Virtus Investment Partners, Inc. · NYSE:VRTS

Virtus Investment Partners — Merger or Acquisition (December 2016)

16 slides from Virtus Investment Partners's merger presentation, Dec 16, 2016

  1. Slide 1: Presentation Regarding Acquisition of RidgeWorth Investments

    Presentation Regarding Acquisition of RidgeWorth Investments December 16, 2016 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  Transaction Overview  Strategic Rationale  RidgeWorth Investments Overview  Pro Forma Information  Financial Impact  Financing and Capital Structure  Summary  Q & A Session 3

  4. Slide 4: Transaction Overview

    TRANSACTION OVERVIEW Virtus has entered into an agreement to acquire RidgeWorth Investments, a $40B1 multi-boutique manager that will add complementary investment and distribution capabilities Consideration  Virtus to acquire 100% of RidgeWorth Investments for total consideration of ~$513 million,

  5. Slide 5: Strategic Rationale

    STRATEGIC RATIONALE Diversification of  Increases the breadth of our product offerings from differentiated investment Investment Strategies and managers Clients  Provides access to broader base of potential clients  Diversified product offerings provide greater opportunity through changing market

  6. Slide 6: RidgeWorth Overview

    RIDGEWORTH OVERVIEW RidgeWorth provides investment strategies through affiliated managers and subadvisers Investment Headquarters Primary Asset Class Professionals AUM ($B) Investment Grade 16 $14.0 Park Ridge, NJ High-Yield / Bank Loans 20 12.6 Municipals 5 1.6 Orlando, FL Value Equity 13 10.2 Atla

  7. Slide 7: Pro Forma Investment Partners

    PRO FORMA INVESTMENT PARTNERS Diversified group of Investment Partners offering a broad range of differentiated strategies AFFILIATES Investment Grade and Growth Equity Value Equity Leverage Loans $1.4B AUM $10.2B AUM $28.1B AUM Multi-Sector Fixed Quality-Oriented Income-Focused Quantitative Income

  8. Slide 8: Pro Forma AUM Profile

    PRO FORMA AUM PROFILE Virtus RidgeWorth Pro Forma $46.5B in AUM $40.2B in AUM $86.8B in AUM Other 1%1 Other 15%1 Other 7%1 Alternatives Alternatives AUM by Asset Class 8% 4% Equity Equity Equity 57% 30% 45% Fixed Fixed Fixed Income Income Income 34% 55% 44% AUM by Client Type Institutional Instituti

  9. Slide 9: Financial Impact

    FINANCIAL IMPACT Financially  Purchase price represents 6.5x TTM EBITDA1, including fully phased-in cost Compelling synergies  Expected 15%+ accretion to EPS, as adjusted, in 20172 and 2018  Attractive high-teens IRR expected Material Synergies  Anticipated cost synergies of $25 million per annu

  10. Slide 10: Financing & Capital Structure

    FINANCING & CAPITAL STRUCTURE Transaction  Capital structure intended to balance operating flexibility and capital structure Financing efficiency  Financing for the transaction expected to consist of existing balance sheet resources, debt, equity and/or equity-linked securities  $475 million of c

  11. Slide 11: Summary

    SUMMARY  Transformational transaction increases scale and diversifies the business  Addition of complementary investment capabilities  Enhanced retail and institutional distribution  Financially compelling transaction with meaningful EPS accretion and an attractive IRR  Significant synergies an

  12. Slide 12: Q&A

    _VIRTIUS | INVESTMENT PARTNERS Q&A

  13. Slide 13: Appendix

    _VIRTIUS | INVESTMENT PARTNERS Appendix

  14. Slide 14: A. Financial Detail

    A. FINANCIAL DETAIL Unaudited Virtus - US GAAP RidgeWorth - US GAAP1 $ in millions 9/30/16 TTM3 $ in millions 9/30/16 TTM3 Total Revenue 328.8 Total Revenue 142.2 Employment expenses 136.6 Employment expenses 66.1 Distribution and other asset-based expenses 72.7 Distribution and other asset-based ex

  15. Slide 15: B. AUM Detail

    B. AUM DETAIL (in millions) Virtus RidgeWorth PF Combined By product (period end): Open-end Funds (1) $ 25,266.4 54.3% $ 16,736.0 41.6% $ 42,002.4 48.4% Closed-end Funds 6,887.3 14.8% - 0.0% 6,887.3 7.9% Exchange Traded Funds 460.6 1.0% - 0.0% 460.6 0.5% Separately Managed Accounts (2) 7,924.8 17.0%

  16. Slide 16: _VIRTUS |

    _VIRTUS | INVESTMENT PARTNERS

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