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Imagine Franklin Templeton, known for bringing many specialized investment managers and their unique strategies together under one corporate umbrella.

They're an investment manager, similar to T. Rowe Price or Fidelity, but their key strategy involves curating and operating a diverse collection of specialized investment teams.

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• Separate Account Management: The firm creates and manages customized equity and fixed income portfolios tailored to individual and institutional clients' specific needs and objectives.
• Mutual Funds: Virtus offers a range of pooled investment vehicles, including equity, fixed income, and balanced funds, for clients seeking diversified investment options.

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Virtus Investment Partners (VRTS) primarily provides its services to a diverse client base that includes both individuals and institutions. For an investment manager of its type, major customers are best described by categories rather than specific named entities due to the nature of their business and client confidentiality. Based on the company's description and typical practices for investment managers, its major customer categories are:

1. Individual Investors: This category includes both retail investors who purchase Virtus's mutual funds and exchange-traded funds, as well as high-net-worth individuals who may engage the firm for separate client-focused equity and fixed income portfolios.
2. Institutional Investors: This segment comprises various organizations such as pension funds, endowments, foundations, and corporate clients that seek Virtus's expertise in managing their investment assets across public equity, fixed income, and real estate markets.
3. Financial Intermediaries: Virtus also serves other financial firms, including wealth management platforms, broker-dealers, and insurance companies, which may utilize Virtus's investment products and strategies as part of their own offerings to their respective client bases.

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George R. Aylward, President and Chief Executive Officer

George Aylward has over 25 years of experience in the asset management industry. He started his career in the financial services group of PriceWaterhouse LLP before joining Virtus' predecessor in 1996. He served as chief of staff to the CEO of Virtus' former parent from 2002 to 2004 and as chief operating officer of Virtus from 2004 to 2006. Named president in November 2006, Mr. Aylward successfully directed the spin-off of Virtus from its former parent, Phoenix Life Insurance Company, in 2008, overseeing its transition to a public company. He holds a Bachelor of Science degree in accounting from the University of Connecticut and a Master of Business Administration from the University of Massachusetts.

Michael A. Angerthal, Executive Vice President and Chief Financial Officer

Michael Angerthal joined Virtus in 2008 as the company prepared to become an independent, publicly traded entity following its spin-off. Prior to Virtus, he served as the chief financial officer of CBRE Realty Finance. He also spent nine years with several units of GE Corporation.

Richard W. Smirl, Executive Vice President and Chief Operating Officer

Rick Smirl is responsible for leading product management, oversight and development activities, as well as investment operations and information technology. He also collaborates closely with the company's affiliated managers and unaffiliated subadvisers to support business growth.

Andra Purkalitis, Executive Vice President, Chief Legal Officer, General Counsel, and Corporate Secretary

Andra Purkalitis joined Virtus in 2023. She previously served as global chief compliance officer and regulatory counsel at Affinius Capital (formerly USAA Real Estate), a private equity real estate management company. Her prior experience includes roles as global chief compliance officer and regulatory counsel at Russell Investments, regional chief executive officer and chief legal officer at Aviva Investors Americas, and chief administrative officer and general counsel at Old Mutual Capital.

Barry M. Mandinach, Executive Vice President and Head of Distribution

Barry Mandinach leads the distribution, positioning, messaging, and marketing of Virtus investment products across all distribution platforms and manages relationships with the firm's distribution partners. Prior to joining Virtus in 2014, he was at UBS Global Asset Management (U.S.) as head of wholesale distribution and chief marketing officer. From 1999 to 2001, he was chief sales and marketing officer at Phoenix Investment Partners (PXP), Virtus' predecessor. Mr. Mandinach was also a partner and co-founder of the Zweig Mutual Funds, which were acquired by PXP in 1999.

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Virtus Investment Partners (VRTS) faces several key risks inherent to the asset management industry.

1. Dependence on Assets Under Management (AUM) and Market Conditions: Virtus's revenues are primarily derived from asset-based fees, meaning its financial performance is highly susceptible to fluctuations in its Assets Under Management (AUM) and broader market conditions. Negative market performance, inflation, and interest rate environments can lead to reduced AUM, directly impacting the firm's revenues and profitability. The company has experienced declining revenue growth, negative multiyear returns, and AUM outflows, signaling challenges related to market sentiment and investor confidence.

2. Investment Performance and Competition: The firm's ability to retain and attract clients is heavily dependent on the competitive investment performance of its products, which include a multi-manager approach utilizing unaffiliated subadvisers. Underperformance of investment strategies can lead to client withdrawals and the inability to attract new investments. Furthermore, Virtus operates in a highly competitive landscape increasingly challenged by the rise of passive investing, fee compression, and new fintech models that can lead to a concentration of assets among fewer, larger firms.

3. Reputational and Regulatory Risks: As an investment manager handling client assets, Virtus is exposed to significant reputational and regulatory risks. Damage to the company's reputation due to poor performance, litigation, operational failures, or ethical breaches could lead to substantial reductions in AUM. Additionally, reliance on complex technology systems exposes the firm to cybersecurity threats and system failures, which could disrupt operations and harm profitability. The evolving landscape of regulations, including those related to ESG (Environmental, Social, and Governance) and anti-money laundering (AML), also presents compliance burdens and potential litigation risks.

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The clear emerging threats for Virtus Investment Partners are:

• The ongoing industry-wide shift of investor capital from higher-fee, actively managed investment products to lower-cost, passively managed index funds and exchange-traded funds (ETFs). This trend directly threatens the revenue and asset under management (AUM) of traditional active fund managers.
• The increasing prevalence and sophistication of automated investment platforms, commonly known as robo-advisors, which offer low-cost, algorithm-driven portfolio management services, attracting individual and even institutional clients who might otherwise use traditional investment managers.

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Virtus Investment Partners (VRTS) operates within several significant addressable markets for its investment management products and services, primarily catering to individual and institutional clients. These markets include overall asset management, mutual funds, exchange-traded funds (ETFs), and investments in public equity, fixed income, and real estate. The global asset management market size was valued at USD 432.77 billion in 2025 and is projected to grow to USD 1,122.04 billion by 2034, with a compound annual growth rate (CAGR) of 12.6%. North America held a significant share of this market, accounting for 47.00% in 2025, and the U.S. market alone is projected to reach USD 211.48 billion by 2026. The broader global investment management market is projected to expand from USD 986.78 billion in 2021 to USD 2,487.64 billion by 2033, demonstrating a CAGR of 8.01%. For mutual funds, the global mutual fund assets market size was estimated at USD 670.64 billion in 2025 and is predicted to increase to approximately USD 1,290.57 billion by 2035, growing at a CAGR of 6.77% from 2026 to 2035. Another report states that the global mutual fund assets market was valued at approximately USD 67481.52 billion in 2022 and is predicted to grow to around USD 145236.98 billion by 2030, with a CAGR of roughly 10.06%. North America consistently shows dominance in the global mutual fund assets market, holding a 34% revenue share in 2025. The global ETF industry market size was valued at USD 9.55 billion in 2024 and is poised to grow to USD 22.16 billion by 2033, at a CAGR of 9.8% during the forecast period (2026–2033). As of May 2024, total ETF assets under management (AUM) globally reached around $13 trillion, with the U.S.-listed ETF market alone holding approximately $9 trillion in assets, representing nearly 70% of the global ETF AUM. By the end of 2025, the global ETF market's total assets invested reached a record high of US$19.8 trillion. In the fixed income asset management market, the global market size was valued at USD 64.9 trillion in 2022 and is estimated to register a CAGR of over 6% between 2023 and 2032. North America dominated this market with approximately 42% of the share in 2022. More broadly, the fixed income market size is estimated at USD 153.39 trillion in 2025 and is expected to reach USD 198.58 trillion by 2030 globally, growing at a CAGR of 5.30%. For public equity markets, the investable global market, excluding investments not easily accessible to institutional investors, was valued at USD 213 trillion as of December 2023. Public equities accounted for USD 77 trillion of this global market. The U.S. market remained a dominant region, with a free-float-adjusted market capitalization of USD 44.6 trillion in public-equity markets as of December 2023. Retail investors accounted for approximately 20-25% of daily U.S. equity trading volume in 2025, while institutional investors typically account for 70% to 90% of daily trading volume. The professionally managed global real estate investment market increased from $8.9 trillion in 2018 to $9.6 trillion in 2019. In 2023, global real estate investment managers controlled US$3.8 trillion in AUM. The global real estate investment market was valued at $11,444.7 billion in 2021 and is projected to reach $30,575.5 billion by 2031, growing at a CAGR of 10.7%. North America and Europe hold the largest market value in real estate due to high capital inflows and mature markets.

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Virtus Investment Partners (VRTS) is strategically positioning itself for future revenue growth over the next 2-3 years through several key initiatives:

1. Expansion of Exchange-Traded Fund (ETF) Offerings: Virtus is significantly growing its ETF segment, which has shown substantial organic growth and is a focus for new product launches. The company reported that its ETF assets doubled to $3.1 billion by Q2 2025 from early 2025, achieving an organic growth rate of 74% over the trailing 12 months. More actively managed ETFs are planned for launch in upcoming quarters.
2. Launch of New ESG-Compliant Products: The firm is broadening its product pipeline with new ESG-compliant products to capture the growing demand for sustainable investments. Virtus aims for a potential 20% revenue increase from these sustainable investment solutions by 2025.
3. Targeted International Expansion: Virtus Investment Partners is pursuing targeted international expansion, particularly in Asia and Europe, with the goal of achieving a 20% revenue increase from these new markets by 2025.
4. Strategic Acquisitions and Expansion into Private Markets: The company is actively evaluating merger and acquisition opportunities to broaden its capabilities and market reach. Recent strategic moves include a minority investment in Crescent Cove, a private capital solutions firm focused on lending to high-growth technology companies, and the pending acquisition of a majority interest in Keystone National Group, a private credit manager. This demonstrates a focus on expanding into alternative and private market investment capabilities.
5. Growth of Global Funds: Virtus is working to grow its global funds, which have recorded positive net flows and increased sales, driven by new product launches and increased distribution through intermediaries. This expansion contributes to diversifying the company's revenue streams.

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Share Repurchases

• In 2025, Virtus Investment Partners repurchased 347,364 shares of its common stock for $60 million.
• As of December 31, 2025, the company had 805,948 shares remaining for repurchase under its share repurchase program.
• In May 2022, the board of directors approved an additional repurchase of 750,000 shares of outstanding common stock.

Share Issuance

• The number of outstanding shares decreased from 7.62 million in 2021 to 6.75 million in 2025, indicating a net reduction in shares primarily due to repurchases.

Outbound Investments

• The company plans to continue its focus on strategic acquisitions to drive growth and enhance its investment management capabilities.

Capital Expenditures

• Capital expenditures were $8.82 million in 2023, $6.58 million in 2022, and $5.84 million in 2021.
• For the full year 2025, capital expenditures were $6.89 million, and $5.58 million in 2024.
• In Q4 2025, Virtus Investment Partners invested $944K in capital expenditures.