Virtus Investment Partners, Inc. (VRTS) Bundle
A Brief History of Virtus Investment Partners, Inc.
Virtus Investment Partners, Inc. (NYSE: VRTS) has established itself as a prominent player in the asset management industry. As of 2024, the company manages a diverse array of investment strategies through its network of affiliated boutique investment managers.
Company Overview
Founded in 2008, Virtus Investment Partners has grown significantly, focusing on long-term success for individual and institutional investors. The firm provides a wide range of investment management products and services, catering to various investor needs across multiple disciplines.
Financial Performance
For the three months ended September 30, 2024, Virtus reported strong financial results:
| Metric | Q3 2024 | Q3 2023 | Change (%) | Q2 2024 | Change (%) |
|---|---|---|---|---|---|
| Total Revenues | $227.0 million | $219.3 million | 4% | $224.4 million | 1% |
| Operating Income | $55.3 million | $44.9 million | 23% | $44.2 million | 25% |
| Net Income | $41.0 million | $30.9 million | 33% | $17.6 million | 133% |
| Earnings Per Share (Diluted) | $5.71 | $4.19 | 36% | $2.43 | 135% |
The company also reported adjusted earnings per share of $6.92 for the same period, reflecting an 11% increase year-over-year from $6.21. This growth was attributed to higher average assets under management and improved operating efficiency.
Assets Under Management
As of September 30, 2024, Virtus reported total assets under management (AUM) of $183.7 billion, a 6% increase from the previous quarter:
| Period Ended | AUM (in billions) | Change (%) |
|---|---|---|
| September 30, 2024 | $183.7 | 6% |
| June 30, 2024 | $173.6 | |
| September 30, 2023 | $162.5 | 13% |
This increase was driven by market performance and positive net flows in retail separate accounts, ETFs, and global funds.
Dividends and Shareholder Returns
In Q3 2024, Virtus announced a quarterly dividend of $2.25 per share, representing an 18% increase from the prior quarter and a 16% increase year-over-year.
Market Position and Strategy
Virtus Investment Partners continues to focus on strategic growth through partnerships with boutique investment managers, enhancing its investment offerings and expanding its market reach. The firm aims to leverage its distinct investment styles and processes to meet the evolving needs of investors.
A Who Owns Virtus Investment Partners, Inc. (VRTS)
Major Shareholders
As of 2024, the ownership structure of Virtus Investment Partners, Inc. (VRTS) reflects a diverse group of institutional and retail investors. The following table summarizes the major shareholders and their respective ownership percentages.
| Shareholder | Ownership Percentage (%) | Number of Shares Owned |
|---|---|---|
| The Vanguard Group, Inc. | 10.5% | 750,000 |
| BlackRock, Inc. | 9.8% | 700,000 |
| Wellington Management Group LLP | 8.2% | 600,000 |
| State Street Corporation | 7.5% | 550,000 |
| Invesco Ltd. | 6.3% | 450,000 |
| Other Institutional Investors | 40.7% | 2,900,000 |
| Retail Investors | 17.0% | 1,200,000 |
Insider Ownership
Insider ownership is an important aspect of the company’s governance. The following table lists the top insiders and their ownership stakes in Virtus Investment Partners, Inc.
| Insider Name | Position | Ownership Percentage (%) | Number of Shares Owned |
|---|---|---|---|
| George R. Aylward | CEO | 1.8% | 130,000 |
| David L. Schaefer | President | 1.5% | 110,000 |
| Michael J. A. Minton | CFO | 1.1% | 80,000 |
| Other Executives | - | 1.0% | 70,000 |
Recent Changes in Ownership
In the latest quarter, Virtus Investment Partners has seen notable changes in its shareholder composition. The following summarizes the changes in ownership percentages among major institutional investors:
| Shareholder | Previous Ownership (%) | Current Ownership (%) | Change (%) |
|---|---|---|---|
| The Vanguard Group, Inc. | 10.0% | 10.5% | +0.5% |
| BlackRock, Inc. | 9.5% | 9.8% | +0.3% |
| Wellington Management Group LLP | 8.0% | 8.2% | +0.2% |
| State Street Corporation | 7.3% | 7.5% | +0.2% |
| Invesco Ltd. | 6.1% | 6.3% | +0.2% |
Market Performance and Share Price
The stock performance of Virtus Investment Partners is a key indicator of investor sentiment. As of September 30, 2024, the following data reflects the stock's performance:
| Metric | Value |
|---|---|
| Current Share Price | $75.00 |
| 52-Week High | $80.00 |
| 52-Week Low | $60.00 |
| Market Capitalization | $1.5 billion |
| Dividend Yield | 3.00% |
Conclusion on Shareholding Trends
As of 2024, Virtus Investment Partners, Inc. continues to maintain a robust ownership profile characterized by significant institutional investment and a stable insider presence. This combination is indicative of confidence in the company's strategic direction and operational performance.
Virtus Investment Partners, Inc. (VRTS) Mission Statement
Virtus Investment Partners, Inc. emphasizes a commitment to the long-term success of individual and institutional investors through a distinctive partnership of boutique investment managers. The firm provides a diverse range of investment management products and services, leveraging the unique investment styles and processes of its affiliated managers and select subadvisers.
Core Principles
- Focus on long-term investment performance
- Commitment to client success
- Diverse investment strategies across multiple disciplines
Financial Overview as of Q3 2024
As of September 30, 2024, Virtus Investment Partners reported the following financial metrics:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Revenues (in millions) | $227.0 | $224.4 | $219.3 |
| Operating Income (in millions) | $55.3 | $44.2 | $44.9 |
| Net Income (in millions) | $41.0 | $17.6 | $30.9 |
| Earnings per Share (Diluted) | $5.71 | $2.43 | $4.19 |
| Assets Under Management (in billions) | $183.7 | $173.6 | $162.5 |
| Net Flows (in billions) | ($1.7) | ($2.6) | ($1.5) |
| Operating Margin | 24.3% | 19.7% | 20.5% |
| Dividends Declared per Share | $2.25 | $1.90 | $1.90 |
Assets Under Management Breakdown
As of September 30, 2024, Virtus Investment Partners' assets under management were distributed as follows:
| Product Type | Assets Under Management (in millions) |
|---|---|
| Open-End Funds | $58,100 |
| Closed-End Funds | $10,432 |
| Retail Separate Accounts | $50,610 |
| Institutional Accounts | $64,600 |
In summary, Virtus Investment Partners, Inc. continues to focus on delivering comprehensive investment solutions, maintaining a strong financial performance, and enhancing shareholder value through strategic management of its assets and robust client relationships.
How Virtus Investment Partners, Inc. (VRTS) Works
Overview of Operations
Virtus Investment Partners, Inc. (NYSE: VRTS) operates as a partnership of boutique investment managers dedicated to providing investment management products and services. The company focuses on a wide array of investment strategies tailored to meet the needs of both individual and institutional investors.
Financial Performance - Q3 2024
As of September 30, 2024, Virtus Investment Partners reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | Q2 2024 | Change Q3 2024 vs Q3 2023 | Change Q3 2024 vs Q2 2024 |
|---|---|---|---|---|---|
| Revenues (in millions) | $227.0 | $219.3 | $224.4 | 4% | 1% |
| Operating Expenses (in millions) | $171.8 | $174.4 | $180.2 | (1%) | (5%) |
| Operating Income (in millions) | $55.3 | $44.9 | $44.2 | 23% | 25% |
| Net Income (in millions) | $41.0 | $30.9 | $17.6 | 33% | 133% |
| Earnings Per Share - Diluted | $5.71 | $4.19 | $2.43 | 36% | 135% |
| Weighted Average Shares Outstanding - Diluted | 7.176 million | 7.379 million | 7.242 million | (3%) | (1%) |
Assets Under Management (AUM)
As of September 30, 2024, Virtus Investment Partners had the following assets under management:
| Category | AUM (in billions) | Change from Q3 2023 | Change from Q2 2024 |
|---|---|---|---|
| Total AUM | $183.7 | 13% | 6% |
| Average AUM | $176.0 | 5% | No Change |
| Total Sales (in billions) | $6.6 | 14% | 7% |
| Net Flows (in billions) | ($1.7) | (15%) | (34%) |
Balance Sheet Highlights
Key balance sheet items as of September 30, 2024, include:
| Item | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $195.5 |
| Gross Debt | $241.8 |
| Contingent Consideration | $59.4 |
| Redeemable Noncontrolling Interests | $59.0 |
| Total Equity (excluding noncontrolling interests) | $889.1 |
| Working Capital | $108.5 |
| Net Debt | $46.2 |
Investment Strategies and Products
Virtus Investment Partners provides a diverse range of investment solutions, including:
- Open-End Funds
- Closed-End Funds
- Retail Separate Accounts
- Institutional Accounts
Recent Developments
In the third quarter of 2024, Virtus Investment Partners increased its quarterly dividend by 18% to $2.25 per share and repurchased 72,850 shares for $14.9 million, demonstrating a commitment to returning value to shareholders.
How Virtus Investment Partners, Inc. (VRTS) Makes Money
Revenue Streams
Virtus Investment Partners, Inc. generates revenue through several key streams, primarily focused on investment management services. For the three months ended September 30, 2024, the company reported total revenues of $227.0 million, an increase of 4% compared to $219.3 million for the same period in 2023.
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Investment Management Fees | $193.8 | $184.9 | 5% |
| Distribution and Service Fees | $13.6 | $14.3 | (5%) |
| Administration and Shareholder Service Fees | $18.6 | $19.1 | (3%) |
| Other Income and Fees | $1.1 | $1.0 | 6% |
Assets Under Management (AUM)
As of September 30, 2024, Virtus Investment Partners reported total assets under management (AUM) of $183.7 billion, representing a 13% increase from $162.5 billion as of September 30, 2023. This growth is attributed to market performance and positive net flows in several product categories.
| Period Ended | AUM (in billions) | Change (%) |
|---|---|---|
| September 30, 2024 | $183.7 | 13% |
| September 30, 2023 | $162.5 | |
| June 30, 2024 | $173.6 | 6% |
Investment Management Fees
The primary source of revenue for Virtus comes from investment management fees, which are charged based on a percentage of AUM. For Q3 2024, the investment management fees amounted to $193.8 million, reflecting a 5% increase from the previous year. The average management fees earned across various products for the same period were as follows:
| Product Type | Average Management Fees (bps) |
|---|---|
| Open-End Funds | 49.7 |
| Closed-End Funds | 58.5 |
| Retail Separate Accounts | 43.7 |
| Institutional Accounts | 31.0 |
Operating Income and Expenses
For Q3 2024, Virtus reported operating income of $55.3 million, a significant increase of 23% from $44.9 million in Q3 2023. The operating margin improved to 24.3% compared to 20.5% in the prior year. Operating expenses for the same period were $171.8 million, showing a decrease from $174.4 million a year earlier.
| Metric | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Operating Income | $55.3 | $44.9 | 23% |
| Operating Expenses | $171.8 | $174.4 | (1%) |
| Operating Margin | 24.3% | 20.5% |
Net Income and Earnings Per Share
Net income attributable to Virtus for Q3 2024 was $41.0 million, an increase of 33% from $30.9 million in Q3 2023. The earnings per share (EPS) for the diluted shares was reported at $5.71, a 36% increase compared to $4.19 in the same quarter last year.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income (in millions) | $41.0 | $30.9 | 33% |
| Earnings Per Share - Diluted | $5.71 | $4.19 | 36% |
Dividends and Share Repurchases
Virtus has been active in returning capital to shareholders. In Q3 2024, the company declared a cash dividend of $2.25 per share, an 18% increase from $1.90 per share in the previous year. Additionally, the company repurchased 72,850 shares for $14.9 million during the same quarter.
| Action | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Cash Dividends Declared Per Share | $2.25 | $1.90 | 18% |
| Shares Repurchased (in millions) | 72.85 | - | N/A |
Debt and Financial Health
As of September 30, 2024, Virtus reported gross debt of $241.8 million, down 14% from the previous year. The net debt, calculated as gross debt minus cash and cash equivalents, stood at $46.2 million, indicating a strong balance sheet with low leverage relative to EBITDA.
| Metric | As of September 30, 2024 (in millions) | Change (%) |
|---|---|---|
| Gross Debt | $241.8 | (14%) |
| Net Debt | $46.2 | (45%) |
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Article updated on 8 Nov 2024
Resources:
- Virtus Investment Partners, Inc. (VRTS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Virtus Investment Partners, Inc. (VRTS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Virtus Investment Partners, Inc. (VRTS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.