Virtus Investment Partners, Inc. · NYSE:VRTS
Virtus Investment Partners — Q2 2025 Earnings Presentation
47 slides from Virtus Investment Partners's earnings presentation, Jul 25, 2025
Slide 1: Second Quarter Earnings Presentation
SECOND QUARTER EARNINGS PRESENTATION July 25, 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: Second Quarter 2025 Overview
SECOND QUARTER 2025 OVERVIEW Assets and Flows ■ Assets under management (AUM) increased due to market performance and continued positive ETF net flows – AUM increased 2% to $170.7 billion; average AUM decreased 4% to $167.0 billion – Sales of $5.6 billion compared with $6.2 billion – Net flows of ($
Slide 6: Results
INVESTMENT PARTNERS RESULTS
Slide 7: Assets Under Management
ASSETS UNDER MANAGEMENT BROADLY DIVERSIFIED Institutional Accounts Closed-End Funds ■ AUM of $170.7 billion increased 2% due U.S. Retail Funds Retail Separate Accounts to: Global Funds and ETFs – $7.8 billion of market performance, partially offset by – ($3.9) billion of net outflows ■ AUM well-dive
Slide 8: Asset Flows
ASSET FLOWS HIGHER INSTITUTIONAL REDEMPTIONS ■ Sales of $5.6 billion compared with $6.2 billion. By product: – Institutional sales of $1.3 billion compared with $1.5 billion, as higher sales of alternative strategies were offset by lower fixed income and global equities – Retail separate account sal
Slide 9: Investment Management Fees, As Adjusted
INVESTMENT MANAGEMENT FEES, AS ADJUSTED LOWER AVERAGE ASSETS ■ Investment management fees, as adjusted, decreased by 4% primarily due to lower average AUM ■ Average fee rate of 41.3 basis points – Excluding performance fees, average fee rate of 41.1 bps ■ Average fee rate by product – Institutional:
Slide 10: Employment Expenses, As Adjusted
EMPLOYMENT EXPENSES, AS ADJUSTED LOWER DUE TO SEASONALITY AND VARIABLE COMPENSATION ■ Employment expenses, as adjusted, declined by $12.2 million due to – Prior-quarter seasonal items, and – Lower variable incentive compensation ■ Employment expenses, as adjusted, as a percentage of revenues, as adj
Slide 11: Other Operating Expenses, As Adjusted
OTHER OPERATING EXPENSES, AS ADJUSTED REMAIN IN CONSISTENT RANGE ■ Other operating expenses, as adjusted, of $32.0 million increased $0.7 million reflecting $0.9 million annual equity grant to Board of Directors – Excluding the grant, other operating expenses declined modestly and remain in a stable
Slide 12: Non-GAAP Results
NON-GAAP RESULTS HIGHER EARNINGS AND MARGIN ■ Operating margin, as adjusted, of 31.3% Operating Income, as Adjusted compared with 27.6%, which included Diluted earnings per share, as adjusted seasonal expenses ■ EPS, as adjusted, of $6.25 compared with $5.73 ■ Weighted average diluted shares outstan
Slide 13: Capital and Select Balance Sheet
CAPITAL AND SELECT BALANCE SHEET SIGNIFICANT FLEXIBILITY AND INCREASED CAPITAL RETURN ■ Significant financial flexibility Select Balance Sheet Items: 6/30/24 9/30/24 12/31/24 3/31/25 6/30/25 – Cash and investments of $447 million Cash and cash equivalents $183 $196 $266 $135 $172 – Low net leverage
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 29% 54% 18% 74% Equity 44% 36% 45% 73% Fixed Income 66% 71% 68% 69% Fixed Income 78% 80% 87% 85% Alte
Slide 15: Financial Supplement
INVESTMENT PARTNERS FINANCIAL SUPPLEMENT
Slide 16: Non-GAAP Information: Income Statement
NON-GAAP INFORMATION INCOME STATEMENT1 (UNAUDITED) Q2:24 Q3:24 Q4:24 Q1:25 Q2:25 YTD:24 YTD:25 Revenues, As Adjusted Investment management fees, as adjusted $183,670 $185,487 $192,176 $178,501 $171,879 $364,217 $350,380 Administration and shareholder service fees, as adjusted 18,331 18,579 18,751 18
Slide 17: Non-GAAP Information: Income Statement (Continued)
NON-GAAP INFORMATION INCOME STATEMENT1 (CONTINUED) (UNAUDITED) Q2:24 Q3:24 Q4:24 Q1:25 Q2:25 YTD:24 YTD:25 Other Income (Expense), As Adjusted Realized and unrealized gain (loss) on investments, net, as adjusted ($211) $656 ($389) $341 ($49) ($89) $292 Other income, net, as adjusted 597 548 341 998
Slide 18: Non-GAAP Information: Balance Sheet
NON-GAAP INFORMATION BALANCE SHEET1 (UNAUDITED) 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 Assets: Cash and cash equivalents $183,001 $195,533 $265,888 $135,380 $172,204 Investments – seed capital 139,584 143,901 140,049 143,000 148,192 Investments – other 118,384 140,748 142,317 132,798 126
Slide 19: Non-GAAP Information: Balance Sheet (Continued)
NON-GAAP INFORMATION BALANCE SHEET1 (CONTINUED) (UNAUDITED) 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 Liabilities and Equity Liabilities: Accrued compensation and benefits $132,261 $180,078 $224,501 $92,988 $120,204 Accounts payable and accrued liabilities 47,257 49,618 49,492 56,699 49,428
Slide 20: U.S. GAAP Information: Income Statement
U.S. GAAP INFORMATION INCOME STATEMENT (UNAUDITED) Q2:24 Q3:24 Q4:24 Q1:25 Q2:25 YTD:24 YTD:25 Revenues Investment management fees $191,652 $193,843 $199,975 $186,091 $179,476 $380,012 $365,567 Distribution and service fees 13,410 13,567 13,685 12,753 11,968 27,440 24,721 Administration and sharehol
Slide 21: U.S. GAAP Information: Income Statement (Continued)
U.S. GAAP INFORMATION INCOME STATEMENT (CONTINUED) (UNAUDITED) Q2:24 Q3:24 Q4:24 Q1:25 Q2:25 YTD:24 YTD:25 Other Income (Expense) Realized and unrealized gain (loss) on investments, net ($1,553) $4,552 ($2,501) ($991) $3,971 $1,863 $2,980 Realized and unrealized gain (loss) of CIP1, net (12,936) (5,
Slide 22: Assets Under Management by Product, Asset Class and Region
ASSETS UNDER MANAGEMENT BY PRODUCT, ASSET CLASS AND REGION 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 Assets by Product U.S. Retail Funds $48,935 $50,115 $47,814 $44,952 $46,457 Global Funds 4,809 5,343 5,208 5,241 5,522 Exchange Traded Funds 2,108 2,642 3,051 3,415 3,674 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 6/30/2025 Equity: Domestic Equity $19,311 $— $37,097 $20,913 $77,321 International Equity 2,765 — 9 1,449 4,223 Global Equity 2,387 — 288 8,024 10,699 Specia
Slide 24: Asset Flows: Total
ASSET FLOWS TOTAL 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 YTD:24 YTD:25 Total Beginning balance $179,311 $173,585 $183,742 $175,001 $167,463 $172,259 $175,001 Inflows 6,137 6,597 6,440 6,240 5,580 13,720 11,820 Outflows (8,762) (8,321) (11,286) (9,219) (9,527) (17,583) (18,746) Net Flows
Slide 25: Asset Flows by Product
ASSET FLOWS BY PRODUCT 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 YTD:24 YTD:25 U.S. Retail Funds Beginning balance $51,171 $48,935 $50,115 $47,814 $44,952 $49,957 $47,814 Inflows 2,300 2,391 2,267 2,376 2,290 5,244 4,666 Outflows (3,887) (3,943) (3,964) (3,792) (3,335) (7,830) (7,127) Net F
Slide 26: Asset Flows by Product (Continued)
ASSET FLOWS BY PRODUCT (CONTINUED) 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 YTD:24 YTD:25 Exchange Traded Funds Beginning balance $1,898 $2,108 $2,642 $3,051 $3,415 $1,545 $3,051 Inflows 241 450 508 434 395 539 829 Outflows (43) (59) (64) (88) (153) (71) (241) Net Flows 198 391 444 346 242
Slide 27: Asset Flows by Product (Continued)
ASSET FLOWS BY PRODUCT (CONTINUED) 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 YTD:24 YTD:25 Closed-End Funds Beginning balance $10,064 $9,915 $10,432 $10,225 $10,273 $10,026 $10,225 Inflows — — 1 5 4 — 9 Outflows (41) — — (40) (2) (41) (42) Net Flows (41) — 1 (35) 2 (41) (33) Market performa
Slide 28: Asset Flows by Product (Continued)
ASSET FLOWS BY PRODUCT (CONTINUED) 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 YTD:24 YTD:25 Intermediary Sold Managed Accounts2 Beginning balance $38,610 $37,537 $41,913 $40,857 $38,447 $35,438 $40,857 Inflows 1,895 1,985 1,526 1,522 1,248 4,066 2,770 Outflows (1,465) (1,570) (1,504) (2,179)
Slide 29: Asset Flows by Product (Continued)
ASSET FLOWS BY PRODUCT (CONTINUED) 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 YTD:24 YTD:25 Institutional Separate Accounts Beginning balance $61,253 $58,828 $61,142 $56,084 $53,702 $59,548 $56,084 Inflows 1,085 943 1,574 1,455 1,283 2,819 2,738 Outflows (2,913) (2,349) (5,376) (2,659) (3,45
Slide 30: Asset Flows by Asset Class
ASSET FLOWS BY ASSET CLASS 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 YTD:24 YTD:25 Domestic Equity Beginning balance $83,474 $79,679 $86,474 $81,315 $76,053 $77,263 $81,315 Inflows 3,381 3,185 2,921 2,659 2,450 7,771 5,109 Outflows (4,854) (3,954) (6,888) (4,084) (4,576) (9,044) (8,660) Net
Slide 31: Asset Flows by Asset Class (Continued)
ASSET FLOWS BY ASSET CLASS (CONTINUED) 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 YTD:24 YTD:25 Global Equity Beginning balance $11,228 $11,224 $11,824 $11,633 $10,294 $10,552 $11,633 Inflows 363 274 525 549 302 681 851 Outflows (443) (289) (601) (1,398) (1,122) (646) (2,520) Net Flows (80)
Slide 32: Asset Flows by Asset Class (Continued)
ASSET FLOWS BY ASSET CLASS (CONTINUED) 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 YTD:24 YTD:25 Leveraged Finance Beginning balance $8,941 $8,790 $8,990 $8,612 $8,450 $9,083 $8,612 Inflows 364 530 353 395 297 730 692 Outflows (410) (363) (377) (504) (514) (915) (1,018) Net Flows (46) 167 (24
Slide 33: Asset Flows by Asset Class (Continued)
ASSET FLOWS BY ASSET CLASS (CONTINUED) 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 YTD:24 YTD:25 Investment Grade Beginning balance $9,969 $10,030 $10,616 $9,973 $9,840 $10,128 $9,973 Inflows 119 302 154 137 280 298 417 Outflows (155) (239) (256) (484) (241) (413) (725) Net Flows (36) 63 (102
Slide 34: Asset Flows by Asset Class (Continued)
ASSET FLOWS BY ASSET CLASS (CONTINUED) 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 YTD:24 YTD:25 Multi-Asset1 Beginning balance $21,975 $21,060 $21,619 $21,174 $20,834 $21,411 $21,174 Inflows 393 391 360 321 319 728 640 Outflows (544) (1,121) (513) (532) (536) (999) (1,068) Net Flows (151) (7
Slide 35: Investment Management Fees: Average Assets by Product
INVESTMENT MANAGEMENT FEES AVERAGE ASSETS1 BY PRODUCT Q2:24 Q3:24 Q4:24 Q1:25 Q2:25 YTD:24 YTD:25 U.S. Retail Funds $49,984 $49,318 $49,723 $47,451 $44,973 $50,236 $46,213 Global Funds 4,717 5,110 5,249 5,291 5,324 4,670 5,307 Exchange Traded Funds 1,991 2,303 2,933 3,362 3,445 1,854 3,403 Total – O
Slide 36: Average Management Fees Earned by Product
INVESTMENT MANAGEMENT FEES AVERAGE MANAGEMENT FEES EARNED1 BY PRODUCT (IN BASIS POINTS) Q2:24 Q3:24 Q4:24 Q1:25 Q2:25 YTD:24 YTD:25 U.S. Retail Funds 53.0 52.9 53.1 51.4 50.2 52.8 50.8 Global Funds 45.2 35.7 36.2 37.7 35.3 39.9 36.5 Exchange Traded Funds 11.3 12.5 12.4 13.9 18.5 11.5 16.2 Total – Op
Slide 37: 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 38: 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 39: 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 40: 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 41: Reconciliation: U.S. GAAP to Non-GAAP, Q2 2024
RECONCILIATION: U.S. GAAP TO NON-GAAP Q2 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 invest
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 and CLO and related and Non-GAAP Basis products interests relate
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: Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 YTD:24 YTD:25 Acquisition and Integration Expenses Employment expenses $1,099 $956 $861 $417 $435 $2,141
Slide 47: Investment Partners
INVESTMENT PARTNERS
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