Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-10994 | |
Entity Registrant Name | VIRTUS INVESTMENT PARTNERS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-3962811 | |
Entity Address, Address Line One | One Financial Plaza | |
Entity Address, City or Town | Hartford | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06103 | |
City Area Code | 800 | |
Local Phone Number | 248-7971 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | VRTS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,255,376 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000883237 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Accounts receivable, net | $ 104,224 | $ 99,274 |
Furniture, equipment and leasehold improvements, net | 23,234 | 19,123 |
Intangible assets, net | 467,783 | 442,519 |
Goodwill | 397,098 | 348,836 |
Deferred taxes, net | 23,199 | 23,171 |
Total assets | 3,645,609 | 3,952,934 |
Liabilities: | ||
Accrued compensation and benefits | 117,681 | 181,805 |
Accounts payable and accrued liabilities | 39,375 | 33,200 |
Dividends payable | 14,576 | 15,812 |
Contingent consideration | 94,421 | 128,400 |
Debt | 294,218 | 255,025 |
Other liabilities | 96,388 | 87,827 |
Total liabilities | 2,678,501 | 3,016,280 |
Commitments and Contingencies (Note 14) | ||
Redeemable noncontrolling interests | 110,399 | 113,718 |
Equity attributable to Virtus Investment Partners, Inc.: | ||
Common stock, $0.01 par value, 1,000,000,000 shares authorized; 12,158,319 shares issued and 7,254,786 shares outstanding at June 30, 2023; and 12,033,247 shares issued and 7,181,554 shares outstanding at December 31, 2022 | 122 | 120 |
Additional paid-in capital | 1,286,775 | 1,286,244 |
Retained earnings (accumulated deficit) | 174,011 | 130,261 |
Accumulated other comprehensive income (loss) | (147) | (358) |
Treasury stock, at cost, 4,903,533 and 4,851,693 shares at June 30, 2023 and December 31, 2022, respectively | (609,248) | (599,248) |
Total equity attributable to Virtus Investment Partners, Inc. | 851,513 | 817,019 |
Total equity | 856,709 | 822,936 |
Total liabilities and equity | 3,645,609 | 3,952,934 |
Consolidated entity excluding consolidated investment products | ||
Assets: | ||
Cash and cash equivalents | 201,462 | 338,234 |
Investments | 123,339 | 100,330 |
Other assets | 98,787 | 94,944 |
Consolidated Investment Products | ||
Assets: | ||
Cash and cash equivalents | 155,529 | 250,301 |
Investments | 2,024,986 | 2,190,113 |
Cash pledged or on deposit of CIP | 688 | 644 |
Other assets | 25,280 | 45,445 |
Liabilities: | ||
Notes payable of CIP | 1,911,579 | 2,083,314 |
Securities purchased payable and other liabilities of CIP | 110,263 | 230,897 |
Equity attributable to Virtus Investment Partners, Inc.: | ||
Noncontrolling interests | $ 5,196 | $ 5,917 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 12,158,319 | 12,033,247 |
Common stock, shares outstanding (in shares) | 7,254,786 | 7,181,554 |
Treasury stock, shares (in shares) | 4,903,533 | 4,851,693 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues | ||||
Revenues | $ 213,536 | $ 225,307 | $ 411,410 | $ 477,747 |
Operating Expenses | ||||
Employment expenses | 104,694 | 89,360 | 203,308 | 195,353 |
Distribution and other asset-based expenses | 25,460 | 28,583 | 49,175 | 61,429 |
Change in fair value of contingent consideration | (6,800) | 2,900 | (6,800) | 2,900 |
Depreciation expense | 1,485 | 962 | 2,630 | 1,897 |
Amortization expense | 15,808 | 14,624 | 30,199 | 29,286 |
Total operating expenses | 174,490 | 168,637 | 343,785 | 355,525 |
Operating Income (Loss) | 39,046 | 56,670 | 67,625 | 122,222 |
Other Income (Expense) | ||||
Other income (expense), net | (847) | 571 | (1,190) | 858 |
Total other income (expense), net | (3,566) | (31,631) | 1,357 | (47,670) |
Interest Income (Expense) | ||||
Total interest income (expense), net | 5,610 | 5,700 | 15,454 | 12,041 |
Income (Loss) Before Income Taxes | 41,090 | 30,739 | 84,436 | 86,593 |
Income tax expense (benefit) | 10,910 | 16,480 | 19,613 | 33,215 |
Net Income (Loss) | 30,180 | 14,259 | 64,823 | 53,378 |
Noncontrolling interests | 77 | 3,143 | 4,058 | (2,917) |
Net Income (Loss) Attributable to Virtus Investment Partners, Inc. | $ 30,257 | $ 17,402 | $ 68,881 | $ 50,461 |
Earnings (Loss) per Share—Basic (in dollars per share) | $ 4.14 | $ 2.34 | $ 9.47 | $ 6.73 |
Earnings (Loss) per Share—Diluted (in dollars per share) | $ 4.10 | $ 2.29 | $ 9.31 | $ 6.54 |
Weighted Average Shares Outstanding—Basic (in shares) | 7,308 | 7,449 | 7,277 | 7,496 |
Weighted Average Shares Outstanding—Diluted (in shares) | 7,385 | 7,607 | 7,398 | 7,721 |
Consolidated entity excluding consolidated investment products | ||||
Operating Expenses | ||||
Other operating expenses | $ 33,483 | $ 31,559 | $ 64,213 | $ 63,271 |
Other Income (Expense) | ||||
Realized and unrealized gain (loss) on investments, net | 1,717 | (10,543) | 4,387 | (13,525) |
Interest Income (Expense) | ||||
Interest expense | (6,217) | (2,825) | (11,222) | (5,104) |
Interest and dividend income | 2,675 | 529 | 5,913 | 857 |
Consolidated Investment Products | ||||
Operating Expenses | ||||
Other operating expenses | 360 | 649 | 1,060 | 1,389 |
Other Income (Expense) | ||||
Realized and unrealized gain (loss) on investments, net | (4,436) | (21,659) | (1,840) | (35,003) |
Interest Income (Expense) | ||||
Interest expense | (38,732) | (14,416) | (73,935) | (26,504) |
Interest and dividend income | 47,884 | 22,412 | 94,698 | 42,792 |
Investment management fees | ||||
Revenues | ||||
Revenues | 179,979 | 185,024 | 344,457 | 391,841 |
Distribution and service fees | ||||
Revenues | ||||
Revenues | 14,132 | 17,159 | 28,285 | 37,166 |
Administration and shareholder service fees | ||||
Revenues | ||||
Revenues | 18,240 | 21,982 | 36,599 | 46,326 |
Other income and fees | ||||
Revenues | ||||
Revenues | $ 1,185 | $ 1,142 | $ 2,069 | $ 2,414 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 30,180 | $ 14,259 | $ 64,823 | $ 53,378 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment, net of tax of $(42) and $176 for the three months ended June 30, 2023 and 2022, respectively and $(77) and $249 for the six months ended June 30, 2023 and 2022 | 112 | (237) | 211 | (287) |
Other comprehensive income (loss) | 112 | (237) | 211 | (287) |
Comprehensive income (loss) | 30,292 | 14,022 | 65,034 | 53,091 |
Comprehensive (income) loss attributable to noncontrolling interests | 77 | 3,143 | 4,058 | (2,917) |
Comprehensive Income (Loss) Attributable to Virtus Investment Partners, Inc. | $ 30,369 | $ 17,165 | $ 69,092 | $ 50,174 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustment, tax | $ (42) | $ 176 | $ (77) | $ 249 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash Flows from Operating Activities: | ||
Net income (loss) | $ 64,823 | $ 53,378 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation expense, intangible asset and other amortization | 33,576 | 32,223 |
Stock-based compensation | 12,404 | 14,119 |
Amortization of deferred commissions | 900 | 2,700 |
Payments of deferred commissions | (722) | (1,962) |
Equity in earnings of equity method investments | 1,151 | (977) |
Distributions from equity method investments | 1,080 | 2,102 |
Sales (purchases) of investments, net | 3,757 | (9,952) |
Change in fair value of contingent consideration | (6,800) | 2,900 |
Deferred taxes, net | (103) | (2,271) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net and other assets | 5,550 | 31,069 |
Accrued compensation and benefits, accounts payable, accrued liabilities and other liabilities | (71,676) | (110,581) |
Operating activities of consolidated investment products ("CIP"): | ||
Net cash provided by (used in) operating activities | 102,088 | 37,611 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (2,548) | (4,361) |
Acquisition of businesses, net of cash acquired of $4,395 and $8,443 for the six months ended June 30, 2023 and 2022, respectively | (108,999) | (19,773) |
Purchase of equity method investment | (11,645) | 0 |
Net cash provided by (used in) investing activities | (123,244) | (24,442) |
Cash Flows from Financing Activities: | ||
Borrowings on credit agreement | 50,000 | 0 |
Repayments on credit agreement | (11,375) | (11,375) |
Common stock dividends paid | (26,367) | (24,190) |
Repurchase of common shares | (10,000) | (70,000) |
Payment of contingent consideration | (27,179) | (33,036) |
Taxes paid related to net share settlement of restricted stock units | (13,222) | (15,284) |
Net contributions from (distributions to) noncontrolling interests | 2,459 | (3,598) |
Net cash provided by (used in) financing activities | (210,727) | (240,177) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 383 | (306) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (231,500) | (227,314) |
Cash, cash equivalents and restricted cash, beginning of period | 589,179 | 586,145 |
Cash, cash equivalents and restricted cash, end of period | 357,679 | 358,831 |
Non-Cash Investing Activities: | ||
Contingent consideration | 0 | 1,200 |
Non-Cash Financing Activities: | ||
Increase (decrease) to noncontrolling interests due to consolidation (deconsolidation) of CIP, net | (3,447) | (338) |
Common stock dividends payable | 12,056 | 11,229 |
Reconciliation of cash, cash equivalents and restricted cash | ||
Cash, cash equivalents and restricted cash at end of period | 357,679 | 358,831 |
Consolidated entity excluding consolidated investment products | ||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Realized and unrealized (gains) losses on investments, net | (4,379) | 13,562 |
Operating activities of consolidated investment products ("CIP"): | ||
Realized and unrealized (gains) losses on investments of CIP, net | (4,379) | 13,562 |
Reconciliation of cash, cash equivalents and restricted cash | ||
Cash and cash equivalents | 201,462 | |
Consolidated Investment Products | ||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Realized and unrealized (gains) losses on investments, net | (775) | 33,715 |
Operating activities of consolidated investment products ("CIP"): | ||
Realized and unrealized (gains) losses on investments of CIP, net | (775) | 33,715 |
Purchases of investments by CIP | (556,365) | (441,042) |
Sales of investments by CIP | 610,917 | 417,706 |
Net proceeds (purchases) of short-term investments and securities sold short by CIP | (271) | (45) |
Change in other assets and liabilities of CIP | 9,021 | 967 |
Cash Flows from Investing Activities: | ||
Change in cash and cash equivalents of CIP due to consolidation (deconsolidation), net | (52) | (308) |
Cash Flows from Financing Activities: | ||
Payments on borrowings by CIP | (175,043) | $ (82,694) |
Reconciliation of cash, cash equivalents and restricted cash | ||
Cash and cash equivalents | 155,529 | |
Cash pledged or on deposit of CIP | $ 688 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Cash Flows [Abstract] | ||
Acquisition of business, net of cash acquired | $ 4,395 | $ 8,443 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Total Attributed To Virtus Investment Partners, Inc. | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Non- controlling Interests |
Balance at beginning of period, common stock (in shares) at Dec. 31, 2021 | 7,506,151 | |||||||
Balance at beginning of period at Dec. 31, 2021 | $ 836,627 | $ 828,277 | $ 119 | $ 1,276,424 | $ 60,962 | $ 20 | $ (509,248) | $ 8,350 |
Balance at beginning of period, treasury stock (in shares) at Dec. 31, 2021 | 4,400,596 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 50,126 | 50,461 | 50,461 | (335) | ||||
Foreign currency translation adjustments | (287) | (287) | (287) | |||||
Net subscriptions (redemptions) and other | (1,018) | 0 | (1,018) | |||||
Cash dividends declared, common | (23,227) | (23,227) | 0 | (23,227) | ||||
Repurchases of common shares (in shares) | 347,355 | 347,355 | ||||||
Repurchases of common shares | (70,000) | (70,000) | $ (70,000) | |||||
Issuance of common shares related to employee stock transactions (in shares) | 116,541 | |||||||
Issuance of common shares related to employee stock transactions | 0 | 0 | $ 1 | (1) | ||||
Taxes paid on stock-based compensation | (15,284) | (15,284) | (15,284) | |||||
Stock-based compensation | 14,768 | 14,768 | 14,768 | |||||
Balance at end of period, common stock (in shares) at Jun. 30, 2022 | 7,275,337 | |||||||
Balance at end of period at Jun. 30, 2022 | 791,705 | 784,708 | $ 120 | 1,275,907 | 88,196 | (267) | $ (579,248) | 6,997 |
Balance at end of period, treasury stock (in shares) at Jun. 30, 2022 | 4,747,951 | |||||||
Balance at beginning of period at Dec. 31, 2021 | 138,965 | |||||||
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward] | ||||||||
Total net income (loss) attributable to noncontrolling interests | 3,252 | |||||||
Net subscriptions (redemptions) and other | (3,070) | |||||||
Balance at end of period at Jun. 30, 2022 | 139,147 | |||||||
Balance at beginning of period, common stock (in shares) at Mar. 31, 2022 | 7,472,829 | |||||||
Balance at beginning of period at Mar. 31, 2022 | 824,233 | 816,427 | $ 120 | 1,273,802 | 81,783 | (30) | $ (539,248) | 7,806 |
Balance at beginning of period, treasury stock (in shares) at Mar. 31, 2022 | 4,526,048 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 17,124 | 17,402 | 17,402 | (278) | ||||
Foreign currency translation adjustments | (237) | (237) | (237) | |||||
Net subscriptions (redemptions) and other | (531) | 0 | (531) | |||||
Cash dividends declared, common | (10,989) | (10,989) | (10,989) | |||||
Repurchases of common shares (in shares) | 221,903 | 221,903 | ||||||
Repurchases of common shares | (40,000) | (40,000) | $ (40,000) | |||||
Issuance of common shares related to employee stock transactions (in shares) | 24,411 | |||||||
Issuance of common shares related to employee stock transactions | 0 | 0 | ||||||
Taxes paid on stock-based compensation | (1,870) | (1,870) | (1,870) | |||||
Stock-based compensation | 3,975 | 3,975 | 3,975 | |||||
Balance at end of period, common stock (in shares) at Jun. 30, 2022 | 7,275,337 | |||||||
Balance at end of period at Jun. 30, 2022 | 791,705 | 784,708 | $ 120 | 1,275,907 | 88,196 | (267) | $ (579,248) | 6,997 |
Balance at end of period, treasury stock (in shares) at Jun. 30, 2022 | 4,747,951 | |||||||
Balance at beginning of period at Mar. 31, 2022 | 138,738 | |||||||
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward] | ||||||||
Total net income (loss) attributable to noncontrolling interests | (2,865) | |||||||
Net subscriptions (redemptions) and other | 3,274 | |||||||
Balance at end of period at Jun. 30, 2022 | $ 139,147 | |||||||
Balance at beginning of period, common stock (in shares) at Dec. 31, 2022 | 12,033,247 | 7,181,554 | ||||||
Balance at beginning of period at Dec. 31, 2022 | $ 822,936 | 817,019 | $ 120 | 1,286,244 | 130,261 | (358) | $ (599,248) | 5,917 |
Balance at beginning of period, treasury stock (in shares) at Dec. 31, 2022 | 4,851,693 | 4,851,693 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | $ 68,996 | 68,881 | 68,881 | 115 | ||||
Foreign currency translation adjustments | 211 | 211 | 211 | |||||
Net subscriptions (redemptions) and other | (836) | 0 | 0 | (836) | ||||
Cash dividends declared, common | (25,131) | (25,131) | (25,131) | |||||
Repurchases of common shares (in shares) | 51,840 | 51,840 | ||||||
Repurchases of common shares | (10,000) | (10,000) | $ (10,000) | |||||
Issuance of common shares related to employee stock transactions (in shares) | 125,072 | |||||||
Issuance of common shares related to employee stock transactions | 0 | 0 | $ 2 | (2) | ||||
Taxes paid on stock-based compensation | (13,222) | (13,222) | (13,222) | |||||
Stock-based compensation | $ 13,755 | 13,755 | 13,755 | |||||
Balance at end of period, common stock (in shares) at Jun. 30, 2023 | 12,158,319 | 7,254,786 | ||||||
Balance at end of period at Jun. 30, 2023 | $ 856,709 | 851,513 | $ 122 | 1,286,775 | 174,011 | (147) | $ (609,248) | 5,196 |
Balance at end of period, treasury stock (in shares) at Jun. 30, 2023 | 4,903,533 | 4,903,533 | ||||||
Balance at beginning of period at Dec. 31, 2022 | $ 113,718 | |||||||
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward] | ||||||||
Total net income (loss) attributable to noncontrolling interests | (4,173) | |||||||
Net subscriptions (redemptions) and other | 854 | |||||||
Balance at end of period at Jun. 30, 2023 | 110,399 | |||||||
Balance at beginning of period, common stock (in shares) at Mar. 31, 2023 | 7,288,394 | |||||||
Balance at beginning of period at Mar. 31, 2023 | 844,297 | 837,915 | $ 121 | 1,281,509 | 155,792 | (259) | $ (599,248) | 6,382 |
Balance at beginning of period, treasury stock (in shares) at Mar. 31, 2023 | 4,851,693 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 29,607 | 30,257 | 30,257 | (650) | ||||
Foreign currency translation adjustments | 112 | 112 | 112 | |||||
Net subscriptions (redemptions) and other | (536) | 0 | (536) | |||||
Cash dividends declared, common | (12,038) | (12,038) | (12,038) | |||||
Repurchases of common shares (in shares) | 51,840 | (51,840) | ||||||
Repurchases of common shares | (10,000) | (10,000) | $ (10,000) | |||||
Issuance of common shares related to employee stock transactions (in shares) | 18,232 | |||||||
Issuance of common shares related to employee stock transactions | 0 | 0 | $ 1 | (1) | ||||
Taxes paid on stock-based compensation | (1,013) | (1,013) | (1,013) | |||||
Stock-based compensation | $ 6,280 | 6,280 | 6,280 | |||||
Balance at end of period, common stock (in shares) at Jun. 30, 2023 | 12,158,319 | 7,254,786 | ||||||
Balance at end of period at Jun. 30, 2023 | $ 856,709 | $ 851,513 | $ 122 | $ 1,286,775 | $ 174,011 | $ (147) | $ (609,248) | $ 5,196 |
Balance at end of period, treasury stock (in shares) at Jun. 30, 2023 | 4,903,533 | 4,903,533 | ||||||
Balance at beginning of period at Mar. 31, 2023 | $ 106,630 | |||||||
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward] | ||||||||
Total net income (loss) attributable to noncontrolling interests | 573 | |||||||
Net subscriptions (redemptions) and other | 3,196 | |||||||
Balance at end of period at Jun. 30, 2023 | $ 110,399 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | |||
May 17, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||||
Cash dividends declared per common share (in dollars per share) | $ 1.65 | $ 1.65 | $ 1.50 | $ 3.30 | $ 3 |
Organization and Business
Organization and Business | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Organization and Business Virtus Investment Partners, Inc. (the "Company," "we," "us," "our" or "Virtus"), a Delaware corporation, operates in the investment management industry through its subsidiaries. The Company provides investment management and related services to individuals and institutions. The Company’s retail investment management services are provided to individuals through products consisting of: mutual funds registered pursuant to the Investment Company Act of 1940, as amended ("U.S. retail funds"); Undertaking for Collective Investment in Transferable Securities and Qualifying Investor Funds (collectively, "global funds") and collectively with U.S. retail funds, variable insurance funds, and exchange-traded funds ("ETFs"), the "open-end funds"); closed-end funds (collectively, with open-end funds, the "funds"); and retail separate accounts that include intermediary-sold and private client accounts. Our investment strategies are offered to institutional clients through separate accounts and pooled, or commingled, structures. We also provide subadvisory services to other investment advisers and serve as the collateral manager for structured products. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the Company’s financial condition and results of operations. Operating results for the six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the "2022 Annual Report on Form 10-K") filed with the Securities and Exchange Commission (the "SEC"). The Company’s significant accounting policies, which have been consistently applied, are summarized in its 2022 Annual Report on Form 10-K. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The Company's revenues are recognized when a performance obligation is satisfied, which occurs when control of the services is transferred to customers. Investment management fees, distribution and service fees, and administration and shareholder service fees are generally calculated as a percentage of average net assets of the investment portfolios managed. The net asset values from which these fees are calculated are variable in nature and subject to factors outside of the Company's control, such as additional investments, withdrawals and market performance. Because of this, these fees are considered constrained until the end of the contractual measurement period (monthly or quarterly), which is when asset values are generally determinable. Investment Management Fees by Source The following table summarizes investment management fees by source: Three Months Ended Six Months Ended (in thousands) 2023 2022 2023 2022 Investment management fees Open-end funds $ 78,161 $ 84,875 $ 149,427 $ 182,252 Closed-end funds 14,674 16,174 29,352 33,114 Retail separate accounts 42,803 45,312 82,882 94,915 Institutional accounts 44,341 38,663 82,796 81,560 Total investment management fees $ 179,979 $ 185,024 $ 344,457 $ 391,841 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions AlphaSimplex Group, LLC On April 1, 2023, the Company completed the acquisition of AlphaSimplex Group, LLC ("AlphaSimplex"), which was accounted for in accordance with Accounting Standards Codification ("ASC") 805, Business Combinations ("ASC 805"). The total purchase price paid of $113.4 million was allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of the acquisition. Goodwill of $48.3 million and intangible assets of $55.4 million were recorded for the acquisition. The Company expects $103.7 million of the purchase price, related to goodwill and intangibles, to be tax deductible over 15 years. The transaction consideration allocation is based upon preliminary information and is subject to change if additional information becomes available. The final fair value of the net assets acquired may result in adjustments to certain assets and liabilities, including goodwill. The revenues and operating income of AlphaSimplex were not material to the Company's results of operations for the three and six months ended June 30, 2023. The following table summarizes the identified acquired assets and liabilities assumed as of the AlphaSimplex acquisition date: April 1, 2023 (in thousands) Assets: Cash and cash equivalents $ 4,395 Investments 8,567 Accounts receivable 5,422 Furniture, equipment and leasehold improvements 4,161 Intangible assets 55,400 Goodwill 48,262 Other assets 9,126 Total Assets 135,333 Liabilities Accounts payable and accrued liabilities 21,939 Total Liabilities 21,939 Total Net Assets Acquired $ 113,394 Identifiable Intangible Assets Acquired In connection with the allocation of the AlphaSimplex purchase price, the Company identified the following intangible assets: April 1, 2023 Approximate Fair Value ( in thousands) Weighted Average of Useful Life (in years) Definite-lived intangible assets: Investment management agreements 52,000 10.5 Trade names 3,400 9.0 Total definite-lived intangible assets $ 55,400 The fair value of investment management agreements was estimated using a discounted cash flow method and the fair value of the trade names was estimated using a royalty savings method, each of which was prepared with the assistance of an independent valuation firm and approved by management. Stone Harbor Investment Partners On January 1, 2022, the Company acquired Stone Harbor Investment Partners, LLC ("Stone Harbor"), which was accounted for in accordance with ASC 805. The total purchase price of $30.1 million was allocated to the assets acquired and liabilities assumed, based upon their estimated fair values at the date of the acquisition, as well as goodwill of $10.3 million and definite-lived intangible assets of $10.8 million. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Intangible Assets, Net Activity in goodwill was as follows: (in thousands) Balance at December 31, 2022 $ 348,836 Acquisitions 48,262 Balance at June 30, 2023 $ 397,098 Below is a summary of intangible assets, net: Definite-Lived Indefinite-Lived Total (in thousands) Gross Book Value Accumulated Amortization Net Book Value Net Book Value Net Book Value Balances at December 31, 2022 $ 756,028 $ (355,807) $ 400,221 $ 42,298 $ 442,519 Additions 55,400 — 55,400 — 55,400 Intangible amortization — (30,136) (30,136) — (30,136) Balances at June 30, 2023 $ 811,428 $ (385,943) $ 425,485 $ 42,298 $ 467,783 Definite-lived intangible asset amortization for the remainder of fiscal year 2023 and succeeding fiscal years is estimated as follows: Fiscal Year Amount (in thousands) Remainder of 2023 $ 30,890 2024 56,739 2025 51,971 2026 50,991 2027 47,890 2028 and thereafter 187,004 Total $ 425,485 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2023 | |
Schedule of Investments [Abstract] | |
Investments | Investments Investments consist primarily of investments in the Company's sponsored products. The Company's investments, excluding the assets of consolidated investment products ("CIP") discussed in Note 16, at June 30, 2023 and December 31, 2022 were as follows: (in thousands) June 30, 2023 December 31, 2022 Investment securities - fair value $ 89,311 $ 76,999 Equity method investments (1) 22,517 11,448 Nonqualified retirement plan assets 11,499 10,154 Other investments 12 1,729 Total investments $ 123,339 $ 100,330 (1) The Company's equity method investments are valued on a three-month lag based upon the availability of financial information. On January 1, 2023, the Company made an additional investment in an existing minority interest in an affiliated manager for $11.6 million including transaction costs. Investment Securities - fair value Investment securities - fair value consist of investments in the Company's sponsored funds and separately managed accounts. The composition of the Company’s investment securities - fair value was as follows: June 30, 2023 December 31, 2022 (in thousands) Cost Fair Value Cost Fair Value Investment Securities - fair value Sponsored funds $ 77,563 $ 73,381 $ 67,472 $ 62,744 Equity securities 13,724 15,930 13,440 14,255 Total investment securities - fair value $ 91,287 $ 89,311 $ 80,912 $ 76,999 For the three and six months ended June 30, 2023, the Company recognized net realized gains of $0.8 million and $2.2 million, respectively, related to its investment securities - fair value. For the three and six months ended June 30, 2022, the Company recognized net realized losses of $0.1 million and $30.0 thousand, respectively, related to its investment securities - fair value. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of CIP discussed in Note 16, as of June 30, 2023 and December 31, 2022 by fair value hierarchy level were as follows: June 30, 2023 (in thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 163,053 $ — $ — $ 163,053 Investment securities - fair value Sponsored funds 73,381 — — 73,381 Equity securities 15,930 — — 15,930 Nonqualified retirement plan assets 11,499 — — 11,499 Total assets measured at fair value $ 263,863 $ — $ — $ 263,863 Liabilities Contingent consideration $ — $ — $ 54,910 $ 54,910 Total liabilities measured at fair value $ — $ — $ 54,910 $ 54,910 December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 287,126 $ — $ — $ 287,126 Investment securities - fair value Sponsored funds 62,744 — — 62,744 Equity securities 14,255 — — 14,255 Nonqualified retirement plan assets 10,154 — — 10,154 Total assets measured at fair value $ 374,279 $ — $ — $ 374,279 Liabilities Contingent consideration $ — $ — $ 78,100 $ 78,100 Total liabilities measured at fair value $ — $ — $ 78,100 $ 78,100 The following is a discussion of the valuation methodologies used for the Company’s assets measured at fair value: Cash equivalents represent investments in money market funds. Cash investments in money market funds are valued using published net asset values and are classified as Level 1. Sponsored funds represent investments in open-end funds, closed-end funds and ETFs for which the Company acts as the investment manager. The fair value of open-end funds is determined based on their published net asset values and are categorized as Level 1. The fair value of closed-end funds and ETFs is determined based on the official closing price on the exchange on which they are traded and are categorized as Level 1. Equity securities represent securities traded on active markets, are valued at the official closing price (typically the last sale or bid) on the exchange on which the securities are primarily traded and are categorized as Level 1. Nonqualified retirement plan assets represent mutual funds within the Company's nonqualified retirement plan whose fair value is determined based on their published net asset value and are categorized as Level 1. Contingent consideration represents liabilities associated with the Company's business combinations. The estimated fair values are measured with simulation models using unobservable market data inputs prepared with the assistance of an independent valuation firm. These liabilities are categorized as Level 3. Cash, accounts receivable, accounts payable and accrued liabilities equal or approximate fair value based on the short-term nature of these instruments. The following table presents a reconciliation of beginning and ending balances of recurring fair value measurements classified as Level 3: Three Months Ended Six Months Ended (in thousands) 2023 2022 2023 2022 Contingent consideration, beginning of period $ 61,710 $ 70,080 $ 78,100 $ 88,400 Additions for acquisition — — — 1,200 Reduction for payments made — — (16,390) (19,520) Increase (reduction) of liability related to re-measurement of fair value (6,800) 2,900 (6,800) 2,900 Contingent consideration, end of period $ 54,910 $ 72,980 $ 54,910 $ 72,980 |
Equity Transactions
Equity Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Equity Transactions | Equity Transactions Dividends Declared On May 17, 2023, the Company declared a quarterly cash dividend of $1.65 per common share to be paid on August 15, 2023 to stockholders of record at the close of business on July 31, 2023. Common Stock Repurchases During the three and six months ended June 30, 2023, the Company repurchased 51,840 common shares at a weighted average price of $192.87 per share, for a total cost, including fees and expenses, of $10.0 million under its share repurchase program. As of June 30, 2023, 776,512 shares remained available for repurchase. Under the terms of the program, the Company may repurchase shares of its common stock from time to time at its discretion through open market repurchases, privately negotiated transactions and/or other mechanisms, depending on price and prevailing market and business conditions. The program, which has no specified term, may be suspended or terminated at any time. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) by component were as follows: Six Months Ended (in thousands) 2023 2022 Foreign currency translation adjustments, beginning of period $ (358) $ 20 Net current-period other comprehensive income (loss) (1) 211 (287) Foreign currency translation adjustments, end of period $ (147) $ (267) (1) Consists of foreign currency translation adjustments, net of tax of $(77) and $249 for the six months ended June 30, 2023 and 2022, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Equity-based awards, including restricted stock units ("RSUs"), performance stock units ("PSUs"), stock options and unrestricted shares of common stock, may be granted to officers, employees and directors of the Company pursuant to the Company's Omnibus Incentive and Equity Plan (the "Omnibus Plan"). At June 30, 2023, 480,249 shares of common stock remained available for issuance of the 3,370,000 shares that are authorized for issuance under the Omnibus Plan. Stock-based compensation expense is summarized as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Stock-based compensation expense $ 6,655 $ 4,572 $ 12,404 $ 14,119 Restricted Stock Units Each RSU entitles the holder to one share of common stock when the restriction expires. RSUs may be time-vested or performance-contingent (PSUs) that convert into RSUs after performance measurement is complete and generally vest in one RSU activity, inclusive of PSUs, for the six months ended June 30, 2023 is summarized as follows: Number Weighted Average Outstanding at December 31, 2022 377,087 $ 178.21 Granted 202,882 $ 159.36 Forfeited (32,555) $ 140.35 Settled (196,757) $ 118.47 Outstanding at June 30, 2023 350,657 $ 204.34 For the six months ended June 30, 2023 and 2022, a total of 76,452 and 72,043 RSUs, respectively, were withheld by the Company as a result of net share settlements to settle minimum employee tax withholding obligations. The Company paid $13.2 million and $15.3 million for the six months ended June 30, 2023 and 2022, respectively, in minimum employee tax withholding obligations related to RSUs withheld for the net share settlements. These net share settlements had the effect of share repurchases by the Company as they reduced the number of shares that would have otherwise been issued as a result of the vesting. During the six months ended June 30, 2023, the Company granted 44,583 PSUs that contain performance-based metrics in addition to a service condition. Compensation expense for PSUs is generally recognized over a three-year service period based upon the value determined using a combination of (i) the intrinsic value method for awards that contain a performance metric that represents a "performance condition" in accordance with ASC 718, Stock Compensation ("ASC 718") and (ii) the Monte Carlo simulation valuation model for awards that contain a "market condition" performance metric under ASC 718. Compensation expense for PSU awards that contain a market condition is fixed at the date of grant and will not be adjusted in future periods based upon the achievement of the market condition. Compensation expense for PSU awards with a performance condition is recorded each period based upon a probability assessment of the expected outcome of the performance metric with a final adjustment upon measurement at the end of the performance period. As of June 30, 2023, unamortized stock-based compensation expense for unvested RSUs and PSUs was $39.3 million with a weighted-average remaining contractual life of 1.5 years. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Earnings (loss) per share ("EPS") is calculated in accordance with ASC 260, Earnings per Share . Basic EPS is computed by dividing net income (loss) attributable to Virtus Investment Partners, Inc. by the weighted-average number of common shares outstanding for the period, excluding dilution for potential common stock issuances. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, including shares issuable upon the vesting of RSUs and stock option exercises using the treasury stock method, as determined under the if-converted method. The computation of basic and diluted EPS is as follows: Three Months Ended June 30, Six Months Ended (in thousands, except per share amounts) 2023 2022 2023 2022 Net Income (Loss) $ 30,180 $ 14,259 $ 64,823 $ 53,378 Noncontrolling interests 77 3,143 4,058 (2,917) Net Income (Loss) Attributable to Virtus Investment Partners, Inc. $ 30,257 $ 17,402 $ 68,881 $ 50,461 Shares: Basic: Weighted-average number of shares outstanding 7,308 7,449 7,277 7,496 Plus: Incremental shares from assumed conversion of dilutive instruments 77 158 121 225 Diluted: Weighted-average number of shares outstanding 7,385 7,607 7,398 7,721 Earnings (Loss) per Share—Basic $ 4.14 $ 2.34 $ 9.47 $ 6.73 Earnings (Loss) per Share—Diluted $ 4.10 $ 2.29 $ 9.31 $ 6.54 The following table details the securities that have been excluded from the above computation of weighted-average number of shares for diluted EPS, because the effect would be anti-dilutive. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Restricted stock units 36 84 36 24 Total anti-dilutive securities 36 84 36 24 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In calculating the provision for income taxes, the Company uses an estimate of the annual effective tax rate based upon the facts and circumstances at each interim period. On a quarterly basis, the estimated annual effective tax rate is adjusted, as appropriate, based upon changes in facts and circumstances, if any, compared to those forecasted at the beginning of the fiscal year and at each interim period thereafter. The provision for income taxes reflected U.S. federal, state and local taxes at an estimated effective tax rate of 23.2% and 38.4% for the six months ended June 30, 2023 and 2022, respectively. The lower estimated effective tax rate for the six months ended June 30, 2023 was primarily due to excess tax benefits associated with stock-based compensation and the change in valuation allowances in the current year related to the tax effects of unrealized gains on certain Company investments. The higher effective tax rate in the prior year period was due to valuation allowances recorded for the tax effects of unrealized losses on certain Company investments. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Credit Agreement The Company's credit agreement, most recently amended on June 20, 2023, changing the base interest rate from LIBOR to SOFR, (the "Credit Agreement"), comprises (i) a $275.0 million term loan with a seven-year term (the "Term Loan") expiring in September 2028, and (ii) a $175.0 million revolving credit facility with a five-year term expiring in September 2026. During the six months ended June 30, 2023, the Company repaid $1.4 million outstanding under its Term Loan. At June 30, 2023, $260.2 million was outstanding under the Term Loan. In accordance with ASC 835, Interest , the amounts outstanding under the Company's Term Loan are presented on the Condensed Consolidated Balance Sheet net of related debt issuance costs, which were $6.0 million as of June 30, 2023. On April 3, 2023, the Company borrowed $50.0 million under the revolving credit facility to partially finance its acquisition of AlphaSimplex, $40.0 million of which was outstanding at June 30, 2023 (see Note 4 for further information). On August 4, 2023, the Company repaid $20.0 million outstanding under the credit facility. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters The Company is involved from time to time in litigation and arbitration, as well as examinations, inquiries and investigations by various regulatory bodies, involving its compliance with, among other things, securities laws, client investment guidelines, laws governing the activities of broker-dealers and other laws and regulations affecting its products and other activities. The Company records a liability when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. Based on information currently available, available insurance coverage, indemnities and established reserves, the Company believes that the outcomes of its legal and regulatory proceedings are not likely, either individually or in the aggregate, to have a material adverse effect on the Company's results of operations, cash flows or its consolidated financial condition. However, in the event of unexpected subsequent developments, and given the inherent unpredictability of these legal and regulatory matters, the Company can provide no assurance that its assessment of any legal matter will reflect the ultimate outcome, and an adverse outcome in certain matters could have a material adverse effect on the Company's results of operations or cash flows in particular quarterly or annual periods. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests Redeemable noncontrolling interests represent third-party investments in the Company's CIP and minority interests held in a consolidated affiliate. Minority interests held in the affiliate are subject to holder put rights and Company call rights at established multiples of earnings before interest, taxes, depreciation and amortization and, as such, are considered redeemable at other than fair value. The rights are exercisable at pre-established intervals (between four Redeemable noncontrolling interests for the six months ended June 30, 2023 included the following amounts: (in thousands) CIP Affiliate Noncontrolling Interests Total Balances at December 31, 2022 $ 18,268 $ 95,450 $ 113,718 Net income (loss) attributable to noncontrolling interests 1,014 3,461 4,475 Changes in redemption value (1) — (8,648) (8,648) Total net income (loss) attributable to noncontrolling interests 1,014 (5,187) (4,173) Net subscriptions (redemptions) and other 3,527 (2,673) 854 Balances at June 30, 2023 $ 22,809 $ 87,590 $ 110,399 (1) Relates to noncontrolling interests redeemable at other than fair value. |
Consolidation
Consolidation | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | Consolidation The condensed consolidated financial statements include the accounts of the Company, its subsidiaries and investment products that are consolidated. Voting interest entities ("VOE") are consolidated when the Company is considered to have a controlling financial interest, which is typically present when the Company owns a majority of the voting interest in an entity or otherwise has the power to govern the financial and operating policies of the entity. The Company evaluates any variable interest entity ("VIE") in which the Company has a variable interest for consolidation. A VIE is an entity in which either (i) the equity investment at risk is not sufficient to permit the entity to finance its own activities without additional financial support, or (ii) where as a group, the holders of the equity investment at risk do not possess any one of the following: (a) the power through voting or similar rights to direct the activities that most significantly impact the entity's economic performance, (b) the obligation to absorb expected losses or the right to receive expected residual returns of the entity, or (c) proportionate voting and economic interests and where substantially all of the entity's activities either involve or are conducted on behalf of an investor with disproportionately fewer voting rights. If an entity has any of these characteristics, it is considered a VIE and is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that has both the power to direct the activities that most significantly impact the VIE's economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE. In the normal course of its business, the Company sponsors various investment products, some of which are consolidated by the Company. CIP includes both VOEs, made up primarily of open-end funds in which the Company holds a controlling financial interest, and VIEs, which consist of collateralized loan obligations ("CLO") and certain global and private funds of which the Company is considered the primary beneficiary. The consolidation and deconsolidation of these investment products have no impact on net income (loss) attributable to Virtus Investment Partners, Inc. The Company's risk with respect to these investment products is limited to its beneficial interests in these products. The Company has no right to the benefits from, and does not bear the risks associated with, these investment products beyond the Company's investments in, and fees generated from, these products. The following table presents the balances of CIP that, after intercompany eliminations, were reflected on the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022: As of June 30, 2023 December 31, 2022 VOEs VIEs VOEs VIEs (in thousands) CLOs Other CLOs Other Cash and cash equivalents $ 906 $ 153,549 $ 1,762 $ 1,153 $ 249,003 $ 789 Investments 23,222 1,933,812 67,952 24,669 2,106,764 58,680 Other assets 180 23,545 1,555 295 43,993 1,157 Notes payable — (1,911,579) — — (2,083,314) — Securities purchased payable and other liabilities (662) (108,794) (807) (573) (230,141) (183) Noncontrolling interests (7,816) (5,196) (14,993) (7,879) (5,917) (10,389) Net interests in CIP $ 15,830 $ 85,337 $ 55,469 $ 17,665 $ 80,388 $ 50,054 Consolidated CLOs The majority of the Company's CIP that are VIEs are CLOs. At June 30, 2023, the Company consolidated seven CLOs. The financial information of certain CLOs is included on the Company's condensed consolidated financial statements on a one-month lag based upon the availability of their financial information. A majority-owned consolidated private fund, whose primary purpose is to invest in CLOs for which the Company serves as the collateral manager, is also included. Investments of CLOs The CLOs held investments of $1.9 billion at June 30, 2023 consisting of bank loan investments that comprise the majority of the CLOs' portfolio asset collateral and are senior secured corporate loans across a variety of industries. These bank loan investments mature at various dates between 2023 and 2032 and pay interest at LIBOR or SOFR plus a spread of up to 9.0%. The CLOs may elect to reinvest any prepayments received on bank loan investments up until the periods between October 2019 and October 2026, depending on the CLO. Generally, subsequent prepayments received after the reinvestment period must be used to pay down the note obligations. At June 30, 2023, the fair value of the senior bank loans was less than the unpaid principal balance by $154.4 million. At June 30, 2023, there were no material collateral assets in default. Notes Payable of CLOs The CLOs held notes payable with a total value, at par, of $2.2 billion at June 30, 2023, consisting of senior secured floating rate notes payable with a par value of $2.0 billion and subordinated notes with a par value of $261.2 million. These note obligations bear interest at variable rates based on LIBOR plus a pre-defined spread ranging from 0.8% to 9.1%. The principal amounts outstanding of these note obligations mature on dates ranging from October 2027 to October 2034. The Company's beneficial interests and maximum exposure to loss related to these consolidated CLOs is limited to (i) ownership in the subordinated notes, and (ii) accrued management fees. The secured notes of the consolidated CLOs have contractual recourse only to the related assets of the CLO and are classified as financial liabilities. Although these beneficial interests are eliminated upon consolidation, the application of the measurement alternative prescribed by ASU 2014-13, Consolidation (Topic 810) ("ASU 2014-13") results in the net assets of the consolidated CLOs shown above to be equivalent to the beneficial interests retained by the Company at June 30, 2023, as shown in the table below: (in thousands) Subordinated notes $ 82,971 Accrued investment management fees 2,366 Total Beneficial Interests $ 85,337 The following table represents income and expenses of the consolidated CLOs included on the Company’s Condensed Consolidated Statements of Operations for the period indicated: Six Months Ended June 30, 2023 (in thousands) Income: Realized and unrealized gain (loss), net $ (4,326) Interest income 91,682 Total Income 87,356 Expenses: Other operating expenses 810 Interest expense 73,935 Total Expense 74,745 Noncontrolling interests (115) Net Income (Loss) Attributable to CLOs $ 12,496 As summarized in the table below, the application of the measurement alternative as prescribed by ASU 2014-13 results in the consolidated net income summarized above to be equivalent to the Company’s own economic interests in the consolidated CLOs, which are eliminated upon consolidation: Six Months Ended June 30, 2023 (in thousands) Distributions received and unrealized gains (losses) on the subordinated notes held by the Company $ 7,952 Investment management fees 4,544 Total Economic Interests $ 12,496 Fair Value Measurements of CIP The assets and liabilities of CIP measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 by fair value hierarchy level were as follows: As of June 30, 2023 (in thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 153,549 $ — $ — $ 153,549 Debt investments 278 1,952,096 42,175 1,994,549 Equity investments 27,439 1,633 1,365 30,437 Total assets measured at fair value $ 181,266 $ 1,953,729 $ 43,540 $ 2,178,535 Liabilities Notes payable $ — $ 1,911,579 $ — $ 1,911,579 Short sales 511 — — 511 Total liabilities measured at fair value $ 511 $ 1,911,579 $ — $ 1,912,090 As of December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 249,003 $ — $ — $ 249,003 Debt investments 243 2,119,082 42,246 2,161,571 Equity investments 25,003 2,204 1,335 28,542 Total assets measured at fair value $ 274,249 $ 2,121,286 $ 43,581 $ 2,439,116 Liabilities Notes payable $ — $ 2,083,314 $ — $ 2,083,314 Short sales 414 — — 414 Total liabilities measured at fair value $ 414 $ 2,083,314 $ — $ 2,083,728 The following is a discussion of the valuation methodologies used for the assets and liabilities of the Company’s CIP measured at fair value: Cash equivalents represent investments in money market funds. Cash investments in money market funds are valued using published net asset values and are classified as Level 1. Debt and equity investments represent the underlying debt, equity and other securities held in CIP. Equity investments are valued at the official closing price on the exchange on which the securities are traded and are generally categorized within Level 1. Level 2 investments represent most debt securities, including bank loans and certain equity securities (including non-U.S. securities), for which closing prices are not readily available or are deemed to not reflect readily available market prices, and are valued using an independent pricing service. Debt investments are valued based on quotations received from independent pricing services or from dealers who make markets in such securities. Bank loan investments, which are included as debt investments, are generally priced at the average mid-point of bid and ask quotations obtained from a third-party pricing service. Fair value may also be based upon valuations obtained from independent third-party brokers or dealers utilizing matrix pricing models that consider information regarding securities with similar characteristics. In certain instances, fair value has been determined utilizing discounted cash flow analyses or single broker non-binding quotes. Depending on the nature of the inputs, these assets are classified as Level 1, 2 or 3 within the fair value measurement hierarchy. Level 3 investments include debt and equity securities that are not widely traded, are illiquid or are priced by dealers based on pricing models used by market makers in the security. Notes payable represent notes issued by CIP CLOs and are measured using the measurement alternative in ASU 2014-13. Accordingly, the fair value of CLO liabilities was measured as the fair value of CLO assets less the sum of (i) the fair value of the beneficial interests held by the Company, and (ii) the carrying value of any beneficial interests that represent compensation for services. The fair value of the beneficial interests held by the Company is based on third-party pricing information without adjustment. Short sales are transactions in which a security is sold that is not owned or is owned but there is no intention to deliver, in anticipation that the price of the security will decline. Short sales are recorded on the Condensed Consolidated Balance Sheets within other liabilities of CIP and are classified as Level 1 based on the underlying equity security. The securities purchased payable at June 30, 2023 and December 31, 2022 approximated fair value due to the short-term nature of the instruments. The following table is a reconciliation of assets of CIP for Level 3 investments for which significant unobservable inputs were used to determine fair value: Six Months Ended June 30, (in thousands) 2023 2022 Balance at beginning of period $ 43,581 $ 3,157 Realized gains (losses), net (3,299) 27 Change in unrealized gains (losses), net 2,656 (930) Purchases 2,903 — Amortization 176 (9) Sales (7,231) (2,135) Transfers to Level 2 (48,337) (36,833) Transfers from Level 2 53,091 68,480 Balance at end of period (1) $ 43,540 $ 31,757 (1) The investments that are categorized as Level 3 were valued utilizing third-party pricing information without adjustment. Transfers in and/or out of levels are reflected when significant inputs, including market inputs or performance attributes, used for the fair value measurement become observable/unobservable at period end. Nonconsolidated VIEs The Company serves as the collateral manager for other CLOs that are not consolidated. The assets and liabilities of these CLOs reside in bankruptcy remote, special purpose entities in which the Company has no ownership of, nor holds any notes issued by, the CLOs, and provides neither recourse nor guarantees. The Company has determined that the investment management fees it receives for serving as collateral manager for these CLOs did not represent a variable interest as (i) the fees the Company earns are compensation for services provided and are commensurate with the level of effort required to provide the investment management services, (ii) the Company does not hold other interests in the CLOs that individually, or in the aggregate, would absorb more than an insignificant amount of the CLOs' expected losses or receive more than an insignificant amount of the CLOs' expected residual return, and (iii) the investment management arrangement only includes terms, conditions and amounts that are customarily present in arrangements for similar services negotiated at arm's length. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the Company’s financial condition and results of operations. Operating results for the six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the "2022 Annual Report on Form 10-K") filed with the Securities and Exchange Commission (the "SEC"). The Company’s significant accounting policies, which have been consistently applied, are summarized in its 2022 Annual Report on Form 10-K. |
Fair Value Measurements | The following is a discussion of the valuation methodologies used for the Company’s assets measured at fair value: Cash equivalents represent investments in money market funds. Cash investments in money market funds are valued using published net asset values and are classified as Level 1. Sponsored funds represent investments in open-end funds, closed-end funds and ETFs for which the Company acts as the investment manager. The fair value of open-end funds is determined based on their published net asset values and are categorized as Level 1. The fair value of closed-end funds and ETFs is determined based on the official closing price on the exchange on which they are traded and are categorized as Level 1. Equity securities represent securities traded on active markets, are valued at the official closing price (typically the last sale or bid) on the exchange on which the securities are primarily traded and are categorized as Level 1. Nonqualified retirement plan assets represent mutual funds within the Company's nonqualified retirement plan whose fair value is determined based on their published net asset value and are categorized as Level 1. Contingent consideration represents liabilities associated with the Company's business combinations. The estimated fair values are measured with simulation models using unobservable market data inputs prepared with the assistance of an independent valuation firm. These liabilities are categorized as Level 3. Cash, accounts receivable, accounts payable and accrued liabilities equal or approximate fair value based on the short-term nature of these instruments. Cash equivalents represent investments in money market funds. Cash investments in money market funds are valued using published net asset values and are classified as Level 1. Debt and equity investments represent the underlying debt, equity and other securities held in CIP. Equity investments are valued at the official closing price on the exchange on which the securities are traded and are generally categorized within Level 1. Level 2 investments represent most debt securities, including bank loans and certain equity securities (including non-U.S. securities), for which closing prices are not readily available or are deemed to not reflect readily available market prices, and are valued using an independent pricing service. Debt investments are valued based on quotations received from independent pricing services or from dealers who make markets in such securities. Bank loan investments, which are included as debt investments, are generally priced at the average mid-point of bid and ask quotations obtained from a third-party pricing service. Fair value may also be based upon valuations obtained from independent third-party brokers or dealers utilizing matrix pricing models that consider information regarding securities with similar characteristics. In certain instances, fair value has been determined utilizing discounted cash flow analyses or single broker non-binding quotes. Depending on the nature of the inputs, these assets are classified as Level 1, 2 or 3 within the fair value measurement hierarchy. Level 3 investments include debt and equity securities that are not widely traded, are illiquid or are priced by dealers based on pricing models used by market makers in the security. Notes payable represent notes issued by CIP CLOs and are measured using the measurement alternative in ASU 2014-13. Accordingly, the fair value of CLO liabilities was measured as the fair value of CLO assets less the sum of (i) the fair value of the beneficial interests held by the Company, and (ii) the carrying value of any beneficial interests that represent compensation for services. The fair value of the beneficial interests held by the Company is based on third-party pricing information without adjustment. Short sales are transactions in which a security is sold that is not owned or is owned but there is no intention to deliver, in anticipation that the price of the security will decline. Short sales are recorded on the Condensed Consolidated Balance Sheets within other liabilities of CIP and are classified as Level 1 based on the underlying equity security. |
Nonconsolidated VIEs | Nonconsolidated VIEs The Company serves as the collateral manager for other CLOs that are not consolidated. The assets and liabilities of these CLOs reside in bankruptcy remote, special purpose entities in which the Company has no ownership of, nor holds any notes issued by, the CLOs, and provides neither recourse nor guarantees. The Company has determined that the investment management fees it receives for serving as collateral manager for these CLOs did not represent a variable interest as (i) the fees the Company earns are compensation for services provided and are commensurate with the level of effort required to provide the investment management services, (ii) the Company does not hold other interests in the CLOs that individually, or in the aggregate, would absorb more than an insignificant amount of the CLOs' expected losses or receive more than an insignificant amount of the CLOs' expected residual return, and (iii) the investment management arrangement only includes terms, conditions and amounts that are customarily present in arrangements for similar services negotiated at arm's length. |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Investment Management Fees by Source | The following table summarizes investment management fees by source: Three Months Ended Six Months Ended (in thousands) 2023 2022 2023 2022 Investment management fees Open-end funds $ 78,161 $ 84,875 $ 149,427 $ 182,252 Closed-end funds 14,674 16,174 29,352 33,114 Retail separate accounts 42,803 45,312 82,882 94,915 Institutional accounts 44,341 38,663 82,796 81,560 Total investment management fees $ 179,979 $ 185,024 $ 344,457 $ 391,841 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the identified acquired assets and liabilities assumed as of the AlphaSimplex acquisition date: April 1, 2023 (in thousands) Assets: Cash and cash equivalents $ 4,395 Investments 8,567 Accounts receivable 5,422 Furniture, equipment and leasehold improvements 4,161 Intangible assets 55,400 Goodwill 48,262 Other assets 9,126 Total Assets 135,333 Liabilities Accounts payable and accrued liabilities 21,939 Total Liabilities 21,939 Total Net Assets Acquired $ 113,394 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | In connection with the allocation of the AlphaSimplex purchase price, the Company identified the following intangible assets: April 1, 2023 Approximate Fair Value ( in thousands) Weighted Average of Useful Life (in years) Definite-lived intangible assets: Investment management agreements 52,000 10.5 Trade names 3,400 9.0 Total definite-lived intangible assets $ 55,400 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets, Net | Activity in goodwill was as follows: (in thousands) Balance at December 31, 2022 $ 348,836 Acquisitions 48,262 Balance at June 30, 2023 $ 397,098 Below is a summary of intangible assets, net: Definite-Lived Indefinite-Lived Total (in thousands) Gross Book Value Accumulated Amortization Net Book Value Net Book Value Net Book Value Balances at December 31, 2022 $ 756,028 $ (355,807) $ 400,221 $ 42,298 $ 442,519 Additions 55,400 — 55,400 — 55,400 Intangible amortization — (30,136) (30,136) — (30,136) Balances at June 30, 2023 $ 811,428 $ (385,943) $ 425,485 $ 42,298 $ 467,783 |
Schedule of Estimated Amortization Expense of Intangible Assets Succeeding Years | Definite-lived intangible asset amortization for the remainder of fiscal year 2023 and succeeding fiscal years is estimated as follows: Fiscal Year Amount (in thousands) Remainder of 2023 $ 30,890 2024 56,739 2025 51,971 2026 50,991 2027 47,890 2028 and thereafter 187,004 Total $ 425,485 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Schedule of Investments [Abstract] | |
Schedule of Investments | The Company's investments, excluding the assets of consolidated investment products ("CIP") discussed in Note 16, at June 30, 2023 and December 31, 2022 were as follows: (in thousands) June 30, 2023 December 31, 2022 Investment securities - fair value $ 89,311 $ 76,999 Equity method investments (1) 22,517 11,448 Nonqualified retirement plan assets 11,499 10,154 Other investments 12 1,729 Total investments $ 123,339 $ 100,330 (1) The Company's equity method investments are valued on a three-month lag based upon the availability of financial information. On January 1, 2023, the Company made an additional investment in an existing minority interest in an affiliated manager for $11.6 million including transaction costs. |
Schedule of Marketable Securities | The composition of the Company’s investment securities - fair value was as follows: June 30, 2023 December 31, 2022 (in thousands) Cost Fair Value Cost Fair Value Investment Securities - fair value Sponsored funds $ 77,563 $ 73,381 $ 67,472 $ 62,744 Equity securities 13,724 15,930 13,440 14,255 Total investment securities - fair value $ 91,287 $ 89,311 $ 80,912 $ 76,999 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of CIP discussed in Note 16, as of June 30, 2023 and December 31, 2022 by fair value hierarchy level were as follows: June 30, 2023 (in thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 163,053 $ — $ — $ 163,053 Investment securities - fair value Sponsored funds 73,381 — — 73,381 Equity securities 15,930 — — 15,930 Nonqualified retirement plan assets 11,499 — — 11,499 Total assets measured at fair value $ 263,863 $ — $ — $ 263,863 Liabilities Contingent consideration $ — $ — $ 54,910 $ 54,910 Total liabilities measured at fair value $ — $ — $ 54,910 $ 54,910 December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 287,126 $ — $ — $ 287,126 Investment securities - fair value Sponsored funds 62,744 — — 62,744 Equity securities 14,255 — — 14,255 Nonqualified retirement plan assets 10,154 — — 10,154 Total assets measured at fair value $ 374,279 $ — $ — $ 374,279 Liabilities Contingent consideration $ — $ — $ 78,100 $ 78,100 Total liabilities measured at fair value $ — $ — $ 78,100 $ 78,100 The assets and liabilities of CIP measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 by fair value hierarchy level were as follows: As of June 30, 2023 (in thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 153,549 $ — $ — $ 153,549 Debt investments 278 1,952,096 42,175 1,994,549 Equity investments 27,439 1,633 1,365 30,437 Total assets measured at fair value $ 181,266 $ 1,953,729 $ 43,540 $ 2,178,535 Liabilities Notes payable $ — $ 1,911,579 $ — $ 1,911,579 Short sales 511 — — 511 Total liabilities measured at fair value $ 511 $ 1,911,579 $ — $ 1,912,090 As of December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 249,003 $ — $ — $ 249,003 Debt investments 243 2,119,082 42,246 2,161,571 Equity investments 25,003 2,204 1,335 28,542 Total assets measured at fair value $ 274,249 $ 2,121,286 $ 43,581 $ 2,439,116 Liabilities Notes payable $ — $ 2,083,314 $ — $ 2,083,314 Short sales 414 — — 414 Total liabilities measured at fair value $ 414 $ 2,083,314 $ — $ 2,083,728 |
Schedule of Liabilities of Consolidated Sponsored Investment Products For Level 3 Investments, Unobservable Inputs Used to Determine Fair Value | The following table presents a reconciliation of beginning and ending balances of recurring fair value measurements classified as Level 3: Three Months Ended Six Months Ended (in thousands) 2023 2022 2023 2022 Contingent consideration, beginning of period $ 61,710 $ 70,080 $ 78,100 $ 88,400 Additions for acquisition — — — 1,200 Reduction for payments made — — (16,390) (19,520) Increase (reduction) of liability related to re-measurement of fair value (6,800) 2,900 (6,800) 2,900 Contingent consideration, end of period $ 54,910 $ 72,980 $ 54,910 $ 72,980 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive income (loss) by component were as follows: Six Months Ended (in thousands) 2023 2022 Foreign currency translation adjustments, beginning of period $ (358) $ 20 Net current-period other comprehensive income (loss) (1) 211 (287) Foreign currency translation adjustments, end of period $ (147) $ (267) (1) Consists of foreign currency translation adjustments, net of tax of $(77) and $249 for the six months ended June 30, 2023 and 2022, respectively. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Based Compensation Expense | Stock-based compensation expense is summarized as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Stock-based compensation expense $ 6,655 $ 4,572 $ 12,404 $ 14,119 |
Schedule of Restricted Stock Units Activity | RSU activity, inclusive of PSUs, for the six months ended June 30, 2023 is summarized as follows: Number Weighted Average Outstanding at December 31, 2022 377,087 $ 178.21 Granted 202,882 $ 159.36 Forfeited (32,555) $ 140.35 Settled (196,757) $ 118.47 Outstanding at June 30, 2023 350,657 $ 204.34 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The computation of basic and diluted EPS is as follows: Three Months Ended June 30, Six Months Ended (in thousands, except per share amounts) 2023 2022 2023 2022 Net Income (Loss) $ 30,180 $ 14,259 $ 64,823 $ 53,378 Noncontrolling interests 77 3,143 4,058 (2,917) Net Income (Loss) Attributable to Virtus Investment Partners, Inc. $ 30,257 $ 17,402 $ 68,881 $ 50,461 Shares: Basic: Weighted-average number of shares outstanding 7,308 7,449 7,277 7,496 Plus: Incremental shares from assumed conversion of dilutive instruments 77 158 121 225 Diluted: Weighted-average number of shares outstanding 7,385 7,607 7,398 7,721 Earnings (Loss) per Share—Basic $ 4.14 $ 2.34 $ 9.47 $ 6.73 Earnings (Loss) per Share—Diluted $ 4.10 $ 2.29 $ 9.31 $ 6.54 |
Schedule of Securities Excluded from Computation of Diluted EPS | The following table details the securities that have been excluded from the above computation of weighted-average number of shares for diluted EPS, because the effect would be anti-dilutive. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Restricted stock units 36 84 36 24 Total anti-dilutive securities 36 84 36 24 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
Schedule of Redeemable Noncontrolling Interest | Redeemable noncontrolling interests for the six months ended June 30, 2023 included the following amounts: (in thousands) CIP Affiliate Noncontrolling Interests Total Balances at December 31, 2022 $ 18,268 $ 95,450 $ 113,718 Net income (loss) attributable to noncontrolling interests 1,014 3,461 4,475 Changes in redemption value (1) — (8,648) (8,648) Total net income (loss) attributable to noncontrolling interests 1,014 (5,187) (4,173) Net subscriptions (redemptions) and other 3,527 (2,673) 854 Balances at June 30, 2023 $ 22,809 $ 87,590 $ 110,399 (1) Relates to noncontrolling interests redeemable at other than fair value. |
Consolidation (Tables)
Consolidation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Condensed Consolidated Balance Sheets | The following table presents the balances of CIP that, after intercompany eliminations, were reflected on the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022: As of June 30, 2023 December 31, 2022 VOEs VIEs VOEs VIEs (in thousands) CLOs Other CLOs Other Cash and cash equivalents $ 906 $ 153,549 $ 1,762 $ 1,153 $ 249,003 $ 789 Investments 23,222 1,933,812 67,952 24,669 2,106,764 58,680 Other assets 180 23,545 1,555 295 43,993 1,157 Notes payable — (1,911,579) — — (2,083,314) — Securities purchased payable and other liabilities (662) (108,794) (807) (573) (230,141) (183) Noncontrolling interests (7,816) (5,196) (14,993) (7,879) (5,917) (10,389) Net interests in CIP $ 15,830 $ 85,337 $ 55,469 $ 17,665 $ 80,388 $ 50,054 |
Schedule of VIE Consolidated Investment Product | Although these beneficial interests are eliminated upon consolidation, the application of the measurement alternative prescribed by ASU 2014-13, Consolidation (Topic 810) ("ASU 2014-13") results in the net assets of the consolidated CLOs shown above to be equivalent to the beneficial interests retained by the Company at June 30, 2023, as shown in the table below: (in thousands) Subordinated notes $ 82,971 Accrued investment management fees 2,366 Total Beneficial Interests $ 85,337 The following table represents income and expenses of the consolidated CLOs included on the Company’s Condensed Consolidated Statements of Operations for the period indicated: Six Months Ended June 30, 2023 (in thousands) Income: Realized and unrealized gain (loss), net $ (4,326) Interest income 91,682 Total Income 87,356 Expenses: Other operating expenses 810 Interest expense 73,935 Total Expense 74,745 Noncontrolling interests (115) Net Income (Loss) Attributable to CLOs $ 12,496 As summarized in the table below, the application of the measurement alternative as prescribed by ASU 2014-13 results in the consolidated net income summarized above to be equivalent to the Company’s own economic interests in the consolidated CLOs, which are eliminated upon consolidation: Six Months Ended June 30, 2023 (in thousands) Distributions received and unrealized gains (losses) on the subordinated notes held by the Company $ 7,952 Investment management fees 4,544 Total Economic Interests $ 12,496 |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of CIP discussed in Note 16, as of June 30, 2023 and December 31, 2022 by fair value hierarchy level were as follows: June 30, 2023 (in thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 163,053 $ — $ — $ 163,053 Investment securities - fair value Sponsored funds 73,381 — — 73,381 Equity securities 15,930 — — 15,930 Nonqualified retirement plan assets 11,499 — — 11,499 Total assets measured at fair value $ 263,863 $ — $ — $ 263,863 Liabilities Contingent consideration $ — $ — $ 54,910 $ 54,910 Total liabilities measured at fair value $ — $ — $ 54,910 $ 54,910 December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 287,126 $ — $ — $ 287,126 Investment securities - fair value Sponsored funds 62,744 — — 62,744 Equity securities 14,255 — — 14,255 Nonqualified retirement plan assets 10,154 — — 10,154 Total assets measured at fair value $ 374,279 $ — $ — $ 374,279 Liabilities Contingent consideration $ — $ — $ 78,100 $ 78,100 Total liabilities measured at fair value $ — $ — $ 78,100 $ 78,100 The assets and liabilities of CIP measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 by fair value hierarchy level were as follows: As of June 30, 2023 (in thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 153,549 $ — $ — $ 153,549 Debt investments 278 1,952,096 42,175 1,994,549 Equity investments 27,439 1,633 1,365 30,437 Total assets measured at fair value $ 181,266 $ 1,953,729 $ 43,540 $ 2,178,535 Liabilities Notes payable $ — $ 1,911,579 $ — $ 1,911,579 Short sales 511 — — 511 Total liabilities measured at fair value $ 511 $ 1,911,579 $ — $ 1,912,090 As of December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 249,003 $ — $ — $ 249,003 Debt investments 243 2,119,082 42,246 2,161,571 Equity investments 25,003 2,204 1,335 28,542 Total assets measured at fair value $ 274,249 $ 2,121,286 $ 43,581 $ 2,439,116 Liabilities Notes payable $ — $ 2,083,314 $ — $ 2,083,314 Short sales 414 — — 414 Total liabilities measured at fair value $ 414 $ 2,083,314 $ — $ 2,083,728 |
Schedule of Reconciliation of Assets of Consolidated Sponsored Investment Products For Level 3 Investments, Unobservable Inputs Used to Determine Fair Value | The following table is a reconciliation of assets of CIP for Level 3 investments for which significant unobservable inputs were used to determine fair value: Six Months Ended June 30, (in thousands) 2023 2022 Balance at beginning of period $ 43,581 $ 3,157 Realized gains (losses), net (3,299) 27 Change in unrealized gains (losses), net 2,656 (930) Purchases 2,903 — Amortization 176 (9) Sales (7,231) (2,135) Transfers to Level 2 (48,337) (36,833) Transfers from Level 2 53,091 68,480 Balance at end of period (1) $ 43,540 $ 31,757 (1) The investments that are categorized as Level 3 were valued utilizing third-party pricing information without adjustment. Transfers in and/or out of levels are reflected when significant inputs, including market inputs or performance attributes, used for the fair value measurement become observable/unobservable at period end. |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 213,536 | $ 225,307 | $ 411,410 | $ 477,747 |
Total investment management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 179,979 | 185,024 | 344,457 | 391,841 |
Open-end funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 78,161 | 84,875 | 149,427 | 182,252 |
Closed-end funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 14,674 | 16,174 | 29,352 | 33,114 |
Retail separate accounts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 42,803 | 45,312 | 82,882 | 94,915 |
Institutional accounts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 44,341 | $ 38,663 | $ 82,796 | $ 81,560 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Jan. 01, 2022 | Jun. 30, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 397,098 | $ 348,836 | ||
AlphaSimplex Group, LLC | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 113,400 | |||
Goodwill | 48,262 | |||
Intangible assets | 55,400 | |||
Business acquisition, goodwill, expected tax deductible amount | $ 103,700 | |||
Business acquisition, goodwill, expected tax deductible period | 15 years | |||
Stone Harbor Investment Partners, LLC | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 30,100 | |||
Goodwill | 10,300 | |||
Intangible assets | $ 10,800 |
Acquisitions - Recognized Ident
Acquisitions - Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Apr. 01, 2023 | Dec. 31, 2022 |
Assets: | |||
Goodwill | $ 397,098 | $ 348,836 | |
AlphaSimplex Group, LLC | |||
Assets: | |||
Cash and cash equivalents | $ 4,395 | ||
Investments | 8,567 | ||
Accounts receivable | 5,422 | ||
Furniture, equipment and leasehold improvements | 4,161 | ||
Intangible assets | 55,400 | ||
Goodwill | 48,262 | ||
Other assets | 9,126 | ||
Total Assets | 135,333 | ||
Liabilities | |||
Accounts payable and accrued liabilities | 21,939 | ||
Total Liabilities | 21,939 | ||
Total Net Assets Acquired | $ 113,394 |
Acquisitions - Intangible Asset
Acquisitions - Intangible Assets Acquired (Details) - AlphaSimplex Group, LLC $ in Thousands | Apr. 01, 2023 USD ($) |
Definite-lived intangible assets: | |
Approximate Fair Value (in thousands) | $ 55,400 |
Investment management agreements | |
Definite-lived intangible assets: | |
Approximate Fair Value (in thousands) | $ 52,000 |
Weighted Average of Useful Life (in years) | 10 years 6 months |
Trade names | |
Definite-lived intangible assets: | |
Approximate Fair Value (in thousands) | $ 3,400 |
Weighted Average of Useful Life (in years) | 9 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Goodwill and Intangible Assets, Net (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Goodwill | |
Balance, beginning of period | $ 348,836 |
Acquisitions | 48,262 |
Balance, ending of period | 397,098 |
Definite-Lived | |
Gross book value, beginning of period | 756,028 |
Accumulated amortization, beginning of period | (355,807) |
Net book value, beginning of period | 400,221 |
Additions | 55,400 |
Intangible amortization | (30,136) |
Gross book value, end of period | 811,428 |
Accumulated amortization, end of period | (385,943) |
Net book value, end of period | 425,485 |
Indefinite-Lived | |
Net book value, beginning of period | 42,298 |
Net book value, end of period | 42,298 |
Total | |
Net book value, beginning of period | 442,519 |
Intangible amortization | (30,136) |
Net book value, end of period | $ 467,783 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Estimated Amortization Expense of Intangible Assets Succeeding Years (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2023 | $ 30,890 | |
2024 | 56,739 | |
2025 | 51,971 | |
2026 | 50,991 | |
2027 | 47,890 | |
2028 and thereafter | 187,004 | |
Total | $ 425,485 | $ 400,221 |
Investments - Investments (Deta
Investments - Investments (Details) - USD ($) $ in Thousands | Jan. 01, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Investments [Line Items] | |||
Investment securities - fair value | $ 89,311 | $ 76,999 | |
Parent | |||
Schedule of Investments [Line Items] | |||
Investment securities - fair value | 89,311 | 76,999 | |
Equity method investments | 22,517 | 11,448 | |
Nonqualified retirement plan assets | 11,499 | 10,154 | |
Other investments | 12 | 1,729 | |
Total investments | $ 123,339 | $ 100,330 | |
Payments to acquire investments | $ 11,600 |
Investments - Marketable Securi
Investments - Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Investment Securities - fair value | ||
Cost | $ 91,287 | $ 80,912 |
Fair Value | 89,311 | 76,999 |
Sponsored funds | ||
Investment Securities - fair value | ||
Cost | 77,563 | 67,472 |
Fair Value | 73,381 | 62,744 |
Equity securities | ||
Investment Securities - fair value | ||
Cost | 13,724 | 13,440 |
Fair Value | $ 15,930 | $ 14,255 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Investments [Abstract] | ||||
Realized (loss) gain on trading securities | $ 800,000 | $ (100,000) | $ 2,200,000 | $ (30,000) |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash equivalents | $ 163,053 | $ 287,126 |
Investment securities - fair value | ||
Fair Value | 89,311 | 76,999 |
Total assets measured at fair value | 263,863 | 374,279 |
Liabilities | ||
Total liabilities measured at fair value | 54,910 | 78,100 |
Contingent consideration | ||
Liabilities | ||
Total liabilities measured at fair value | 54,910 | 78,100 |
Sponsored funds | ||
Investment securities - fair value | ||
Fair Value | 73,381 | 62,744 |
Equity securities | ||
Investment securities - fair value | ||
Fair Value | 15,930 | 14,255 |
Nonqualified retirement plan assets | ||
Investment securities - fair value | ||
Nonqualified retirement plan assets | 11,499 | 10,154 |
Level 1 | ||
Assets | ||
Cash equivalents | 163,053 | 287,126 |
Investment securities - fair value | ||
Total assets measured at fair value | 263,863 | 374,279 |
Liabilities | ||
Total liabilities measured at fair value | 0 | 0 |
Level 1 | Contingent consideration | ||
Liabilities | ||
Total liabilities measured at fair value | 0 | 0 |
Level 1 | Sponsored funds | ||
Investment securities - fair value | ||
Fair Value | 73,381 | 62,744 |
Level 1 | Equity securities | ||
Investment securities - fair value | ||
Fair Value | 15,930 | 14,255 |
Level 1 | Nonqualified retirement plan assets | ||
Investment securities - fair value | ||
Nonqualified retirement plan assets | 11,499 | 10,154 |
Level 2 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Investment securities - fair value | ||
Total assets measured at fair value | 0 | 0 |
Liabilities | ||
Total liabilities measured at fair value | 0 | 0 |
Level 2 | Contingent consideration | ||
Liabilities | ||
Total liabilities measured at fair value | 0 | 0 |
Level 2 | Sponsored funds | ||
Investment securities - fair value | ||
Fair Value | 0 | 0 |
Level 2 | Equity securities | ||
Investment securities - fair value | ||
Fair Value | 0 | 0 |
Level 2 | Nonqualified retirement plan assets | ||
Investment securities - fair value | ||
Nonqualified retirement plan assets | 0 | 0 |
Level 3 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Investment securities - fair value | ||
Total assets measured at fair value | 0 | 0 |
Liabilities | ||
Total liabilities measured at fair value | 54,910 | 78,100 |
Level 3 | Contingent consideration | ||
Liabilities | ||
Total liabilities measured at fair value | 54,910 | 78,100 |
Level 3 | Sponsored funds | ||
Investment securities - fair value | ||
Fair Value | 0 | 0 |
Level 3 | Equity securities | ||
Investment securities - fair value | ||
Fair Value | 0 | 0 |
Level 3 | Nonqualified retirement plan assets | ||
Investment securities - fair value | ||
Nonqualified retirement plan assets | $ 0 | $ 0 |
Fair Value Measurements - Rollf
Fair Value Measurements - Rollforward of the Contingent Consideration Liabilities Valued Using Level 3 Inputs (Details) - Level 3 - Contingent consideration - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Contingent consideration, beginning of period | $ 61,710 | $ 70,080 | $ 78,100 | $ 88,400 |
Additions for acquisition | 0 | 0 | 0 | 1,200 |
Reduction for payments made | 0 | 0 | (16,390) | (19,520) |
Increase (reduction) of liability related to re-measurement of fair value | (6,800) | 2,900 | (6,800) | 2,900 |
Contingent consideration, end of period | $ 54,910 | $ 72,980 | $ 54,910 | $ 72,980 |
Equity Transactions (Details)
Equity Transactions (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
May 17, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Equity [Abstract] | |||||
Cash dividends declared per common share (in dollars per share) | $ 1.65 | $ 1.65 | $ 1.50 | $ 3.30 | $ 3 |
Stock repurchased during period, shares | 51,840 | 51,840 | |||
Weighted average price (in dollars per share) | $ 192.87 | $ 192.87 | |||
Stock repurchased during period, value | $ 10 | $ 10 | |||
Shares available for repurchase (in shares) | 776,512 | 776,512 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 844,297 | $ 824,233 | $ 822,936 | $ 836,627 |
Net current-period other comprehensive income (loss) | 112 | (237) | 211 | (287) |
Balance at end of period | 856,709 | 791,705 | 856,709 | 791,705 |
Accumulated Foreign Currency Adjustment Attributable to Parent | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (358) | 20 | ||
Net current-period other comprehensive income (loss) | 211 | (287) | ||
Balance at end of period | $ (147) | $ (267) | (147) | (267) |
Other comprehensive income (loss), before reclassifications, tax | $ (77) | $ 249 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 USD ($) shares | Jun. 30, 2022 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares of common stock available for issuance (in shares) | 480,249 | |
Shares of common stock reserved for issuance (in shares) | 3,370,000 | |
RSUs and PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unamortized stock-based compensation expense | $ | $ 39.3 | |
Weighted-average remaining amortization period | 1 year 6 months | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share settlement under RSUs (in shares) | 76,452 | 72,043 |
Cash used for employee withholding tax payments | $ | $ 13.2 | $ 15.3 |
Performance Share Units (PSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards granted (in shares) | 44,583 | |
Period for recognition of compensation expense | 3 years | |
Minimum | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Maximum | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Common Stock | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Conversion ratio | 1 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Stock-based compensation expense | $ 6,655 | $ 4,572 | $ 12,404 | $ 14,119 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Number of Shares | |
Number of shares, beginning balance (in shares) | shares | 377,087 |
Number of shares, granted (in shares) | shares | 202,882 |
Number of shares, forfeited (in shares) | shares | (32,555) |
Number of shares, settled (in shares) | shares | (196,757) |
Number of shares, ending balance (in shares) | shares | 350,657 |
Weighted Average Grant Date Fair Value | |
Weighted average grant date fair value, beginning balance (in dollars per share) | $ / shares | $ 178.21 |
Weighted-average grant-date fair value (in dollars per share) | $ / shares | 159.36 |
Weighted average grant date fair value, forfeited (in dollars per share) | $ / shares | 140.35 |
Weighted average grant date fair value, settled (in dollars per share) | $ / shares | 118.47 |
Weighted average grant date fair value, ending balance (in dollars per share) | $ / shares | $ 204.34 |
Earnings (Loss) Per Share - Com
Earnings (Loss) Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net Income (Loss) | $ 30,180 | $ 14,259 | $ 64,823 | $ 53,378 |
Noncontrolling interests | 77 | 3,143 | 4,058 | (2,917) |
Net Income (Loss) Attributable to Virtus Investment Partners, Inc. | $ 30,257 | $ 17,402 | $ 68,881 | $ 50,461 |
Shares: | ||||
Basic: Weighted-average number of common shares outstanding (in shares) | 7,308 | 7,449 | 7,277 | 7,496 |
Plus: Incremental shares from assumed conversion of dilutive instruments (in shares) | 77 | 158 | 121 | 225 |
Diluted: Weighted-average number of common shares outstanding (in shares) | 7,385 | 7,607 | 7,398 | 7,721 |
Earnings (Loss) per Share—Basic (in dollars per share) | $ 4.14 | $ 2.34 | $ 9.47 | $ 6.73 |
Earnings (Loss) per Share—Diluted (in dollars per share) | $ 4.10 | $ 2.29 | $ 9.31 | $ 6.54 |
Earnings (Loss) Per Share - Sec
Earnings (Loss) Per Share - Securities Excluded from Computation of Diluted EPS (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities (in shares) | 36 | 84 | 36 | 24 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities (in shares) | 36 | 84 | 36 | 24 |
Income Taxes (Details)
Income Taxes (Details) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||
Estimated effective income tax rate (as percent) | 23.20% | 38.40% |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||
Aug. 04, 2023 | Apr. 03, 2023 | Sep. 28, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | |
Line of Credit Facility [Line Items] | |||||
Borrowings on credit agreement | $ 50,000 | $ 0 | |||
Revolving credit facility | |||||
Line of Credit Facility [Line Items] | |||||
Outstanding borrowings | 40,000 | ||||
Revolving credit facility | Subsequent Event | |||||
Line of Credit Facility [Line Items] | |||||
Debt repayments | $ 20,000 | ||||
Revolving credit facility | AlphaSimplex Group, LLC | |||||
Line of Credit Facility [Line Items] | |||||
Borrowings on credit agreement | $ 50,000 | ||||
Credit Agreement | Term loan | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 275,000 | ||||
Term of debt | 7 years | ||||
Debt repayments | 1,400 | ||||
Credit Agreement | Revolving credit facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 175,000 | ||||
Term of debt | 5 years | ||||
Credit Facility 2017 | Term loan | |||||
Line of Credit Facility [Line Items] | |||||
Outstanding borrowings | 260,200 | ||||
Debt issuance costs | $ 6,000 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests - Narrative (Details) | 6 Months Ended |
Jun. 30, 2023 | |
Minimum | |
Noncontrolling Interest [Line Items] | |
Exercise period | 4 years |
Maximum | |
Noncontrolling Interest [Line Items] | |
Exercise period | 7 years |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interests - Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward] | ||||
Beginning balance | $ 113,718 | |||
Net income (loss) attributable to noncontrolling interests | 4,475 | |||
Changes in redemption value | (3,447) | $ (338) | ||
Total net income (loss) attributable to noncontrolling interests | $ 573 | $ (2,865) | (4,173) | $ 3,252 |
Net subscriptions (redemptions) and other | 854 | |||
Ending balance | 110,399 | 110,399 | ||
CIP | ||||
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward] | ||||
Beginning balance | 18,268 | |||
Net income (loss) attributable to noncontrolling interests | 1,014 | |||
Total net income (loss) attributable to noncontrolling interests | 1,014 | |||
Net subscriptions (redemptions) and other | 3,527 | |||
Ending balance | 22,809 | 22,809 | ||
Affiliate Noncontrolling Interests | ||||
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward] | ||||
Beginning balance | 95,450 | |||
Net income (loss) attributable to noncontrolling interests | 3,461 | |||
Total net income (loss) attributable to noncontrolling interests | (5,187) | |||
Net subscriptions (redemptions) and other | (2,673) | |||
Ending balance | $ 87,590 | 87,590 | ||
Portion at Other than Fair Value Measurement | ||||
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward] | ||||
Changes in redemption value | (8,648) | |||
Portion at Other than Fair Value Measurement | CIP | ||||
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward] | ||||
Changes in redemption value | 0 | |||
Portion at Other than Fair Value Measurement | Affiliate Noncontrolling Interests | ||||
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward] | ||||
Changes in redemption value | $ (8,648) |
Consolidation - Condensed Conso
Consolidation - Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||||||
Noncontrolling interests | $ (110,399) | $ (106,630) | $ (113,718) | $ (139,147) | $ (138,738) | $ (138,965) |
VOEs | ||||||
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | 906 | 1,153 | ||||
Investments | 23,222 | 24,669 | ||||
Other assets | 180 | 295 | ||||
Notes payable | 0 | 0 | ||||
Securities purchased payable and other liabilities | (662) | (573) | ||||
Noncontrolling interests | (7,816) | (7,879) | ||||
Net interests in CIP | 15,830 | 17,665 | ||||
CLOs | ||||||
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | 153,549 | 249,003 | ||||
Investments | 1,933,812 | 2,106,764 | ||||
Other assets | 23,545 | 43,993 | ||||
Notes payable | (1,911,579) | (2,083,314) | ||||
Securities purchased payable and other liabilities | (108,794) | (230,141) | ||||
Noncontrolling interests | (5,196) | (5,917) | ||||
Net interests in CIP | 85,337 | 80,388 | ||||
Other | ||||||
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | 1,762 | 789 | ||||
Investments | 67,952 | 58,680 | ||||
Other assets | 1,555 | 1,157 | ||||
Notes payable | 0 | 0 | ||||
Securities purchased payable and other liabilities | (807) | (183) | ||||
Noncontrolling interests | (14,993) | (10,389) | ||||
Net interests in CIP | $ 55,469 | $ 50,054 |
Consolidation - Narrative (Deta
Consolidation - Narrative (Details) | 6 Months Ended | |
Jun. 30, 2023 USD ($) collateralized_loan_obligation | Dec. 31, 2022 USD ($) | |
Variable Interest Entity [Line Items] | ||
Derivative liabilities | $ 0 | |
CLOs | ||
Variable Interest Entity [Line Items] | ||
Number of CLOs consolidated | collateralized_loan_obligation | 7 | |
Investments | $ 1,933,812,000 | $ 2,106,764,000 |
Nonconsolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying value and maximum risk of loss | $ 25,400,000 | |
LIBOR | CLOs | ||
Variable Interest Entity [Line Items] | ||
Investments, basis spread on variable interest rate (as percent) | 9% | |
Senior Notes | CLOs | ||
Variable Interest Entity [Line Items] | ||
Unpaid principal balance exceeds fair value | $ 154,400,000 | |
Subordinated Notes - Newfleet CLO 2016-1 | CLOs | ||
Variable Interest Entity [Line Items] | ||
Debt par value | 2,200,000,000 | |
Subordinated Notes - Newfleet CLO 2016-1 | Subordinated Debt | CLOs | ||
Variable Interest Entity [Line Items] | ||
Debt par value | 261,200,000 | |
Senior Secured Floating Rate Notes - Newfleet CLO 2016-1 | Senior Notes | CLOs | ||
Variable Interest Entity [Line Items] | ||
Debt par value | $ 2,000,000,000 | |
Minimum | Senior Secured Floating Rate Notes - Newfleet CLO 2016-1 | LIBOR | CLOs | ||
Variable Interest Entity [Line Items] | ||
Basis spread on variable rate (as percent) | 0.80% | |
Maximum | Senior Secured Floating Rate Notes - Newfleet CLO 2016-1 | LIBOR | CLOs | ||
Variable Interest Entity [Line Items] | ||
Basis spread on variable rate (as percent) | 9.10% |
Consolidation - Beneficial Inte
Consolidation - Beneficial Interests of Consolidated Investment Product (Details) - CLOs $ in Thousands | Jun. 30, 2023 USD ($) |
Variable Interest Entity [Line Items] | |
Subordinated notes | $ 82,971 |
Accrued investment management fees | 2,366 |
Total Beneficial Interests | $ 85,337 |
Consolidation - Revenue and Exp
Consolidation - Revenue and Expenses of Consolidated Investment Product (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Expenses: | ||||
Noncontrolling interests | $ 77 | $ 3,143 | $ 4,058 | $ (2,917) |
Net Income (Loss) Attributable to Virtus Investment Partners, Inc. | $ 30,257 | $ 17,402 | 68,881 | $ 50,461 |
CLOs | ||||
Income: | ||||
Realized and unrealized gain (loss), net | (4,326) | |||
Interest income | 91,682 | |||
Total Income | 87,356 | |||
Expenses: | ||||
Other operating expenses | 810 | |||
Interest expense | 73,935 | |||
Total Expense | 74,745 | |||
Noncontrolling interests | (115) | |||
Net Income (Loss) Attributable to Virtus Investment Partners, Inc. | $ 12,496 |
Consolidation - Economic Intere
Consolidation - Economic Interests of Consolidated Investment Product (Details) - CLOs $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Variable Interest Entity [Line Items] | |
Distributions received and unrealized gains (losses) on the subordinated notes held by the Company | $ 7,952 |
Investment management fees | 4,544 |
Total Economic Interests | $ 12,496 |
Consolidation - Assets and Liab
Consolidation - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash equivalents | $ 163,053 | $ 287,126 |
Total assets measured at fair value | 263,863 | 374,279 |
Liabilities | ||
Total liabilities measured at fair value | 54,910 | 78,100 |
Level 1 | ||
Assets | ||
Cash equivalents | 163,053 | 287,126 |
Total assets measured at fair value | 263,863 | 374,279 |
Liabilities | ||
Total liabilities measured at fair value | 0 | 0 |
Level 2 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Liabilities | ||
Total liabilities measured at fair value | 0 | 0 |
Level 3 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Liabilities | ||
Total liabilities measured at fair value | 54,910 | 78,100 |
Fair Value, Measurements, Recurring | Consolidated Investment Products | ||
Assets | ||
Cash equivalents | 153,549 | 249,003 |
Total assets measured at fair value | 2,178,535 | 2,439,116 |
Liabilities | ||
Notes payable | 1,911,579 | 2,083,314 |
Short sales | 511 | 414 |
Total liabilities measured at fair value | 1,912,090 | 2,083,728 |
Fair Value, Measurements, Recurring | Debt investments | Consolidated Investment Products | ||
Assets | ||
Investments | 1,994,549 | 2,161,571 |
Fair Value, Measurements, Recurring | Equity investments | Consolidated Investment Products | ||
Assets | ||
Investments | 30,437 | 28,542 |
Fair Value, Measurements, Recurring | Level 1 | Consolidated Investment Products | ||
Assets | ||
Cash equivalents | 153,549 | 249,003 |
Total assets measured at fair value | 181,266 | 274,249 |
Liabilities | ||
Notes payable | 0 | 0 |
Short sales | 511 | 414 |
Total liabilities measured at fair value | 511 | 414 |
Fair Value, Measurements, Recurring | Level 1 | Debt investments | Consolidated Investment Products | ||
Assets | ||
Investments | 278 | 243 |
Fair Value, Measurements, Recurring | Level 1 | Equity investments | Consolidated Investment Products | ||
Assets | ||
Investments | 27,439 | 25,003 |
Fair Value, Measurements, Recurring | Level 2 | Consolidated Investment Products | ||
Assets | ||
Cash equivalents | 0 | 0 |
Total assets measured at fair value | 1,953,729 | 2,121,286 |
Liabilities | ||
Notes payable | 1,911,579 | 2,083,314 |
Short sales | 0 | 0 |
Total liabilities measured at fair value | 1,911,579 | 2,083,314 |
Fair Value, Measurements, Recurring | Level 2 | Debt investments | Consolidated Investment Products | ||
Assets | ||
Investments | 1,952,096 | 2,119,082 |
Fair Value, Measurements, Recurring | Level 2 | Equity investments | Consolidated Investment Products | ||
Assets | ||
Investments | 1,633 | 2,204 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Investment Products | ||
Assets | ||
Cash equivalents | 0 | 0 |
Total assets measured at fair value | 43,540 | 43,581 |
Liabilities | ||
Notes payable | 0 | 0 |
Short sales | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Debt investments | Consolidated Investment Products | ||
Assets | ||
Investments | 42,175 | 42,246 |
Fair Value, Measurements, Recurring | Level 3 | Equity investments | Consolidated Investment Products | ||
Assets | ||
Investments | $ 1,365 | $ 1,335 |
Consolidation - Assets Related
Consolidation - Assets Related to Consolidated Sponsored Investment Products, Unobservable Input Reconciliation (Details) - Debt investments - Consolidated Investment Products - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 43,581 | $ 3,157 |
Realized gains (losses), net | (3,299) | 27 |
Change in unrealized gains (losses), net | 2,656 | (930) |
Purchases | 2,903 | 0 |
Amortization | 176 | (9) |
Sales | (7,231) | (2,135) |
Transfers to Level 2 | (48,337) | (36,833) |
Transfers from Level 2 | 53,091 | 68,480 |
Balance at end of period | $ 43,540 | $ 31,757 |