Here are 1-2 brief analogies for Virtus Investment Partners (VRTS):

• An **Invesco (IVZ)** for boutique asset management.
• A **T. Rowe Price (TROW)** for a network of specialized active investment firms.

• Mutual Funds: These are pooled investment vehicles managed by Virtus, offering investors diversified portfolios across various asset classes and investment styles.
• Exchange Traded Funds (ETFs): Virtus manages and offers ETFs, which are investment funds that trade on stock exchanges like individual stocks, providing diversified exposure.
• Separately Managed Accounts (SMAs): Virtus provides customized investment management services for institutional clients and high-net-worth individuals through portfolios tailored to specific needs and objectives.
• Collective Investment Trusts (CITs): These are pooled investment vehicles managed by Virtus specifically designed to serve qualified defined contribution and defined benefit retirement plans.

Virtus Investment Partners (VRTS) - Major Customers

Virtus Investment Partners (VRTS) is an asset management firm that primarily sells its investment products and services to other companies and institutions, rather than directly to individual investors for the majority of its assets under management.

It is customary in the asset management industry for specific "major customer companies" to not be publicly disclosed due to client confidentiality, the highly diversified nature of asset flows, and the competitive landscape. No single client or distributor typically represents a disproportionate percentage of an asset manager's total assets under management or revenue that would necessitate specific disclosure as a "major customer" in the traditional sense.

However, Virtus serves various categories of institutional and intermediary clients that facilitate the distribution and management of their investment strategies. These categories represent the "major customers" in terms of channels and client types:

• Institutional Clients: This category includes large organizations such as corporate and public pension funds, endowments, foundations, insurance companies, and sovereign wealth funds. These entities directly allocate capital to Virtus for active management across various asset classes.
• Financial Intermediaries & Platforms: These are firms that distribute Virtus's investment products (like mutual funds, exchange-traded funds, and separate accounts) to their own client base, which includes both individual and institutional investors. This category encompasses:
  • Wirehouses and Independent Broker-Dealers: Large financial advisory networks.
  • Registered Investment Advisors (RIAs): Independent advisory firms.
  • Retirement Plan Platforms: Providers of 401(k), 403(b), and other retirement plans.
• Subadvisory Clients: Other investment management firms or insurance companies that hire Virtus to manage a specific portion of their own funds or portfolios. This means Virtus acts as a subadvisor to another firm's product.

• State Street Corporation (STT)
• U.S. Bancorp (USB)

The rise and increasing adoption of direct indexing.

Direct indexing allows investors to own the individual stocks of an index directly, rather than through a commingled fund like an ETF or mutual fund. This technologically-driven approach offers highly customized portfolios with benefits such as enhanced tax-loss harvesting capabilities, personalized environmental, social, and governance (ESG) screening, and granular control over holdings. As this sophisticated form of personalized passive investing gains traction, it poses an emerging threat to traditional asset managers like Virtus Investment Partners, which primarily derive revenue from actively managed and traditional pooled investment products. Direct indexing offers a compelling alternative that can be both more cost-effective and more tailored than many traditional active or even passive funds, potentially diverting assets under management and compressing fees for established firms.

Virtus Investment Partners (NYSE: VRTS) operates within the global asset management industry, offering a diverse range of investment strategies and products to both individual and institutional clients. The company's main products and services encompass open-end mutual funds, exchange-traded funds (ETFs), closed-end funds, retail separate accounts, and institutional investment management services, as well as collective investment trusts (CITs), variable insurance funds, and UCITS for non-U.S. persons.

The addressable markets for these services are substantial, both globally and within the United States:

• Global Asset Management Market (Total Assets Under Management - AUM): The global asset management industry's total assets under management reached a record-breaking $128 trillion in 2024. This figure grew to $139.9 trillion at the end of 2024, specifically for the world's 500 largest asset managers.
• U.S. Asset Management Market (Total Assets Under Management - AUM): The U.S. asset management market was valued at approximately $48 trillion. More recently, it was valued at USD 63.28 trillion in 2025 and is projected to expand to USD 112.17 trillion by 2030, reflecting a compound annual growth rate (CAGR) of 12.13%. Institutional investors alone accounted for over $55 trillion in assets under management in the U.S. in 2023.

Virtus Investment Partners' offerings span various asset classes, including domestic and international equity, fixed income, multi-asset, and alternative investments, catering to a wide array of market capitalizations and investment styles.

Here are 3-5 expected drivers of future revenue growth for Virtus Investment Partners (VRTS) over the next 2-3 years:

1. Expansion of ETF Offerings and Asset Growth: Virtus Investment Partners is committed to expanding its Exchange Traded Fund (ETF) offerings and has demonstrated strong growth in ETF assets. The company anticipates launching multiple new ETF products in the coming quarters, including those from its Silvant, Seix, Stone Harbor, and AlphaSimplex affiliates. This focus aligns with the broader industry shift towards lower-cost, passive investment vehicles.
2. Inorganic Growth Opportunities: The company is actively exploring inorganic growth opportunities, indicating a strategy of potential acquisitions to drive future revenue. Virtus' management has highlighted their flexibility in evaluating such opportunities, reflecting a commitment to long-term value creation.
3. Expansion of Retail Separate Account Offerings: Virtus is expanding its offerings in retail separate accounts, specifically focusing on fixed income and high-conviction growth equity strategies, as well as products that leverage multiple managers and strategies.
4. Enhancing International Client Access: Virtus plans to enhance international client access, which represents an expansion into new markets and distribution channels, aiming to broaden its client base and asset flows.

Share Repurchases

• Virtus Investment Partners' board of directors approved an additional repurchase of 750,000 shares of outstanding common stock in May 2022, adding to a program that has no specified term.
• The company repurchased 125,452 common shares for $30 million in the first quarter of 2022.
• In the second quarter of 2024, Virtus repurchased 55,099 shares of common stock for $12.5 million.
• During the fourth quarter of 2024, the company repurchased 52,176 shares for $12.5 million.

Share Issuance

• Additional paid-in capital increased by approximately $9.82 million from December 31, 2021, to December 31, 2022.
• The number of common shares issued increased by 126,500 from 11,906,747 shares at December 31, 2021, to 12,033,247 shares at December 31, 2022, likely related to employee stock plans.

Outbound Investments

• Net cash used in investing activities was $175.0 million in 2021, primarily attributable to cash paid for acquisitions.
• Net cash used in investing activities decreased significantly to $27.5 million in 2022, due to a decrease in cash paid for acquisitions compared to the prior year.