Other Income (Expense)
Realized and unrealized gain (loss) on investments, net(1,553)1,717 1,863 4,387 
Realized and unrealized gain (loss) of CIP, net(12,936)(4,436)(11,401)(1,840)
Other income (expense), net597 (847)1,147 (1,190)
Total other income (expense), net(13,892)(3,566)(8,391)1,357 
Interest Income (Expense)
Interest expense(5,611)(6,217)(11,292)(11,222)
Interest and dividend income2,643 2,675 6,112 5,913 
Interest and dividend income of investments of CIP52,385 47,884 103,500 94,698 
Interest expense of CIP(41,960)(38,732)(81,972)(73,935)
Total interest income (expense), net7,457 5,610 16,348 15,454 
Income (Loss) Before Income Taxes37,770 41,090 84,468 84,436 
Income tax expense (benefit)11,748 10,910 20,579 19,613 
Net Income (Loss)26,022 30,180 63,889 64,823 
Noncontrolling interests(8,408)77 (16,417)4,058 
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.$17,614 $30,257 $47,472 $68,881 
Earnings (Loss) per Share—Basic$2.47 $4.14 $6.66 $9.47 
Earnings (Loss) per Share—Diluted$2.43 $4.10 $6.54 $9.31 
Weighted Average Shares Outstanding—Basic7,127 7,308 7,123 7,277 
Weighted Average Shares Outstanding—Diluted7,242 7,385 7,264 7,398 

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
June 30,
Six Months Ended
June 30,
(in thousands)2024202320242023
Net Income (Loss)$26,022 $30,180 $63,889 $64,823 
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of tax of $2 and $(42) for the three months ended June 30, 2024 and 2023, respectively and $38 and $(77) for the six months ended June 30, 2024 and 2023
(13)112 (113)211 
Other comprehensive income (loss)(13)112 (113)211 
Comprehensive income (loss)26,009 30,292 63,776 65,034 
Comprehensive (income) loss attributable to noncontrolling interests(8,408)77 (16,417)4,058 
Comprehensive Income (Loss) Attributable to Virtus Investment Partners, Inc.$17,601 $30,369 $47,359 $69,092 
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)

 Six Months Ended
June 30,
(in thousands)20242023
Cash Flows from Operating Activities:
Net income (loss)$63,889 $64,823 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation expense, intangible asset and other amortization36,533 34,476 
Stock-based compensation16,020 12,404 
Equity in earnings of equity method investments(1,436)1,151 
Distributions from equity method investments2,341 1,080 
Realized and unrealized (gains) losses on investments, net(1,838)(4,379)
Change in fair value of contingent consideration(3,300)(6,800)
Lease termination(1,334) 
Deferred taxes, net653 (103)
Changes in operating assets and liabilities:
Sales (purchases) of investments, net6,851 3,757 
Accounts receivable, net and other assets10,255 4,828 
Accrued compensation and benefits, accounts payable, accrued liabilities and other liabilities(101,798)(71,676)
Operating activities of consolidated investment products ("CIP"):
Realized and unrealized (gains) losses on investments of CIP, net7,231 (775)
Purchases of investments by CIP(629,549)(556,365)
Sales of investments by CIP635,658 610,917 
Net proceeds (purchases) of short-term investments and securities sold short by CIP207 (271)
Change in other assets and liabilities of CIP(6,843)9,021 
Amortization of discount on notes payable of CIP1,887  
Net cash provided by (used in) operating activities35,427 102,088 
Cash Flows from Investing Activities:
Capital expenditures(3,251)(2,548)
Acquisition of businesses, net of cash acquired of $4,395 for the six months ended June 30, 2023
 (108,999)
Change in cash and cash equivalents of CIP due to consolidation (deconsolidation), net(549)(52)
Purchase of equity method investment (11,645)
Net cash provided by (used in) investing activities(3,800)(123,244)
Cash Flows from Financing Activities:
Borrowings on credit agreement 50,000 
Repayments on credit agreement(6,375)(11,375)
Common stock dividends paid(28,597)(26,367)
Repurchase of common shares(17,499)(10,000)
Payment of contingent consideration(24,234)(27,179)
Taxes paid related to net share settlement of restricted stock units(10,444)(13,222)
Affiliate equity sales (purchases)(419) 
Net contributions from (distributions to) noncontrolling interests18,156 2,459 
Financing activities of CIP:
Payments on borrowings by CIP(690,496)(175,043)
Borrowings by CIP738,064  
Net cash provided by (used in) financing activities(21,844)(210,727)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(100)383 
Net increase (decrease) in cash, cash equivalents and restricted cash9,683 (231,500)
Cash, cash equivalents and restricted cash, beginning of period341,014 589,179 
Cash, cash equivalents and restricted cash, end of period$350,697 $357,679 
Non-Cash Financing Activities:
Increase (decrease) to noncontrolling interests due to consolidation (deconsolidation) of CIP, net$(10,199)$(3,447)
Common stock dividends payable$13,561 $12,056 

(in thousands)June 30,
2024
December 31, 2023
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents$183,001 $239,602 
Cash and cash equivalents of CIP166,738 100,732 
Cash pledged or on deposit of CIP958 680 
Cash, cash equivalents and restricted cash at end of period$350,697 $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 March 31, 20237,288,394 $121 $1,281,509 $155,792 $(259)4,851,693 $(599,248)$837,915 $6,382 $844,297 $106,630 
Net income (loss)— — — 30,257 — — — 30,257 (650)29,607 573 
Foreign currency translation adjustments— — — — 112 — — 112 — 112 — 
Net subscriptions (redemptions) and other— — — — — — —  (536)(536)3,196 
Cash dividends declared ($1.65 per common share)
— — — (12,038)— — — (12,038)— (12,038)— 
Repurchases of common shares(51,840)— — — — 51,840 (10,000)(10,000)— (10,000)— 
Issuance of common shares related to employee stock transactions18,232 1 (1)— — — —  —  — 
Taxes paid on stock-based compensation— — (1,013)— — — — (1,013)— (1,013)— 
Stock-based compensation— — 6,280 — — — — 6,280 — 6,280 — 
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 
Balances at March 31, 20247,127,881 $122 $1,298,157 $223,023 $(187)5,096,608 $(649,463)$871,652 $4,351 $876,003 $115,185 
Net income (loss)— — — 17,614 — — — 17,614 (673)16,941 9,081 
Foreign currency translation adjustments— — — — (13)— — (13)— (13)— 
Net subscriptions (redemptions) and other— — 62 — — — — 62 (235)(173)5,184 
Cash dividends declared ($1.90 per common share)
— — — (14,097)— — — (14,097)— (14,097)— 
Repurchases of common shares(55,099)— — — — 55,099 (12,500)(12,500)— (12,500)— 
Issuance of common shares related to employee stock transactions9,289 — — — — — —  —  — 
Taxes paid on stock-based compensation— — (592)— — — — (592)— (592)— 
Stock-based compensation— — 6,549 — — — — 6,549 — 6,549 — 
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 
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)— — — 68,881 — — — 68,881 115 68,996 (4,173)
Foreign currency translation adjustments— — — — 211 — — 211 — 211 — 
Net subscriptions (redemptions) and other— — — — — — —  (836)(836)854 
Cash dividends declared ($3.30 per common share)
— — — (25,131)— — — (25,131)— (25,131)— 
Repurchases of common shares(51,840)— — — — 51,840 (10,000)(10,000)— (10,000)— 
Issuance of common shares related to employee stock transactions125,072 2 (2)— — — —  —  — 
Taxes paid on stock-based compensation— — (13,222)— — — — (13,222)— (13,222)— 
Stock-based compensation— — 13,755 — — — — 13,755 — 13,755 — 
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 
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)— — — 47,472 — — — 47,472 (282)47,190 16,699 
Foreign currency translation adjustments— — — — (113)— — (113)— (113)— 
Net subscriptions (redemptions) and other— — 62 — — — — 62 (638)(576)7,882 
Cash dividends declared ($3.80 per common share)
— — — (28,288)— — — (28,288)— (28,288)— 
Repurchases of common shares(76,207)— — — — 76,207 (17,499)(17,499)— (17,499)— 
Issuance of common shares related to employee stock transactions70,550   — — — —  —  — 
Taxes paid on stock-based compensation— — (10,444)— — — — (10,444)— (10,444)— 
Stock-based compensation— — 13,559 — — — — 13,559 — 13,559 — 
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 







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 (the "open-end funds") 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 (collectively, "global funds"); closed-end funds (collectively, with open-end funds, the "funds"); and retail separate accounts that include intermediary-sold and private client 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 six months ended June 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
June 30,
Six Months Ended
June 30,
(in thousands)2024202320242023
Investment management fees
Open-end funds$79,883 $78,161 $158,563 $149,427 
Closed-end funds14,405 14,674 28,799 29,352 
Retail separate accounts52,216 42,803 101,197 82,882 
Institutional accounts45,148 44,341 91,453 82,796 
Total investment management fees$191,652 $179,979 $380,012 $344,457 
    

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— (30,533)(30,533)— (30,533)
Balances at June 30, 2024$806,655 $(447,367)$359,288 $42,298 $401,586 
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$25,766 
202551,532 
202650,552 
202747,450 
202841,787 
2029 and thereafter142,201 
Total$359,288 

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 June 30, 2024 and December 31, 2023 were as follows:
(in thousands)June 30,
2024
December 31, 2023
Investment securities - fair value$86,248 $97,304 
Equity method investments (1)22,055 22,710 
Nonqualified retirement plan assets14,013 12,682 
Total investments$122,316 $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:
June 30, 2024December 31, 2023
(in thousands)CostFair ValueCostFair Value
Investment Securities - fair value
Sponsored funds$65,205 $64,420 $80,794 $77,433 
Equity securities18,954 21,828 16,353 19,871 
Total investment securities - fair value$84,159 $86,248 $97,147 $97,304 
For the three and six months ended June 30, 2024, the Company recognized net realized gains of $1.0 million and $0.7 million, respectively, related to its investment securities - fair value. For the three and six months ended June 30, 2023, the Company recognized net realized gains of $0.8 million and $2.2 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 June 30, 2024 and December 31, 2023 by fair value hierarchy level were as follows:
June 30, 2024  
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$147,135 $ $ $147,135 
Investment securities - fair value
Sponsored funds64,420   64,420 
Equity securities21,828   21,828 
Nonqualified retirement plan assets14,013   14,013 
Total assets measured at fair value$247,396 $ $ $247,396 
Liabilities
Contingent consideration$ $ $38,408 $38,408 
Total liabilities measured at fair value$ $ $38,408 $38,408 

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.

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.

The following table presents a reconciliation of beginning and ending balances of the Company's contingent consideration liabilities:
Three Months Ended
June 30,
Six Months Ended
June 30,
(in thousands)2024202320242023
Contingent consideration, beginning of period$41,708 $61,710 $56,200 $78,100 
Reduction for payments made  (14,492)(16,390)
Increase (reduction) of liability related to re-measurement of fair value(3,300)(6,800)(3,300)(6,800)
Contingent consideration, end of period$38,408 $54,910 $38,408 $54,910 
The contingent consideration related to the Westchester Capital Management transaction as of June 30, 2024, was $7.8 million measured using an options pricing model valuation technique. The most significant unobservable inputs used relate to revenue growth rates, discount rates (range of 6%-7%) and the market price of risk adjustment (9%). The NFJ Investment Group contingent consideration liability as of June 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% - 7%) and the market price of risk adjustment (7%).

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


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8. Equity Transactions
Dividends Declared
On May 15, 2024, the Company declared a quarterly cash dividend of $1.90 per common share to be paid on August 15, 2024 to shareholders of record at the close of business on July 31, 2024.

Common Stock Repurchases
During the three and six months ended June 30, 2024, the Company repurchased 55,099 and 76,207 common shares, respectively, at a weighted average price of $226.83 and $229.60 per share, respectively, for a total cost, including fees and expenses, of $12.5 million and $17.5 million, respectively, under its share repurchase program. As of June 30, 2024, 528,338 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:
Six Months Ended
June 30,
(in thousands)20242023
Balance at beginning of period$(87)$(358)
Net current-period other comprehensive income (loss) (1)(113)211 
Balance at end of period$(200)$(147)
(1)     Consists of foreign currency translation adjustments, net of tax of $38 and $(77) for the six months ended June 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 June 30, 2024, 818,989 shares of common stock remained available for issuance of the 3,825,000 shares that are authorized for issuance under the Omnibus Plan.     
Stock-based compensation expense is summarized as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2024202320242023
Stock-based compensation expense$9,189 $6,655 $16,020 $12,404 

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.

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RSU activity, inclusive of PSUs, for the six months ended June 30, 2024 is summarized as follows: 
Number
of Shares
Weighted Average
Grant Date
Fair Value
Outstanding at December 31, 2023344,717 $204.48 
Granted120,563 $235.06 
Forfeited(9,505)$256.00 
Settled(112,498)$229.57 
Outstanding at June 30, 2024343,277 $205.57 

For the six months ended June 30, 2024 and 2023, a total of 45,117 and 76,452 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 $10.4 million and $13.2 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 six months ended June 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 June 30, 2024, unamortized stock-based compensation expense for unvested RSUs and PSUs was $40.5 million with a weighted-average remaining contractual life of 1.4 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.
The computation of basic and diluted EPS is as follows: 
 Three Months Ended June 30,Six Months Ended
June 30,
(in thousands, except per share amounts)2024202320242023
Net Income (Loss)$26,022 $30,180 $63,889 $64,823 
Noncontrolling interests(8,408)77 (16,417)4,058 
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.$17,614 $30,257 $47,472 $68,881 
Shares:
Basic: Weighted-average number of shares outstanding7,127 7,308 7,123 7,277 
Plus: Incremental shares from assumed conversion of dilutive instruments115 77 141 121 
Diluted: Weighted-average number of shares outstanding7,242 7,385 7,264 7,398 
Earnings (Loss) per Share—Basic$2.47 $4.14 $6.66 $9.47 
Earnings (Loss) per Share—Diluted$2.43 $4.10 $6.54 $9.31 

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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 June 30,Six Months Ended June 30,
(in thousands)2024202320242023
Restricted stock units13 36 436 
Total anti-dilutive securities13 36 436 


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 23.2% for the six months ended June 30, 2024 and 2023, respectively. The higher estimated effective tax rate for the six months ended June 30, 2024 was primarily due to a change in excess tax benefits associated with stock-based compensation and the change in valuation allowances in the current year related to the tax effects of unrealized gains on certain Company investments.


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 $6.4 million outstanding under the Term Loan during the six months ended June 30, 2024 and had $252.4 million outstanding under the Term Loan at June 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 $4.8 million as of June 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.

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
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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 six months ended June 30, 2024 included the following amounts:
(in thousands)CIPAffiliate Noncontrolling InterestsTotal
Balances at December 31, 2023$30,643 $74,226 $104,869 
Net income (loss) attributable to noncontrolling interests1,833 3,584 5,417 
Changes in redemption value (1) 11,282 11,282 
Total net income (loss) attributable to noncontrolling interests1,833 14,866 16,699 
Affiliate equity sales (purchases) (419)(419)
Net subscriptions (redemptions) and other12,237 (3,936)8,301 
Balances at June 30, 2024$44,713 $84,737 $129,450 
(1)     Relates to noncontrolling interests redeemable at other than fair value.

16. Consolidation
The condensed consolidated financial statements include the accounts of the Company, its subsidiaries and investment products that are consolidated. A voting interest entity ("VOE") is consolidated when the Company is considered to have a controlling financial interest, which is typically present when the Company owns a majority of the voting interest in an entity or otherwise has the power to govern the financial and operating policies of the entity.

The Company evaluates any variable interest entity ("VIE") in which the Company has a variable interest for consolidation. A VIE is an entity in which either (i) the equity investment at risk is not sufficient to permit the entity to finance its own activities without additional financial support, or (ii) where, as a group, the holders of the equity investment at risk do not possess any one of the following: (a) the power through voting or similar rights to direct the activities that most significantly impact the entity's economic performance, (b) the obligation to absorb expected losses or the right to receive expected residual returns of the entity, or (c) proportionate voting and economic interests and where substantially all of the entity's activities either involve or are conducted on behalf of an investor with disproportionately fewer voting rights. If an entity has any of these characteristics, it is considered a VIE and is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that has both the power to direct the activities that most significantly impact the VIE's economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE.

In the normal course of its business, the Company sponsors various investment products, some of which are consolidated by the Company. CIP includes both VOEs, made up primarily of U.S. retail funds and ETFs in which the Company holds a controlling financial interest, and VIEs, which consist of collateralized loan obligations ("CLO") and certain global and private funds ("GF") of which the Company is considered the primary beneficiary. The consolidation and deconsolidation of these investment products have no impact on the Company's net income (loss). The Company's risk with respect to these investment products is limited to its beneficial interests in these products. The Company has no right to the benefits from, and does not bear the risks associated with, these investment products beyond the Company's investments in, and fees generated from, these products.

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The following table presents the balances of CIP that, after intercompany eliminations, were reflected on the Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023:
As of
 June 30, 2024December 31, 2023
VOEsVIEsVOEsVIEs
(in thousands)CLOs GFsCLOsGFs
Cash and cash equivalents$8,576 $156,822 $2,298 $1,223 $98,101 $2,088 
Investments46,317 1,988,364 71,978 30,985 1,972,342 79,386 
Other assets1,255 37,022 910 174 41,985 1,076 
Notes payable (1,990,338)  (1,922,243) 
Securities purchased payable and other liabilities(772)(99,797)(1,557)(740)(89,167)(616)
Noncontrolling interests(17,880)(3,443)(26,833)(7,316)(4,363)(23,327)
Net interests in CIP$37,496 $88,630 $46,796 $24,326 $96,655 $58,607 

Consolidated CLOs
The majority of the Company's CIP that are VIEs are CLOs. The financial information of certain CLOs is included on the Company's condensed consolidated financial statements on a one-month lag based upon the availability of their financial information. A majority-owned consolidated private fund, whose primary purpose is to invest in CLOs for which the Company serves as the collateral manager, is also included. At June 30, 2024, the Company consolidated seven CLOs.

Investments of CLOs
The CLOs held investments of $2.0 billion at June 30, 2024, consisting of bank loan investments that comprise the majority of the CLOs' portfolio asset collateral and are senior secured corporate loans across a variety of industries. These bank loan investments mature at various dates between 2025 and 2032 and generally pay interest at SOFR plus a spread.

Notes Payable of CLOs
The CLOs held notes payable with a total value, at par, of $2.2 billion at June 30, 2024, consisting of senior secured floating rate notes payable with a par value of $2.0 billion and subordinated notes with a par value of $217.9 million. These note obligations bear interest at variable rates based on SOFR plus a pre-defined spread.

The Company's beneficial interests and maximum exposure to loss related to these consolidated CLOs is limited to (i) ownership in the subordinated notes and (ii) accrued management fees. The secured notes of the consolidated CLOs have contractual recourse only to the related assets of the CLO and are classified as financial liabilities. Although these beneficial interests are eliminated upon consolidation, the application of the measurement alternative prescribed by ASU 2014-13, Consolidation (Topic 810) ("ASU 2014-13"), results in the net assets of the consolidated CLOs shown above to be equivalent to the beneficial interests retained by the Company at June 30, 2024, as shown in the table below:
(in thousands)
Subordinated notes$87,561 
Accrued investment management fees1,069 
Total Beneficial Interests$88,630 

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The following table represents income and expenses of the consolidated CLOs included on the Company’s Condensed Consolidated Statements of Operations for the period indicated:
Six Months Ended June 30, 2024
(in thousands)
Income:
Realized and unrealized gain (loss), net$(12,377)
Interest income99,673 
Total Income87,296 
Expenses:
Other operating expenses3,224 
Interest expense81,972 
Total Expense85,196 
Noncontrolling interests282 
Net Income (Loss) Attributable to CLOs$2,382 

The following table represents the Company’s own economic interests in the consolidated CLOs, which are eliminated upon consolidation:
Six Months Ended June 30, 2024
(in thousands)
Distributions received and unrealized gains (losses) on the subordinated notes held by the Company$(2,059)
Investment management fees4,441 
Total Economic Interests$2,382 

Fair Value Measurements of CIP
The assets and liabilities of CIP measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 by fair value hierarchy level were as follows:
As of June 30, 2024
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$163,605 $ $ $163,605 
Debt investments 2,034,350 35,109 2,069,459 
Equity investments 35,229 97 1,874 37,200 
Derivatives124   124 
Total assets measured at fair value$198,958 $2,034,447 $36,983 $2,270,388 
Liabilities
Notes payable$ $1,990,338 $ $1,990,338 
Short sales474   474 
Total liabilities measured at fair value$474 $1,990,338 $ $1,990,812 

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As of December 31, 2023
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$98,101 $ $ $98,101 
Debt investments241 2,012,760 36,616 2,049,617 
Equity investments32,642 8 446 33,096 
Total assets measured at fair value$130,984 $2,012,768 $37,062 $2,180,814 
Liabilities
Notes payable$ $1,922,243 $ $1,922,243 
Short sales518   518 
Total liabilities measured at fair value$518 $1,922,243 $ $1,922,761 

The following is a discussion of the valuation methodologies used for the assets and liabilities of the Company’s CIP measured at fair value:

Level 1 assets represent cash investments in money market funds and debt and equity investments that are valued using published net asset values or the official closing price on the exchange on which the securities are traded.

Level 2 assets represent most debt securities (including bank loans) and certain equity securities (including non-U.S. 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. Debt investments, other than bank loans, are valued based on quotations received from independent pricing services or from dealers who make markets in such securities. Bank loan investments, which are included as debt investments, are generally priced at the average mid-point of bid and ask quotations obtained from a third-party pricing service. Fair value may also be based upon valuations obtained from independent third-party brokers or dealers utilizing matrix pricing models that consider information regarding securities with similar characteristics.

Level 3 assets include debt and equity securities that are not widely traded, are illiquid or are priced by dealers based on pricing models used by market makers in the security. These securities are valued using unadjusted prices from an independent pricing service.

Level 1 liabilities consist of short sales transactions in which a security is sold that is not owned or is owned but there is no intention to deliver, in anticipation that the price of the security will decline. Short sales are recorded on the Condensed Consolidated Balance Sheets within other liabilities of CIP and are classified as Level 1 based on the underlying equity security.

Level 2 liabilities consist of notes payable issued by CLOs and are measured using the measurement alternative in ASU 2014-13. Accordingly, the fair value of CLO liabilities was measured as the fair value of CLO assets less the sum of (i) the fair value of the beneficial interests held by the Company, and (ii) the carrying value of any beneficial interests that represent compensation for services. The fair value of the beneficial interests held by the Company is based on third-party pricing information without adjustment.

The securities purchased payable at June 30, 2024 and December 31, 2023 approximated fair value due to the short-term nature of the instruments.

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The following table is a reconciliation of assets of CIP for Level 3 investments for which significant unobservable inputs were used to determine fair value:
 Six Months Ended June 30,
 (in thousands)
20242023
Balance at beginning of period$37,062 $43,581 
Realized and unrealized gains (losses), net629 (467)
Purchases31 2,903 
Sales(19,845)(7,231)
Transfers to Level 2(54,857)(48,337)
Transfers from Level 273,963 53,091 
Balance at end of period (1)$36,983 $43,540 
(1)The investments that are categorized as Level 3 were valued utilizing third-party pricing information without adjustment. Transfers in and/or out of levels are reflected when significant inputs, including market inputs or performance attributes, used for the fair value measurement become observable/unobservable at period end.

Nonconsolidated VIEs
The Company serves as the collateral manager for other CLOs that are not consolidated. The assets and liabilities of these CLOs reside in bankruptcy remote, special purpose entities in which the Company has no ownership of, nor holds any notes issued by, the CLOs, and provides neither recourse nor guarantees. The Company has determined that the investment management fees it receives for serving as collateral manager for these CLOs did not represent a variable interest as (i) the fees the Company earns are compensation for services provided and are commensurate with the level of effort required to provide the investment management services, (ii) the Company does not hold other interests in the CLOs that individually, or in the aggregate, would absorb more than an insignificant amount of the CLOs' expected losses or receive more than an insignificant amount of the CLOs' expected residual return, and (iii) the investment management arrangement only includes terms, conditions and amounts that are customarily present in arrangements for similar services negotiated at arm's length.
    
The Company has interests in certain other VIEs that the Company does not consolidate as it is not the primary beneficiary since its interest in these entities does not provide the Company with the power to direct the activities that most significantly impact the entities' economic performance. At June 30, 2024, the carrying value and maximum risk of loss related to the Company's interest in these VIEs was $27.8 million.


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Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations
Cautionary Statement Regarding Forward Looking Statements
This Quarterly Report on Form 10-Q contains statements that are, or may be considered to be, forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, as amended, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements that are not historical facts, including statements about our beliefs or expectations, are "forward-looking statements." These statements may be identified by such forward-looking terminology as "expect," "estimate," "intent," "plan," "intend," "believe," "anticipate," "may," "will," "should," "could," "continue," "project," "opportunity," "predict," "would," "potential," "future," "forecast," "guarantee," "assume," "likely," "target" or similar statements or variations of such terms.

Our forward-looking statements are based on a series of expectations, assumptions and projections about the Company and the markets in which we operate, are not guarantees of future results or performance, and involve substantial risks and uncertainty, including assumptions and projections concerning our assets under management, net asset inflows and outflows, operating cash flows, business plans and ability to borrow, for all future periods. All forward-looking statements contained in this Quarterly Report on Form 10-Q are as of the date of this Quarterly Report on Form 10-Q only.

We can give no assurance that such expectations or forward-looking statements will prove to be correct. Actual results may differ materially. We do not undertake or plan to update or revise any such forward-looking statements to reflect actual results, changes in plans, assumptions, estimates or projections, or other circumstances occurring after the date of this Quarterly Report on Form 10-Q, even if such results, changes or circumstances make it clear that any forward-looking information will not be realized. If there are any future public statements or disclosures by us that modify or impact any of the forward-looking statements contained in or accompanying this Quarterly Report on Form 10-Q, such statements or disclosures will be deemed to modify or supersede such statements in this Quarterly Report on Form 10-Q.

Our business and our forward-looking statements involve substantial known and unknown risks and uncertainties, including those discussed under "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our 2023 Annual Report on Form 10-K and this Quarterly Report on Form 10-Q, resulting from: (i) any reduction in our assets under management; (ii) inability to achieve the expected benefits of strategic transactions; (iii) withdrawal, renegotiation or termination of investment management agreements; (iv) damage to our reputation; (v) inability to satisfy financial debt covenants and required payments; (vi) inability to attract and retain key personnel; (vii) challenges from competition; (viii) adverse developments related to unaffiliated subadvisers; (ix) negative changes in key distribution relationships; (x) interruptions, breaches, or failures of technology systems; (xi) loss on our investments; (xii) lack of sufficient capital on satisfactory terms; (xiii) adverse regulatory and legal developments; (xiv) failure to comply with investment guidelines or other contractual requirements; (xv) adverse civil litigation, government investigations, or proceedings; (xvi) unfavorable changes in tax laws or limitations; (xvii) inability to make common stock dividend payments; (xviii) impediments from certain corporate governance provisions; (xix) losses or costs not covered by insurance; (xx) impairment of goodwill or other intangible assets; and other risks and uncertainties. Any occurrence of, or any material adverse change in, one or more risk factors or risks and uncertainties referred to above, in our 2023 Annual Report on Form 10-K, this Quarterly Report on Form 10-Q and our other periodic reports filed with the Securities and Exchange Commission (the "SEC") could materially and adversely affect our operations, financial results, cash flows, prospects and liquidity.

Certain other factors that may impact our continuing operations, prospects, financial results and liquidity, or that may cause actual results to differ from such forward-looking statements, are discussed or included in the Company’s periodic reports filed with the SEC and are available on our website at www.virtus.com under "Investor Relations." You are urged to carefully consider all such factors.

Overview
    Our Business
We provide investment management and related services to institutions and individuals. We use a multi-manager, multi-style approach, offering investment strategies from our investment managers, each having its own distinct investment style, autonomous investment process and individual brand, as well as from select unaffiliated managers for certain of our funds. By offering a broad array of products, we believe we can appeal to a greater number of investors and have offerings across market cycles and through changes in investor preferences. Our earnings are primarily from asset-based fees charged for services relating to these various products, including investment management, fund administration, distribution, and shareholder services.

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We offer investment strategies for institutional and individual investors in different investment products and through multiple distribution channels. Our investment strategies are available in a diverse range of styles and disciplines, managed by differentiated investment managers. We have offerings in various asset classes (equity, fixed income, multi-asset and alternatives), geographies (domestic, global, international and emerging), market capitalizations (large, mid and small), styles (growth, core and value) and investment approaches (fundamental and quantitative). Our institutional products are offered through institutional separate accounts and commingled accounts, including subadvisory services to other investment advisers and Company sponsored structured products to a variety of institutional clients. Our retail products include open-end funds, closed-end funds and retail separate accounts.

Our institutional distribution resources include affiliate-specific sales teams primarily focused on the U.S. market, supported by shared consultant relations and U.S. and non-U.S. institutional sales distribution. Our institutional products are marketed through relationships with consultants as well as directly to clients. We target key market segments, including foundations and endowments, corporations, public and private pension plans, sovereign wealth funds and subadvisory relationships.

Our retail distribution resources in the U.S. consist of regional sales professionals, a national account relationship group and specialized teams for retirement and ETFs. Our U.S. retail funds and retail separate accounts are distributed through financial intermediaries. We have broad distribution access in the U.S. retail market, with distribution partners that include national and regional broker-dealers, independent broker-dealers and registered investment advisers, banks and insurance companies. In many of these firms, we have a number of products that are on preferred "recommended" lists and on fee-based advisory programs. Our private client business is marketed directly to individual clients by financial advisory teams at our affiliated investment managers.

Financial Highlights 
Net income per diluted share was $2.43 in the second quarter of 2024, a decrease of $1.67, or 40.7%, compared to net income per diluted share of $4.10 in the second quarter of 2023.
Total sales were $6.1 billion in the second quarter of 2024, a decrease of $1.4 billion, or 19.0%, from $7.6 billion in the second quarter of 2023. Net flows were $(2.6) billion in the second quarter of 2024 compared to neutral net flows in the second quarter of 2023.
Assets under management were $173.6 billion at June 30, 2024, an increase of $5.3 billion, or 3.1%, from June 30, 2023.

Assets Under Management
At June 30, 2024, total assets under management were $173.6 billion, representing an increase of $5.3 billion, or 3.1%, from June 30, 2023, and an increase of $1.3 billion, or 0.8%, from December 31, 2023. The increase in total assets under management from June 30, 2023 included $16.9 billion from positive market performance partially offset by $9.2 billion of net outflows. The increase in total assets under management from December 31, 2023 included $6.2 billion from positive market performance partially offset by $3.9 billion of net outflows.


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Assets Under Management by Product
The following table summarizes our assets under management by product:
As of June 30,Change
(in millions)20242023$%
Open-End Funds (1)$55,852 $56,828 $(976)(1.7)%
Closed-End Funds9,915 10,166 (251)(2.5)%
Retail Separate Accounts (2)45,672 38,992 6,680 17.1 %
Institutional Accounts (3)62,146 62,330 (184)(0.3)%
Total$173,585 $168,316 $5,269 3.1 %
Average Assets Under Management (4)$174,267 $157,675 $16,592 10.5 %
(1)Represents assets under management of U.S. retail funds, global funds, ETFs and variable insurance funds.
(2)Includes investment models provided to managed account sponsors.
(3)Represents assets under management of institutional separate and commingled accounts including structured products.
(4)Averages are calculated as follows:
Funds - average daily or weekly balances
Retail Separate Accounts - prior-quarter ending balances
Institutional Accounts - average of month-end balances

Asset Flows by Product    
The following table summarizes asset flows by product:
Three Months Ended
June 30,
Six Months Ended
June 30,
(in millions)2024202320242023
Open-End Funds (1)
Beginning balance$57,818 $53,865 $56,062 $53,000 
Inflows2,777 2,550 6,253 5,561 
Outflows(4,120)(4,692)(8,224)(9,484)
Net flows(1,343)(2,142)(1,971)(3,923)
Market performance(480)2,163 2,080 4,934 
Other (2)(143)2,942 (319)2,817 
Ending balance$55,852 $56,828 $55,852 $56,828 
Closed-End Funds
Beginning balance$10,064 $10,358 $10,026 $10,361 
Inflows— 20 — 24 
Outflows(41)— (41)— 
Net flows(41)20 (41)24 
Market performance83 (1)322 204 
Other (2)(191)(211)(392)(423)
Ending balance$9,915 $10,166 $9,915 $10,166 
Retail Separate Accounts (3)
Beginning balance$46,816 $37,397 $43,202 $35,352 
Inflows2,172 1,346 4,545 2,713 
Outflows(1,688)(1,434)(3,383)(2,722)
Net flows484 (88)1,162 (9)
Market performance(1,631)1,683 1,305 3,649 
Other (2)— — 
Ending balance$45,672 $38,992 $45,672 $38,992 
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Three Months Ended
June 30,
Six Months Ended
June 30,
(in millions)2024202320242023
Institutional Accounts (4)
Beginning balance$64,613 $53,229 $62,969 $50,663 
Inflows1,188 3,660 2,922 5,512 
Outflows(2,913)(1,478)(5,935)(3,525)
Net flows(1,725)2,182 (3,013)1,987 
Market performance(549)2,440 2,452 5,346 
Other (2)(193)4,479 (262)4,334 
Ending balance$62,146 $62,330 $62,146 $62,330 
Total
Beginning balance$179,311 $154,849 $172,259 $149,376 
Inflows6,137 7,576 13,720 13,810 
Outflows(8,762)(7,604)(17,583)(15,731)
Net flows(2,625)(28)(3,863)(1,921)
Market performance(2,577)6,285 6,159 14,133 
Other (2)(524)7,210 (970)6,728 
Ending balance$173,585 $168,316 $173,585 $168,316 
(1)Represents assets under management of U.S. retail funds, global funds, ETFs and variable insurance funds.
(2)Represents open-end and closed-end fund distributions net of reinvestments, the net change in assets from cash management strategies, and the impact of non-sales related activities such as asset acquisitions/(dispositions), seed capital investments/(withdrawals), current income or capital returned by structured products and the use of leverage.
(3)Includes investment models provided to managed account sponsors.
(4)Represents assets under management of institutional separate and commingled accounts including structured products.


Assets Under Management by Asset Class
The following table summarizes assets under management by asset class:
 As of June 30,Change% of Total
(in millions)20242023$%20242023
Asset Class
Equity$99,224 $91,211 $8,013 8.8 %57.2 %54.2 %
Fixed income36,970 38,361 (1,391)(3.6)%21.3 %22.8 %
Multi-asset (1)21,060 20,914 146 0.7 %12.1 %12.4 %
Alternatives (2)16,331 17,830 (1,499)(8.4)%9.4 %10.6 %
Total$173,585 $168,316 $5,269 3.1 %100.0 %100.0 %
 
(1)    Consists of multi-asset offerings not included in equity, fixed income, and alternatives.
(2)    Consists of managed futures, event-driven, real estate securities, infrastructure, long/short and other strategies.


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Average Assets Under Management and Average Fees Earned
The following tables summarize the average management fees earned in basis points and average assets under management:
 Three Months Ended June 30,
Average Fee Earned
(expressed in basis points)
Average Assets Under
 Management
 (in millions) (4)
 2024202320242023
Products
Open-End Funds (1)50.9 49.3 $56,692 $56,120 
Closed-End Funds58.6 57.6 9,894 10,224 
Retail Separate Accounts (2)43.3 44.1 46,816 37,397 
Institutional Accounts (3)30.7 31.6 61,773 59,248 
All Products42.2 42.2 $175,175 $162,989 
 Six Months Ended June 30,
Average Fee Earned
(expressed in basis points)
Average Assets Under
 Management
 (in millions) (4)
 2024202320242023
Products
Open-End Funds (1)50.4 48.5 $56,760 $55,131 
Closed-End Funds58.6 57.3 9,878 10,323 
Retail Separate Accounts (2)43.6 44.2 45,009 36,375 
Institutional Accounts (3)30.8 31.7 62,620 55,846 
All Products42.0 42.1 $174,267 $157,675 
(1)Represents assets under management of U.S. retail funds, global funds, ETFs and variable insurance funds.
(2)Includes investment models provided to managed account sponsors.
(3)Represents assets under management of institutional separate and commingled accounts including structured products.
(4)Averages are calculated as follows:
Funds - average daily or weekly balances
Retail Separate Accounts - prior-quarter ending balances
Institutional Accounts - average of month-end balances

Average fees earned represent investment management fees, net of revenue-related adjustments, and excluding the impact of consolidated investment products ("CIP") divided by average net assets. Revenue-related adjustments are based on specific agreements and reflect the portion of investment management fees passed-through to third-party client intermediaries for services to investors in sponsored investment products. Fund fees are calculated based on average daily or weekly net assets. Retail separate account fees are calculated based on the end of the preceding or current quarter’s asset values or on an average of month-end balances. Institutional account fees are calculated based on an average of month-end balances, an average of current quarter’s asset values or on a combination of the underlying cash flows and the principal value of the product. Average fees earned will vary based on several factors, including the asset mix and expense reimbursements to the funds.

The average fee rate earned on all products was flat for the three and six months ended June 30, 2024 compared to the same periods in the prior year.

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Results of Operations
Summary Financial Data
Three Months Ended
June 30,
ChangeSix Months Ended
June 30,
Change
(in thousands)20242023$%20242023$%
Investment management fees$191,652 $179,979 $11,673 6.5 %$380,012 $344,457 $35,555 10.3 %
Other revenue32,732 33,557 (825)(2.5)%66,414 66,953 (539)(0.8)%
Total revenues224,384 213,536 10,848 5.1 %446,426 411,410 35,016 8.5 %
Total operating expenses180,179 174,490 5,689 3.3 %369,915 343,785 26,130 7.6 %
Operating income (loss)44,205 39,046 5,159 13.2 %76,511 67,625 8,886 13.1 %
Other income (expense), net(13,892)(3,566)(10,326)289.6 %(8,391)1,357 (9,748)(718.3)%
Interest income (expense), net7,457 5,610 1,847 32.9 %16,348 15,454 894 5.8 %
Income (loss) before income taxes37,770 41,090 (3,320)(8.1)%84,468 84,436 32 N/M
Income tax expense (benefit)11,748 10,910 838 7.7 %20,579 19,613 966 4.9 %
Net income (loss)26,022 30,180 (4,158)(13.8)%63,889 64,823 (934)(1.4)%
Noncontrolling interests(8,408)77 (8,485)N/M(16,417)4,058 (20,475)N/M
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.$17,614 $30,257 $(12,643)(41.8)%$47,472 $68,881 $(21,409)(31.1)%
Earnings (loss) per share-diluted$2.43 $4.10 $(1.67)(40.7)%$6.54 $9.31 $(2.77)(29.8)%
N/M = Not Meaningful

In the second quarter of 2024, total revenues increased 5.1% to $224.4 million from $213.5 million in the second quarter of 2023, primarily as a result of increased average assets under management during the current year period compared to the prior year period. Operating income increased $5.2 million to $44.2 million in the second quarter of 2024 compared to $39.0 million in the second quarter of 2023, due primarily to the aforementioned increased revenue, partially offset by increased operating expenses.

Revenues
Revenues by source were as follows:
Three Months Ended
June 30,
ChangeSix Months Ended
June 30,
Change
(in thousands)20242023$%20242023$%
Investment management fees
Open-end funds$79,883 $78,161 $1,722 2.2 %$158,563 $149,427 $9,136 6.1 %
Closed-end funds14,405 14,674 (269)(1.8)%28,799 29,352 (553)(1.9)%
Retail separate accounts52,216 42,803 9,413 22.0 %101,197 82,882 18,315 22.1 %
Institutional accounts45,148 44,341 807 1.8 %91,453 82,796 8,657 10.5 %
Total investment management fees191,652 179,979 11,673 6.5 %380,012 344,457 35,555 10.3 %
Distribution and service fees13,410 14,132 (722)(5.1)%27,440 28,285 (845)(3.0)%
Administration and shareholder service fees18,308 18,240 68 0.4 %36,986 36,599 387 1.1 %
Other income and fees1,014 1,185 (171)(14.4)%1,988 2,069 (81)(3.9)%
Total Revenues$224,384 $213,536 $10,848 5.1 %$446,426 $411,410 $35,016 8.5 %

Investment Management Fees
Investment management fees are earned based on a percentage of assets under management and are paid pursuant to the terms of the respective investment management agreements, which generally require monthly or quarterly payments. Investment management fees increased by $11.7 million, or 6.5%, and $35.6 million, or 10.3% for the three and six months ended June 30, 2024, respectively, compared to the same periods in the prior year primarily due to the increase in average
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assets under management.

Distribution and Service Fees
Distribution and service fees are sales- and asset-based fees earned from open-end funds for marketing and distribution services. Distribution and service fees decreased by $0.7 million, or 5.1%, and $0.8 million, or 3.0%, for the three and six months ended June 30, 2024, respectively, compared to the same periods in the prior year primarily due to lower sales and average assets under management for open-end funds in share classes that have sales- and asset-based distribution and service fees.

Administration and Shareholder Service Fees
Administration and shareholder service fees represent fees earned for fund administration and shareholder services from our U.S. retail funds, ETFs and certain closed-end funds. Fund administration and shareholder service fees remained consistent during the three months ended June 30, 2024 compared to the same period in the prior year and increased by $0.4 million, or 1.1%, for the six months ended June 30, 2024, compared to the same period in the prior year. The increase for the six-month period was primarily due to the increase in average assets under management of our U.S. retail funds and ETFs.

Other Income and Fees
Other income and fees primarily represent fees related to other fee-earning assets and contingent sales charges earned from investor redemptions of certain shares sold without a front-end sales charge. Other income and fees decreased by $0.2 million, or 14.4%, for the three months ended June 30, 2024, and remained consistent during the six months ended June 30, 2024 compared to the same periods in the prior year. The decrease during the three-month period is primarily due to lower fees earned on other fee-earning assets and lower fees received for trading and investment services.

Operating Expenses
Operating expenses by category were as follows:
Three Months Ended
June 30,
ChangeSix Months Ended
June 30,
Change
(in thousands)20242023$%20242023$%
Operating expenses
Employment expenses$105,667 $104,694 $973 0.9 %$220,830 $203,308 $17,522 8.6 %
Distribution and other asset-based expenses23,695 25,460 (1,765)(6.9)%48,043 49,175 (1,132)(2.3)%
Other operating expenses33,050 33,483 (433)(1.3)%64,425 64,213 212 0.3 %
Other operating expenses of CIP2,909 360 2,549 708.1 %3,599 1,060 2,539 239.5 %
Change in fair value of contingent consideration(3,300)(6,800)3,500 (51.5)%(3,300)(6,800)3,500 (51.5)%
Restructuring expense690 — 690 N/M1,487 — 1,487 N/M
Depreciation expense2,270 1,485 785 52.9 %4,298 2,630 1,668 63.4 %
Amortization expense15,198 15,808 (610)(3.9)%30,533 30,199 334 1.1 %
Total operating expenses$180,179 $174,490 $5,689 3.3 %$369,915 $343,785 $26,130 7.6 %
N/M = Not Meaningful

Employment Expenses
Employment expenses consist of fixed and variable compensation and related employee benefit costs. Employment expenses of $105.7 million increased by $1.0 million, or 0.9%, for the three months ended June 30, 2024 primarily due to an increase in profit- and sales-based compensation. Employment expenses increased by $17.5 million, or 8.6%, for the six months ended June 30, 2024, compared to the same period in the prior year primarily due to an increase in profit- and sales-based compensation and the addition of AlphaSimplex.

Distribution and Other Asset-Based Expenses
Distribution and other asset-based expenses consist primarily of payments to third-party client intermediaries for providing services to investors in sponsored investment products. These payments are primarily based on assets under management. Distribution and other asset-based expenses also include the amortization of deferred sales commissions related
24

to up-front commissions on shares sold without a front-end sales charge to shareholders. The deferred sales commissions are amortized on a straight-line basis over the period commissions are recovered from distribution fee revenues and contingent sales charges received upon redemption of shares. During the three and six months ended June 30, 2024, distribution and other asset-based expenses decreased by $1.8 million, or 6.9%, and $1.1 million, or 2.3%, respectively, compared to the same periods in the prior year primarily due to decreases in assets under management in share classes that have asset-based distribution and other expenses.

Other Operating Expenses
Other operating expenses primarily consist of investment research and technology costs, professional fees, travel and distribution-related costs, rent and occupancy expenses, and other business costs. Other operating expenses remained consistent during the three and six months ended June 30, 2024 compared to the same periods in the prior year.

Other Operating Expenses of CIP
Other operating expenses of CIP increased by $2.5 million, or 708.1%, and $2.5 million, or 239.5%, for the three and six months ended June 30, 2024, respectively, compared to the same periods in the prior year primarily due to the refinancing of two CLOs in the current year periods.

Change in Fair Value of Contingent Consideration
Contingent consideration related to the Company's acquisitions are fair valued on each reporting date incorporating changes in various estimates, including underlying performance estimates, discount rates and the amount of time until the conditions of the contingent payments are achieved. The change in fair value is recorded in the current period as a gain or loss. The $3.5 million change in fair value of contingent consideration for the three and six months ended June 30, 2024 compared to the same periods in the prior year was primarily attributable to changes in underlying performance estimates.

Depreciation Expense
Depreciation expense consists primarily of the straight-line depreciation of furniture, equipment and leasehold improvements. Depreciation expense increased $0.8 million, or 52.9%, and $1.7 million, or 63.4%, for the three and six months ended June 30, 2024, compared to the same periods in the prior year. The increase during both periods was primarily due to the acceleration of deprecation on leasehold improvements in the current year periods, software and equipment purchases in the current and prior year periods and depreciation expense for new office space.

Amortization Expense
Amortization expense consists of the amortization of definite-lived intangible assets over their estimated useful lives. Amortization expense decreased $0.6 million, or 3.9%, for the three months ended June 30, 2024, compared to the same period in the prior year, primarily due to intangible assets becoming fully amortized during the current year period. Amortization expense increased by $0.3 million, or 1.1%, for the six months ended June 30, 2024, compared to the same period in the prior year, primarily due to the addition of AlphaSimplex intangible assets in the second quarter of the prior year partially offset by intangible assets becoming fully amortized during the current year period.

Other Income (Expense)
Other Income (Expense), net by category were as follows:
Three Months Ended
June 30,
ChangeSix Months Ended
June 30,
Change
(in thousands)20242023$%20242023$%
Other Income (Expense)
Realized and unrealized gain (loss) on investments, net$(1,553)$1,717 $(3,270)(190.4)%$1,863 $4,387 $(2,524)(57.5)%
Realized and unrealized gain (loss) of CIP, net(12,936)(4,436)(8,500)191.6 %(11,401)(1,840)(9,561)519.6 %
Other income (expense), net597 (847)1,444 (170.5)%1,147 (1,190)2,337 (196.4)%
Total Other Income (Expense), net$(13,892)$(3,566)$(10,326)289.6 %$(8,391)$1,357 $(9,748)(718.3)%


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Realized and unrealized gain (loss) on investments, net
Realized and unrealized gain (loss) on investments, net changed during the three and six months ended June 30, 2024 by $(3.3) million and $(2.5) million, respectively, compared to the same periods in the prior year. The realized and unrealized gains and losses reflect changes in overall market conditions for the respective periods.

Realized and unrealized gain (loss) of CIP, net
Realized and unrealized gain (loss) of CIP, net changed by $(8.5) million and $(9.6) million for the three and six months ended June 30, 2024, respectively, compared to the same periods in the prior year. The change for the three months ended June 30, 2024 consisted primarily of changes in unrealized losses of $32.1 million related to the value of the notes payable, partially offset by net unrealized and realized gains of $23.6 million due to changes in market values of leveraged loans. The change for the six months ended June 30, 2024 consisted primarily of changes in unrealized losses of $15.3 million related to the value of the notes payable, partially offset by net unrealized and realized gains of $5.7 million due to changes in market values of leveraged loans.

Other income (expense), net    
Other income (expense), net changed by $1.4 million and $2.3 million for the three and six months ended June 30, 2024, respectively, compared to the same periods in the prior year primarily due to changes in the gains and losses on our equity method investments.

Interest Income (Expense)
Interest Income (Expense), net by category were as follows:
Three Months Ended
June 30,
ChangeSix Months Ended
June 30,
Change
(in thousands)20242023$%20242023$%
Interest Income (Expense)
Interest expense$(5,611)$(6,217)$606 (9.7)%$(11,292)$(11,222)$(70)0.6 %
Interest and dividend income2,643 2,675 (32)(1.2)%6,112 5,913 199 3.4 %
Interest and dividend income of investments of CIP52,385 47,884 4,501 9.4 %103,500 94,698 8,802 9.3 %
Interest expense of CIP(41,960)(38,732)(3,228)8.3 %(81,972)(73,935)(8,037)10.9 %
Total Interest Income (Expense), net$7,457 $5,610 $1,847 32.9 %$16,348 $15,454 $894 5.8 %

Interest Expense
Interest expense decreased $0.6 million, or 9.7%, for the three months ended June 30, 2024 and remained consistent during the six months ended June 30, 2024. The decrease during the three-month period was primarily due to lower average debt outstanding during the current year period.

Interest and Dividend Income
Interest and dividend income remained consistent during the three and six months ended June 30, 2024 compared to the same periods in the prior year.

Interest and Dividend Income of Investments of CIP    
Interest and dividend income of investments of CIP increased $4.5 million, or 9.4%, and $8.8 million, or 9.3% for the three and six months ended June 30, 2024, respectively, compared to the same periods in the prior year. The increases were primarily due to the addition of a CLO in the third quarter of 2023 and higher average interest rates during the current year periods.

Interest Expense of CIP    
Interest expense of CIP represents interest expense on the notes payable of CIP. Interest expense of CIP increased by $3.2 million, or 8.3%, and $8.0 million, or 10.9% for the three and six months ended June 30, 2024, compared to the same periods in the prior year primarily due to the addition of a CLO in the third quarter of 2023 and higher average interest rates in the current year periods.

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Income Tax Expense (Benefit)
The provision for income taxes reflected U.S. federal, state and local taxes at an estimated effective tax rate of 24.4% and 23.2% for the six months ended June 30, 2024 and 2023, respectively. The higher estimated effective tax rate for the six months ended June 30, 2024 was primarily due to a change in excess tax benefits associated with stock-based compensation and the change in valuation allowances in the current year related to the tax effects of unrealized gains on certain of our investments.


Liquidity and Capital Resources
Certain Financial Data
The following table summarizes certain financial data relating to our liquidity and capital resources:
 June 30,
2024
December 31, 2023Change
(in thousands)$%
Balance Sheet Data
Cash and cash equivalents$183,001 $239,602 $(56,601)(23.6)%
Investments122,316 132,696 (10,380)(7.8)%
Contingent consideration63,404 90,938 (27,534)(30.3)%
Debt247,605 253,412 (5,807)(2.3)%
Redeemable noncontrolling interests129,450 104,869 24,581 23.4 %
Total equity872,118 868,289 3,829 0.4 %
 
 Six Months Ended
June 30,
Change
(in thousands)20242023$%
Cash Flow Data
Provided by (Used in):
Operating activities$35,427 $102,088 $(66,661)(65.3)%
Investing activities(3,800)(123,244)119,444 (96.9)%
Financing activities(21,844)(210,727)188,883 (89.6)%

Overview
At June 30, 2024, we had $183.0 million of cash and cash equivalents and $122.3 million of investments, which included $86.2 million of investment securities, compared to $239.6 million of cash and cash equivalents and $132.7 million of investments, which included $97.3 million of investment securities, at December 31, 2023.

Uses of Capital
Our operating expenses consist of employee compensation and related benefit costs and other operating expenses, which primarily consist of investment research, technology costs, professional fees, distribution and occupancy costs, as well as interest on our indebtedness and income taxes. Annual incentive compensation, our largest annual operating cash expenditure, is paid in the first quarter of the year. In 2024 and 2023, we paid $146.1 million and $142.1 million, respectively, in incentive compensation earned during the years ended December 31, 2023 and 2022, respectively.

In addition to operating activities, other uses of cash could include: (i) investments in organic growth, including seeding or launching new products and expanding distribution; (ii) debt principal payments through scheduled amortization or additional paydowns; (iii) dividend payments to common stockholders; (iv) repurchases of our common stock, or withholding obligations for the net settlement of employee share transactions; (v) investments in our technology infrastructure; (vi) investments in inorganic growth opportunities that may require upfront and/or future payments; (vii) integration costs, including restructuring and severance, related to acquisitions, if any; and (viii) purchases of affiliate equity interests.
    
Capital and Reserve Requirements
Certain of our subsidiaries are registered with the SEC, Central Bank of Ireland (CBI) or other regulators that subject them to certain rules regarding minimum net capital. Failure to meet these requirements could result in adverse consequences
27

to us, including additional reporting requirements, or interruption of our business. At June 30, 2024, these subsidiaries were in compliance with all minimum net capital requirements.

Balance Sheet
Cash and cash equivalents consist of cash in banks and money market fund investments. Investments consist primarily of investments in our sponsored funds. CIP represent investment products for which we provide investment management services and where we have either a controlling financial interest or are considered the primary beneficiary of an investment product that is considered a variable interest entity.

Operating Cash Flow
Net cash provided by operating activities of $35.4 million for the six months ended June 30, 2024 decreased by $66.7 million from net cash provided by operating activities of $102.1 million for the same period in the prior year primarily due to a decrease of $48.0 million in net sales of investments by CIP in the current year period and an increase in payments of incentive compensation in the current year.

Investing Cash Flow
Cash flows from investing activities consist primarily of capital expenditures and other investing activities related to our business operations. Net cash used in investing activities of $3.8 million for the six months ended June 30, 2024 decreased by $119.4 million from net cash used in investing activities of $123.2 million for the same period in the prior year primarily due to the AlphaSimplex acquisition in the prior year.

Financing Cash Flow
Cash flows from financing activities consist primarily of transactions related to our common shares, issuance and repayment of debt by us and CIP, payments of contingent consideration and purchases and sales of noncontrolling interests. Net cash used in financing activities of $21.8 million for the six months ended June 30, 2024 decreased by $188.9 million from net cash used of $210.7 million for the same period in the prior year primarily due to a $222.6 million increase in net borrowings of CIP attributable to the refinancing of two CLOs in the current period partially offset by the prior year period $50.0 million borrowing on the credit facility as part of the AlphaSimplex acquisition.

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 $6.4 million outstanding under the Term Loan during the six months ended June 30, 2024 and had $252.4 million outstanding under the Term Loan at June 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 $4.8 million as of June 30, 2024.

Critical Accounting Policies and Estimates
Our financial statements and the accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America, which require the use of estimates. Actual results will vary from these estimates. A discussion of our critical accounting policies and estimates is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2023 Annual Report on Form 10-K. A complete description of our significant accounting policies is included in our 2023 Annual Report on Form 10-K. There were no material changes in our critical accounting policies and estimates in the three months ended June 30, 2024.

Recently Issued Accounting Pronouncements
For a discussion of accounting standards, see Note 2 in our condensed consolidated financial statements. 


Item 3.    Quantitative and Qualitative Disclosures About Market Risk
The Company is primarily exposed to market risk associated with unfavorable movements in interest rates and securities prices. During the three and six months ended June 30, 2024, there were no material changes to the information contained in Part II, Item 7A of the Company's 2023 Annual Report on Form 10-K.


28

Item 4.    Controls and Procedures
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on their evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2024, the end of the period covered by this Quarterly Report on Form 10-Q.

Changes in Internal Control over Financial Reporting
There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) or 15d-15(f) under the Exchange Act) identified in connection with the evaluation required by Rules 13a-15(d) or 15d-15(d) of the Exchange Act that occurred during the period covered by this Quarterly Report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.


PART II – OTHER INFORMATION
 
Item 1.    Legal Proceedings
The information set forth in response to Item 103 of Regulation S-K under "Legal Proceedings" is incorporated by reference from Part I, Financial Information Item 1. "Financial Statements" Note 14 "Commitments and Contingencies" of this Quarterly Report on Form 10-Q.


Item 1A.    Risk Factors    
There have been no material changes to the Company’s risk factors from those previously reported in our 2023 Annual Report on Form 10-K.


29


Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds
An aggregate of 5,680,045 shares of our common stock have been authorized to be repurchased under a share repurchase program since it was initially approved in 2010 by our Board of Directors. As of June 30, 2024, 528,338 shares remained available for repurchase. Under the terms of the program, we may repurchase shares of our common stock from time to time at our 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.

The following table sets forth information regarding our share repurchases in each month during the quarter ended June 30, 2024.
PeriodTotal number of shares purchasedAverage price paid per share (1)Total number of shares purchased as part of publicly announced plans or programs (2)Maximum number of shares that may yet be purchased under the plans or programs (2)
April 1-30, 2024— $— — 583,437 
May 1-31, 202430,988 $232.11 30,988 552,449 
June 1-30, 202424,111 $220.04 24,111 528,338 
Total55,099 55,099 
(1)Average price paid per share is calculated on a settlement basis and excludes commissions and taxes.
(2)The share repurchases above were completed pursuant to a program announced in the fourth quarter of 2010 and most recently expanded in May 2022. This repurchase program is not subject to an expiration date.


Item 5.    Other Information
During the three months ended June 30, 2024, none of the Company's directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934, as amended), adopted, terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K of the Securities Act of 1933, as amended).


30

Item 6.    Exhibits
Exhibit
Number
Description
Amended and Restated Virtus Investment Partners, Inc. Omnibus Incentive and Equity Plan (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K, filed May 16, 2024).
Certification of the Registrant’s Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Certification of the Registrant’s Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Certification of the Registrant’s Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INSInline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCHInline XBRL Taxonomy Extension Schema Document
101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document
101.LABInline XBRL Taxonomy Extension Label Linkbase Document
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document
104Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101)
*    Management contract, compensatory plan or arrangement.
#    This certification is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (Exchange Act), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended or the Exchange Act.


31

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: August 8, 2024
VIRTUS INVESTMENT PARTNERS, INC.
(Registrant)
By:/s/ Michael A. Angerthal
Michael A. Angerthal
Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

32

Exhibit 31.1
CERTIFICATION UNDER SECTION 302
I, George R. Aylward, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of Virtus Investment Partners, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: August 8, 2024
 
/S/     GEORGE R. AYLWARD
George R. Aylward
President, Chief Executive Officer and Director
(Principal Executive Officer)



Exhibit 31.2
CERTIFICATION UNDER SECTION 302
I, Michael A. Angerthal, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of Virtus Investment Partners, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: August 8, 2024
 
/S/     MICHAEL A. ANGERTHAL
Michael A. Angerthal
Executive Vice President, Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)



Exhibit 32.1
CERTIFICATIONS OF CEO AND CFO PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with this Quarterly Report on Form 10-Q of Virtus Investment Partners, Inc. (the “Company”) for the period ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:
 
(1)the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Dated: August 8, 2024
 
/S/    GEORGE R. AYLWARD
George R. Aylward
President, Chief Executive Officer and Director
(Principal Executive Officer)
 
/S/    MICHAEL A. ANGERTHAL
Michael A. Angerthal
Executive Vice President, Chief Financial Officer
(Principal Financial Officer and
Principal Accounting Officer)


v3.24.2.u1
Cover - shares
6 Months Ended
Jun. 30, 2024
Aug. 01, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2024  
Document Transition Report false  
Entity File Number 001-10994  
Entity Registrant Name VIRTUS INVESTMENT PARTNERS, INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 26-3962811  
Entity Address, Address Line One One Financial Plaza  
Entity Address, City or Town Hartford  
Entity Address, State or Province CT  
Entity Address, Postal Zip Code 06103  
City Area Code 800  
Local Phone Number 248-7971  
Title of 12(b) Security Common Stock, $0.01 par value  
Trading Symbol VRTS  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   7,082,071
Amendment Flag false  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q2  
Entity Central Index Key 0000883237  
Current Fiscal Year End Date --12-31  
v3.24.2.u1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Assets:    
Accounts receivable, net $ 105,638 $ 109,076
Furniture, equipment and leasehold improvements, net 25,150 26,216
Intangible assets, net 401,586 432,119
Goodwill 397,098 397,098
Deferred taxes, net 24,471 25,024
Total assets 3,647,696 3,678,629
Liabilities:    
Accrued compensation and benefits 132,261 200,837
Accounts payable and accrued liabilities 30,275 38,756
Dividends payable 16,982 17,291
Contingent consideration 63,404 90,938
Debt 247,605 253,412
Other liabilities 63,137 91,471
Total liabilities 2,646,128 2,705,471
Commitments and Contingencies (Note 14)
Redeemable noncontrolling interests 129,450 104,869
Equity attributable to Virtus Investment Partners, Inc.:    
Common stock, $0.01 par value, 1,000,000,000 shares authorized; 12,233,778 shares issued and 7,082,071 shares outstanding at June 30, 2024; and 12,163,228 shares issued and 7,087,728 shares outstanding at December 31, 2023 122 122
Additional paid-in capital 1,304,176 1,300,999
Retained earnings (accumulated deficit) 226,540 207,356
Accumulated other comprehensive income (loss) (200) (87)
Treasury stock, at cost, 5,151,707 and 5,075,500 shares at June 30, 2024 and December 31, 2023, respectively (661,963) (644,464)
Total equity attributable to Virtus Investment Partners, Inc. 868,675 863,926
Total equity 872,118 868,289
Total liabilities and equity 3,647,696 3,678,629
Consolidated Entity excluding Consolidated Investment Products    
Assets:    
Cash and cash equivalents 183,001 239,602
Investments 122,316 132,696
Other assets 74,894 89,438
Consolidated Investment Products    
Assets:    
Cash and cash equivalents 166,738 100,732
Investments 2,106,659 2,082,713
Cash pledged or on deposit of CIP 958 680
Other assets 39,187 43,235
Liabilities:    
Notes payable of CIP 1,990,338 1,922,243
Securities purchased payable and other liabilities of CIP 102,126 90,523
Equity attributable to Virtus Investment Partners, Inc.:    
Noncontrolling interests $ 3,443 $ 4,363
v3.24.2.u1
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 1,000,000,000 1,000,000,000
Common stock, shares issued (in shares) 12,233,778 12,163,228
Common stock, shares outstanding (in shares) 7,082,071 7,087,728
Treasury stock, shares (in shares) 5,151,707 5,075,500
v3.24.2.u1
Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Revenues        
Revenues $ 224,384 $ 213,536 $ 446,426 $ 411,410
Operating Expenses        
Employment expenses 105,667 104,694 220,830 203,308
Distribution and other asset-based expenses 23,695 25,460 48,043 49,175
Change in fair value of contingent consideration (3,300) (6,800) (3,300) (6,800)
Restructuring expense 690 0 1,487 0
Depreciation expense 2,270 1,485 4,298 2,630
Amortization expense 15,198 15,808 30,533 30,199
Total operating expenses 180,179 174,490 369,915 343,785
Operating Income (Loss) 44,205 39,046 76,511 67,625
Other Income (Expense)        
Other income (expense), net 597 (847) 1,147 (1,190)
Total other income (expense), net (13,892) (3,566) (8,391) 1,357
Interest Income (Expense)        
Total interest income (expense), net 7,457 5,610 16,348 15,454
Income (Loss) Before Income Taxes 37,770 41,090 84,468 84,436
Income tax expense (benefit) 11,748 10,910 20,579 19,613
Net Income (Loss) 26,022 30,180 63,889 64,823
Noncontrolling interests (8,408) 77 (16,417) 4,058
Net Income (Loss) Attributable to Virtus Investment Partners, Inc. $ 17,614 $ 30,257 $ 47,472 $ 68,881
Earnings (Loss) per Share—Basic (in dollars per share) $ 2.47 $ 4.14 $ 6.66 $ 9.47
Earnings (Loss) per Share—Diluted (in dollars per share) $ 2.43 $ 4.10 $ 6.54 $ 9.31
Weighted Average Shares Outstanding—Basic (in shares) 7,127 7,308 7,123 7,277
Weighted Average Shares Outstanding—Diluted (in shares) 7,242 7,385 7,264 7,398
Consolidated Entity excluding Consolidated Investment Products        
Operating Expenses        
Other operating expenses $ 33,050 $ 33,483 $ 64,425 $ 64,213
Other Income (Expense)        
Realized and unrealized gain (loss) on investments, net (1,553) 1,717 1,863 4,387
Interest Income (Expense)        
Interest expense (5,611) (6,217) (11,292) (11,222)
Interest and dividend income 2,643 2,675 6,112 5,913
Consolidated Investment Products        
Operating Expenses        
Other operating expenses 2,909 360 3,599 1,060
Other Income (Expense)        
Realized and unrealized gain (loss) on investments, net (12,936) (4,436) (11,401) (1,840)
Interest Income (Expense)        
Interest expense (41,960) (38,732) (81,972) (73,935)
Interest and dividend income 52,385 47,884 103,500 94,698
Investment management fees        
Revenues        
Revenues 191,652 179,979 380,012 344,457
Distribution and service fees        
Revenues        
Revenues 13,410 14,132 27,440 28,285
Administration and shareholder service fees        
Revenues        
Revenues 18,308 18,240 36,986 36,599
Other income and fees        
Revenues        
Revenues $ 1,014 $ 1,185 $ 1,988 $ 2,069
v3.24.2.u1
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Statement of Comprehensive Income [Abstract]        
Net Income (Loss) $ 26,022 $ 30,180 $ 63,889 $ 64,823
Other comprehensive income (loss), net of tax:        
Foreign currency translation adjustment, net of tax of $2 and $(42) for the three months ended June 30, 2024 and 2023, respectively and $38 and $(77) for the six months ended June 30, 2024 and 2023 (13) 112 (113) 211
Other comprehensive income (loss) (13) 112 (113) 211
Comprehensive income (loss) 26,009 30,292 63,776 65,034
Comprehensive (income) loss attributable to noncontrolling interests (8,408) 77 (16,417) 4,058
Comprehensive Income (Loss) Attributable to Virtus Investment Partners, Inc. $ 17,601 $ 30,369 $ 47,359 $ 69,092
v3.24.2.u1
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Statement of Comprehensive Income [Abstract]        
Foreign currency translation adjustment, tax $ 2 $ (42) $ 38 $ (77)
v3.24.2.u1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Cash Flows from Operating Activities:    
Net income (loss) $ 63,889 $ 64,823
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation expense, intangible asset and other amortization 36,533 34,476
Stock-based compensation 16,020 12,404
Equity in earnings of equity method investments (1,436) 1,151
Distributions from equity method investments 2,341 1,080
Change in fair value of contingent consideration (3,300) (6,800)
Lease termination (1,334) 0
Deferred taxes, net 653 (103)
Changes in operating assets and liabilities:    
Sales (purchases) of investments, net 6,851 3,757
Accounts receivable, net and other assets 10,255 4,828
Accrued compensation and benefits, accounts payable, accrued liabilities and other liabilities (101,798) (71,676)
Operating activities of consolidated investment products ("CIP"):    
Net cash provided by (used in) operating activities 35,427 102,088
Cash Flows from Investing Activities:    
Capital expenditures (3,251) (2,548)
Acquisition of businesses, net of cash acquired of $4,395 for the six months ended June 30, 2023 0 (108,999)
Purchase of equity method investment 0 (11,645)
Net cash provided by (used in) investing activities (3,800) (123,244)
Cash Flows from Financing Activities:    
Borrowings on credit agreement 0 50,000
Repayments on credit agreement (6,375) (11,375)
Common stock dividends paid (28,597) (26,367)
Repurchase of common shares (17,499) (10,000)
Payment of contingent consideration (24,234) (27,179)
Taxes paid related to net share settlement of restricted stock units (10,444) (13,222)
Affiliate equity sales (purchases) (419) 0
Net contributions from (distributions to) noncontrolling interests 18,156 2,459
Net cash provided by (used in) financing activities (21,844) (210,727)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (100) 383
Net increase (decrease) in cash, cash equivalents and restricted cash 9,683 (231,500)
Cash, cash equivalents and restricted cash, beginning of period 341,014 589,179
Cash, cash equivalents and restricted cash, end of period 350,697 357,679
Non-Cash Financing Activities:    
Increase (decrease) to noncontrolling interests due to consolidation (deconsolidation) of CIP, net (10,199) (3,447)
Common stock dividends payable 13,561 12,056
Reconciliation of cash, cash equivalents and restricted cash    
Cash, cash equivalents and restricted cash at end of period 350,697 357,679
Consolidated Entity excluding Consolidated Investment Products    
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Realized and unrealized (gains) losses on investments, net (1,838) (4,379)
Operating activities of consolidated investment products ("CIP"):    
Realized and unrealized (gains) losses on investments of CIP, net (1,838) (4,379)
Reconciliation of cash, cash equivalents and restricted cash    
Cash and cash equivalents 183,001  
Consolidated Investment Products    
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Realized and unrealized (gains) losses on investments, net 7,231 (775)
Operating activities of consolidated investment products ("CIP"):    
Realized and unrealized (gains) losses on investments of CIP, net 7,231 (775)
Purchases of investments by CIP (629,549) (556,365)
Sales of investments by CIP 635,658 610,917
Net proceeds (purchases) of short-term investments and securities sold short by CIP 207 (271)
Change in other assets and liabilities of CIP (6,843) 9,021
Amortization of discount on notes payable of CIP 1,887 0
Cash Flows from Investing Activities:    
Change in cash and cash equivalents of CIP due to consolidation (deconsolidation), net (549) (52)
Cash Flows from Financing Activities:    
Payments on borrowings by CIP (690,496) (175,043)
Borrowings by CIP 738,064 $ 0
Reconciliation of cash, cash equivalents and restricted cash    
Cash and cash equivalents 166,738  
Cash pledged or on deposit of CIP $ 958  
v3.24.2.u1
Condensed Consolidated Statements of Cash Flows (Parenthetical)
$ in Thousands
6 Months Ended
Jun. 30, 2023
USD ($)
Statement of Cash Flows [Abstract]  
Acquisition of business, net of cash acquired $ 4,395
v3.24.2.u1
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Total
Total Attributed To Virtus Investment Partners, Inc.
Common Stock
Additional Paid-in Capital
Retained Earnings (Accumulated Deficit)
Accumulated Other Comprehensive Income (Loss)
Treasury Stock
Non- controlling Interests
Balance at beginning of period, common stock (in shares) at Dec. 31, 2022     7,181,554          
Balance at beginning of period at Dec. 31, 2022 $ 822,936 $ 817,019 $ 120 $ 1,286,244 $ 130,261 $ (358) $ (599,248) $ 5,917
Balance at beginning of period, treasury stock (in shares) at Dec. 31, 2022             4,851,693  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income (loss) 68,996 68,881     68,881     115
Foreign currency translation adjustments 211 211       211    
Net subscriptions (redemptions) and other (836) 0           (836)
Cash dividends declared, common (25,131) (25,131)     (25,131)      
Repurchases of common shares (in shares)     (51,840)       51,840  
Repurchases of common shares (10,000) (10,000)         $ (10,000)  
Issuance of common shares related to employee stock transactions (in shares)     125,072          
Issuance of common shares related to employee stock transactions 0 0 $ 2 (2)        
Taxes paid on stock-based compensation (13,222) (13,222)   (13,222)        
Stock-based compensation 13,755 13,755   13,755        
Balance at end of period, common stock (in shares) at Jun. 30, 2023     7,254,786          
Balance at end of period at Jun. 30, 2023 856,709 851,513 $ 122 1,286,775 174,011 (147) $ (609,248) 5,196
Balance at end of period, treasury stock (in shares) at Jun. 30, 2023             4,903,533  
Balance at Dec. 31, 2022 113,718              
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]                
Net income (loss) (4,173)              
Net subscriptions (redemptions) and other 854              
Balance at Jun. 30, 2023 110,399              
Balance at beginning of period, common stock (in shares) at Mar. 31, 2023     7,288,394          
Balance at beginning of period at Mar. 31, 2023 844,297 837,915 $ 121 1,281,509 155,792 (259) $ (599,248) 6,382
Balance at beginning of period, treasury stock (in shares) at Mar. 31, 2023             4,851,693  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income (loss) 29,607 30,257     30,257     (650)
Foreign currency translation adjustments 112 112       112    
Net subscriptions (redemptions) and other (536) 0           (536)
Cash dividends declared, common (12,038) (12,038)     (12,038)      
Issuance of common shares related to employee stock transactions (in shares)     18,232          
Issuance of common shares related to employee stock transactions 0 0 $ 1 (1)        
Taxes paid on stock-based compensation (1,013) (1,013)   (1,013)        
Stock-based compensation 6,280 6,280   6,280        
Balance at end of period, common stock (in shares) at Jun. 30, 2023     7,254,786          
Balance at end of period at Jun. 30, 2023 856,709 851,513 $ 122 1,286,775 174,011 (147) $ (609,248) 5,196
Balance at end of period, treasury stock (in shares) at Jun. 30, 2023             4,903,533  
Balance at Mar. 31, 2023 106,630              
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]                
Net income (loss) 573              
Net subscriptions (redemptions) and other 3,196              
Balance at Jun. 30, 2023 $ 110,399              
Balance at beginning of period, common stock (in shares) at Dec. 31, 2023 12,163,228   7,087,728          
Balance at beginning of period at Dec. 31, 2023 $ 868,289 863,926 $ 122 1,300,999 207,356 (87) $ (644,464) 4,363
Balance at beginning of period, treasury stock (in shares) at Dec. 31, 2023 5,075,500           5,075,500  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income (loss) $ 47,190 47,472     47,472     (282)
Foreign currency translation adjustments (113) (113)       (113)    
Net subscriptions (redemptions) and other (576) 62   62       (638)
Cash dividends declared, common (28,288) (28,288)     (28,288)      
Repurchases of common shares (in shares)     (76,207)       76,207  
Repurchases of common shares (17,499) (17,499)         $ (17,499)  
Issuance of common shares related to employee stock transactions (in shares)     70,550          
Issuance of common shares related to employee stock transactions 0 0 $ 0 0        
Taxes paid on stock-based compensation (10,444) (10,444)   (10,444)        
Stock-based compensation $ 13,559 13,559   13,559        
Balance at end of period, common stock (in shares) at Jun. 30, 2024 12,233,778   7,082,071          
Balance at end of period at Jun. 30, 2024 $ 872,118 868,675 $ 122 1,304,176 226,540 (200) $ (661,963) 3,443
Balance at end of period, treasury stock (in shares) at Jun. 30, 2024 5,151,707           5,151,707  
Balance at Dec. 31, 2023 $ 104,869              
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]                
Net income (loss) 16,699              
Net subscriptions (redemptions) and other 7,882              
Balance at Jun. 30, 2024 129,450              
Balance at beginning of period, common stock (in shares) at Mar. 31, 2024     7,127,881          
Balance at beginning of period at Mar. 31, 2024 876,003 871,652 $ 122 1,298,157 223,023 (187) $ (649,463) 4,351
Balance at beginning of period, treasury stock (in shares) at Mar. 31, 2024             5,096,608  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income (loss) 16,941 17,614     17,614     (673)
Foreign currency translation adjustments (13) (13)       (13)    
Net subscriptions (redemptions) and other (173) 62   62       (235)
Cash dividends declared, common (14,097) (14,097)     (14,097)      
Repurchases of common shares (in shares)     (55,099)       55,099  
Repurchases of common shares (12,500) (12,500)         $ (12,500)  
Issuance of common shares related to employee stock transactions (in shares)     9,289          
Issuance of common shares related to employee stock transactions 0 0            
Taxes paid on stock-based compensation (592) (592)   (592)        
Stock-based compensation $ 6,549 6,549   6,549        
Balance at end of period, common stock (in shares) at Jun. 30, 2024 12,233,778   7,082,071          
Balance at end of period at Jun. 30, 2024 $ 872,118 $ 868,675 $ 122 $ 1,304,176 $ 226,540 $ (200) $ (661,963) $ 3,443
Balance at end of period, treasury stock (in shares) at Jun. 30, 2024 5,151,707           5,151,707  
Balance at Mar. 31, 2024 $ 115,185              
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]                
Net income (loss) 9,081              
Net subscriptions (redemptions) and other 5,184              
Balance at Jun. 30, 2024 $ 129,450              
v3.24.2.u1
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares
3 Months Ended 6 Months Ended
May 15, 2024
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Statement of Stockholders' Equity [Abstract]          
Cash dividends declared per common share (in dollars per share) $ 1.90 $ 1.90 $ 1.65 $ 3.80 $ 3.30
v3.24.2.u1
Organization and Business
6 Months Ended
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Business 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 (the "open-end funds") 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 (collectively, "global funds"); closed-end funds (collectively, with open-end funds, the "funds"); and retail separate accounts that include intermediary-sold and private client accounts.
v3.24.2.u1
Basis of Presentation and Significant Accounting Policies
6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Basis of Presentation and Significant Accounting Policies 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 six months ended June 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.
v3.24.2.u1
Revenues
6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenues 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
June 30,
Six Months Ended
June 30,
(in thousands)2024202320242023
Investment management fees
Open-end funds$79,883 $78,161 $158,563 $149,427 
Closed-end funds14,405 14,674 28,799 29,352 
Retail separate accounts52,216 42,803 101,197 82,882 
Institutional accounts45,148 44,341 91,453 82,796 
Total investment management fees$191,652 $179,979 $380,012 $344,457 
v3.24.2.u1
Acquisitions
6 Months Ended
Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Acquisitions 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.
v3.24.2.u1
Intangible Assets, Net
6 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, Net 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— (30,533)(30,533)— (30,533)
Balances at June 30, 2024$806,655 $(447,367)$359,288 $42,298 $401,586 
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$25,766 
202551,532 
202650,552 
202747,450 
202841,787 
2029 and thereafter142,201 
Total$359,288 
v3.24.2.u1
Investments
6 Months Ended
Jun. 30, 2024
Schedule of Investments [Abstract]  
Investments 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 June 30, 2024 and December 31, 2023 were as follows:
(in thousands)June 30,
2024
December 31, 2023
Investment securities - fair value$86,248 $97,304 
Equity method investments (1)22,055 22,710 
Nonqualified retirement plan assets14,013 12,682 
Total investments$122,316 $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:
June 30, 2024December 31, 2023
(in thousands)CostFair ValueCostFair Value
Investment Securities - fair value
Sponsored funds$65,205 $64,420 $80,794 $77,433 
Equity securities18,954 21,828 16,353 19,871 
Total investment securities - fair value$84,159 $86,248 $97,147 $97,304 
For the three and six months ended June 30, 2024, the Company recognized net realized gains of $1.0 million and $0.7 million, respectively, related to its investment securities - fair value. For the three and six months ended June 30, 2023, the Company recognized net realized gains of $0.8 million and $2.2 million, respectively, related to its investment securities - fair value.
v3.24.2.u1
Fair Value Measurements
6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements 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 June 30, 2024 and December 31, 2023 by fair value hierarchy level were as follows:
June 30, 2024  
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$147,135 $— $— $147,135 
Investment securities - fair value
Sponsored funds64,420 — — 64,420 
Equity securities21,828 — — 21,828 
Nonqualified retirement plan assets14,013 — — 14,013 
Total assets measured at fair value$247,396 $ $ $247,396 
Liabilities
Contingent consideration$— $— $38,408 $38,408 
Total liabilities measured at fair value$ $ $38,408 $38,408 
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.

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.

The following table presents a reconciliation of beginning and ending balances of the Company's contingent consideration liabilities:
Three Months Ended
June 30,
Six Months Ended
June 30,
(in thousands)2024202320242023
Contingent consideration, beginning of period$41,708 $61,710 $56,200 $78,100 
Reduction for payments made— — (14,492)(16,390)
Increase (reduction) of liability related to re-measurement of fair value(3,300)(6,800)(3,300)(6,800)
Contingent consideration, end of period$38,408 $54,910 $38,408 $54,910 
The contingent consideration related to the Westchester Capital Management transaction as of June 30, 2024, was $7.8 million measured using an options pricing model valuation technique. The most significant unobservable inputs used relate to revenue growth rates, discount rates (range of 6%-7%) and the market price of risk adjustment (9%). The NFJ Investment Group contingent consideration liability as of June 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% - 7%) and the market price of risk adjustment (7%).

Cash, accounts receivable, accounts payable and accrued liabilities equal or approximate fair value based on the short-term nature of these instruments.
v3.24.2.u1
Equity Transactions
6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Equity Transactions Equity Transactions
Dividends Declared
On May 15, 2024, the Company declared a quarterly cash dividend of $1.90 per common share to be paid on August 15, 2024 to shareholders of record at the close of business on July 31, 2024.

Common Stock Repurchases
During the three and six months ended June 30, 2024, the Company repurchased 55,099 and 76,207 common shares, respectively, at a weighted average price of $226.83 and $229.60 per share, respectively, for a total cost, including fees and expenses, of $12.5 million and $17.5 million, respectively, under its share repurchase program. As of June 30, 2024, 528,338 shares remained available for repurchase. Under the terms of the program, the Company may repurchase shares of its common stock from time to time at its discretion through open market repurchases, privately negotiated transactions and/or other mechanisms, depending on price, prevailing market and business conditions, tax and other financial considerations. The program, which has no specified term, may be suspended or terminated at any time.
v3.24.2.u1
Accumulated Other Comprehensive Income (Loss)
6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss)
The changes in accumulated other comprehensive income (loss) were as follows:
Six Months Ended
June 30,
(in thousands)20242023
Balance at beginning of period$(87)$(358)
Net current-period other comprehensive income (loss) (1)(113)211 
Balance at end of period$(200)$(147)
(1)     Consists of foreign currency translation adjustments, net of tax of $38 and $(77) for the six months ended June 30, 2024 and 2023, respectively.
v3.24.2.u1
Stock-Based Compensation
6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation 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 June 30, 2024, 818,989 shares of common stock remained available for issuance of the 3,825,000 shares that are authorized for issuance under the Omnibus Plan.     
Stock-based compensation expense is summarized as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2024202320242023
Stock-based compensation expense$9,189 $6,655 $16,020 $12,404 

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 six months ended June 30, 2024 is summarized as follows: 
Number
of Shares
Weighted Average
Grant Date
Fair Value
Outstanding at December 31, 2023344,717 $204.48 
Granted120,563 $235.06 
Forfeited(9,505)$256.00 
Settled(112,498)$229.57 
Outstanding at June 30, 2024343,277 $205.57 

For the six months ended June 30, 2024 and 2023, a total of 45,117 and 76,452 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 $10.4 million and $13.2 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 six months ended June 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 June 30, 2024, unamortized stock-based compensation expense for unvested RSUs and PSUs was $40.5 million with a weighted-average remaining contractual life of 1.4 years.
v3.24.2.u1
Earnings (Loss) Per Share
6 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share 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.
The computation of basic and diluted EPS is as follows: 
 Three Months Ended June 30,Six Months Ended
June 30,
(in thousands, except per share amounts)2024202320242023
Net Income (Loss)$26,022 $30,180 $63,889 $64,823 
Noncontrolling interests(8,408)77 (16,417)4,058 
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.$17,614 $30,257 $47,472 $68,881 
Shares:
Basic: Weighted-average number of shares outstanding7,127 7,308 7,123 7,277 
Plus: Incremental shares from assumed conversion of dilutive instruments115 77 141 121 
Diluted: Weighted-average number of shares outstanding7,242 7,385 7,264 7,398 
Earnings (Loss) per Share—Basic$2.47 $4.14 $6.66 $9.47 
Earnings (Loss) per Share—Diluted$2.43 $4.10 $6.54 $9.31 
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 June 30,Six Months Ended June 30,
(in thousands)2024202320242023
Restricted stock units13 36 436 
Total anti-dilutive securities13 36 436 
v3.24.2.u1
Income Taxes
6 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes 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 23.2% for the six months ended June 30, 2024 and 2023, respectively. The higher estimated effective tax rate for the six months ended June 30, 2024 was primarily due to a change in excess tax benefits associated with stock-based compensation and the change in valuation allowances in the current year related to the tax effects of unrealized gains on certain Company investments.
v3.24.2.u1
Debt
6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Debt 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 $6.4 million outstanding under the Term Loan during the six months ended June 30, 2024 and had $252.4 million outstanding under the Term Loan at June 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 $4.8 million as of June 30, 2024.
v3.24.2.u1
Commitments and Contingencies
6 Months Ended
Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies 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.

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.
v3.24.2.u1
Redeemable Noncontrolling Interests
6 Months Ended
Jun. 30, 2024
Noncontrolling Interest [Abstract]  
Redeemable Noncontrolling Interests 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 six months ended June 30, 2024 included the following amounts:
(in thousands)CIPAffiliate Noncontrolling InterestsTotal
Balances at December 31, 2023$30,643 $74,226 $104,869 
Net income (loss) attributable to noncontrolling interests1,833 3,584 5,417 
Changes in redemption value (1)— 11,282 11,282 
Total net income (loss) attributable to noncontrolling interests1,833 14,866 16,699 
Affiliate equity sales (purchases)— (419)(419)
Net subscriptions (redemptions) and other12,237 (3,936)8,301 
Balances at June 30, 2024$44,713 $84,737 $129,450 
(1)     Relates to noncontrolling interests redeemable at other than fair value.
v3.24.2.u1
Consolidation
6 Months Ended
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Consolidation Consolidation
The condensed consolidated financial statements include the accounts of the Company, its subsidiaries and investment products that are consolidated. A voting interest entity ("VOE") is consolidated when the Company is considered to have a controlling financial interest, which is typically present when the Company owns a majority of the voting interest in an entity or otherwise has the power to govern the financial and operating policies of the entity.

The Company evaluates any variable interest entity ("VIE") in which the Company has a variable interest for consolidation. A VIE is an entity in which either (i) the equity investment at risk is not sufficient to permit the entity to finance its own activities without additional financial support, or (ii) where, as a group, the holders of the equity investment at risk do not possess any one of the following: (a) the power through voting or similar rights to direct the activities that most significantly impact the entity's economic performance, (b) the obligation to absorb expected losses or the right to receive expected residual returns of the entity, or (c) proportionate voting and economic interests and where substantially all of the entity's activities either involve or are conducted on behalf of an investor with disproportionately fewer voting rights. If an entity has any of these characteristics, it is considered a VIE and is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that has both the power to direct the activities that most significantly impact the VIE's economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE.

In the normal course of its business, the Company sponsors various investment products, some of which are consolidated by the Company. CIP includes both VOEs, made up primarily of U.S. retail funds and ETFs in which the Company holds a controlling financial interest, and VIEs, which consist of collateralized loan obligations ("CLO") and certain global and private funds ("GF") of which the Company is considered the primary beneficiary. The consolidation and deconsolidation of these investment products have no impact on the Company's net income (loss). The Company's risk with respect to these investment products is limited to its beneficial interests in these products. The Company has no right to the benefits from, and does not bear the risks associated with, these investment products beyond the Company's investments in, and fees generated from, these products.
The following table presents the balances of CIP that, after intercompany eliminations, were reflected on the Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023:
As of
 June 30, 2024December 31, 2023
VOEsVIEsVOEsVIEs
(in thousands)CLOs GFsCLOsGFs
Cash and cash equivalents$8,576 $156,822 $2,298 $1,223 $98,101 $2,088 
Investments46,317 1,988,364 71,978 30,985 1,972,342 79,386 
Other assets1,255 37,022 910 174 41,985 1,076 
Notes payable— (1,990,338)— — (1,922,243)— 
Securities purchased payable and other liabilities(772)(99,797)(1,557)(740)(89,167)(616)
Noncontrolling interests(17,880)(3,443)(26,833)(7,316)(4,363)(23,327)
Net interests in CIP$37,496 $88,630 $46,796 $24,326 $96,655 $58,607 

Consolidated CLOs
The majority of the Company's CIP that are VIEs are CLOs. The financial information of certain CLOs is included on the Company's condensed consolidated financial statements on a one-month lag based upon the availability of their financial information. A majority-owned consolidated private fund, whose primary purpose is to invest in CLOs for which the Company serves as the collateral manager, is also included. At June 30, 2024, the Company consolidated seven CLOs.

Investments of CLOs
The CLOs held investments of $2.0 billion at June 30, 2024, consisting of bank loan investments that comprise the majority of the CLOs' portfolio asset collateral and are senior secured corporate loans across a variety of industries. These bank loan investments mature at various dates between 2025 and 2032 and generally pay interest at SOFR plus a spread.

Notes Payable of CLOs
The CLOs held notes payable with a total value, at par, of $2.2 billion at June 30, 2024, consisting of senior secured floating rate notes payable with a par value of $2.0 billion and subordinated notes with a par value of $217.9 million. These note obligations bear interest at variable rates based on SOFR plus a pre-defined spread.

The Company's beneficial interests and maximum exposure to loss related to these consolidated CLOs is limited to (i) ownership in the subordinated notes and (ii) accrued management fees. The secured notes of the consolidated CLOs have contractual recourse only to the related assets of the CLO and are classified as financial liabilities. Although these beneficial interests are eliminated upon consolidation, the application of the measurement alternative prescribed by ASU 2014-13, Consolidation (Topic 810) ("ASU 2014-13"), results in the net assets of the consolidated CLOs shown above to be equivalent to the beneficial interests retained by the Company at June 30, 2024, as shown in the table below:
(in thousands)
Subordinated notes$87,561 
Accrued investment management fees1,069 
Total Beneficial Interests$88,630 
The following table represents income and expenses of the consolidated CLOs included on the Company’s Condensed Consolidated Statements of Operations for the period indicated:
Six Months Ended June 30, 2024
(in thousands)
Income:
Realized and unrealized gain (loss), net$(12,377)
Interest income99,673 
Total Income87,296 
Expenses:
Other operating expenses3,224 
Interest expense81,972 
Total Expense85,196 
Noncontrolling interests282 
Net Income (Loss) Attributable to CLOs$2,382 

The following table represents the Company’s own economic interests in the consolidated CLOs, which are eliminated upon consolidation:
Six Months Ended June 30, 2024
(in thousands)
Distributions received and unrealized gains (losses) on the subordinated notes held by the Company$(2,059)
Investment management fees4,441 
Total Economic Interests$2,382 

Fair Value Measurements of CIP
The assets and liabilities of CIP measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 by fair value hierarchy level were as follows:
As of June 30, 2024
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$163,605 $— $— $163,605 
Debt investments— 2,034,350 35,109 2,069,459 
Equity investments 35,229 97 1,874 37,200 
Derivatives124 — — 124 
Total assets measured at fair value$198,958 $2,034,447 $36,983 $2,270,388 
Liabilities
Notes payable$— $1,990,338 $— $1,990,338 
Short sales474 — — 474 
Total liabilities measured at fair value$474 $1,990,338 $ $1,990,812 
As of December 31, 2023
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$98,101 $— $— $98,101 
Debt investments241 2,012,760 36,616 2,049,617 
Equity investments32,642 446 33,096 
Total assets measured at fair value$130,984 $2,012,768 $37,062 $2,180,814 
Liabilities
Notes payable$— $1,922,243 $— $1,922,243 
Short sales518 — — 518 
Total liabilities measured at fair value$518 $1,922,243 $ $1,922,761 

The following is a discussion of the valuation methodologies used for the assets and liabilities of the Company’s CIP measured at fair value:

Level 1 assets represent cash investments in money market funds and debt and equity investments that are valued using published net asset values or the official closing price on the exchange on which the securities are traded.

Level 2 assets represent most debt securities (including bank loans) and certain equity securities (including non-U.S. 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. Debt investments, other than bank loans, are valued based on quotations received from independent pricing services or from dealers who make markets in such securities. Bank loan investments, which are included as debt investments, are generally priced at the average mid-point of bid and ask quotations obtained from a third-party pricing service. Fair value may also be based upon valuations obtained from independent third-party brokers or dealers utilizing matrix pricing models that consider information regarding securities with similar characteristics.

Level 3 assets include debt and equity securities that are not widely traded, are illiquid or are priced by dealers based on pricing models used by market makers in the security. These securities are valued using unadjusted prices from an independent pricing service.

Level 1 liabilities consist of short sales transactions in which a security is sold that is not owned or is owned but there is no intention to deliver, in anticipation that the price of the security will decline. Short sales are recorded on the Condensed Consolidated Balance Sheets within other liabilities of CIP and are classified as Level 1 based on the underlying equity security.

Level 2 liabilities consist of notes payable issued by CLOs and are measured using the measurement alternative in ASU 2014-13. Accordingly, the fair value of CLO liabilities was measured as the fair value of CLO assets less the sum of (i) the fair value of the beneficial interests held by the Company, and (ii) the carrying value of any beneficial interests that represent compensation for services. The fair value of the beneficial interests held by the Company is based on third-party pricing information without adjustment.

The securities purchased payable at June 30, 2024 and December 31, 2023 approximated fair value due to the short-term nature of the instruments.
The following table is a reconciliation of assets of CIP for Level 3 investments for which significant unobservable inputs were used to determine fair value:
 Six Months Ended June 30,
 (in thousands)
20242023
Balance at beginning of period$37,062 $43,581 
Realized and unrealized gains (losses), net629 (467)
Purchases31 2,903 
Sales(19,845)(7,231)
Transfers to Level 2(54,857)(48,337)
Transfers from Level 273,963 53,091 
Balance at end of period (1)$36,983 $43,540 
(1)The investments that are categorized as Level 3 were valued utilizing third-party pricing information without adjustment. Transfers in and/or out of levels are reflected when significant inputs, including market inputs or performance attributes, used for the fair value measurement become observable/unobservable at period end.

Nonconsolidated VIEs
The Company serves as the collateral manager for other CLOs that are not consolidated. The assets and liabilities of these CLOs reside in bankruptcy remote, special purpose entities in which the Company has no ownership of, nor holds any notes issued by, the CLOs, and provides neither recourse nor guarantees. The Company has determined that the investment management fees it receives for serving as collateral manager for these CLOs did not represent a variable interest as (i) the fees the Company earns are compensation for services provided and are commensurate with the level of effort required to provide the investment management services, (ii) the Company does not hold other interests in the CLOs that individually, or in the aggregate, would absorb more than an insignificant amount of the CLOs' expected losses or receive more than an insignificant amount of the CLOs' expected residual return, and (iii) the investment management arrangement only includes terms, conditions and amounts that are customarily present in arrangements for similar services negotiated at arm's length.
    
The Company has interests in certain other VIEs that the Company does not consolidate as it is not the primary beneficiary since its interest in these entities does not provide the Company with the power to direct the activities that most significantly impact the entities' economic performance. At June 30, 2024, the carrying value and maximum risk of loss related to the Company's interest in these VIEs was $27.8 million.
v3.24.2.u1
Insider Trading Arrangements
3 Months Ended
Jun. 30, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.2.u1
Basis of Presentation and Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Basis of Presentation
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 six months ended June 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
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.
Revenue Recognition
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.
Fair Value Measurements
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.

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.
The following is a discussion of the valuation methodologies used for the assets and liabilities of the Company’s CIP measured at fair value:

Level 1 assets represent cash investments in money market funds and debt and equity investments that are valued using published net asset values or the official closing price on the exchange on which the securities are traded.

Level 2 assets represent most debt securities (including bank loans) and certain equity securities (including non-U.S. 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. Debt investments, other than bank loans, are valued based on quotations received from independent pricing services or from dealers who make markets in such securities. Bank loan investments, which are included as debt investments, are generally priced at the average mid-point of bid and ask quotations obtained from a third-party pricing service. Fair value may also be based upon valuations obtained from independent third-party brokers or dealers utilizing matrix pricing models that consider information regarding securities with similar characteristics.

Level 3 assets include debt and equity securities that are not widely traded, are illiquid or are priced by dealers based on pricing models used by market makers in the security. These securities are valued using unadjusted prices from an independent pricing service.

Level 1 liabilities consist of short sales transactions in which a security is sold that is not owned or is owned but there is no intention to deliver, in anticipation that the price of the security will decline. Short sales are recorded on the Condensed Consolidated Balance Sheets within other liabilities of CIP and are classified as Level 1 based on the underlying equity security.

Level 2 liabilities consist of notes payable issued by CLOs and are measured using the measurement alternative in ASU 2014-13. Accordingly, the fair value of CLO liabilities was measured as the fair value of CLO assets less the sum of (i) the fair value of the beneficial interests held by the Company, and (ii) the carrying value of any beneficial interests that represent compensation for services. The fair value of the beneficial interests held by the Company is based on third-party pricing information without adjustment.
Noncontrolling Interest
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.
Nonconsolidated VIEs
Nonconsolidated VIEs
The Company serves as the collateral manager for other CLOs that are not consolidated. The assets and liabilities of these CLOs reside in bankruptcy remote, special purpose entities in which the Company has no ownership of, nor holds any notes issued by, the CLOs, and provides neither recourse nor guarantees. The Company has determined that the investment management fees it receives for serving as collateral manager for these CLOs did not represent a variable interest as (i) the fees the Company earns are compensation for services provided and are commensurate with the level of effort required to provide the investment management services, (ii) the Company does not hold other interests in the CLOs that individually, or in the aggregate, would absorb more than an insignificant amount of the CLOs' expected losses or receive more than an insignificant amount of the CLOs' expected residual return, and (iii) the investment management arrangement only includes terms, conditions and amounts that are customarily present in arrangements for similar services negotiated at arm's length.
    
The Company has interests in certain other VIEs that the Company does not consolidate as it is not the primary beneficiary since its interest in these entities does not provide the Company with the power to direct the activities that most significantly impact the entities' economic performance.
v3.24.2.u1
Revenues (Tables)
6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table summarizes investment management fees by source:
 Three Months Ended
June 30,
Six Months Ended
June 30,
(in thousands)2024202320242023
Investment management fees
Open-end funds$79,883 $78,161 $158,563 $149,427 
Closed-end funds14,405 14,674 28,799 29,352 
Retail separate accounts52,216 42,803 101,197 82,882 
Institutional accounts45,148 44,341 91,453 82,796 
Total investment management fees$191,652 $179,979 $380,012 $344,457 
v3.24.2.u1
Intangible Assets, Net (Tables)
6 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill and 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— (30,533)(30,533)— (30,533)
Balances at June 30, 2024$806,655 $(447,367)$359,288 $42,298 $401,586 
Schedule of Estimated Amortization Expense of Intangible Assets Succeeding Years
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$25,766 
202551,532 
202650,552 
202747,450 
202841,787 
2029 and thereafter142,201 
Total$359,288 
v3.24.2.u1
Investments (Tables)
6 Months Ended
Jun. 30, 2024
Schedule of Investments [Abstract]  
Schedule of Investments The Company's investments, excluding the assets of consolidated investment products ("CIP") discussed in Note 16, at June 30, 2024 and December 31, 2023 were as follows:
(in thousands)June 30,
2024
December 31, 2023
Investment securities - fair value$86,248 $97,304 
Equity method investments (1)22,055 22,710 
Nonqualified retirement plan assets14,013 12,682 
Total investments$122,316 $132,696 
(1)    The Company's equity method investments are valued on a three-month lag based upon the availability of financial information.
Schedule of Marketable Securities The composition of the Company’s investment securities - fair value was as follows:
June 30, 2024December 31, 2023
(in thousands)CostFair ValueCostFair Value
Investment Securities - fair value
Sponsored funds$65,205 $64,420 $80,794 $77,433 
Equity securities18,954 21,828 16,353 19,871 
Total investment securities - fair value$84,159 $86,248 $97,147 $97,304 
v3.24.2.u1
Fair Value Measurements (Tables)
6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis
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 June 30, 2024 and December 31, 2023 by fair value hierarchy level were as follows:
June 30, 2024  
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$147,135 $— $— $147,135 
Investment securities - fair value
Sponsored funds64,420 — — 64,420 
Equity securities21,828 — — 21,828 
Nonqualified retirement plan assets14,013 — — 14,013 
Total assets measured at fair value$247,396 $ $ $247,396 
Liabilities
Contingent consideration$— $— $38,408 $38,408 
Total liabilities measured at fair value$ $ $38,408 $38,408 
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 assets and liabilities of CIP measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 by fair value hierarchy level were as follows:
As of June 30, 2024
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$163,605 $— $— $163,605 
Debt investments— 2,034,350 35,109 2,069,459 
Equity investments 35,229 97 1,874 37,200 
Derivatives124 — — 124 
Total assets measured at fair value$198,958 $2,034,447 $36,983 $2,270,388 
Liabilities
Notes payable$— $1,990,338 $— $1,990,338 
Short sales474 — — 474 
Total liabilities measured at fair value$474 $1,990,338 $ $1,990,812 
As of December 31, 2023
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$98,101 $— $— $98,101 
Debt investments241 2,012,760 36,616 2,049,617 
Equity investments32,642 446 33,096 
Total assets measured at fair value$130,984 $2,012,768 $37,062 $2,180,814 
Liabilities
Notes payable$— $1,922,243 $— $1,922,243 
Short sales518 — — 518 
Total liabilities measured at fair value$518 $1,922,243 $ $1,922,761 
Schedule of Liabilities of Consolidated Sponsored Investment Products For Level 3 Investments, Unobservable Inputs Used to Determine Fair Value
The following table presents a reconciliation of beginning and ending balances of the Company's contingent consideration liabilities:
Three Months Ended
June 30,
Six Months Ended
June 30,
(in thousands)2024202320242023
Contingent consideration, beginning of period$41,708 $61,710 $56,200 $78,100 
Reduction for payments made— — (14,492)(16,390)
Increase (reduction) of liability related to re-measurement of fair value(3,300)(6,800)(3,300)(6,800)
Contingent consideration, end of period$38,408 $54,910 $38,408 $54,910 
v3.24.2.u1
Accumulated Other Comprehensive Income (Loss) (Tables)
6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Schedule of Changes in Accumulated Other Comprehensive Income (Loss)
The changes in accumulated other comprehensive income (loss) were as follows:
Six Months Ended
June 30,
(in thousands)20242023
Balance at beginning of period$(87)$(358)
Net current-period other comprehensive income (loss) (1)(113)211 
Balance at end of period$(200)$(147)
(1)     Consists of foreign currency translation adjustments, net of tax of $38 and $(77) for the six months ended June 30, 2024 and 2023, respectively.
v3.24.2.u1
Stock-Based Compensation (Tables)
6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock Based Compensation Expense
Stock-based compensation expense is summarized as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2024202320242023
Stock-based compensation expense$9,189 $6,655 $16,020 $12,404 
Schedule of Restricted Stock Units Activity
RSU activity, inclusive of PSUs, for the six months ended June 30, 2024 is summarized as follows: 
Number
of Shares
Weighted Average
Grant Date
Fair Value
Outstanding at December 31, 2023344,717 $204.48 
Granted120,563 $235.06 
Forfeited(9,505)$256.00 
Settled(112,498)$229.57 
Outstanding at June 30, 2024343,277 $205.57 
v3.24.2.u1
Earnings (Loss) Per Share (Tables)
6 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
Schedule of Computation of Basic and Diluted Earnings Per Share
The computation of basic and diluted EPS is as follows: 
 Three Months Ended June 30,Six Months Ended
June 30,
(in thousands, except per share amounts)2024202320242023
Net Income (Loss)$26,022 $30,180 $63,889 $64,823 
Noncontrolling interests(8,408)77 (16,417)4,058 
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.$17,614 $30,257 $47,472 $68,881 
Shares:
Basic: Weighted-average number of shares outstanding7,127 7,308 7,123 7,277 
Plus: Incremental shares from assumed conversion of dilutive instruments115 77 141 121 
Diluted: Weighted-average number of shares outstanding7,242 7,385 7,264 7,398 
Earnings (Loss) per Share—Basic$2.47 $4.14 $6.66 $9.47 
Earnings (Loss) per Share—Diluted$2.43 $4.10 $6.54 $9.31 
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
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 June 30,Six Months Ended June 30,
(in thousands)2024202320242023
Restricted stock units13 36 436 
Total anti-dilutive securities13 36 436 
v3.24.2.u1
Redeemable Noncontrolling Interests (Tables)
6 Months Ended
Jun. 30, 2024
Noncontrolling Interest [Abstract]  
Schedule of Redeemable Noncontrolling Interest
Redeemable noncontrolling interests for the six months ended June 30, 2024 included the following amounts:
(in thousands)CIPAffiliate Noncontrolling InterestsTotal
Balances at December 31, 2023$30,643 $74,226 $104,869 
Net income (loss) attributable to noncontrolling interests1,833 3,584 5,417 
Changes in redemption value (1)— 11,282 11,282 
Total net income (loss) attributable to noncontrolling interests1,833 14,866 16,699 
Affiliate equity sales (purchases)— (419)(419)
Net subscriptions (redemptions) and other12,237 (3,936)8,301 
Balances at June 30, 2024$44,713 $84,737 $129,450 
(1)     Relates to noncontrolling interests redeemable at other than fair value.
v3.24.2.u1
Consolidation (Tables)
6 Months Ended
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Condensed Consolidated Balance Sheets
The following table presents the balances of CIP that, after intercompany eliminations, were reflected on the Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023:
As of
 June 30, 2024December 31, 2023
VOEsVIEsVOEsVIEs
(in thousands)CLOs GFsCLOsGFs
Cash and cash equivalents$8,576 $156,822 $2,298 $1,223 $98,101 $2,088 
Investments46,317 1,988,364 71,978 30,985 1,972,342 79,386 
Other assets1,255 37,022 910 174 41,985 1,076 
Notes payable— (1,990,338)— — (1,922,243)— 
Securities purchased payable and other liabilities(772)(99,797)(1,557)(740)(89,167)(616)
Noncontrolling interests(17,880)(3,443)(26,833)(7,316)(4,363)(23,327)
Net interests in CIP$37,496 $88,630 $46,796 $24,326 $96,655 $58,607 
Schedule of VIE Consolidated Investment Product Although these beneficial interests are eliminated upon consolidation, the application of the measurement alternative prescribed by ASU 2014-13, Consolidation (Topic 810) ("ASU 2014-13"), results in the net assets of the consolidated CLOs shown above to be equivalent to the beneficial interests retained by the Company at June 30, 2024, as shown in the table below:
(in thousands)
Subordinated notes$87,561 
Accrued investment management fees1,069 
Total Beneficial Interests$88,630 
The following table represents income and expenses of the consolidated CLOs included on the Company’s Condensed Consolidated Statements of Operations for the period indicated:
Six Months Ended June 30, 2024
(in thousands)
Income:
Realized and unrealized gain (loss), net$(12,377)
Interest income99,673 
Total Income87,296 
Expenses:
Other operating expenses3,224 
Interest expense81,972 
Total Expense85,196 
Noncontrolling interests282 
Net Income (Loss) Attributable to CLOs$2,382 

The following table represents the Company’s own economic interests in the consolidated CLOs, which are eliminated upon consolidation:
Six Months Ended June 30, 2024
(in thousands)
Distributions received and unrealized gains (losses) on the subordinated notes held by the Company$(2,059)
Investment management fees4,441 
Total Economic Interests$2,382 
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis
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 June 30, 2024 and December 31, 2023 by fair value hierarchy level were as follows:
June 30, 2024  
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$147,135 $— $— $147,135 
Investment securities - fair value
Sponsored funds64,420 — — 64,420 
Equity securities21,828 — — 21,828 
Nonqualified retirement plan assets14,013 — — 14,013 
Total assets measured at fair value$247,396 $ $ $247,396 
Liabilities
Contingent consideration$— $— $38,408 $38,408 
Total liabilities measured at fair value$ $ $38,408 $38,408 
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 assets and liabilities of CIP measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 by fair value hierarchy level were as follows:
As of June 30, 2024
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$163,605 $— $— $163,605 
Debt investments— 2,034,350 35,109 2,069,459 
Equity investments 35,229 97 1,874 37,200 
Derivatives124 — — 124 
Total assets measured at fair value$198,958 $2,034,447 $36,983 $2,270,388 
Liabilities
Notes payable$— $1,990,338 $— $1,990,338 
Short sales474 — — 474 
Total liabilities measured at fair value$474 $1,990,338 $ $1,990,812 
As of December 31, 2023
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$98,101 $— $— $98,101 
Debt investments241 2,012,760 36,616 2,049,617 
Equity investments32,642 446 33,096 
Total assets measured at fair value$130,984 $2,012,768 $37,062 $2,180,814 
Liabilities
Notes payable$— $1,922,243 $— $1,922,243 
Short sales518 — — 518 
Total liabilities measured at fair value$518 $1,922,243 $ $1,922,761 
Schedule of Reconciliation of Assets of Consolidated Sponsored Investment Products For Level 3 Investments, Unobservable Inputs Used to Determine Fair Value
The following table is a reconciliation of assets of CIP for Level 3 investments for which significant unobservable inputs were used to determine fair value:
 Six Months Ended June 30,
 (in thousands)
20242023
Balance at beginning of period$37,062 $43,581 
Realized and unrealized gains (losses), net629 (467)
Purchases31 2,903 
Sales(19,845)(7,231)
Transfers to Level 2(54,857)(48,337)
Transfers from Level 273,963 53,091 
Balance at end of period (1)$36,983 $43,540 
(1)The investments that are categorized as Level 3 were valued utilizing third-party pricing information without adjustment. Transfers in and/or out of levels are reflected when significant inputs, including market inputs or performance attributes, used for the fair value measurement become observable/unobservable at period end.
v3.24.2.u1
Revenues (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Disaggregation of Revenue [Line Items]        
Revenues $ 224,384 $ 213,536 $ 446,426 $ 411,410
Investment management fees        
Disaggregation of Revenue [Line Items]        
Revenues 191,652 179,979 380,012 344,457
Open-end funds        
Disaggregation of Revenue [Line Items]        
Revenues 79,883 78,161 158,563 149,427
Closed-end funds        
Disaggregation of Revenue [Line Items]        
Revenues 14,405 14,674 28,799 29,352
Retail separate accounts        
Disaggregation of Revenue [Line Items]        
Revenues 52,216 42,803 101,197 82,882
Institutional accounts        
Disaggregation of Revenue [Line Items]        
Revenues $ 45,148 $ 44,341 $ 91,453 $ 82,796
v3.24.2.u1
Acquisitions (Details) - USD ($)
$ in Thousands
Apr. 01, 2023
Jun. 30, 2024
Dec. 31, 2023
Business Acquisition [Line Items]      
Goodwill   $ 397,098 $ 397,098
AlphaSimplex Group, LLC      
Business Acquisition [Line Items]      
Purchase price $ 113,400    
Goodwill 48,300    
Definite-lived intangible assets acquired $ 55,400    
v3.24.2.u1
Intangible Assets, Net - Goodwill and Intangible Assets, Net (Details)
$ in Thousands
6 Months Ended
Jun. 30, 2024
USD ($)
Definite-Lived  
Gross book value, beginning of period $ 806,655
Accumulated amortization, beginning of period (416,834)
Definite-Lived net book value, beginning of period 389,821
Intangible amortization (30,533)
Gross book value balance, end of period 806,655
Accumulated amortization, end of period (447,367)
Definite-Lived net book value, end of period 359,288
Indefinite-Lived  
Net book value, beginning of period 42,298
Net book value, end of period 42,298
Total  
Net book value, beginning of period 432,119
Intangible amortization (30,533)
Net book value, end of period $ 401,586
v3.24.2.u1
Intangible Assets, Net - Estimated Amortization Expense of Intangible Assets Succeeding Years (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
Remainder of 2024 $ 25,766  
2025 51,532  
2026 50,552  
2027 47,450  
2028 41,787  
2029 and thereafter 142,201  
Total $ 359,288 $ 389,821
v3.24.2.u1
Investments - Investments (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Schedule of Investments [Line Items]    
Investment securities - fair value $ 86,248 $ 97,304
Parent    
Schedule of Investments [Line Items]    
Investment securities - fair value 86,248 97,304
Equity method investments 22,055 22,710
Nonqualified retirement plan assets 14,013 12,682
Total investments $ 122,316 $ 132,696
v3.24.2.u1
Investments - Marketable Securities (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Investment Securities - fair value    
Cost $ 84,159 $ 97,147
Fair Value 86,248 97,304
Sponsored funds    
Investment Securities - fair value    
Cost 65,205 80,794
Fair Value 64,420 77,433
Equity securities    
Investment Securities - fair value    
Cost 18,954 16,353
Fair Value $ 21,828 $ 19,871
v3.24.2.u1
Investments - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Schedule of Investments [Abstract]        
Realized (losses) gains on trading securities $ 1.0 $ 0.8 $ 0.7 $ 2.2
v3.24.2.u1
Fair Value Measurements - Changes in Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Assets    
Cash equivalents $ 147,135 $ 197,240
Investment securities - fair value    
Fair Value 86,248 97,304
Total assets measured at fair value 247,396 307,226
Liabilities    
Total liabilities measured at fair value 38,408 56,200
Contingent consideration    
Liabilities    
Total liabilities measured at fair value 38,408 56,200
Sponsored funds    
Investment securities - fair value    
Fair Value 64,420 77,433
Equity securities    
Investment securities - fair value    
Fair Value 21,828 19,871
Nonqualified retirement plan assets    
Investment securities - fair value    
Nonqualified retirement plan assets 14,013 12,682
Level 1    
Assets    
Cash equivalents 147,135 197,240
Investment securities - fair value    
Total assets measured at fair value 247,396 307,226
Liabilities    
Total liabilities measured at fair value 0 0
Level 1 | Contingent consideration    
Liabilities    
Total liabilities measured at fair value 0 0
Level 1 | Sponsored funds    
Investment securities - fair value    
Fair Value 64,420 77,433
Level 1 | Equity securities    
Investment securities - fair value    
Fair Value 21,828 19,871
Level 1 | Nonqualified retirement plan assets    
Investment securities - fair value    
Nonqualified retirement plan assets 14,013 12,682
Level 2    
Assets    
Cash equivalents 0 0
Investment securities - fair value    
Total assets measured at fair value 0 0
Liabilities    
Total liabilities measured at fair value 0 0
Level 2 | Contingent consideration    
Liabilities    
Total liabilities measured at fair value 0 0
Level 2 | Sponsored funds    
Investment securities - fair value    
Fair Value 0 0
Level 2 | Equity securities    
Investment securities - fair value    
Fair Value 0 0
Level 2 | Nonqualified retirement plan assets    
Investment securities - fair value    
Nonqualified retirement plan assets 0 0
Level 3    
Assets    
Cash equivalents 0 0
Investment securities - fair value    
Total assets measured at fair value 0 0
Liabilities    
Total liabilities measured at fair value 38,408 56,200
Level 3 | Contingent consideration    
Liabilities    
Total liabilities measured at fair value 38,408 56,200
Level 3 | Sponsored funds    
Investment securities - fair value    
Fair Value 0 0
Level 3 | Equity securities    
Investment securities - fair value    
Fair Value 0 0
Level 3 | Nonqualified retirement plan assets    
Investment securities - fair value    
Nonqualified retirement plan assets $ 0 $ 0
v3.24.2.u1
Fair Value Measurements - Narrative (Details)
$ in Thousands
Jun. 30, 2024
USD ($)
Dec. 31, 2023
USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Contingent consideration $ 63,404 $ 90,938
Westchester | Measurement Input, Comparability Adjustment    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Business combination, contingent consideration, liability, measurement input 0.09  
Westchester | Minimum | Measurement Input, Discount Rate    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Business combination, contingent consideration, liability, measurement input 0.06  
Westchester | Maximum | Measurement Input, Discount Rate    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Business combination, contingent consideration, liability, measurement input 0.07  
Westchester | Level 3    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Contingent consideration $ 7,800  
NFJ Investment Group | Measurement Input, Comparability Adjustment    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Business combination, contingent consideration, liability, measurement input 0.07  
NFJ Investment Group | Minimum | Measurement Input, Discount Rate    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Business combination, contingent consideration, liability, measurement input 0.06  
NFJ Investment Group | Maximum | Measurement Input, Discount Rate    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Business combination, contingent consideration, liability, measurement input 0.07  
NFJ Investment Group | Level 3    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Contingent consideration $ 30,600  
v3.24.2.u1
Fair Value Measurements - Rollforward of the Contingent Consideration Liabilities Valued Using Level 3 Inputs (Details) - Level 3 - Contingent consideration - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]        
Contingent consideration, beginning of period $ 41,708 $ 61,710 $ 56,200 $ 78,100
Reduction for payments made 0 0 (14,492) (16,390)
Increase (reduction) of liability related to re-measurement of fair value (3,300) (6,800) (3,300) (6,800)
Contingent consideration, end of period $ 38,408 $ 54,910 $ 38,408 $ 54,910
v3.24.2.u1
Equity Transactions (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 6 Months Ended
May 15, 2024
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Equity [Abstract]          
Cash dividends declared per common share (in dollars per share) $ 1.90 $ 1.90 $ 1.65 $ 3.80 $ 3.30
Stock repurchased during period, shares   55,099   76,207  
Weighted average price (in dollars per share)   $ 226.83   $ 229.60  
Stock repurchased during period, value   $ 12.5   $ 17.5  
Shares available for repurchase (in shares)   528,338   528,338  
v3.24.2.u1
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period $ 876,003 $ 844,297 $ 868,289 $ 822,936
Net current-period other comprehensive income (loss) (13) 112 (113) 211
Balance at end of period 872,118 856,709 872,118 856,709
Accumulated Foreign Currency Adjustment Attributable to Parent        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period     (87) (358)
Net current-period other comprehensive income (loss)     (113) 211
Balance at end of period $ (200) $ (147) (200) (147)
Other comprehensive income (loss), before reclassifications, tax     $ 38 $ (77)
v3.24.2.u1
Stock-Based Compensation - Additional Information (Details)
$ in Millions
6 Months Ended
Jun. 30, 2024
USD ($)
shares
Jun. 30, 2023
USD ($)
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Shares of common stock available for issuance (in shares) 818,989  
Shares of common stock reserved for issuance (in shares) 3,825,000  
RSUs and PSUs    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Unamortized stock-based compensation expense | $ $ 40.5  
Weighted-average remaining amortization period 1 year 4 months 24 days  
Restricted Stock Units (RSUs)    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share settlement under RSUs (in shares) 45,117 76,452
Cash used for employee withholding tax payments | $ $ 10.4 $ 13.2
Restricted stock units (RSUs), performance-based    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Awards granted (in shares) 26,757 44,583
Performance Stock Units, Incentive    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Period for recognition of compensation expense 3 years  
Minimum | Restricted Stock Units (RSUs)    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period 1 year  
Maximum | Restricted Stock Units (RSUs)    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period 3 years  
Common Stock | Restricted Stock Units (RSUs)    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Conversion ratio 1  
v3.24.2.u1
Stock-Based Compensation - Stock Based Compensation Expense (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]        
Stock-based compensation expense $ 9,189 $ 6,655 $ 16,020 $ 12,404
v3.24.2.u1
Stock-Based Compensation - Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs)
6 Months Ended
Jun. 30, 2024
$ / shares
shares
Number of Shares  
Number of shares, outstanding (in shares) | shares 344,717
Number of shares, granted (in shares) | shares 120,563
Number of shares, forfeited (in shares) | shares (9,505)
Number of shares, settled (in shares) | shares (112,498)
Number of shares, outstanding (in shares) | shares 343,277
Weighted Average Grant Date Fair Value  
Weighted average grant date fair value, outstanding (in dollars per share) | $ / shares $ 204.48
Weighted-average grant-date fair value (in dollars per share) | $ / shares 235.06
Weighted average grant date fair value, forfeited (in dollars per share) | $ / shares 256.00
Weighted average grant date fair value, settled (in dollars per share) | $ / shares 229.57
Weighted average grant date fair value, outstanding (in dollars per share) | $ / shares $ 205.57
v3.24.2.u1
Earnings (Loss) Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Earnings Per Share [Abstract]        
Net Income (Loss) $ 26,022 $ 30,180 $ 63,889 $ 64,823
Noncontrolling interests (8,408) 77 (16,417) 4,058
Net Income (Loss) Attributable to Virtus Investment Partners, Inc. $ 17,614 $ 30,257 $ 47,472 $ 68,881
Shares:        
Basic: Weighted-average number of shares outstanding (in shares) 7,127 7,308 7,123 7,277
Plus: Incremental shares from assumed conversion of dilutive instruments (in shares) 115 77 141 121
Diluted: Weighted-average number of shares outstanding (in shares) 7,242 7,385 7,264 7,398
Earnings (Loss) per Share—Basic (in dollars per share) $ 2.47 $ 4.14 $ 6.66 $ 9.47
Earnings (Loss) per Share—Diluted (in dollars per share) $ 2.43 $ 4.10 $ 6.54 $ 9.31
v3.24.2.u1
Earnings (Loss) Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares
shares in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Total anti-dilutive securities (in shares) 13 36 4 36
Restricted stock units        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Total anti-dilutive securities (in shares) 13 36 4 36
v3.24.2.u1
Income Taxes (Details)
6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Income Tax Disclosure [Abstract]    
Estimated effective income tax rate (as percent) 24.40% 23.20%
v3.24.2.u1
Debt (Details) - USD ($)
6 Months Ended
Sep. 28, 2021
Jun. 30, 2024
Term loan | Secured Debt    
Line of Credit Facility [Line Items]    
Debt repayments   $ 6,400,000
Outstanding borrowings   252,400,000
Term loan | Credit Agreement    
Line of Credit Facility [Line Items]    
Maximum borrowing capacity $ 275,000,000.0  
Term of debt 7 years  
Term loan | Credit Facility 2017    
Line of Credit Facility [Line Items]    
Debt issuance costs   $ 4,800,000
Revolving credit facility | Credit Agreement    
Line of Credit Facility [Line Items]    
Maximum borrowing capacity $ 175,000,000.0  
Term of debt 5 years  
v3.24.2.u1
Redeemable Noncontrolling Interests - Schedule of Redeemable Noncontrolling Interest (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]        
Balance at beginning of period     $ 104,869  
Net income (loss) attributable to noncontrolling interests     5,417  
Changes in redemption value     (10,199) $ (3,447)
Total net income (loss) attributable to noncontrolling interests $ 9,081 $ 573 16,699 $ (4,173)
Affiliate equity sales (purchases)     (419)  
Net subscriptions (redemptions) and other     8,301  
Balance at end of period 129,450   129,450  
CIP        
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]        
Balance at beginning of period     30,643  
Net income (loss) attributable to noncontrolling interests     1,833  
Total net income (loss) attributable to noncontrolling interests     1,833  
Affiliate equity sales (purchases)     0  
Net subscriptions (redemptions) and other     12,237  
Balance at end of period 44,713   44,713  
Affiliate Noncontrolling Interests        
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]        
Balance at beginning of period     74,226  
Net income (loss) attributable to noncontrolling interests     3,584  
Total net income (loss) attributable to noncontrolling interests     14,866  
Affiliate equity sales (purchases)     (419)  
Net subscriptions (redemptions) and other     (3,936)  
Balance at end of period $ 84,737   84,737  
Portion at Other than Fair Value Measurement        
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]        
Changes in redemption value     11,282  
Portion at Other than Fair Value Measurement | CIP        
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]        
Changes in redemption value     0  
Portion at Other than Fair Value Measurement | Affiliate Noncontrolling Interests        
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]        
Changes in redemption value     $ 11,282  
v3.24.2.u1
Consolidation - Condensed Consolidated Balance Sheets (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Variable Interest Entity [Line Items]            
Noncontrolling interests $ (129,450) $ (115,185) $ (104,869) $ (110,399) $ (106,630) $ (113,718)
VOEs            
Variable Interest Entity [Line Items]            
Cash and cash equivalents 8,576   1,223      
Investments 46,317   30,985      
Other assets 1,255   174      
Notes payable 0   0      
Securities purchased payable and other liabilities (772)   (740)      
Noncontrolling interests (17,880)   (7,316)      
Net interests in CIP 37,496   24,326      
CLOs            
Variable Interest Entity [Line Items]            
Cash and cash equivalents 156,822   98,101      
Investments 1,988,364   1,972,342      
Other assets 37,022   41,985      
Notes payable (1,990,338)   (1,922,243)      
Securities purchased payable and other liabilities (99,797)   (89,167)      
Noncontrolling interests (3,443)   (4,363)      
Net interests in CIP 88,630   96,655      
GFs            
Variable Interest Entity [Line Items]            
Cash and cash equivalents 2,298   2,088      
Investments 71,978   79,386      
Other assets 910   1,076      
Notes payable 0   0      
Securities purchased payable and other liabilities (1,557)   (616)      
Noncontrolling interests (26,833)   (23,327)      
Net interests in CIP $ 46,796   $ 58,607      
v3.24.2.u1
Consolidation - Additional Information (Details)
$ in Thousands
Jun. 30, 2024
USD ($)
collateralized_loan_obligation
Dec. 31, 2023
USD ($)
CLOs    
Variable Interest Entity [Line Items]    
Number of consolidated CLOs | collateralized_loan_obligation 7  
Investments $ 1,988,364 $ 1,972,342
CLOs | CLO subordinated notes    
Variable Interest Entity [Line Items]    
Debt par value 2,200,000  
CLOs | Senior Notes | CLO senior secured floating rate notes    
Variable Interest Entity [Line Items]    
Debt par value 2,000,000  
CLOs | Subordinated Debt | CLO subordinated notes    
Variable Interest Entity [Line Items]    
Debt par value 217,900  
Nonconsolidated VIEs    
Variable Interest Entity [Line Items]    
Carrying value and maximum risk of loss $ 27,800  
v3.24.2.u1
Consolidation - Beneficial Interests of Consolidated Investment Product (Details) - CLOs
$ in Thousands
Jun. 30, 2024
USD ($)
Variable Interest Entity [Line Items]  
Subordinated notes $ 87,561
Accrued investment management fees 1,069
Total Beneficial Interests $ 88,630
v3.24.2.u1
Consolidation - Revenue and Expenses of Consolidated Investment Product (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Expenses:        
Noncontrolling interests $ (8,408) $ 77 $ (16,417) $ 4,058
Net Income (Loss) Attributable to Virtus Investment Partners, Inc. $ 17,614 $ 30,257 47,472 $ 68,881
CLOs        
Income:        
Realized and unrealized gain (loss), net     (12,377)  
Interest income     99,673  
Total Income     87,296  
Expenses:        
Other operating expenses     3,224  
Interest expense     81,972  
Total Expense     85,196  
Noncontrolling interests     282  
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.     $ 2,382  
v3.24.2.u1
Consolidation - Economic Interests of Consolidated Investment Product (Details) - CLOs
$ in Thousands
6 Months Ended
Jun. 30, 2024
USD ($)
Variable Interest Entity [Line Items]  
Distributions received and unrealized gains (losses) on the subordinated notes held by the Company $ (2,059)
Investment management fees 4,441
Total Economic Interests $ 2,382
v3.24.2.u1
Consolidation - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Assets    
Cash equivalents $ 147,135 $ 197,240
Total assets measured at fair value 247,396 307,226
Liabilities    
Total liabilities measured at fair value 38,408 56,200
Level 1    
Assets    
Cash equivalents 147,135 197,240
Total assets measured at fair value 247,396 307,226
Liabilities    
Total liabilities measured at fair value 0 0
Level 2    
Assets    
Cash equivalents 0 0
Total assets measured at fair value 0 0
Liabilities    
Total liabilities measured at fair value 0 0
Level 3    
Assets    
Cash equivalents 0 0
Total assets measured at fair value 0 0
Liabilities    
Total liabilities measured at fair value 38,408 56,200
Fair Value, Measurements, Recurring | Consolidated Investment Products    
Assets    
Cash equivalents 163,605 98,101
Derivatives 124  
Total assets measured at fair value 2,270,388 2,180,814
Liabilities    
Notes payable 1,990,338 1,922,243
Short sales 474 518
Total liabilities measured at fair value 1,990,812 1,922,761
Fair Value, Measurements, Recurring | Debt investments | Consolidated Investment Products    
Assets    
Investments 2,069,459 2,049,617
Fair Value, Measurements, Recurring | Equity investments | Consolidated Investment Products    
Assets    
Investments 37,200 33,096
Fair Value, Measurements, Recurring | Level 1 | Consolidated Investment Products    
Assets    
Cash equivalents 163,605 98,101
Derivatives 124  
Total assets measured at fair value 198,958 130,984
Liabilities    
Notes payable 0 0
Short sales 474 518
Total liabilities measured at fair value 474 518
Fair Value, Measurements, Recurring | Level 1 | Debt investments | Consolidated Investment Products    
Assets    
Investments 0 241
Fair Value, Measurements, Recurring | Level 1 | Equity investments | Consolidated Investment Products    
Assets    
Investments 35,229 32,642
Fair Value, Measurements, Recurring | Level 2 | Consolidated Investment Products    
Assets    
Cash equivalents 0 0
Derivatives 0  
Total assets measured at fair value 2,034,447 2,012,768
Liabilities    
Notes payable 1,990,338 1,922,243
Short sales 0 0
Total liabilities measured at fair value 1,990,338 1,922,243
Fair Value, Measurements, Recurring | Level 2 | Debt investments | Consolidated Investment Products    
Assets    
Investments 2,034,350 2,012,760
Fair Value, Measurements, Recurring | Level 2 | Equity investments | Consolidated Investment Products    
Assets    
Investments 97 8
Fair Value, Measurements, Recurring | Level 3 | Consolidated Investment Products    
Assets    
Cash equivalents 0 0
Derivatives 0  
Total assets measured at fair value 36,983 37,062
Liabilities    
Notes payable 0 0
Short sales 0 0
Total liabilities measured at fair value 0 0
Fair Value, Measurements, Recurring | Level 3 | Debt investments | Consolidated Investment Products    
Assets    
Investments 35,109 36,616
Fair Value, Measurements, Recurring | Level 3 | Equity investments | Consolidated Investment Products    
Assets    
Investments $ 1,874 $ 446
v3.24.2.u1
Consolidation - Assets Related to Consolidated Sponsored Investment Products, Unobservable Input Reconciliation (Details) - Debt investments - Consolidated Investment Products - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Assets    
Balance at beginning of period $ 37,062 $ 43,581
Realized and unrealized gain (loss) on investments, net 629 (467)
Purchases 31 2,903
Sales (19,845) (7,231)
Transfers to Level 2 (54,857) (48,337)
Transfers from Level 2 73,963 53,091
Balance at end of period $ 36,983 $ 43,540

Virtus Investment Partners (NASDAQ:VRTS)
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