Press release·02/28/2025 22:30:35

Virtus Investment Partners Delivers Strong Financial Performance in 2024

Virtus Investment Partners, a leading global asset management firm, has reported impressive financial results for the year ended December 31, 2024. The company’s total revenues increased by 7.3% to $906.9 million, and operating income grew by 20.5% to $182.5 million compared to the prior year.

Financial Highlights

• Total revenues were $906.9 million in 2024, up from $845.3 million in 2023, an increase of 7.3%.
• Operating income was $182.5 million in 2024, up from $151.5 million in 2023, an increase of 20.5%.
• Net income per diluted share was $16.89 in 2024, down from $17.71 in 2023, a decrease of 4.6%.

Assets Under Management (AUM) Growth Virtus saw its total assets under management increase by 1.6% to $175.0 billion as of December 31, 2024, up from $172.3 billion at the end of 2023. This growth was driven by positive market performance of $15.8 billion, partially offset by net outflows of $10.4 billion.

The company experienced mixed results across its different product categories:

Product	2024 AUM ($ millions)	2023 AUM ($ millions)	Change
Open-End Funds	56,073	56,062	0.0%
Closed-End Funds	10,225	10,026	2.0%
Retail Separate Accounts	49,536	43,202	14.7%
Institutional Accounts	59,167	62,969	-6.0%
Total	175,001	172,259	1.6%

The increase in Retail Separate Accounts AUM was a bright spot, growing 14.7% year-over-year, while Institutional Accounts saw a 6.0% decline. Open-End Funds and Closed-End Funds remained relatively flat.

Revenue Breakdown Virtus generates the majority of its revenue from investment management fees, which increased by 8.8% to $773.8 million in 2024 compared to the prior year. This was driven by the 9.4% increase in average AUM during the period.

Other revenue sources include:

• Distribution and service fees: $54.7 million, down 2.6%
• Administration and shareholder service fees: $74.3 million, up 0.6%
• Other income and fees: $4.1 million, up 9.3%

The decrease in distribution and service fees was due to lower sales and average AUM for open-end funds in share classes that have these types of fees.

Expense Management Virtus’s total operating expenses increased by 4.4% to $724.5 million in 2024. The key expense categories and changes include:

Expense Category	2024 ($ millions)	2023 ($ millions)	Change
Employment Expenses	432.6	404.7	6.9%
Distribution and Other Asset-Based Expenses	96.2	96.8	-0.6%
Other Operating Expenses	127.5	125.9	1.3%
Depreciation Expense	9.0	5.8	54.3%
Amortization Expense	56.3	61.0	-7.7%

The increase in employment expenses was primarily due to higher profit- and sales-based compensation, as well as the addition of AlphaSimplex in April 2023. Depreciation expense rose due to the acceleration of depreciation on leasehold improvements and new software/equipment. Amortization expense declined as some intangible assets became fully amortized.

Investment Performance Virtus’s investment strategies continued to deliver strong performance, with 55% of equity assets, 79% of fixed income assets, and 91% of alternative assets outperforming their respective benchmarks over the 5-year period ending December 31, 2024.

Additionally, 46% of the company’s rated U.S. retail funds received an overall 4 or 5 star rating from Morningstar, representing 71% of total U.S. retail fund AUM. This compares favorably to the broader Morningstar fund universe, where only 32.5% of funds receive a 4 or 5 star rating.

Liquidity and Capital Resources Virtus maintains a strong balance sheet, with $265.9 million in cash and cash equivalents and $119.2 million in investments as of December 31, 2024. The company’s credit agreement includes a $275 million term loan and a $175 million revolving credit facility, providing ample liquidity to fund operations and strategic initiatives.

Net cash provided by operating activities was $1.8 million in 2024, down from $237.2 million in the prior year, primarily due to an increase in net purchases of investments by the company’s consolidated investment products (CIP). Cash used in investing activities decreased by $112.8 million year-over-year, reflecting the absence of the AlphaSimplex acquisition that occurred in 2023.

Outlook and Strategic Priorities Virtus is well-positioned to navigate the evolving market environment and continue delivering value to its clients and shareholders. The company’s diversified product lineup, strong investment performance, and robust distribution capabilities provide a solid foundation for growth.

Looking ahead, Virtus plans to focus on the following strategic priorities:

1. Organic growth: Investing in new product development and distribution to meet changing client needs.
2. Inorganic growth: Pursuing selective acquisitions and partnerships to expand capabilities and distribution.
3. Operational excellence: Enhancing technology, data, and operating platforms to drive efficiency and scalability.
4. Talent development: Attracting, retaining, and developing top investment and business talent.

By executing on these priorities, Virtus aims to continue generating sustainable growth and delivering attractive returns for its shareholders.