Virtus Investment Partners, Inc. · NYSE:VRTS

Virtus Investment Partners — Q2 2026 Earnings Presentation

51 slides from Virtus Investment Partners's earnings presentation, Jul 30, 2026

  1. Slide 1: Second Quarter Earnings Presentation

    SECOND QUARTER EARNINGS PRESENTATION July 30, 2026 George R. Aylward President and Chief Executive Officer Michael A. Angerthal Executive Vice President and Chief Financial Officer

  2. Slide 2: Important Disclosures

    IMPORTANT DISCLOSURES This presentation contains statements that are, or may be considered to be, forward-looking statements. All statements that are not historical facts, including statements about our beliefs or expectations, are “forward-looking statements” within the meaning of The Private Secur

  3. Slide 3: Agenda

    AGENDA ■ Overview of Quarter ■ Results ■ Q & A Session 3

  4. Slide 4: Overview of Quarter

    INVESTMENT PARTNERS OVERVIEW OF QUARTER

  5. Slide 5: Second Quarter 2026 Overview

    SECOND QUARTER 2026 OVERVIEW Assets and Flows ■ Assets under management (AUM) increased 2% to $152.2 billion; average AUM declined 3% to $153.3 billion – Sales increased 5% to $6.1 billion on higher institutional, wealth management, and exchange-traded funds (ETFs); sales of alternative strategies i

  6. Slide 6: Results

    INVESTMENT PARTNERS RESULTS

  7. Slide 7: Assets Under Management

    ASSETS UNDER MANAGEMENT BROADLY DIVERSIFIED Institutional Accounts Closed-End Funds ■ AUM of $152.2 billion increased 2% from U.S. Retail Funds Retail Separate Accounts $149.0 billion Global Funds and ETFs – $9.3 billion of positive market performance, $171 $169 partially offset by $9 $10 $159 $10 $

  8. Slide 8: Asset Flows

    ASSET FLOWS HIGHER SALES ■ Sales of $6.1 billion increased 5% primarily due to institutional, in addition to wealth management and ETFs – Institutional sales of $2.2 billion increased from $1.2 billion primarily reflecting a large global REIT inflow – ETF sales increased to $635 million due to alter

  9. Slide 9: Investment Management Fees, As Adjusted

    INVESTMENT MANAGEMENT FEES, AS ADJUSTED HIGHER AVERAGE FEE RATE ■ Investment management fees, as adjusted, increased 1% due to a higher average fee rate partially offset by lower average AUM ■ Average fee rate of 43.1 basis points (bps) increased from 41.9 bps – Reflects full quarter of Keystone ■ A

  10. Slide 10: Employment Expenses, As Adjusted

    EMPLOYMENT EXPENSES, AS ADJUSTED LOWER DUE TO SEASONALITY ■ Employment expenses, as adjusted, of $102.1 million declined from $106.2 million due to prior quarter seasonal Discrete Item items, partially offset by – Full quarter of expenses from new manager – $3.8 million discrete non-cash expense $3.

  11. Slide 11: Other Operating Expenses, As Adjusted

    OTHER OPERATING EXPENSES, AS ADJUSTED STABLE RANGE DESPITE ADDITION OF MANAGER ■ Other operating expenses, as adjusted, of $31.9 million increased from $30.6 million reflecting a $0.7 million annual equity grant to the Board of Directors – Excluding the grant, the modest increase in other operating

  12. Slide 12: Non-GAAP Results

    NON-GAAP RESULTS HIGHER EARNINGS AND MARGIN ■ Operating margin, as adjusted, of 26.1%, Operating Income, as Adjusted or 28.2% excluding discrete item, Diluted earnings per share, as adjusted compared with 24.0%, which included seasonal expenses ■ Noncontrolling interests of ($3.3) million increased

  13. Slide 13: Capital and Select Balance Sheet

    CAPITAL AND SELECT BALANCE SHEET RETURNED CAPITAL AND REPAID DEBT ■ Liquidity at June 30, 2026: Select Balance Sheet Items: 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 Cash and cash equivalents $172 $371 $386 $137 $176 – Cash and investments of $449 million Investments - seed capital1 $148 $154 $162 $1

  14. Slide 14: Investment Performance

    INVESTMENT PERFORMANCE PERFORMANCE VERSUS BENCHMARK Total AUM Outperforming Benchmark1 1-Year 3-Year 5-Year 10-Year Equity 10% 11% 24% 25% Fixed Income 87% 80% 68% 73% Multi-Asset2 61% 42% 42% 42% Alternatives3 57% 67% 50% 67% Total 41% 39% 40% 43% Total AUM Outperforming Benchmark1 at Quarter-End -

  15. Slide 15: Financial Supplement

    FINANCIAL SUPPLEMENT

  16. Slide 16: Non-GAAP Information: Income Statement

    NON-GAAP INFORMATION INCOME STATEMENT1 (UNAUDITED) Q2:25 Q3:25 Q4:25 Q1:26 Q2:26 YTD:25 YTD:26 Revenues, As Adjusted Investment management fees, as adjusted $171,879 $176,561 $168,896 $163,469 $164,777 $350,380 $328,246 Administration and shareholder service fees, as adjusted 18,073 18,891 18,379 17

  17. Slide 17: Non-GAAP Information: Income Statement (Continued)

    NON-GAAP INFORMATION INCOME STATEMENT1 (CONTINUED) (UNAUDITED) Q2:25 Q3:25 Q4:25 Q1:26 Q2:26 YTD:25 YTD:26 Other Income (Expense), As Adjusted Realized and unrealized gain (loss) on investments, net, as adjusted ($49) $83 ($13) $132 $6 $292 $138 Other income, net, as adjusted 1,151 522 802 1,345 949

  18. Slide 18: Non-GAAP Information: Balance Sheet

    NON-GAAP INFORMATION BALANCE SHEET1 (UNAUDITED) 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 Assets: Cash and cash equivalents $172,204 $370,563 $386,483 $136,637 $176,229 Investments – seed capital 148,192 153,870 161,674 141,462 133,141 Investments – other 126,670 146,109 143,608 127,891 140

  19. Slide 19: Non-GAAP Information: Balance Sheet (Continued)

    NON-GAAP INFORMATION BALANCE SHEET1 (CONTINUED) (UNAUDITED) 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 Liabilities and Equity Liabilities: Accrued compensation and benefits $101,643 $145,575 $182,808 $74,966 $93,978 Accounts payable and accrued liabilities 49,428 51,663 54,520 52,795 51,678

  20. Slide 20: U.S. GAAP Information: Income Statement

    U.S. GAAP INFORMATION INCOME STATEMENT (UNAUDITED) Q2:25 Q3:25 Q4:25 Q1:26 Q2:26 YTD:25 YTD:26 Revenues Investment management fees $179,476 $183,762 $175,710 $169,133 $170,850 $365,567 $339,983 Distribution and service fees 11,968 12,517 12,341 11,633 11,758 24,721 23,391 Administration and sharehol

  21. Slide 21: U.S. GAAP Information: Income Statement (Continued)

    U.S. GAAP INFORMATION INCOME STATEMENT (CONTINUED) (UNAUDITED) Q2:25 Q3:25 Q4:25 Q1:26 Q2:26 YTD:25 YTD:26 Other Income (Expense) Realized and unrealized gain (loss) on investments, net $3,971 $2,257 $586 $845 $4,541 $2,980 $5,386 Realized and unrealized gain (loss) of CIP1, net (5,204) (14,913) (33

  22. Slide 22: Assets Under Management by Product, Asset Class and Region

    ASSETS UNDER MANAGEMENT BY PRODUCT, ASSET CLASS AND REGION 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 Assets by Product U.S. Retail Funds $46,457 $45,713 $42,261 $39,869 $41,540 Global Funds 5,522 5,281 5,259 4,967 4,756 Exchange Traded Funds 3,674 4,730 5,239 5,395 5,817 Total – Open-End Fu

  23. Slide 23: Assets Under Management by Product and Asset Class

    ASSETS UNDER MANAGEMENT BY PRODUCT AND ASSET CLASS Open-End Closed-End Retail Separate Institutional Total as of Funds Funds4 Accounts Accounts 6/30/2026 Equity: Domestic Equity $14,244 $— $25,472 $18,106 $57,822 International Equity 2,260 — 7 986 3,253 Global Equity 1,765 — 169 1,380 3,314 Specialt

  24. Slide 24: Asset Flows: Total

    ASSET FLOWS TOTAL 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 YTD:25 YTD:26 Total Beginning balance $167,463 $170,710 $169,325 $159,493 $149,026 $175,001 $159,493 Inflows 5,580 6,273 5,346 5,781 6,055 11,820 11,836 Outflows (9,527) (10,125) (13,444) (14,207) (11,701) (18,746) (25,908) Net Flo

  25. Slide 25: Asset Flows by Product

    ASSET FLOWS BY PRODUCT 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 YTD:25 YTD:26 U.S. Retail Funds Beginning balance $44,952 $46,457 $45,713 $42,261 $39,869 $47,814 $42,261 Inflows 2,290 1,784 1,839 2,171 1,808 4,666 3,979 Outflows (3,335) (3,512) (4,886) (3,824) (3,463) (7,127) (7,287) Net F

  26. Slide 26: Asset Flows by Product (Continued)

    ASSET FLOWS BY PRODUCT (CONTINUED) 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 YTD:25 YTD:26 Exchange Traded Funds Beginning balance $3,415 $3,674 $4,730 $5,239 $5,395 $3,051 $5,239 Inflows 395 924 780 630 635 829 1,265 Outflows (153) (62) (192) (376) (357) (241) (733) Net Flows 242 862 588 2

  27. Slide 27: Asset Flows by Product (Continued)

    ASSET FLOWS BY PRODUCT (CONTINUED) 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 YTD:25 YTD:26 Traditional Closed-End Funds Beginning balance $10,273 $10,481 $10,867 $10,635 $11,021 $10,225 $10,635 Inflows 4 3 — 5 — 9 5 Outflows (2) (10) (52) (6) (2) (42) (8) Net Flows 2 (7) (52) (1) (2) (33) (

  28. Slide 28: Asset Flows by Product (Continued)

    ASSET FLOWS BY PRODUCT (CONTINUED) 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 YTD:25 YTD:26 Intermediary Sold Managed Accounts2 Beginning balance $38,447 $38,610 $37,795 $34,269 $28,756 $40,857 $34,269 Inflows 1,248 1,253 906 1,179 838 2,770 2,017 Outflows (1,951) (2,444) (3,230) (4,976) (3,

  29. Slide 29: Asset Flows by Product (Continued)

    ASSET FLOWS BY PRODUCT (CONTINUED) 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 YTD:25 YTD:26 Institutional Separate Accounts Beginning balance $51,604 $52,133 $50,570 $47,724 $43,276 $54,054 $47,724 Inflows 1,080 1,557 1,139 1,171 2,057 2,442 3,228 Outflows (3,374) (3,484) (4,181) (4,182) (2,

  30. Slide 30: Asset Flows by Product (Continued)

    ASSET FLOWS BY PRODUCT (CONTINUED) 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 YTD:25 YTD:26 Structured Products Beginning balance $2,960 $2,799 $3,098 $2,986 $2,896 $3,083 $2,986 Inflows — 370 19 — — — — Outflows — — (3) — — — — Net Flows — 370 16 — — — — Market performance 40 32 44 50 43 61

  31. Slide 31: Asset Flows by Asset Class

    ASSET FLOWS BY ASSET CLASS 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 YTD:25 YTD:26 Domestic Equity Beginning balance $76,053 $77,321 $75,342 $67,841 $59,216 $81,315 $67,841 Inflows 2,450 2,266 2,045 2,452 1,904 5,109 4,356 Outflows (4,576) (4,895) (7,729) (7,734) (7,458) (8,660) (15,192) Ne

  32. Slide 32: Asset Flows by Asset Class (Continued)

    ASSET FLOWS BY ASSET CLASS (CONTINUED) 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 YTD:25 YTD:26 Global Equity Beginning balance $10,294 $10,699 $8,470 $6,776 $3,824 $11,633 $6,776 Inflows 302 142 138 255 138 851 393 Outflows (1,122) (2,089) (1,767) (2,459) (922) (2,520) (3,381) Net Flows (82

  33. Slide 33: Asset Flows by Asset Class (Continued)

    ASSET FLOWS BY ASSET CLASS (CONTINUED) 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 YTD:25 YTD:26 Leveraged Finance Beginning balance $8,450 $8,160 $8,619 $8,057 $7,756 $8,612 $8,057 Inflows 297 676 214 246 282 692 528 Outflows (514) (285) (661) (432) (257) (1,018) (689) Net Flows (217) 391 (4

  34. Slide 34: Asset Flows by Asset Class (Continued)

    ASSET FLOWS BY ASSET CLASS (CONTINUED) 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 YTD:25 YTD:26 Investment Grade Beginning balance $9,840 $10,214 $9,889 $9,923 $9,618 $9,973 $9,923 Inflows 280 334 189 152 160 417 312 Outflows (241) (685) (307) (409) (173) (725) (582) Net Flows 39 (351) (118)

  35. Slide 35: Asset Flows by Asset Class (Continued)

    ASSET FLOWS BY ASSET CLASS (CONTINUED) 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 YTD:25 YTD:26 Multi-Asset1 Beginning balance $20,834 $21,430 $22,078 $21,617 $21,586 $21,174 $21,617 Inflows 319 412 379 509 542 640 1,051 Outflows (536) (426) (740) (536) (505) (1,068) (1,041) Net Flows (217)

  36. Slide 36: Asset Flows by Asset Class (Continued)

    ASSET FLOWS BY ASSET CLASS (CONTINUED) 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 YTD:25 YTD:26 Listed Real Estate Beginning balance $4,607 $4,765 $4,986 $5,129 $5,270 $4,570 $5,129 Inflows 207 230 343 144 1,138 433 1,282 Outflows (202) (168) (124) (121) (164) (446) (285) Net Flows 5 62 219

  37. Slide 37: Asset Flows by Asset Class (Continued)

    ASSET FLOWS BY ASSET CLASS (CONTINUED) 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 YTD:25 YTD:26 Event-Driven Beginning balance $2,740 $2,772 $2,837 $2,835 $2,879 $2,736 $2,835 Inflows 92 106 130 156 153 210 309 Outflows (129) (94) (124) (132) (105) (303) (237) Net Flows (37) 12 6 24 48 (93)

  38. Slide 38: Asset Flows by Asset Class (Continued)

    ASSET FLOWS BY ASSET CLASS (CONTINUED) 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 YTD:25 YTD:26 Alternatives1 Beginning balance $15,075 $14,454 $15,431 $15,413 $18,009 $15,339 $15,413 Inflows 907 1,147 1,066 752 1,709 1,751 2,461 Outflows (1,153) (690) (1,098) (1,110) (822) (2,049) (1,932) N

  39. Slide 39: Investment Management Fees: Average Assets by Product

    INVESTMENT MANAGEMENT FEES AVERAGE ASSETS1 BY PRODUCT Q2:25 Q3:25 Q4:25 Q1:26 Q2:26 YTD:25 YTD:26 Average Assets by Product U.S. Retail Funds $44,973 $46,327 $44,296 $42,540 $41,616 $46,213 $42,078 Global Funds 5,324 5,399 5,223 5,193 5,142 5,307 5,168 Exchange Traded Funds 3,445 4,163 4,983 5,435 5

  40. Slide 40: Investment Management Fees: Average Fees Earned by Product

    INVESTMENT MANAGEMENT FEES AVERAGE MANAGEMENT FEES EARNED1 BY PRODUCT (IN BASIS POINTS) Q2:25 Q3:25 Q4:25 Q1:26 Q2:26 YTD:25 YTD:26 Average Management Fees Earned by Product U.S. Retail Funds 50.2 50.8 49.8 48.8 46.9 50.8 47.9 Global Funds 35.3 38.4 32.9 33.2 34.4 36.5 33.8 Exchange Traded Funds 18.

  41. Slide 41: Reconciliation: U.S. GAAP to Non-GAAP, Q2 2026

    RECONCILIATION: U.S. GAAP TO NON-GAAP Q2 2026 (UNAUDITED) Reclassification Other adjustments Goodwill Deferred U.S. Consolidated Distributions and Seed capital compensation Acquisition GAAP investment to minority Revenue intangible Restructuring and CLO and related and Non-GAAP Basis products intere

  42. Slide 42: Reconciliation: U.S. GAAP to Non-GAAP, Q1 2026

    RECONCILIATION: U.S. GAAP TO NON-GAAP Q1 2026 (UNAUDITED) Reclassification Other adjustments Goodwill Deferred U.S. Consolidated Distributions and Seed capital compensation Acquisition GAAP investment to minority Revenue intangible Restructuring and CLO and related and Non-GAAP Basis products intere

  43. Slide 43: Reconciliation: U.S. GAAP to Non-GAAP, Q4 2025

    RECONCILIATION: U.S. GAAP TO NON-GAAP Q4 2025 (UNAUDITED) Reclassification Other adjustments Goodwill Deferred Consolidated Distributions and Seed capital compensation Acquisition U.S. GAAP investment to minority Revenue intangible and CLO and related and Non-GAAP Basis products interests related as

  44. Slide 44: Reconciliation: U.S. GAAP to Non-GAAP, Q3 2025

    RECONCILIATION: U.S. GAAP TO NON-GAAP Q3 2025 (UNAUDITED) Reclassification Other adjustments Goodwill Deferred Consolidated Distributions and Seed capital compensation Acquisition U.S. GAAP investment to minority Revenue intangible Restructuring and CLO and related and Non-GAAP Basis products intere

  45. Slide 45: Reconciliation: U.S. GAAP to Non-GAAP, Q2 2025

    RECONCILIATION: U.S. GAAP TO NON-GAAP Q2 2025 (UNAUDITED) Reclassification Other adjustments Deferred Consolidated Distributions Goodwill and Seed capital compensation Acquisition U.S. GAAP investment to minority Revenue intangible and CLO and related and Non-GAAP Basis products interests related as

  46. Slide 46: Reconciliation: U.S. GAAP to Non-GAAP, YTD 2026

    RECONCILIATION: U.S. GAAP TO NON-GAAP YTD 2026 (UNAUDITED) Reclassification Other adjustments Goodwill Deferred Consolidated Distributions and Seed capital compensation Acquisition U.S. GAAP investment to minority Revenue intangible Restructuring and CLO and related and Non-GAAP Basis products inter

  47. Slide 47: Reconciliation: U.S. GAAP to Non-GAAP, YTD 2025

    RECONCILIATION: U.S. GAAP TO NON-GAAP YTD 2025 (UNAUDITED) Reclassification Other adjustments Goodwill Deferred Consolidated Distributions and Seed capital compensation Acquisition U.S. GAAP investment to minority Revenue intangible and CLO and related and Non-GAAP Basis products interests related a

  48. Slide 48: Reconciliation: Footnotes

    RECONCILIATION: FOOTNOTES Non-GAAP financial information differs from financial information determined in accordance with U.S. GAAP as a result of the reclassification of certain income statement items, as well as the exclusion of certain expenses and other items that are not reflective of the earni

  49. Slide 49: Reconciliation: Footnotes

    RECONCILIATION: FOOTNOTES Seed Capital and CLO Related: 10. Seed capital and CLO investments (gains) losses - Gains and losses (realized and unrealized) of seed capital and CLO investments. Gains and losses (realized and unrealized) generated by seed capital and CLO investments can vary significantl

  50. Slide 50: Reconciliation: Footnotes

    RECONCILIATION: FOOTNOTES (UNAUDITED) Components of Goodwill and Intangible Assets, Acquisition and Integration Expenses and Other for the respective periods are shown in the table below: Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 YTD:25 YTD:26 Goodwill and Intangible Assets Amortization expenses $12,9

  51. Slide 51: Virtus

    “VIRTUS

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