Virtus Investment Partners, Inc. · NYSE:VRTS
Virtus Investment Partners — Q3 2025 Earnings Presentation
47 slides from Virtus Investment Partners's earnings presentation, Oct 24, 2025
Slide 1: Third Quarter Earnings Presentation
THIRD QUARTER EARNINGS PRESENTATION October 24, 2025 George R. Aylward President and Chief Executive Officer Michael A. Angerthal Executive Vice President and Chief Financial Officer
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
Slide 3: Agenda
AGENDA ■ Overview of Quarter ■ Results ■ Q & A Session 3
Slide 4: Overview of Quarter
INVESTMENT PARTNERS OVERVIEW OF QUARTER
Slide 5: Third Quarter 2025 Overview
THIRD QUARTER 2025 OVERVIEW Assets and Flows ■ Assets under management (AUM) of $169.3 billion; average AUM up 2% to $170.3 – Sales of $6.3 billion increased 12% due to institutional, including a new CLO, and ETFs – Net flows of ($3.9) billion due to outflows in equities; positive fixed income and a
Slide 6: Results
INVESTMENT PARTNERS RESULTS
Slide 7: Assets Under Management
ASSETS UNDER MANAGEMENT BROADLY DIVERSIFIED Institutional Accounts Closed-End Funds ■ AUM of $169.3 billion compared with U.S. Retail Funds Retail Separate Accounts $170.7 billion: Global Funds and ETFs – ($3.9) billion of net outflows due to equity strategies, partially offset by – $3.0 billion of
Slide 8: Asset Flows
ASSET FLOWS INCREASED SALES ■ Sales of $6.3 billion increased 12% from $5.6 billion led by fixed income and alternative strategies. By product: – Institutional sales of $2.0 billion increased from $1.3 billion and included a new CLO – Retail separate account sales of $1.4 billion essentially unchang
Slide 9: Investment Management Fees, As Adjusted
INVESTMENT MANAGEMENT FEES, AS ADJUSTED HIGHER AVERAGE ASSETS ■ Investment management fees, as adjusted, increased 3% primarily due to higher average AUM ■ Average fee rate of 41.2 basis points – Excluding performance fees, average fee rate of 41.1 bps, consistent with prior quarter ■ Average fee ra
Slide 10: Employment Expenses, As Adjusted
EMPLOYMENT EXPENSES, AS ADJUSTED LOWER AS A PERCENTAGE OF REVENUES ■ Employment expenses, as adjusted, increased 1% to $98.7 million due to higher variable incentive compensation ■ Employment expenses, as adjusted, as a percentage of revenues, as adjusted, were 50.2%, down 70 bps % of Revenues, as a
Slide 11: Other Operating Expenses, As Adjusted
OTHER OPERATING EXPENSES, AS ADJUSTED REMAIN IN CONSISTENT RANGE ■ Other operating expenses, as adjusted, of Discrete business initiative expenses $31.1 million, or $30.1 million excluding $1.0 million of discrete business initiative expenses, decreased due to: – Lower rent expense from office space
Slide 12: Non-GAAP Results
NON-GAAP RESULTS HIGHER EARNINGS AND MARGIN ■ Operating margin, as adjusted, of 33.0% Operating Income, as Adjusted increased from 31.3% Diluted earnings per share, as adjusted ■ Interest and dividend income, as adjusted of $4.1 million declined from $5.3 million as prior quarter included elevated C
Slide 13: Capital and Select Balance Sheet
CAPITAL AND SELECT BALANCE SHEET RAISED DIVIDEND AND INCREASED FINANCIAL FLEXIBILITY ■ Significant financial flexibility Select Balance Sheet Items: 9/30/24 12/31/24 3/31/25 6/30/25 9/30/25 – Cash and investments of $671 million Cash and cash equivalents $196 $266 $135 $172 $371 – Low net leverage o
Slide 14: Investment Performance
INVESTMENT PERFORMANCE PERFORMANCE VERSUS BENCHMARK AND PEERS Total AUM Outperforming Benchmark1 Mutual Fund AUM Outperforming Peers2 1-Year 3-Year 5-Year 10-Year 1-Year 3-Year 5-Year 10-Year Equity 5% 22% 16% 70% Equity 24% 36% 41% 70% Fixed Income 69% 72% 74% 77% Fixed Income 79% 87% 86% 80% Alter
Slide 15: Financial Supplement
INVESTMENT PARTNERS FINANCIAL SUPPLEMENT
Slide 16: Non-GAAP Information: Income Statement
NON-GAAP INFORMATION INCOME STATEMENT1 (UNAUDITED) Q3:24 Q4:24 Q1:25 Q2:25 Q3:25 YTD:24 YTD:25 Revenues, As Adjusted Investment management fees, as adjusted $185,487 $192,176 $178,501 $171,879 $176,561 $549,704 $526,941 Administration and shareholder service fees, as adjusted 18,579 18,751 18,029 18
Slide 17: Non-GAAP Information: Income Statement (Continued)
NON-GAAP INFORMATION INCOME STATEMENT1 (CONTINUED) (UNAUDITED) Q3:24 Q4:24 Q1:25 Q2:25 Q3:25 YTD:24 YTD:25 Other Income (Expense), As Adjusted Realized and unrealized gain (loss) on investments, net, as adjusted $656 ($389) $341 ($49) $83 $567 $375 Other income, net, as adjusted 548 341 998 1,151 52
Slide 18: Non-GAAP Information: Balance Sheet
NON-GAAP INFORMATION BALANCE SHEET1 (UNAUDITED) 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 Assets: Cash and cash equivalents $195,533 $265,888 $135,380 $172,204 $370,563 Investments – seed capital 143,901 140,049 143,000 148,192 153,870 Investments – other 140,748 142,317 132,798 126,670 146
Slide 19: Non-GAAP Information: Balance Sheet (Continued)
NON-GAAP INFORMATION BALANCE SHEET1 (CONTINUED) (UNAUDITED) 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 Liabilities and Equity Liabilities: Accrued compensation and benefits $180,078 $224,501 $92,988 $120,204 $162,566 Accounts payable and accrued liabilities 49,618 49,492 56,699 49,428 51,663
Slide 20: U.S. GAAP Information: Income Statement
U.S. GAAP INFORMATION INCOME STATEMENT (UNAUDITED) Q3:24 Q4:24 Q1:25 Q2:25 Q3:25 YTD:24 YTD:25 Revenues Investment management fees $193,843 $199,975 $186,091 $179,476 $183,762 $573,855 $549,329 Distribution and service fees 13,567 13,685 12,753 11,968 12,517 41,007 37,238 Administration and sharehol
Slide 21: U.S. GAAP Information: Income Statement (Continued)
U.S. GAAP INFORMATION INCOME STATEMENT (CONTINUED) (UNAUDITED) Q3:24 Q4:24 Q1:25 Q2:25 Q3:25 YTD:24 YTD:25 Other Income (Expense) Realized and unrealized gain (loss) on investments, net $4,552 ($2,501) ($991) $3,971 $2,257 $6,415 $5,237 Realized and unrealized gain (loss) of CIP1, net (5,128) 2,069
Slide 22: Assets Under Management by Product, Asset Class and Region
ASSETS UNDER MANAGEMENT BY PRODUCT, ASSET CLASS AND REGION 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 Assets by Product U.S. Retail Funds $50,115 $47,814 $44,952 $46,457 $45,713 Global Funds 5,343 5,208 5,241 5,522 5,281 Exchange Traded Funds 2,642 3,051 3,415 3,674 4,730 Total – Open-End Fu
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 Funds Accounts Accounts 9/30/2025 Equity: Domestic Equity $18,303 $— $36,219 $20,820 $75,342 International Equity 2,697 — 10 1,508 4,215 Global Equity 2,243 — 288 5,939 8,470 Specia
Slide 24: Asset Flows: Total
ASSET FLOWS TOTAL 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 YTD:24 YTD:25 Total Beginning balance $173,585 $183,742 $175,001 $167,463 $170,710 $172,259 $175,001 Inflows 6,597 6,440 6,240 5,580 6,273 20,317 18,093 Outflows (8,321) (11,286) (9,219) (9,527) (10,125) (25,904) (28,871) Net Flows
Slide 25: Asset Flows by Product
ASSET FLOWS BY PRODUCT 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 YTD:24 YTD:25 U.S. Retail Funds Beginning balance $48,935 $50,115 $47,814 $44,952 $46,457 $49,957 $47,814 Inflows 2,391 2,267 2,376 2,290 1,784 7,635 6,450 Outflows (3,943) (3,964) (3,792) (3,335) (3,512) (11,773) (10,639) Net
Slide 26: Asset Flows by Product (Continued)
ASSET FLOWS BY PRODUCT (CONTINUED) 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 YTD:24 YTD:25 Exchange Traded Funds Beginning balance $2,108 $2,642 $3,051 $3,415 $3,674 $1,545 $3,051 Inflows 450 508 434 395 924 989 1,753 Outflows (59) (64) (88) (153) (62) (130) (303) Net Flows 391 444 346 242
Slide 27: Asset Flows by Product (Continued)
ASSET FLOWS BY PRODUCT (CONTINUED) 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 YTD:24 YTD:25 Closed-End Funds Beginning balance $9,915 $10,432 $10,225 $10,273 $10,481 $10,026 $10,225 Inflows — 1 5 4 3 — 12 Outflows — — (40) (2) (10) (41) (52) Net Flows — 1 (35) 2 (7) (41) (40) Market performa
Slide 28: Asset Flows by Product (Continued)
ASSET FLOWS BY PRODUCT (CONTINUED) 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 YTD:24 YTD:25 Intermediary Sold Managed Accounts2 Beginning balance $37,537 $41,913 $40,857 $38,447 $38,610 $35,438 $40,857 Inflows 1,985 1,526 1,522 1,248 1,253 6,051 4,023 Outflows (1,570) (1,504) (2,179) (1,951)
Slide 29: Asset Flows by Product (Continued)
ASSET FLOWS BY PRODUCT (CONTINUED) 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 YTD:24 YTD:25 Institutional Separate Accounts Beginning balance $58,828 $61,142 $56,084 $53,702 $54,332 $59,548 $56,084 Inflows 943 1,574 1,455 1,283 1,636 3,762 4,374 Outflows (2,349) (5,376) (2,659) (3,455) (3,54
Slide 30: Asset Flows by Asset Class
ASSET FLOWS BY ASSET CLASS 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 YTD:24 YTD:25 Domestic Equity Beginning balance $79,679 $86,474 $81,315 $76,053 $77,321 $77,263 $81,315 Inflows 3,185 2,921 2,659 2,450 2,266 10,956 7,375 Outflows (3,954) (6,888) (4,084) (4,576) (4,895) (12,998) (13,555)
Slide 31: Asset Flows by Asset Class (Continued)
ASSET FLOWS BY ASSET CLASS (CONTINUED) 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 YTD:24 YTD:25 Global Equity Beginning balance $11,224 $11,824 $11,633 $10,294 $10,699 $10,552 $11,633 Inflows 274 525 549 302 142 955 993 Outflows (289) (601) (1,398) (1,122) (2,089) (935) (4,609) Net Flows (15
Slide 32: Asset Flows by Asset Class (Continued)
ASSET FLOWS BY ASSET CLASS (CONTINUED) 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 YTD:24 YTD:25 Leveraged Finance Beginning balance $8,790 $8,990 $8,612 $8,450 $8,160 $9,083 $8,612 Inflows 530 353 395 297 676 1,260 1,368 Outflows (363) (377) (504) (514) (285) (1,278) (1,303) Net Flows 167 (2
Slide 33: Asset Flows by Asset Class (Continued)
ASSET FLOWS BY ASSET CLASS (CONTINUED) 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 YTD:24 YTD:25 Investment Grade Beginning balance $10,030 $10,616 $9,973 $9,840 $10,214 $10,128 $9,973 Inflows 302 154 137 280 334 600 751 Outflows (239) (256) (484) (241) (685) (652) (1,410) Net Flows 63 (102)
Slide 34: Asset Flows by Asset Class (Continued)
ASSET FLOWS BY ASSET CLASS (CONTINUED) 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 YTD:24 YTD:25 Multi-Asset1 Beginning balance $21,060 $21,619 $21,174 $20,834 $21,430 $21,411 $21,174 Inflows 391 360 321 319 412 1,119 1,052 Outflows (1,121) (513) (532) (536) (426) (2,120) (1,494) Net Flows (7
Slide 35: Investment Management Fees: Average Assets by Product
INVESTMENT MANAGEMENT FEES AVERAGE ASSETS1 BY PRODUCT Q3:24 Q4:24 Q1:25 Q2:25 Q3:25 YTD:24 YTD:25 U.S. Retail Funds $49,318 $49,723 $47,451 $44,973 $46,327 $49,929 $46,250 Global Funds 5,110 5,249 5,291 5,324 5,399 4,817 5,338 Exchange Traded Funds 2,303 2,933 3,362 3,445 4,163 2,004 3,657 Total – O
Slide 36: Investment Management Fees: Average Fees Earned by Product
INVESTMENT MANAGEMENT FEES AVERAGE MANAGEMENT FEES EARNED1 BY PRODUCT (IN BASIS POINTS) Q3:24 Q4:24 Q1:25 Q2:25 Q3:25 YTD:24 YTD:25 U.S. Retail Funds 52.9 53.1 51.4 50.2 50.8 52.8 50.8 Global Funds 35.7 36.2 37.7 35.3 38.4 38.4 37.2 Exchange Traded Funds 12.5 12.4 13.9 18.5 15.6 11.9 16.0 Total – Op
Slide 37: Reconciliation: U.S. GAAP to Non-GAAP Q3 2025
RECONCILIATION: U.S. GAAP TO NON-GAAP Q3 2025 (UNAUDITED) Reclassification Other adjustments Deferred Consolidated Distributions Amortization Seed capital compensation Acquisition U.S. GAAP investment to minority Revenue of intangible Restructuring and CLO and related and Non-GAAP Basis products int
Slide 38: 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 Amortization Seed capital compensation Acquisition U.S. GAAP investment to minority Revenue of intangible and CLO and related and Non-GAAP Basis products interests related
Slide 39: Reconciliation: U.S. GAAP to Non-GAAP Q1 2025
RECONCILIATION: U.S. GAAP TO NON-GAAP Q1 2025 (UNAUDITED) Reclassification Other adjustments Deferred Consolidated Distributions Amortization Seed capital compensation Acquisition U.S. GAAP investment to minority Revenue of intangible and CLO and related and Non-GAAP Basis products interests related
Slide 40: Reconciliation: U.S. GAAP to Non-GAAP Q4 2024
RECONCILIATION: U.S. GAAP TO NON-GAAP Q4 2024 (UNAUDITED) Reclassification Other adjustments Deferred Consolidated Amortization Seed capital compensation Acquisition U.S. GAAP investment Revenue of intangible and CLO and related and Non-GAAP Basis products related assets investments investments inte
Slide 41: Reconciliation: U.S. GAAP to Non-GAAP Q3 2024
RECONCILIATION: U.S. GAAP TO NON-GAAP Q3 2024 (UNAUDITED) Reclassification Other adjustments Deferred Consolidated Amortization Seed capital compensation Acquisition U.S. GAAP investment Revenue of intangible and CLO and related and Non-GAAP Basis products related assets investments investments inte
Slide 42: Reconciliation: U.S. GAAP to Non-GAAP YTD 2025
RECONCILIATION: U.S. GAAP TO NON-GAAP YTD 2025 (UNAUDITED) Reclassification Other adjustments Deferred Consolidated Distributions Amortization Seed capital compensation Acquisition U.S. GAAP investment to minority Revenue of intangible Restructuring and CLO and related and Non-GAAP Basis products in
Slide 43: Reconciliation: U.S. GAAP to Non-GAAP YTD 2024
RECONCILIATION: U.S. GAAP TO NON-GAAP YTD 2024 (UNAUDITED) Reclassification Other adjustments Deferred Consolidated Amortization Seed capital compensation Acquisition U.S. GAAP investment Revenue of intangible Restructuring and CLO and related and Non-GAAP Basis products related assets expense inves
Slide 44: 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
Slide 45: 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 investments in seed capital and CLO investments can va
Slide 46: Reconciliation: Footnotes
RECONCILIATION: FOOTNOTES (UNAUDITED) Components of Acquisition and Integration Expenses and Other for the respective periods are shown in the table below: Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 YTD:24 YTD:25 Acquisition and Integration Expenses Employment expenses $956 $861 $417 $435 $454 $3,097 $
Slide 47: Investment Partners
INVESTMENT PARTNERS
Virtus Investment Partners — Q3 2025 Earnings Presentation on 6ix