Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 09, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-10994 | ||
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, $.01 par value | ||
Trading Symbol | VRTS | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,340 | ||
Entity Common Stock, Shares Outstanding | 7,087,728 | ||
Documents Incorporated by Reference | Portions of the registrant's proxy statement that will be filed with the SEC in connection with the 2024 Annual Meeting of Shareholders are incorporated by reference into Part III of this Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000883237 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Location | Hartford, Connecticut |
Auditor Firm ID | 34 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Accounts receivable, net | $ 109,076 | $ 99,274 |
Furniture, equipment and leasehold improvements, net | 26,216 | 19,123 |
Intangible assets, net | 432,119 | 442,519 |
Goodwill | 397,098 | 348,836 |
Deferred taxes, net | 25,024 | 23,171 |
Total assets | 3,678,629 | 3,952,934 |
Liabilities: | ||
Accrued compensation and benefits | 200,837 | 181,805 |
Accounts payable and accrued liabilities | 38,756 | 33,200 |
Dividends payable | 17,291 | 15,812 |
Contingent consideration | 90,938 | 128,400 |
Debt | 253,412 | 255,025 |
Other liabilities | 91,471 | 87,827 |
Total liabilities | 2,705,471 | 3,016,280 |
Commitments and Contingencies (Note 12) | ||
Redeemable noncontrolling interests | 104,869 | 113,718 |
Equity attributable to Virtus Investment Partners, Inc.: | ||
Common stock, $0.01 par value, 1,000,000,000 shares authorized; 12,163,228 shares issued and 7,087,728 shares outstanding at December 31, 2023 and 12,033,247 shares issued and 7,181,554 shares outstanding at December 31, 2022 | 122 | 120 |
Additional paid-in capital | 1,300,999 | 1,286,244 |
Retained earnings (accumulated deficit) | 207,356 | 130,261 |
Accumulated other comprehensive income (loss) | (87) | (358) |
Treasury stock, at cost, 5,075,500 and 4,851,693 shares at December 31, 2023 and December 31, 2022, respectively | (644,464) | (599,248) |
Total equity attributable to Virtus Investment Partners, Inc. | 863,926 | 817,019 |
Total equity | 868,289 | 822,936 |
Total liabilities and equity | 3,678,629 | 3,952,934 |
Consolidated Entity excluding Consolidated Investment Products | ||
Assets: | ||
Cash and cash equivalents | 239,602 | 338,234 |
Investments | 132,696 | 100,330 |
Other assets | 89,438 | 94,944 |
Consolidated Investment Products | ||
Assets: | ||
Cash and cash equivalents | 100,732 | 250,301 |
Investments | 2,082,713 | 2,190,113 |
Cash pledged or on deposit of CIP | 680 | 644 |
Other assets | 43,235 | 45,445 |
Liabilities: | ||
Notes payable of CIP | 1,922,243 | 2,083,314 |
Securities purchased payable and other liabilities of CIP | 90,523 | 230,897 |
Equity attributable to Virtus Investment Partners, Inc.: | ||
Noncontrolling interests | $ 4,363 | $ 5,917 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 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) | 12,163,228 | 12,033,247 |
Common stock, shares outstanding (in shares) | 7,087,728 | 7,181,554 |
Treasury stock, shares (in shares) | 5,075,500 | 4,851,693 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | |||
Revenues | $ 845,268 | $ 886,379 | $ 979,234 |
Operating Expenses | |||
Employment expenses | 404,742 | 371,259 | 358,230 |
Distribution and other asset-based expenses | 96,802 | 112,612 | 141,039 |
Change in fair value of contingent consideration | (5,510) | 8,020 | 12,400 |
Restructuring expense | 824 | 4,015 | 0 |
Depreciation expense | 5,804 | 3,923 | 3,900 |
Amortization expense | 61,027 | 58,504 | 44,481 |
Total operating expenses | 693,784 | 688,919 | 653,746 |
Operating Income (Loss) | 151,484 | 197,460 | 325,488 |
Other Income (Expense) | |||
Other income (expense), net | (440) | (153) | 4,230 |
Total other income (expense), net | 3,681 | (51,938) | 6,376 |
Interest Income (Expense) | |||
Total interest income (expense), net | 31,399 | 18,366 | 21,806 |
Income (Loss) Before Income Taxes | 186,564 | 163,888 | 353,670 |
Income tax expense (benefit) | 45,088 | 57,260 | 90,835 |
Net Income (Loss) | 141,476 | 106,628 | 262,835 |
Noncontrolling interests | (10,855) | 10,913 | (54,704) |
Net Income (Loss) Attributable to Virtus Investment Partners, Inc. | $ 130,621 | $ 117,541 | $ 208,131 |
Earnings (Loss) per Share—Basic (in dollars per share) | $ 18.02 | $ 15.90 | $ 27.13 |
Earnings (Loss) per Share—Diluted (in dollars per share) | $ 17.71 | $ 15.50 | $ 26.01 |
Weighted Average Shares Outstanding—Basic (in shares) | 7,249 | 7,391 | 7,672 |
Weighted Average Shares Outstanding—Diluted (in shares) | 7,375 | 7,582 | 8,003 |
Consolidated Entity excluding Consolidated Investment Products | |||
Operating Expenses | |||
Other operating expenses | $ 125,871 | $ 126,178 | $ 90,134 |
Other Income (Expense) | |||
Realized and unrealized gain (loss) on investments, net | 6,525 | (12,489) | 3,907 |
Interest Income (Expense) | |||
Interest expense | (23,431) | (13,173) | (9,240) |
Interest and dividend income | 12,458 | 4,448 | 1,364 |
Consolidated Investment Products | |||
Operating Expenses | |||
Other operating expenses | 4,224 | 4,408 | 3,562 |
Other Income (Expense) | |||
Realized and unrealized gain (loss) on investments, net | (2,404) | (39,296) | (1,761) |
Interest Income (Expense) | |||
Interest expense | (155,335) | (80,234) | (60,398) |
Interest and dividend income | 197,707 | 107,325 | 90,080 |
Investment management fees | |||
Revenues | |||
Revenues | 711,475 | 728,339 | 781,585 |
Distribution and service fees | |||
Revenues | |||
Revenues | 56,153 | 67,518 | 90,555 |
Administration and shareholder service fees | |||
Revenues | |||
Revenues | 73,857 | 85,862 | 102,531 |
Other income and fees | |||
Revenues | |||
Revenues | $ 3,783 | $ 4,660 | $ 4,563 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income (Loss) | $ 141,476 | $ 106,628 | $ 262,835 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment, net of tax of $(96), $135 and $3 for the years ended December 31, 2023, 2022 and 2021, respectively | 271 | (378) | (9) |
Other comprehensive income (loss) | 271 | (378) | (9) |
Comprehensive income (loss) | 141,747 | 106,250 | 262,826 |
Comprehensive (income) loss attributable to noncontrolling interests | (10,855) | 10,913 | (54,704) |
Comprehensive income (loss) attributable to Virtus Investment Partners, Inc. | $ 130,892 | $ 117,163 | $ 208,122 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustment, tax | $ (96) | $ 135 | $ 3 |
Consolidated Statements of Chan
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, 2020 | 7,583,466 | |||||||
Beginning Balance at Dec. 31, 2020 | $ 720,940 | $ 711,141 | $ 118 | $ 1,298,002 | $ (135,259) | $ 29 | $ (451,749) | $ 9,799 |
Balance at beginning of period, treasury stock (in shares) at Dec. 31, 2020 | 4,207,403 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 208,948 | 208,131 | 208,131 | 817 | ||||
Foreign currency translation adjustments | (9) | (9) | (9) | |||||
Net subscriptions (redemptions) and other | (2,266) | (2,266) | ||||||
Cash dividends declared, common | (37,222) | (37,222) | (25,312) | (11,910) | ||||
Repurchase of common shares (in shares) | (193,193) | 193,193 | ||||||
Repurchase of common shares | (57,499) | (57,499) | $ (57,499) | |||||
Issuance of common shares related to employee stock transactions (in shares) | 115,878 | |||||||
Issuance of common shares related to employee stock transactions | 66 | 66 | $ 1 | 65 | ||||
Taxes paid on stock-based compensation | (19,509) | (19,509) | (19,509) | |||||
Stock-based compensation | 23,178 | 23,178 | 23,178 | |||||
Balance at ending of period, common stock (in shares) at Dec. 31, 2021 | 7,506,151 | |||||||
Ending Balance at Dec. 31, 2021 | 836,627 | 828,277 | $ 119 | 1,276,424 | 60,962 | 20 | $ (509,248) | 8,350 |
Balance at ending of period, treasury stock (in shares) at Dec. 31, 2021 | 4,400,596 | |||||||
Balance at Dec. 31, 2020 | 115,513 | |||||||
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward] | ||||||||
Net income (loss) | 53,887 | |||||||
Net subscriptions (redemptions) and other | (30,435) | |||||||
Balance at Dec. 31, 2021 | 138,965 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 116,776 | 117,541 | 117,541 | (765) | ||||
Foreign currency translation adjustments | (378) | (378) | (378) | |||||
Net subscriptions (redemptions) and other | 367 | 2,035 | 2,035 | (1,668) | ||||
Cash dividends declared, common | (48,242) | (48,242) | (48,242) | |||||
Repurchase of common shares (in shares) | (451,097) | 451,097 | ||||||
Repurchase of common shares | (90,000) | (90,000) | $ (90,000) | |||||
Issuance of common shares related to employee stock transactions (in shares) | 126,500 | |||||||
Issuance of common shares related to employee stock transactions | 0 | 0 | $ 1 | (1) | ||||
Taxes paid on stock-based compensation | (16,830) | (16,830) | (16,830) | |||||
Stock-based compensation | $ 24,616 | 24,616 | 24,616 | |||||
Balance at ending of period, common stock (in shares) at Dec. 31, 2022 | 12,033,247 | 7,181,554 | ||||||
Ending Balance at Dec. 31, 2022 | $ 822,936 | 817,019 | $ 120 | 1,286,244 | 130,261 | (358) | $ (599,248) | 5,917 |
Balance at ending of period, treasury stock (in shares) at Dec. 31, 2022 | 4,851,693 | 4,851,693 | ||||||
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward] | ||||||||
Net income (loss) | $ (10,148) | |||||||
Net subscriptions (redemptions) and other | (15,099) | |||||||
Balance at Dec. 31, 2022 | 113,718 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 130,691 | 130,621 | 130,621 | 70 | ||||
Foreign currency translation adjustments | 271 | 271 | 271 | |||||
Net subscriptions (redemptions) and other | 1,564 | 3,188 | 3,188 | (1,624) | ||||
Cash dividends declared, common | (53,526) | (53,526) | (53,526) | |||||
Repurchase of common shares (in shares) | (223,807) | 223,807 | ||||||
Repurchase of common shares | (45,216) | (45,216) | $ (45,216) | |||||
Issuance of common shares related to employee stock transactions (in shares) | 129,981 | |||||||
Issuance of common shares related to employee stock transactions | 0 | 0 | $ 2 | (2) | ||||
Taxes paid on stock-based compensation | (13,774) | (13,774) | (13,774) | |||||
Stock-based compensation | $ 25,343 | 25,343 | 25,343 | |||||
Balance at ending of period, common stock (in shares) at Dec. 31, 2023 | 12,163,228 | 7,087,728 | ||||||
Ending Balance at Dec. 31, 2023 | $ 868,289 | $ 863,926 | $ 122 | $ 1,300,999 | $ 207,356 | $ (87) | $ (644,464) | $ 4,363 |
Balance at ending of period, treasury stock (in shares) at Dec. 31, 2023 | 5,075,500 | 5,075,500 | ||||||
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward] | ||||||||
Net income (loss) | $ 10,785 | |||||||
Net subscriptions (redemptions) and other | (19,634) | |||||||
Balance at Dec. 31, 2023 | $ 104,869 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||||||
Cash dividends declared per common share (in dollars per share) | $ 1.90 | $ 1.90 | $ 1.65 | $ 1.65 | $ 7.10 | $ 6.30 | $ 4.64 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows from Operating Activities: | |||
Net income (loss) | $ 141,476 | $ 106,628 | $ 262,835 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation expense, intangible asset and other amortization | 68,437 | 64,215 | 50,769 |
Stock-based compensation | 26,825 | 24,042 | 26,225 |
Amortization of deferred commissions | 1,609 | 4,342 | 3,956 |
Payments of deferred commissions | (1,434) | (2,065) | (5,963) |
Equity in earnings of equity method investments | 198 | (187) | (4,403) |
Distributions from equity method investments | 2,327 | 2,244 | 3,710 |
Change in fair value of contingent consideration | (5,510) | 8,020 | 12,400 |
Deferred taxes, net | 1,394 | (1,960) | (9,664) |
Right of use asset | 0 | 3,222 | 0 |
Changes in operating assets and liabilities: | |||
Sales (purchases) of investments, net | (16) | (9,309) | (7,952) |
Accounts receivable, net and other assets | 6,822 | 37,548 | (30,057) |
Accrued compensation and benefits, accounts payable, accrued liabilities and other liabilities | 3,863 | (47,379) | 72,628 |
Operating activities of consolidated investment products ("CIP"): | |||
Net cash provided by (used in) operating activities | 237,157 | 132,670 | 665,729 |
Cash Flows from Investing Activities: | |||
Capital expenditures and other asset purchases | (8,821) | (6,582) | (5,838) |
Purchase of equity method investment | (11,645) | 0 | 0 |
Acquisition of business, net of cash acquired of $4,395 and $8,443 and $1,197 for the years ended December 31, 2023, 2022 and 2021, respectively | (108,999) | (20,577) | (155,636) |
Net cash provided by (used in) investing activities | (129,732) | (27,467) | (175,033) |
Cash Flows from Financing Activities: | |||
Borrowings and refinancing of credit agreement | 50,000 | 0 | 81,155 |
Repayments on credit agreement | (52,750) | (12,750) | (12,513) |
Payment of deferred financing costs | 0 | 0 | (7,039) |
Payment of contingent consideration | (27,179) | (33,036) | 0 |
Repurchase of common shares | (45,000) | (90,000) | (57,499) |
Common stock dividends paid | (52,047) | (47,254) | (31,411) |
Taxes paid related to net share settlement of restricted stock units | (13,774) | (16,830) | (19,443) |
Affiliate equity sales (purchases) | (20,784) | (11,089) | 0 |
Net contributions from (distributions to) noncontrolling interests | 6,080 | (5,527) | (3,270) |
Net cash provided by (used in) financing activities | (356,113) | (102,057) | (244,400) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 523 | (112) | 0 |
Net increase (decrease) in cash and cash equivalents | (248,165) | 3,034 | 246,296 |
Cash, cash equivalents and restricted cash, beginning of year | 589,179 | 586,145 | 339,849 |
Cash, cash equivalents and restricted cash, end of year | 341,014 | 589,179 | 586,145 |
Supplemental Disclosure of Cash Flow Information | |||
Interest paid | 22,307 | 11,134 | 6,478 |
Income taxes paid, net | 31,160 | 74,313 | 95,411 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities | |||
Common stock dividends payable | 13,467 | 11,850 | 11,261 |
Contingent consideration | 0 | 1,200 | 150,164 |
Reconciliation of cash, cash equivalents and restricted cash | |||
Cash, cash equivalents and restricted cash at end of year | 341,014 | 589,179 | 586,145 |
Consolidated Entity excluding Consolidated Investment Products | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Realized and unrealized (gains) losses on investments, net | (6,132) | 13,105 | (2,721) |
Operating activities of consolidated investment products ("CIP"): | |||
Realized and unrealized (gains) losses on investments of CIP, net | 6,132 | (13,105) | 2,721 |
Reconciliation of cash, cash equivalents and restricted cash | |||
Cash and cash equivalents | 239,602 | 338,234 | |
Consolidated Investment Products | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Realized and unrealized (gains) losses on investments, net | (4,664) | 36,054 | (4,264) |
Operating activities of consolidated investment products ("CIP"): | |||
Realized and unrealized (gains) losses on investments of CIP, net | 4,664 | (36,054) | 4,264 |
Purchases of investments by CIP | (1,264,708) | (939,017) | (1,176,936) |
Sales of investments by CIP | 1,263,580 | 820,497 | 1,454,591 |
Net proceeds (purchases) of short-term investments and securities sold short by CIP | (261) | (13) | 16,272 |
Change in other assets and liabilities of CIP | 1,666 | 6,813 | (856) |
Amortization of discount on notes payable of CIP | 1,685 | 5,870 | 5,159 |
Cash Flows from Investing Activities: | |||
Change in cash and cash equivalents of CIP due to consolidation (deconsolidation), net | (267) | (308) | (13,559) |
Cash Flows from Financing Activities: | |||
Borrowings by CIP | 269,260 | 306,296 | 363,539 |
Payments on borrowings by CIP | (469,919) | (191,867) | (557,919) |
Supplemental Disclosure of Non-Cash Investing and Financing Activities | |||
Increase (decrease) to noncontrolling interests due to consolidation (deconsolidation) of CIP, net | (7,170) | (338) | $ (30,550) |
Reconciliation of cash, cash equivalents and restricted cash | |||
Cash and cash equivalents | 100,732 | 250,301 | |
Cash pledged or on deposit of consolidated investment products | $ 680 | $ 644 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flow (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Cash Flows [Abstract] | |||
Acquisition of business, net of cash acquired | $ 4,395 | $ 8,443 | $ 1,197 |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 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 institutions and individuals. The Company's investment strategies are offered to institutional clients through institutional separate and commingled accounts, including structured products. 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. The Company also provides subadvisory services to other investment advisers. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The consolidated financial statements include the accounts of the Company, its subsidiaries and investment products that are consolidated. A voting interest entity ("VOE") is 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. See Note 20 for additional information related to the consolidation of investment products. Intercompany accounts and transactions have been eliminated. Noncontrolling Interests Noncontrolling interests - CIP Noncontrolling interests - CIP represent third-party investments in the Company's CIP and are classified as redeemable noncontrolling interests on the Consolidated Balance Sheets because investors in those products are able to request withdrawal at any time. Noncontrolling interests - affiliate Noncontrolling interests - affiliate represent 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 or upon certain conditions, such as retirement. The put and call rights are not legally detachable or separately exercisable and are deemed to be embedded in the related noncontrolling interests. The Company, in purchasing affiliate equity, has the option to settle in cash or shares of the Company's common stock and is entitled to the cash flow associated with any purchased equity. These minority interests in the affiliate are recorded at estimated redemption value within redeemable noncontrolling interests on the Company's Consolidated Balance Sheets, and any changes in the estimated redemption value are recorded on the Consolidated Statements of Operations within noncontrolling interests. Use of Estimates The preparation of the consolidated financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management believes the estimates used in preparing the consolidated financial statements are reasonable and prudent. Actual results could differ from those estimates. Segment Information Accounting Standards Codification ("ASC") 280, Segment Reporting , establishes disclosure requirements relating to operating segments in annual and interim financial statements. Operating segments are defined as components of an enterprise about which separate financial information is available that is regularly evaluated by the chief operating decision maker in deciding how to allocate resources to the segment and assess its performance. The Company's Chief Executive Officer is the Company's chief operating decision maker. The Company operates in one business segment, namely as an asset manager providing investment management and related services for individual and institutional clients. Although the Company provides disclosures regarding assets under management and other asset flows by product, the Company's determination that it operates in one business segment is based on the fact that the same investment professionals manage both retail and institutional products, operational resources support multiple products, such products have the same or similar regulatory framework and the Company's chief operating decision maker reviews the Company's financial performance on a consolidated level. Investment managers within the Company are generally not aligned with a specific product type. Cash and Cash Equivalents Cash and cash equivalents consist of cash in banks and money market fund investments. Restricted Cash The Company considers cash and cash equivalents of CIP and cash pledged or on deposit of CIP to be restricted as it is not available to the Company for its general operations. Investments Investment Securities - Fair Value Investment securities - fair value consist of investments in the Company's sponsored funds and separately managed accounts and are carried at fair value in accordance with ASC 320, Investments-Debt and Equity Securities ("ASC 320"), and Topic 321, Investments-Equity Securities ("ASC 321"). These securities are marked to market based on the respective publicly quoted net asset values of the funds or market prices of the equity securities or bonds. Transactions in these securities are recorded on a trade date basis. Any unrealized appreciation or depreciation on investment securities is reported on the Consolidated Statement of Operations within realized and unrealized gain (loss) on investments. Equity Method Investments Equity method investments consist of Company investments in noncontrolled entities, where the Company does not hold a controlling financial interest but has the ability to significantly influence operating and financial matters. Equity method investments are accounted for in accordance with ASC 323, Investments-Equity Method and Joint Ventures . Under the equity method of accounting, the Company's share of the noncontrolled entities' net income or loss is recorded in other income (expense), net on the Consolidated Statements of Operations. Distributions received reduce the Company's investment. The investment is evaluated for impairment if events or changes indicate that the carrying amount exceeds its fair value. If the carrying amount of an investment does exceed its fair value and the decline in fair value is deemed to be other-than-temporary, an impairment charge will be recorded. Non-qualified Retirement Plan Assets and Liabilities The Company has a non-qualified retirement plan (the "Excess Incentive Plan") that allows certain employees to voluntarily defer compensation. Assets held in trust, which are considered investment securities, are included in investments at fair value in accordance with ASC 820, Fair Value Measurement ("ASC 820"); the associated obligations to participants, which approximate the fair value of the associated assets, are included in other liabilities on the Consolidated Balance Sheets. (See Note 6 for additional information related to the Excess Incentive Plan.) Furniture, Equipment and Leasehold Improvements, Net Furniture, equipment and leasehold improvements are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of three Leases The Company leases office space and equipment under various leasing arrangements. In accordance with ASC 842, Leases , the Company's leases are evaluated and classified as either financing leases or operating leases, as appropriate. The Company recognizes a lease liability and a corresponding right of use ("ROU") asset on the commencement date of any lease arrangement. The lease liability is initially measured at the present value of the future lease payments over the lease term using the rate implicit in the arrangement or, if not readily determinable, the Company's incremental borrowing rate. The Company determines its incremental borrowing rate through market sources, including relevant industry rates. A ROU asset is measured initially as the value of the lease liability plus initial direct costs and prepaid lease payments, and less lease incentives received. Lease expense is recognized on a straight-line basis over the lease term and is recorded within other operating expenses on the Consolidated Statement of Operations. Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price of business combinations over the identified assets and liabilities acquired. In accordance with ASC 350, Goodwill and Other Intangible Assets, goodwill is not amortized. The Company has a single reporting unit for the purpose of assessing potential impairments of goodwill. An impairment analysis of goodwill is performed annually or more frequently, if warranted by events or changes in circumstances affecting the Company's business. The Company follows Accounting Standards Update ("ASU") 2011-08, Testing Goodwill for Impairment, which provides the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, it is determined that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. The Company's 2023 and 2022 annual goodwill impairment analysis did not result in any impairment charges. Definite-lived intangible assets are comprised of certain investment management agreements, trade names, non-competition agreements and software. These assets are amortized on a straight-line basis over the estimated useful lives of such assets, which range from 4 to 16 years. Definite-lived intangible assets are evaluated for impairment on an ongoing basis whenever events or circumstances indicate that the carrying value of the definite-lived intangible asset may not be recoverable. The Company determines if impairment has occurred by comparing estimates of future undiscounted cash flows to the carrying value of assets. Assets are considered impaired, and an impairment is recorded, if the carrying value exceeds the expected future undiscounted cash flows. Indefinite-lived intangible assets are comprised of certain trade names and fund investment management agreements. These assets are tested for impairment annually or when events or changes in circumstances indicate the assets might be impaired. The Company follows ASU 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment , which provides the option to perform a qualitative assessment of indefinite-lived intangible assets other than goodwill for impairment to determine if additional impairment testing is necessary. The Company's 2023 and 2022 annual indefinite-lived intangible assets impairment analysis did not result in any impairment charges. Contingent Consideration The Company periodically enters into contingent payment arrangements in connection with its business combinations or asset purchases. In contingent payment arrangements, the Company agrees to pay additional transaction consideration to the seller based on future performance. The Company estimates the value of estimated future payments of these potential future obligations at the time a business combination or asset purchase is consummated. Liabilities under contingent payment arrangements are recorded within contingent consideration on the Consolidated Balance Sheets. Contingent payment obligations related to business combinations are remeasured at fair value each reporting date using a simulation model with the assistance of an independent valuation firm and approved by management (level 3 fair value measurement). The change in fair value is recorded in the current period as a gain or loss. Gains and losses resulting from changes in the fair value of contingent payment obligations are reflected within change in fair value of contingent consideration on the Consolidated Statements of Operations. Contingent payment obligations related to our asset purchases, if estimable and probable of payment, are initially recorded at their estimated value and reviewed every reporting period for changes. Any changes to the estimated value are recorded as an update of the initial acquisition cost of the asset with a corresponding change to the estimated contingent payment obligation on the Consolidated Balance Sheets. Treasury Stock Treasury stock is accounted for under the cost method and is included as a deduction from equity on the Stockholders' Equity section of the Consolidated Balance Sheets. Upon any subsequent resale, the treasury stock account is reduced by the cost of such stock. Revenue Recognition 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 The Company provides investment management services pursuant to investment management agreements through its investment advisers (each an "Adviser"). Investment management services represent a series of distinct daily services that are performed over time. Fees earned on funds are based on each fund's average daily or weekly net assets and are generally calculated and received on a monthly basis. For funds managed by unaffiliated subadvisors, the Company records fees net of the subadvisory fees, as the Company is deemed to be the agent as it relates to the services performed by unaffiliated subadvisers, with the Company's performance obligation being to arrange for the provision of that service and not control the specified service before it is performed. Amounts paid to unaffiliated subadvisers for the years ended December 31, 2023, 2022 and 2021 were $54.7 million, $77.0 million and $115.5 million, respectively. Retail separate account fees are generally earned based on the end of the preceding or current quarter's asset values. Institutional account fees are generally earned based on an average of daily or month-end balances or the current quarter's asset values. Fees for structured finance products are generally earned at a contractual fee rate applied against the end of the preceding quarter par value of the total collateral being managed. Distribution and Service Fees Distribution and service fees are sales- and asset-based fees earned from open-end funds for marketing and distribution services. Depending on the fund type or share class, these fees primarily consist of an asset-based fee that is paid by the fund over a period of years to cover allowable sales and marketing expenses, or front-end sales charges that are based on a percentage of the offering price. Asset-based distribution and service fees are primarily earned as percentages of the average daily net assets value and are paid monthly pursuant to the terms of the respective distribution and service fee contracts. Distribution and service fees represent two performance obligations comprised of distribution and related shareholder servicing activities. Distribution services are generally satisfied upon the sale of a fund share. Shareholder servicing activities are generally services satisfied over time. The Company distributes its open-end funds through unaffiliated financial intermediaries that comprise national, regional and independent broker-dealers. These unaffiliated financial intermediaries provide distribution and shareholder service activities on behalf of the Company. The Company passes related distribution and service fees to these unaffiliated financial intermediaries for these services and considers itself the principal in these arrangements since it has control of the services prior to the services being transferred to the customer. These payments are classified within distribution and other asset-based expenses. Administration and Shareholder Service Fees The Company provides administrative fund services to its U.S. retail funds, and certain of its closed-end funds and shareholder services to its open-end funds. Administration and shareholder services are performed over time. The Company earns fees for these services, which are calculated and paid monthly, based on each fund's average daily or weekly net assets. Administrative fund services include: record keeping, preparing and filing documents required to comply with securities laws, legal administration and compliance services, customer service, supervision of the activities of the funds' service providers, tax services and treasury services. The Company also provides office space, equipment and personnel that may be necessary for managing and administering the business affairs of the funds. Shareholder services include maintaining shareholder accounts, processing shareholder transactions, preparing filings and performing necessary reporting. Other Income and Fees Other income and fees primarily represent fees related to other fee earning assets and contingent sales charges earned from investor redemptions of certain shares sold without a front-end sales charge. Stock-based Compensation The Company accounts for stock-based compensation expense in accordance with ASC 718, Compensation—Stock Compensation ("ASC 718"), which requires the measurement and recognition of compensation expense for share-based awards based on the estimated fair value on the date of grant. Restricted stock units ("RSUs") are stock awards that entitle the holder to receive shares of the Company's common stock as the award vests over time or when certain performance metrics are achieved. The fair value of each RSU award is based on the fair market value price on the date of grant unless it contains a performance metric that is considered a "market condition." Compensation expense for RSU awards is recognized ratably over the vesting period on a straight-line basis. The value of RSUs that contain a performance metric ("PSUs") is determined based on (i) the fair market value price on the date of grant, for awards that contain a performance metric that represents a "performance condition" in accordance with ASC 718 or (ii) the Monte Carlo simulation valuation model for awards that contain a "market condition" performance metric under ASC 718. 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. Compensation expense for PSU awards that contain a market condition is fixed at the date of grant and is not adjusted in future periods based upon the achievement of the market condition. Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes ("ASC 740"), which requires recognition of the amount of taxes payable or refundable for the current year as well as deferred tax assets and liabilities for temporary differences between the tax basis of assets and liabilities and the reported amounts on the Consolidated Financial Statements. The Company's methodology for determining the realizability of deferred tax assets includes consideration of taxable income in prior carryback year(s), if carryback is permitted under the tax law, as well as consideration of the reversal of deferred tax liabilities that are in the same period and jurisdiction and are of the same character as the temporary differences that gave rise to the deferred tax assets. The Company's methodology also includes estimates of future taxable income from its operations as well as the expiration dates and amounts of carry-forwards related to net operating losses and capital losses. These estimates are projected through the life of the related deferred tax assets based on assumptions that the Company believes to be reasonable and consistent with demonstrated operating results. Unanticipated changes in future operating results may have a significant impact on the realization of deferred tax assets. Valuation allowances are provided when it is determined that it is more likely than not that the benefit of deferred tax assets will not be realized. Comprehensive Income The Company reports all changes in comprehensive income on the Consolidated Statements of Changes in Stockholders' Equity and the Consolidated Statements of Comprehensive Income. Comprehensive income includes net income (loss) and foreign currency translation adjustments (net of tax). 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. Fair Value Measurements and Fair Value of Financial Instruments ASC 820, Fair Value Measurement, establishes a framework for measuring fair value and a valuation hierarchy based upon the transparency of inputs used in the valuation of an asset or liability. The Financial Accounting Standards Board (the "FASB") defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. Classification within the hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The valuation hierarchy contains three levels as follows: Level 1—Unadjusted quoted prices for identical instruments in active markets. Level 1 assets and liabilities may include debt securities and equity securities that are traded in an active exchange market. Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 inputs may include observable market data such as closing market prices provided by independent pricing services after considering factors such as the yields or prices of comparable investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. In addition, pricing services may determine the fair value of equity securities traded principally in foreign markets when it has been determined that there has been a significant trend in the U.S. equity markets or in index futures trading. Level 2 assets and liabilities may include debt and equity securities, purchased loans and over-the-counter derivative contracts whose fair value is determined using a pricing model without significant unobservable market data inputs. Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable in active exchange markets. Recent Accounting Pronouncements New Accounting Standards Not Yet Implemented In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) . This standard updates reportable segment disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss and provides new segment disclosure requirements for entities with a single reportable segment. This standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, with the amendments to be applied retrospectively to all prior periods presented in the financial statements. The Company is in the process of evaluating the impact of adopting this standard and, at this time, does not anticipate it will have a material impact on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740). This standard updates income tax disclosure requirements by requiring disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. This standard is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is in the process of evaluating the impact of adopting this standard and, at this time, does not anticipate it will have a material impact on its consolidated financial statements. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Investment Management Fees by Source The following table summarizes investment management fees by source: Years Ended December 31, (in thousands) 2023 2022 2021 Investment management fees Open-end funds $ 305,238 $ 335,585 $ 395,152 Closed-end funds 58,136 63,841 63,301 Retail separate accounts 171,357 171,509 174,919 Institutional accounts 176,744 157,404 148,213 Total investment management fees $ 711,475 $ 728,339 $ 781,585 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 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 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 revenues and operating income of AlphaSimplex were not material to the Company's results of operations for the year ended December 31, 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 multi-period excess earnings method and the fair value of the trade names was estimated using a relief-from-royalty method, each of which was prepared with the assistance of an independent valuation firm. 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 Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Activity in goodwill was as follows: Years Ended December 31, (in thousands) 2023 2022 Balance, beginning of period $ 348,836 $ 338,406 Acquisitions 48,262 10,430 Balance, end of period $ 397,098 $ 348,836 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 of December 31, 2021 $ 755,576 $ (297,303) $ 458,273 $ 42,298 $ 500,571 Additions 10,800 — 10,800 — 10,800 Adjustments (10,348) — (10,348) — (10,348) Intangible amortization — (58,504) (58,504) — (58,504) Balances of December 31, 2022 756,028 (355,807) 400,221 42,298 442,519 Additions 55,400 — 55,400 — 55,400 Adjustments (4,773) — (4,773) — (4,773) Intangible amortization — (61,027) (61,027) — (61,027) Balances of December 31, 2023 $ 806,655 $ (416,834) $ 389,821 $ 42,298 $ 432,119 Definite-lived intangible asset amortization for the next five and succeeding fiscal years is estimated as follows: Fiscal Year Amount (in thousands) 2024 $ 56,299 2025 51,532 2026 50,552 2027 47,450 2028 41,787 2029 and thereafter 142,201 Total $ 389,821 At December 31, 2023, the weighted average estimated remaining amortization period for definite-lived intangible assets was 8.2 years. |
Investments
Investments | 12 Months Ended |
Dec. 31, 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 CIP discussed in Note 20, at December 31, 2023 and 2022, were as follows: December 31, (in thousands) 2023 2022 Investment securities - fair value $ 97,304 $ 76,999 Equity method investments (1) 22,710 11,448 Nonqualified retirement plan assets 12,682 10,154 Other investments — 1,729 Total investments $ 132,696 $ 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: December 31, 2023 December 31, 2022 (in thousands) Cost Fair Cost Fair Investment Securities - fair value: Sponsored funds $ 80,794 $ 77,433 $ 67,472 $ 62,744 Equity securities 16,353 19,871 13,440 14,255 Total investment securities - fair value $ 97,147 $ 97,304 $ 80,912 $ 76,999 For the years ended December 31, 2023, 2022 and 2021, the Company recognized a net realized gain of $2.1 million, a net realized loss of $1.4 million, and a net realized gain of $5.0 million, respectively, related to its investment securities - fair value. Equity Method Investments The Company's equity method investments primarily consist of a minority investment in an affiliated manager and an investment in a limited partnership. For the years ended December 31, 2023, 2022 and 2021, distributions from equity method investments were $2.3 million, $2.2 million and $3.7 million, respectively. The remaining capital commitment for one of the Company's equity method investments at December 31, 2023 was $0.2 million. Nonqualified Retirement Plan Assets The Company's Excess Incentive Plan allows certain employees to voluntarily defer compensation. The Company holds the Excess Incentive Plan assets in a rabbi trust, which is subject to the claims of the Company's creditors in the event of the Company's bankruptcy or insolvency. Each participant is responsible for designating investment options for their contributions, and the ultimate distribution paid to each participant reflects any gains or losses on the assets realized while in the trust. Assets held in trust are included in investments and are carried at fair value utilizing Level 1 valuation techniques in accordance with ASC 320, Investments - Debt Securities ; the associated obligations to participants are included in other liabilities on the Consolidated Balance Sheets . Other Investments Other investments represent interests in entities not accounted for under the equity method such as those accounted for under the cost method. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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 20, as of December 31, 2023 and 2022 by fair value hierarchy level were as follows: December 31, 2023 (in thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 197,240 $ — $ — $ 197,240 Investment securities - fair value Sponsored funds 77,433 — — 77,433 Equity securities 19,871 — — 19,871 Nonqualified retirement plan assets 12,682 — — 12,682 Total assets measured at fair value $ 307,226 — $ — $ 307,226 Liabilities Contingent consideration $ — $ — $ 56,200 $ 56,200 Total liabilities measured at fair value $ — $ — $ 56,200 $ 56,200 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 and liabilities 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 with NFJ Investment Group ("NFJ") and Westchester Capital Management ("WCM"). The continent consideration related to the WCM transaction as of December 31, 2023 was $11.1 million and represents the fair value of future potential earn-out payments based on pre-established performance metrics related to revenue growth rates. The estimated fair value of the WCM liability is measured using an options pricing model valuation technique utilizing unobservable market data inputs prepared with the assistance of an independent valuation firm. The most significant unobservable inputs used relate to the aforementioned revenue growth rates, discount rate (range of 6%-7%) and the market price of risk adjustment (9%). The NFJ contingent consideration liability as of December 31, 2023 was $45.1 million and represents the fair value of the projected future revenue participation payments. The NFJ revenue participation payments consist of variable payments based on a percentage of the investment management fees earned on certain NFJ managed open-end, closed-end and retail separate account assets. The estimated fair value of the NFJ liability is measured using an options pricing model valuation technique utilizing unobservable market data inputs prepared with the assistance of an independent valuation firm. The most significant unobservable inputs used relate to the revenue growth rates, discount rates (range of 6% - 7%) and the market price of risk adjustment (7%). These liabilities are categorized as Level 3 . The following table presents a reconciliation of beginning and ending balances of the Company's contingent consideration liabilities: (in thousands) 2023 2022 Contingent consideration, beginning of year $ 78,100 $ 88,400 Additions for acquisitions — 1,200 Reduction for payments made (16,390) (19,520) Increase (reduction) of liability related to re-measurement of fair value (5,510) 8,020 Contingent consideration, end of year $ 56,200 $ 78,100 Cash, accounts receivable, accounts payable and accrued liabilities equal or approximate fair value based on the short-term nature of these instruments. |
Furniture, Equipment and Leaseh
Furniture, Equipment and Leasehold Improvements, Net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Furniture, Equipment and Leasehold Improvements, Net | Furniture, Equipment and Leasehold Improvements, Net Furniture, equipment and leasehold improvements, net were as follows: December 31, (in thousands) 2023 2022 Leasehold improvements $ 26,710 $ 22,657 Furniture and office equipment 15,459 12,389 Computer equipment and software 6,671 5,764 Subtotal 48,840 40,810 Accumulated depreciation and amortization (22,624) (21,687) Furniture, equipment and leasehold improvements, net $ 26,216 $ 19,123 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases All of the Company's leases qualify as operating leases and consist primarily of leases for office facilities, which have remaining initial lease terms ranging from 0.7 to 9.8 years and a weighted average remaining lease term of 5.7 years. The Company has options to renew certain of its leases for periods ranging from 3.0 to 10.0 years, depending on the lease. None of the Company's renewal options were considered reasonably assured of being exercised and, therefore, were excluded from the initial lease term used to determine the Company's right-of-use asset and lease liability. The Company's right-of-use asset, recorded in other assets other liabilities Lease expense totaled $14.7 million, $14.0 million and $5.6 million for fiscal years 2023, 2022 and 2021, respectively. Cash payments relating to operating leases during 2023 were $16.4 million. Lease liability maturities as of December 31, 2023 were as follows: Fiscal Year Amount (in thousands) 2024 $ 17,168 2025 16,758 2026 14,909 2027 14,216 2028 12,033 Thereafter 12,984 Total lease payments 88,068 Less: Imputed interest 9,926 Present value of lease liabilities $ 78,142 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the provision for income taxes were as follows: Years Ended December 31, (in thousands) 2023 2022 2021 Current Federal $ 33,523 $ 40,113 $ 75,525 State 10,171 19,107 24,974 Total current tax expense (benefit) 43,694 59,220 100,499 Deferred Federal 789 (1,506) (6,241) State 605 (454) (3,423) Total deferred tax expense (benefit) 1,394 (1,960) (9,664) Total expense (benefit) for income taxes $ 45,088 $ 57,260 $ 90,835 The following presents a reconciliation of the provision (benefit) for income taxes computed at the federal statutory rate to the provision (benefit) for income taxes recognized on the Consolidated Statements of Operations for the years indicated: Years Ended December 31, (in thousands) 2023 2022 2021 Tax at statutory rate $ 39,178 21 % $ 34,416 21 % $ 74,271 21 % State taxes, net of federal benefit 9,240 5 % 14,736 9 % 17,283 5 % Excess tax benefits related to share-based compensation (1,767) (1) % (2,792) (1) % (4,095) (1) % Nondeductible compensation 2,106 1 % 2,356 1 % 3,461 1 % Effect of net (income) loss attributable to noncontrolling interests (2,299) (1) % (1,435) (1) % (2,637) (1) % Change in valuation allowance (1,547) (1) % 9,596 6 % 1,941 1 % Other, net 177 — % 383 — % 611 — % Income tax expense (benefit) $ 45,088 24 % $ 57,260 35 % $ 90,835 26 % The provision for income taxes reflects U.S. federal, state and local taxes at an effective tax rate of 24%, 35% and 26% for the years ended December 31, 2023, 2022 and 2021, respectively. The Company's tax position for the years ended December 31, 2023, 2022 and 2021 was impacted by changes in the valuation allowance related to the unrealized and realized gains and losses on the Company's investments. Deferred taxes resulted from temporary differences between the amounts reported on the consolidated financial statements and the tax basis of assets and liabilities. The tax effects of temporary differences were as follows: December 31, (in thousands) 2023 2022 Deferred tax assets: Intangible assets $ 19,206 $ 17,773 Net operating losses 10,754 11,881 Compensation accruals 19,614 16,813 Lease liability 19,009 10,026 Investments 11,643 18,283 Capital losses 6,139 2,197 Other 2,188 94 Gross deferred tax assets 88,553 77,067 Valuation allowance (16,539) (19,480) Gross deferred tax assets after valuation allowance 72,014 57,587 Deferred tax liabilities: Intangible assets (26,746) (24,163) Right of use asset (15,677) (7,672) Fixed assets (4,197) (1,869) Other investments (370) (712) Gross deferred tax liabilities (46,990) (34,416) Deferred tax assets, net $ 25,024 $ 23,171 At each reporting date, the Company evaluates the positive and negative evidence used to determine the likelihood of realization of its deferred tax assets. The Company maintained a valuation allowance in the amount of $16.5 million and $19.5 million at December 31, 2023 and 2022, respectively, relating to deferred tax assets on items of a capital nature as well as certain state deferred tax assets. As of December 31, 2023, the Company had net operating loss carry-forwards for federal income tax purposes represented by a $6.1 million deferred tax asset. The related federal net operating loss carry-forwards are scheduled to begin to expire in the year 2031. As of December 31, 2023, the Company had state net operating loss carry-forwards, varying by subsidiary and jurisdiction, represented by a $4.6 million deferred tax asset. Certain state net operating loss carry-forwards are scheduled to begin to expire in 2024. Internal Revenue Code Section 382 ("Section 382") limits tax deductions for net operating losses, capital losses and net unrealized built-in losses after there is a substantial change in ownership in a corporation's stock involving a 50-percentage point increase in ownership by 5% or larger stockholders. At December 31, 2023, the Company had pre-change losses represented by deferred tax assets totaling $7.0 million that are subject to Section 382 limits. The utilization of these assets is subject to an annual limitation of $1.1 million. Activity in unrecognized tax benefits were as follows: Years Ended December 31, (in thousands) 2023 2022 2021 Balance, beginning of year $ 856 $ 1,235 $ 1,021 Decrease related to tax positions taken in prior years (214) (593) — Increase related to positions taken in the current year 214 214 214 Balance, end of year $ 856 $ 856 $ 1,235 If recognized, $0.7 million of the $0.9 million gross unrecognized tax benefit balance at December 31, 2023 would favorably impact the Company's effective income tax rate. The Company does not expect any significant changes to its liability for unrecognized tax benefits during the next 12 months. The Company recognizes interest and penalties related to income tax matters within income tax expense. The Company recorded no interest or penalties related to unrecognized tax benefits at December 31, 2023, 2022 and 2021. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Credit Agreement The Company's credit agreement (the "Credit Agreement"), most recently amended on June 20, 2023 to change the base interest rate from LIBOR to SOFR, 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. On April 3, 2023, the Company borrowed $50.0 million under the revolving credit facility to partially finance its acquisition of AlphaSimplex (see Note 4 for further information) and repaid the entire $50.0 million prior to December 31, 2023. In addition, the Company repaid $2.8 million outstanding under the Term Loan in 2023 and had $258.8 million outstanding at December 31, 2023 under the Term Loan. In accordance with ASC 835, Interest , the amounts outstanding under the Company's Term Loan are presented on the Consolidated Balance Sheet net of related debt issuance costs, which were $5.4 million as of December 31, 2023. Amounts outstanding under the Credit Agreement bear interest at an annual rate equal to, at the option of the Company, either SOFR (adjusted for reserves) for interest periods of one, three or six months (or, solely in the case of the revolving credit facility, if agreed to by each relevant Lender, 12 months) or an alternate base rate, in either case plus an applicable margin. The applicable margins are 2.25%, in the case of SOFR-based loans, and 1.25%, in the case of alternate base rate loans. Interest is payable quarterly in arrears with respect to alternate base rate loans and on the last day of each interest period with respect to SOFR-based loans (but, in the case of any SOFR-based loan with an interest period of more than three months, at three-month intervals). The Credit Agreement contains SOFR and other subsequent benchmark successor provisions. The terms of the Credit Agreement require the Company to pay a quarterly commitment fee on the average unused amount of the revolving credit facility. The fee is initially set at 0.50% and following the first delivery of certain financial reports, will range from 0.375% to 0.50%, based on the secured net leverage ratio of the Company as of the last day of the preceding fiscal quarter, as reflected in such financial reports. The Term Loan amortizes at the rate of 1.00% per annum payable in equal quarterly installments on the last day of each calendar quarter, commencing on December 31, 2021. In addition, the Credit Agreement requires that the Term Loan be mandatorily prepaid with (i) 50% of the Company’s excess cash flow on an annual basis, stepping down to 25% if the Company’s secured net leverage ratio declines to 2:1 or below and stepping down to 0% if the Company’s secured net leverage ratio declines below 1.5:1; (ii) 50% of the net proceeds of certain asset sales, casualty or condemnation events, subject to customary reinvestment rights; and (iii) 100% of the proceeds of any indebtedness incurred to refinance the term loans or other refinancing indebtedness as well as indebtedness incurred other than indebtedness permitted to be incurred by the Credit Agreement. At any time, upon timely notice, the Company may terminate the Credit Agreement in full, reduce the commitment under the facility in minimum specified increments or prepay loans in whole or in part, subject to the payment of breakage fees with respect to SOFR-based loans and, in the case of any term loans that are prepaid in connection with a "repricing transaction" occurring within the six-month period following the closing date of the Credit Agreement, a 1.00% premium. The Credit Agreement contains customary affirmative and negative covenants, including covenants that affect, among other things, the ability of the Company and its subsidiaries to incur additional indebtedness, create liens, merge or dissolve, make investments, dispose of assets, engage in sale and leaseback transactions, make distributions and dividends and prepayments of junior indebtedness, engage in transactions with affiliates, enter into restrictive agreements, amend documentation governing junior indebtedness, modify its fiscal year and modify its organizational documents, subject to customary exceptions, thresholds, qualifications and "baskets." In addition, the Credit Agreement contains a financial performance covenant that is only applicable when greater than 35% of the revolving credit facility is outstanding, requiring a maximum leverage ratio, as of the last day of each of the four fiscal quarter periods, of no greater than the levels set forth in the Credit Agreement. Future minimum Term Loan payments (exclusive of any mandatory excess cash flow repayments) as of December 31, 2023 were as follows: Fiscal Year Amount (in thousands) 2024 $ 2,750 2025 2,750 2026 2,750 2027 2,750 2028 247,813 $ 258,813 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 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. |
Equity Transactions
Equity Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Equity Transactions | Equity Transactions Dividends During the first and second quarters of the year ended December 31, 2023, the Board of Directors declared quarterly cash dividends on the Company's common stock of $1.65 each. During the third and fourth quarters of the year ended December 31, 2023, the Board of Directors declared quarterly cash dividends on the Company's common stock of $1.90 each. Total dividends declared on the Company's common stock were $53.5 million for the year ended December 31, 2023. At December 31, 2023, $17.3 million was included as dividends payable in liabilities on the Consolidated Balance Sheet representing the fourth quarter dividends to be paid on February 15, 2024 for common stock shareholders of record as of January 31, 2024. Common Stock Repurchases |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) were as follows: Years Ended December 31, (in thousands) 2023 2022 Balance at beginning of period $ (358) $ 20 Net current-period other comprehensive income (loss) (1) 271 (378) Balance at end of period $ (87) $ (358) |
Retirement Savings Plan
Retirement Savings Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Retirement Savings Plan | Retirement Savings Plan The Company sponsors a defined contribution 401(k) retirement plan (the "401(k) Plan") covering all employees who meet certain age and service requirements. Employees may contribute a percentage of their eligible compensation into the 401(k) Plan, subject to certain limitations imposed by the Internal Revenue Code. The Company matches employees' contributions at a rate of 100% of employees' contributions up to the first 5.0% of the employees' compensation contributed to the 401(k) Plan. The Company's matching contributions were $8.3 million, $7.4 million and $5.9 million in 2023, 2022 and 2021, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 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 December 31, 2023, 478,216 shares of common stock remain 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: Years Ended December 31, (in thousands) 2023 2022 2021 Stock-based compensation expense $ 26,825 $ 24,042 $ 26,225 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 year ended December 31, 2023 is summarized as follows: Number Weighted Average Outstanding at December 31, 2022 377,087 $ 178.21 Granted 210,420 $ 160.74 Forfeited (38,060) $ 150.13 Settled (204,730) $ 121.26 Outstanding at December 31, 2023 344,717 $ 204.48 The grant-date intrinsic value of RSUs granted during the year ended December 31, 2023 was $33.8 million. Years Ended December 31, (in millions, except per share values) 2023 2022 2021 Weighted-average grant-date fair value per share $ 160.74 $ 194.46 $ 268.65 Fair value of RSUs vested $ 24.8 $ 23.8 $ 22.8 For the years ended December 31, 2023, 2022 and 2021, a total of 79,516, 79,471 and 73,069 RSUs, respectively, were withheld by the Company as a result of net share settlements to settle minimum employee tax withholding obligations and for which the Company paid $13.8 million, $16.8 million and $19.5 million, respectively, in minimum employee tax withholding obligations. 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 years ended December 31, 2023 and 2022, the Company granted 44,583 and 30,516 PSUs, respectively, 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 December 31, 2023 and 2022, unamortized stock-based compensation expense for unvested RSUs and PSUs was $30.3 million and $27.7 million, respectively, with a weighted average remaining contractual life of 1.1 years and 1.0 years, respectively. The Company did not capitalize any stock-based compensation expenses during the years ended December 31, 2023, 2022 and 2021. Employee Stock Purchase Plan The Company offers an employee stock purchase plan that allows employees to purchase shares of common stock on the open market at market price through after-tax payroll deductions. The initial transaction fees are paid for by the Company and shares of common stock are purchased on a quarterly basis. The Company does not reserve shares for this plan or discount the purchase price of the shares. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The computation of basic and diluted EPS is as follows: Years Ended December 31, (in thousands, except per share amounts) 2023 2022 2021 Net Income (Loss) $ 141,476 $ 106,628 $ 262,835 Noncontrolling interests (10,855) 10,913 (54,704) Net Income (Loss) Attributable to Virtus Investment Partners, Inc. $ 130,621 $ 117,541 $ 208,131 Shares (in thousands): Basic: Weighted-average number of shares outstanding 7,249 7,391 7,672 Plus: Incremental shares from assumed conversion of dilutive instruments 126 191 331 Diluted: Weighted-average number of shares outstanding 7,375 7,582 8,003 Earnings (Loss) per Share—Basic $ 18.02 $ 15.90 $ 27.13 Earnings (Loss) per Share—Diluted $ 17.71 $ 15.50 $ 26.01 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. Years Ended Years Ended December 31, (in thousands) 2023 2022 2021 Restricted stock units and stock options 2 33 3 Total anti-dilutive securities 2 33 3 |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Concentration of Credit Risk No Company clients or sponsored funds provided 10 percent or more of the Company's investment management, administration and shareholder service fee revenues in the preceding three years. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2023 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests Redeemable noncontrolling interests for the year ended December 31, 2023 included the following amounts: (in thousands) CIP Affiliate Noncontrolling Interests Total Balance at December 31, 2022 $ 18,268 $ 95,450 $ 113,718 Net income (loss) attributable to noncontrolling interests 2,805 6,298 9,103 Changes in redemption value (1) — 1,682 1,682 Total net income (loss) attributable to noncontrolling interests 2,805 7,980 10,785 Affiliate equity sales (purchases) — (20,784) (20,784) Net subscriptions (redemptions) and other 9,570 (8,420) 1,150 Balance at December 31, 2023 $ 30,643 $ 74,226 $ 104,869 (1) Relates to noncontrolling interests redeemable at other than fair value. |
Consolidation
Consolidation | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | Consolidation The consolidated financial statements include the accounts of the Company, its subsidiaries and investment products that are consolidated. A VOE is 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 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 U.S. retail funds and ETFs in which the Company holds a controlling financial interest, and VIEs, which consist of collateralized loan obligations ("CLO") and certain global and private funds ("GF") of which the Company is considered the primary beneficiary. The consolidation and deconsolidation of these investment products have no impact on the Company's net income (loss). 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 Consolidated Balance Sheets as of December 31, 2023 and 2022: As of December 31, 2023 2022 VOEs VIEs VOEs VIEs (in thousands) CLOs GFs CLOs GFs Cash and cash equivalents $ 1,223 $ 98,101 $ 2,088 $ 1,153 $ 249,003 $ 789 Investments 30,985 1,972,342 79,386 24,669 2,106,764 58,680 Other assets 174 41,985 1,076 295 43,993 1,157 Notes payable — (1,922,243) — — (2,083,314) — Securities purchased payable and other liabilities (740) (89,167) (616) (573) (230,141) (183) Noncontrolling interests (7,316) (4,363) (23,327) (7,879) (5,917) (10,389) Net interests in CIP $ 24,326 $ 96,655 $ 58,607 $ 17,665 $ 80,388 $ 50,054 Consolidated CLOs The majority of the Company's CIP that are VIEs are CLOs. The financial information of certain CLOs is included on the Company's 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. At December 31, 2023, the Company consolidated eight CLOs. Investments of CLOs The CLOs held investments of $2.0 billion at December 31, 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 2024 and 2032 and generally pay interest at SOFR plus a spread. The CLOs have a reinvestment period where any prepayments received on bank loan investments may be reinvested. Generally, subsequent prepayments received after the reinvestment period must be used to pay down the note payable obligations. The reinvestment periods end between October 2021 and September 2028, depending on the CLO. At December 31, 2023, the fair value of the senior bank loans was less than the unpaid principal (par) balance by $104.4 million. At December 31, 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 $2.1 billion at December 31, 2023, consisting of senior secured floating rate notes payable with a par value of $1.9 billion and subordinated notes with a par value of $215.1 million. These note obligations bear interest at variable rates based on SOFR 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 2029 to September 2036. 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 December 31, 2023, as shown in the table below: (in thousands) Subordinated notes $ 95,490 Accrued investment management fees 1,165 Total Beneficial Interests $ 96,655 The following table represents income and expenses of the consolidated CLOs included on the Company's Consolidated Statements of Operations for the period indicated: Year Ended December 31, 2023 (in thousands) Income: Realized and unrealized gain (loss), net $ (9,083) Interest income 191,755 Total Income $ 182,672 Expenses: Other operating expenses $ 3,704 Interest expense 155,335 Total Expense 159,039 Noncontrolling interests (70) Net Income (loss) attributable to CLOs $ 23,563 The following table represents the Company's own economic interests in the consolidated CLOs, which are eliminated upon consolidation: Year Ended December 31, 2023 (in thousands) Distributions received and unrealized gains (losses) on the subordinated notes held by the Company $ 14,831 Investment management fees 8,732 Total Economic Interests $ 23,563 Fair Value Measurements of CIP The assets and liabilities of CIP measured at fair value on a recurring basis as of December 31, 2023 and 2022 by fair value hierarchy level were as follows: As of December 31, 2023 (in thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 98,101 $ — $ — $ 98,101 Debt investments 241 2,012,760 36,616 2,049,617 Equity investments 32,642 8 446 33,096 Total assets measured at fair value $ 130,984 $ 2,012,768 $ 37,062 $ 2,180,814 Liabilities Notes payable $ — $ 1,922,243 $ — $ 1,922,243 Short sales 518 — — 518 Total liabilities measured at fair value $ 518 $ 1,922,243 $ — $ 1,922,761 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. Level 1 assets represent cash investments in money market funds and debt and equity investments that are valued using published net asset values or the official closing price on the exchange on which the securities are traded. Level 2 assets 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, other than bank loans, 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. Level 3 assets 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. These securities are valued using unadjusted prices from an independent pricing service. Level 1 liabilities consist of short sales 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. Level 2 liabilities consists of notes payables issued by 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. The securities purchased payable at December 31, 2023 and 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. Year Ended December 31, (in thousands) 2023 2022 Level 3 Investments of CIP (1) Balance at beginning of period $ 43,581 $ 3,157 Purchases 6,213 4,118 Sales (21,784) (18,076) Amortization 327 107 Change in unrealized gains (losses), net 8,768 (958) Realized gains (loss), net (9,886) (585) Transfers to Level 2 (120,536) (87,458) Transfers from Level 2 130,379 143,276 Balance at end of period $ 37,062 $ 43,581 (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. The Company has interests in certain other VIEs that the Company does not consolidate as it is not the primary beneficiary since its interest in these entities does not provide the Company with the power to direct the activities that most significantly impact the entities' economic performance. At December 31, 2023, the carrying value and maximum risk of loss related to the Company's interest in these VIEs was $25.7 million. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividends Declared On February 21, 2024, the Company declared a quarterly cash dividend of $1.90 per common share to be paid on May 15, 2024 to shareholders of record at the close of business on April 30, 2024. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 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 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). |
Consolidation | The consolidated financial statements include the accounts of the Company, its subsidiaries and investment products that are consolidated. A voting interest entity ("VOE") is 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. |
Variable Interest Entities | . See Note 20 for additional information related to the consolidation of investment products. Intercompany accounts and transactions have been eliminated. The consolidated financial statements include the accounts of the Company, its subsidiaries and investment products that are consolidated. A VOE is 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 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 U.S. retail funds and ETFs in which the Company holds a controlling financial interest, and VIEs, which consist of collateralized loan obligations ("CLO") and certain global and private funds ("GF") of which the Company is considered the primary beneficiary. The consolidation and deconsolidation of these investment products have no impact on the Company's net income (loss). 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 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. |
Noncontrolling Interest | Noncontrolling interests - CIP Noncontrolling interests - CIP represent third-party investments in the Company's CIP and are classified as redeemable noncontrolling interests on the Consolidated Balance Sheets because investors in those products are able to request withdrawal at any time. Noncontrolling interests - affiliate |
Use of Estimates | The preparation of the consolidated financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management believes the estimates used in preparing the consolidated financial statements are reasonable and prudent. Actual results could differ from those estimates. |
Segment Information | Accounting Standards Codification ("ASC") 280, Segment Reporting |
Cash and Cash Equivalents / Restricted Cash | Cash and cash equivalents consist of cash in banks and money market fund investments. The Company considers cash and cash equivalents of CIP and cash pledged or on deposit of CIP to be restricted as it is not available to the Company for its general operations. |
Investments | Investment Securities - Fair Value Investment securities - fair value consist of investments in the Company's sponsored funds and separately managed accounts and are carried at fair value in accordance with ASC 320, Investments-Debt and Equity Securities ("ASC 320"), and Topic 321, Investments-Equity Securities ("ASC 321"). These securities are marked to market based on the respective publicly quoted net asset values of the funds or market prices of the equity securities or bonds. Transactions in these securities are recorded on a trade date basis. Any unrealized appreciation or depreciation on investment securities is reported on the Consolidated Statement of Operations within realized and unrealized gain (loss) on investments. Equity Method Investments Equity method investments consist of Company investments in noncontrolled entities, where the Company does not hold a controlling financial interest but has the ability to significantly influence operating and financial matters. Equity method investments are accounted for in accordance with ASC 323, Investments-Equity Method and Joint Ventures . Under the equity method of accounting, the Company's share of the noncontrolled entities' net income or loss is recorded in other income (expense), net on the Consolidated Statements of Operations. Distributions received reduce the Company's investment. The investment is evaluated for impairment if events or changes indicate that the carrying amount exceeds its fair value. If the carrying amount of an investment does exceed its fair value and the decline in fair value is deemed to be other-than-temporary, an impairment charge will be recorded. Non-qualified Retirement Plan Assets and Liabilities The Company has a non-qualified retirement plan (the "Excess Incentive Plan") that allows certain employees to voluntarily defer compensation. Assets held in trust, which are considered investment securities, are included in investments at fair value in accordance with ASC 820, Fair Value Measurement ("ASC 820"); the associated obligations to participants, which approximate the fair value of the associated assets, are included in other liabilities on the Consolidated Balance Sheets. (See Note 6 for additional information related to the Excess Incentive Plan.) |
Furniture, Equipment and Leasehold Improvements, Net | Furniture, equipment and leasehold improvements are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of three |
Leases | The Company leases office space and equipment under various leasing arrangements. In accordance with ASC 842, Leases , the Company's leases are evaluated and classified as either financing leases or operating leases, as appropriate. The Company recognizes a lease liability and a corresponding right of use ("ROU") asset on the commencement date of any lease arrangement. The lease liability is initially measured at the present value of the future lease payments over the lease term using the rate implicit in the arrangement or, if not readily determinable, the Company's incremental borrowing rate. The Company determines its incremental borrowing rate through market sources, including relevant industry rates. A ROU asset is measured initially as the value of the lease liability plus initial direct costs and prepaid lease payments, and less lease incentives received. Lease expense is recognized on a straight-line basis over the lease term and is recorded within other operating expenses on the Consolidated Statement of Operations. |
Goodwill and Other Intangible Assets | Goodwill represents the excess of the purchase price of business combinations over the identified assets and liabilities acquired. In accordance with ASC 350, Goodwill and Other Intangible Assets, goodwill is not amortized. The Company has a single reporting unit for the purpose of assessing potential impairments of goodwill. An impairment analysis of goodwill is performed annually or more frequently, if warranted by events or changes in circumstances affecting the Company's business. The Company follows Accounting Standards Update ("ASU") 2011-08, Testing Goodwill for Impairment, which provides the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, it is determined that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. The Company's 2023 and 2022 annual goodwill impairment analysis did not result in any impairment charges. Definite-lived intangible assets are comprised of certain investment management agreements, trade names, non-competition agreements and software. These assets are amortized on a straight-line basis over the estimated useful lives of such assets, which range from 4 to 16 years. Definite-lived intangible assets are evaluated for impairment on an ongoing basis whenever events or circumstances indicate that the carrying value of the definite-lived intangible asset may not be recoverable. The Company determines if impairment has occurred by comparing estimates of future undiscounted cash flows to the carrying value of assets. Assets are considered impaired, and an impairment is recorded, if the carrying value exceeds the expected future undiscounted cash flows. Indefinite-lived intangible assets are comprised of certain trade names and fund investment management agreements. These assets are tested for impairment annually or when events or changes in circumstances indicate the assets might be impaired. The Company follows ASU 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment , which provides the option to perform a qualitative assessment of indefinite-lived intangible assets other than goodwill for impairment to determine if additional impairment testing is necessary. The Company's 2023 and 2022 annual indefinite-lived intangible assets impairment analysis did not result in any impairment charges. |
Treasury Stock | Treasury stock is accounted for under the cost method and is included as a deduction from equity on the Stockholders' Equity section of the Consolidated Balance Sheets. Upon any subsequent resale, the treasury stock account is reduced by the cost of such stock. |
Revenue Recognition | 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 Retail separate account fees are generally earned based on the end of the preceding or current quarter's asset values. Institutional account fees are generally earned based on an average of daily or month-end balances or the current quarter's asset values. Fees for structured finance products are generally earned at a contractual fee rate applied against the end of the preceding quarter par value of the total collateral being managed. Distribution and Service Fees Distribution and service fees are sales- and asset-based fees earned from open-end funds for marketing and distribution services. Depending on the fund type or share class, these fees primarily consist of an asset-based fee that is paid by the fund over a period of years to cover allowable sales and marketing expenses, or front-end sales charges that are based on a percentage of the offering price. Asset-based distribution and service fees are primarily earned as percentages of the average daily net assets value and are paid monthly pursuant to the terms of the respective distribution and service fee contracts. Distribution and service fees represent two performance obligations comprised of distribution and related shareholder servicing activities. Distribution services are generally satisfied upon the sale of a fund share. Shareholder servicing activities are generally services satisfied over time. The Company distributes its open-end funds through unaffiliated financial intermediaries that comprise national, regional and independent broker-dealers. These unaffiliated financial intermediaries provide distribution and shareholder service activities on behalf of the Company. The Company passes related distribution and service fees to these unaffiliated financial intermediaries for these services and considers itself the principal in these arrangements since it has control of the services prior to the services being transferred to the customer. These payments are classified within distribution and other asset-based expenses. Administration and Shareholder Service Fees The Company provides administrative fund services to its U.S. retail funds, and certain of its closed-end funds and shareholder services to its open-end funds. Administration and shareholder services are performed over time. The Company earns fees for these services, which are calculated and paid monthly, based on each fund's average daily or weekly net assets. Administrative fund services include: record keeping, preparing and filing documents required to comply with securities laws, legal administration and compliance services, customer service, supervision of the activities of the funds' service providers, tax services and treasury services. The Company also provides office space, equipment and personnel that may be necessary for managing and administering the business affairs of the funds. Shareholder services include maintaining shareholder accounts, processing shareholder transactions, preparing filings and performing necessary reporting. Other Income and Fees Other income and fees primarily represent fees related to other fee earning assets and contingent sales charges earned from investor redemptions of certain shares sold without a front-end sales charge. |
Stock-based Compensation | The Company accounts for stock-based compensation expense in accordance with ASC 718, Compensation—Stock Compensation ("ASC 718"), which requires the measurement and recognition of compensation expense for share-based awards based on the estimated fair value on the date of grant. |
Income Taxes | The Company accounts for income taxes in accordance with ASC 740, Income Taxes ("ASC 740"), which requires recognition of the amount of taxes payable or refundable for the current year as well as deferred tax assets and liabilities for temporary differences between the tax basis of assets and liabilities and the reported amounts on the Consolidated Financial Statements. The Company's methodology for determining the realizability of deferred tax assets includes consideration of taxable income in prior carryback year(s), if carryback is permitted under the tax law, as well as consideration of the reversal of deferred tax liabilities that are in the same period and jurisdiction and are of the same character as the temporary differences that gave rise to the deferred tax assets. The Company's methodology also includes estimates of future taxable income from its operations as well as the expiration dates and amounts of carry-forwards related to net operating losses and capital losses. These estimates are projected through the life of the related deferred tax assets based on assumptions that the Company believes to be reasonable and consistent with demonstrated operating results. Unanticipated changes in future operating results may have a significant impact on the realization of deferred tax assets. Valuation allowances are provided when it is determined that it is more likely than not that the benefit of deferred tax assets will not be realized. |
Comprehensive Income | The Company reports all changes in comprehensive income on the Consolidated Statements of Changes in Stockholders' Equity and the Consolidated Statements of Comprehensive Income. Comprehensive income includes net income (loss) and foreign currency translation adjustments (net of tax). |
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 |
Fair Value Measurement and Fair Value of Financial Instruments | ASC 820, Fair Value Measurement, establishes a framework for measuring fair value and a valuation hierarchy based upon the transparency of inputs used in the valuation of an asset or liability. The Financial Accounting Standards Board (the "FASB") defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. Classification within the hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The valuation hierarchy contains three levels as follows: Level 1—Unadjusted quoted prices for identical instruments in active markets. Level 1 assets and liabilities may include debt securities and equity securities that are traded in an active exchange market. Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 inputs may include observable market data such as closing market prices provided by independent pricing services after considering factors such as the yields or prices of comparable investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. In addition, pricing services may determine the fair value of equity securities traded principally in foreign markets when it has been determined that there has been a significant trend in the U.S. equity markets or in index futures trading. Level 2 assets and liabilities may include debt and equity securities, purchased loans and over-the-counter derivative contracts whose fair value is determined using a pricing model without significant unobservable market data inputs. Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable in active exchange markets. The following is a discussion of the valuation methodologies used for the Company's assets and liabilities 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 with NFJ Investment Group ("NFJ") and Westchester Capital Management ("WCM"). The continent consideration related to the WCM transaction as of December 31, 2023 was $11.1 million and represents the fair value of future potential earn-out payments based on pre-established performance metrics related to revenue growth rates. The estimated fair value of the WCM liability is measured using an options pricing model valuation technique utilizing unobservable market data inputs prepared with the assistance of an independent valuation firm. The most significant unobservable inputs used relate to the aforementioned revenue growth rates, discount rate (range of 6%-7%) and the market price of risk adjustment (9%). The NFJ contingent consideration liability as of December 31, 2023 was $45.1 million and represents the fair value of the projected future revenue participation payments. The NFJ revenue participation payments consist of variable payments based on a percentage of the investment management fees earned on certain NFJ managed open-end, closed-end and retail separate account assets. The estimated fair value of the NFJ liability is measured using an options pricing model valuation technique utilizing unobservable market data inputs prepared with the assistance of an independent valuation firm. The most significant unobservable inputs used relate to the revenue growth rates, discount rates (range of 6% - 7%) and the market price of risk adjustment (7%). These liabilities are categorized as Level 3 . The following is a discussion of the valuation methodologies used for the assets and liabilities of the Company's CIP measured at fair value. Level 1 assets represent cash investments in money market funds and debt and equity investments that are valued using published net asset values or the official closing price on the exchange on which the securities are traded. Level 2 assets 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, other than bank loans, 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. Level 3 assets 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. These securities are valued using unadjusted prices from an independent pricing service. Level 1 liabilities consist of short sales 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. Level 2 liabilities consists of notes payables issued by 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. |
Recent Accounting Pronouncements | New Accounting Standards Not Yet Implemented In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) . This standard updates reportable segment disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss and provides new segment disclosure requirements for entities with a single reportable segment. This standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, with the amendments to be applied retrospectively to all prior periods presented in the financial statements. The Company is in the process of evaluating the impact of adopting this standard and, at this time, does not anticipate it will have a material impact on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740). This standard updates income tax disclosure requirements by requiring disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. This standard is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is in the process of evaluating the impact of adopting this standard and, at this time, does not anticipate it will have a material impact on its consolidated financial statements. |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenue | The following table summarizes investment management fees by source: Years Ended December 31, (in thousands) 2023 2022 2021 Investment management fees Open-end funds $ 305,238 $ 335,585 $ 395,152 Closed-end funds 58,136 63,841 63,301 Retail separate accounts 171,357 171,509 174,919 Institutional accounts 176,744 157,404 148,213 Total investment management fees $ 711,475 $ 728,339 $ 781,585 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 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 Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets, Net | Activity in goodwill was as follows: Years Ended December 31, (in thousands) 2023 2022 Balance, beginning of period $ 348,836 $ 338,406 Acquisitions 48,262 10,430 Balance, end of period $ 397,098 $ 348,836 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 of December 31, 2021 $ 755,576 $ (297,303) $ 458,273 $ 42,298 $ 500,571 Additions 10,800 — 10,800 — 10,800 Adjustments (10,348) — (10,348) — (10,348) Intangible amortization — (58,504) (58,504) — (58,504) Balances of December 31, 2022 756,028 (355,807) 400,221 42,298 442,519 Additions 55,400 — 55,400 — 55,400 Adjustments (4,773) — (4,773) — (4,773) Intangible amortization — (61,027) (61,027) — (61,027) Balances of December 31, 2023 $ 806,655 $ (416,834) $ 389,821 $ 42,298 $ 432,119 |
Schedule of Estimated Amortization Expense of Intangible Assets Succeeding Years | Definite-lived intangible asset amortization for the next five and succeeding fiscal years is estimated as follows: Fiscal Year Amount (in thousands) 2024 $ 56,299 2025 51,532 2026 50,552 2027 47,450 2028 41,787 2029 and thereafter 142,201 Total $ 389,821 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Schedule of Investments [Abstract] | |
Schedule of Investments | The Company's investments, excluding the assets of CIP discussed in Note 20, at December 31, 2023 and 2022, were as follows: December 31, (in thousands) 2023 2022 Investment securities - fair value $ 97,304 $ 76,999 Equity method investments (1) 22,710 11,448 Nonqualified retirement plan assets 12,682 10,154 Other investments — 1,729 Total investments $ 132,696 $ 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: December 31, 2023 December 31, 2022 (in thousands) Cost Fair Cost Fair Investment Securities - fair value: Sponsored funds $ 80,794 $ 77,433 $ 67,472 $ 62,744 Equity securities 16,353 19,871 13,440 14,255 Total investment securities - fair value $ 97,147 $ 97,304 $ 80,912 $ 76,999 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 20, as of December 31, 2023 and 2022 by fair value hierarchy level were as follows: December 31, 2023 (in thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 197,240 $ — $ — $ 197,240 Investment securities - fair value Sponsored funds 77,433 — — 77,433 Equity securities 19,871 — — 19,871 Nonqualified retirement plan assets 12,682 — — 12,682 Total assets measured at fair value $ 307,226 — $ — $ 307,226 Liabilities Contingent consideration $ — $ — $ 56,200 $ 56,200 Total liabilities measured at fair value $ — $ — $ 56,200 $ 56,200 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 December 31, 2023 and 2022 by fair value hierarchy level were as follows: As of December 31, 2023 (in thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 98,101 $ — $ — $ 98,101 Debt investments 241 2,012,760 36,616 2,049,617 Equity investments 32,642 8 446 33,096 Total assets measured at fair value $ 130,984 $ 2,012,768 $ 37,062 $ 2,180,814 Liabilities Notes payable $ — $ 1,922,243 $ — $ 1,922,243 Short sales 518 — — 518 Total liabilities measured at fair value $ 518 $ 1,922,243 $ — $ 1,922,761 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 the Company's contingent consideration liabilities: (in thousands) 2023 2022 Contingent consideration, beginning of year $ 78,100 $ 88,400 Additions for acquisitions — 1,200 Reduction for payments made (16,390) (19,520) Increase (reduction) of liability related to re-measurement of fair value (5,510) 8,020 Contingent consideration, end of year $ 56,200 $ 78,100 |
Furniture, Equipment and Leas_2
Furniture, Equipment and Leasehold Improvements, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Furniture, Equipment and Leasehold Improvements, Net | Furniture, equipment and leasehold improvements, net were as follows: December 31, (in thousands) 2023 2022 Leasehold improvements $ 26,710 $ 22,657 Furniture and office equipment 15,459 12,389 Computer equipment and software 6,671 5,764 Subtotal 48,840 40,810 Accumulated depreciation and amortization (22,624) (21,687) Furniture, equipment and leasehold improvements, net $ 26,216 $ 19,123 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Maturity of Operating Lease Liabilities | Lease liability maturities as of December 31, 2023 were as follows: Fiscal Year Amount (in thousands) 2024 $ 17,168 2025 16,758 2026 14,909 2027 14,216 2028 12,033 Thereafter 12,984 Total lease payments 88,068 Less: Imputed interest 9,926 Present value of lease liabilities $ 78,142 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Provision for Income Taxes | The components of the provision for income taxes were as follows: Years Ended December 31, (in thousands) 2023 2022 2021 Current Federal $ 33,523 $ 40,113 $ 75,525 State 10,171 19,107 24,974 Total current tax expense (benefit) 43,694 59,220 100,499 Deferred Federal 789 (1,506) (6,241) State 605 (454) (3,423) Total deferred tax expense (benefit) 1,394 (1,960) (9,664) Total expense (benefit) for income taxes $ 45,088 $ 57,260 $ 90,835 |
Schedule of Reconciliation of Provision (Benefit) for Income Taxes | The following presents a reconciliation of the provision (benefit) for income taxes computed at the federal statutory rate to the provision (benefit) for income taxes recognized on the Consolidated Statements of Operations for the years indicated: Years Ended December 31, (in thousands) 2023 2022 2021 Tax at statutory rate $ 39,178 21 % $ 34,416 21 % $ 74,271 21 % State taxes, net of federal benefit 9,240 5 % 14,736 9 % 17,283 5 % Excess tax benefits related to share-based compensation (1,767) (1) % (2,792) (1) % (4,095) (1) % Nondeductible compensation 2,106 1 % 2,356 1 % 3,461 1 % Effect of net (income) loss attributable to noncontrolling interests (2,299) (1) % (1,435) (1) % (2,637) (1) % Change in valuation allowance (1,547) (1) % 9,596 6 % 1,941 1 % Other, net 177 — % 383 — % 611 — % Income tax expense (benefit) $ 45,088 24 % $ 57,260 35 % $ 90,835 26 % |
Schedule of Tax Effects of Temporary Differences | The tax effects of temporary differences were as follows: December 31, (in thousands) 2023 2022 Deferred tax assets: Intangible assets $ 19,206 $ 17,773 Net operating losses 10,754 11,881 Compensation accruals 19,614 16,813 Lease liability 19,009 10,026 Investments 11,643 18,283 Capital losses 6,139 2,197 Other 2,188 94 Gross deferred tax assets 88,553 77,067 Valuation allowance (16,539) (19,480) Gross deferred tax assets after valuation allowance 72,014 57,587 Deferred tax liabilities: Intangible assets (26,746) (24,163) Right of use asset (15,677) (7,672) Fixed assets (4,197) (1,869) Other investments (370) (712) Gross deferred tax liabilities (46,990) (34,416) Deferred tax assets, net $ 25,024 $ 23,171 |
Schedule of Income Tax Contingencies | Activity in unrecognized tax benefits were as follows: Years Ended December 31, (in thousands) 2023 2022 2021 Balance, beginning of year $ 856 $ 1,235 $ 1,021 Decrease related to tax positions taken in prior years (214) (593) — Increase related to positions taken in the current year 214 214 214 Balance, end of year $ 856 $ 856 $ 1,235 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Future Minimum Repayments of Debt (Excluding Unamortized Debt Issuance Costs) | Future minimum Term Loan payments (exclusive of any mandatory excess cash flow repayments) as of December 31, 2023 were as follows: Fiscal Year Amount (in thousands) 2024 $ 2,750 2025 2,750 2026 2,750 2027 2,750 2028 247,813 $ 258,813 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive income (loss) were as follows: Years Ended December 31, (in thousands) 2023 2022 Balance at beginning of period $ (358) $ 20 Net current-period other comprehensive income (loss) (1) 271 (378) Balance at end of period $ (87) $ (358) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense is summarized as follows: Years Ended December 31, (in thousands) 2023 2022 2021 Stock-based compensation expense $ 26,825 $ 24,042 $ 26,225 |
Schedule of Restricted Stock Units Activity | RSU activity, inclusive of PSUs, for the year ended December 31, 2023 is summarized as follows: Number Weighted Average Outstanding at December 31, 2022 377,087 $ 178.21 Granted 210,420 $ 160.74 Forfeited (38,060) $ 150.13 Settled (204,730) $ 121.26 Outstanding at December 31, 2023 344,717 $ 204.48 |
Schedule of Grant-date Intrinsic Value of RSUs Granted | Years Ended December 31, (in millions, except per share values) 2023 2022 2021 Weighted-average grant-date fair value per share $ 160.74 $ 194.46 $ 268.65 Fair value of RSUs vested $ 24.8 $ 23.8 $ 22.8 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 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: Years Ended December 31, (in thousands, except per share amounts) 2023 2022 2021 Net Income (Loss) $ 141,476 $ 106,628 $ 262,835 Noncontrolling interests (10,855) 10,913 (54,704) Net Income (Loss) Attributable to Virtus Investment Partners, Inc. $ 130,621 $ 117,541 $ 208,131 Shares (in thousands): Basic: Weighted-average number of shares outstanding 7,249 7,391 7,672 Plus: Incremental shares from assumed conversion of dilutive instruments 126 191 331 Diluted: Weighted-average number of shares outstanding 7,375 7,582 8,003 Earnings (Loss) per Share—Basic $ 18.02 $ 15.90 $ 27.13 Earnings (Loss) per Share—Diluted $ 17.71 $ 15.50 $ 26.01 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | 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. Years Ended Years Ended December 31, (in thousands) 2023 2022 2021 Restricted stock units and stock options 2 33 3 Total anti-dilutive securities 2 33 3 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Noncontrolling Interest [Abstract] | |
Schedule of Redeemable Noncontrolling Interest | Redeemable noncontrolling interests for the year ended December 31, 2023 included the following amounts: (in thousands) CIP Affiliate Noncontrolling Interests Total Balance at December 31, 2022 $ 18,268 $ 95,450 $ 113,718 Net income (loss) attributable to noncontrolling interests 2,805 6,298 9,103 Changes in redemption value (1) — 1,682 1,682 Total net income (loss) attributable to noncontrolling interests 2,805 7,980 10,785 Affiliate equity sales (purchases) — (20,784) (20,784) Net subscriptions (redemptions) and other 9,570 (8,420) 1,150 Balance at December 31, 2023 $ 30,643 $ 74,226 $ 104,869 (1) Relates to noncontrolling interests redeemable at other than fair value. |
Consolidation (Tables)
Consolidation (Tables) | 12 Months Ended |
Dec. 31, 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 Consolidated Balance Sheets as of December 31, 2023 and 2022: As of December 31, 2023 2022 VOEs VIEs VOEs VIEs (in thousands) CLOs GFs CLOs GFs Cash and cash equivalents $ 1,223 $ 98,101 $ 2,088 $ 1,153 $ 249,003 $ 789 Investments 30,985 1,972,342 79,386 24,669 2,106,764 58,680 Other assets 174 41,985 1,076 295 43,993 1,157 Notes payable — (1,922,243) — — (2,083,314) — Securities purchased payable and other liabilities (740) (89,167) (616) (573) (230,141) (183) Noncontrolling interests (7,316) (4,363) (23,327) (7,879) (5,917) (10,389) Net interests in CIP $ 24,326 $ 96,655 $ 58,607 $ 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 December 31, 2023, as shown in the table below: (in thousands) Subordinated notes $ 95,490 Accrued investment management fees 1,165 Total Beneficial Interests $ 96,655 The following table represents income and expenses of the consolidated CLOs included on the Company's Consolidated Statements of Operations for the period indicated: Year Ended December 31, 2023 (in thousands) Income: Realized and unrealized gain (loss), net $ (9,083) Interest income 191,755 Total Income $ 182,672 Expenses: Other operating expenses $ 3,704 Interest expense 155,335 Total Expense 159,039 Noncontrolling interests (70) Net Income (loss) attributable to CLOs $ 23,563 The following table represents the Company's own economic interests in the consolidated CLOs, which are eliminated upon consolidation: Year Ended December 31, 2023 (in thousands) Distributions received and unrealized gains (losses) on the subordinated notes held by the Company $ 14,831 Investment management fees 8,732 Total Economic Interests $ 23,563 |
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 20, as of December 31, 2023 and 2022 by fair value hierarchy level were as follows: December 31, 2023 (in thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 197,240 $ — $ — $ 197,240 Investment securities - fair value Sponsored funds 77,433 — — 77,433 Equity securities 19,871 — — 19,871 Nonqualified retirement plan assets 12,682 — — 12,682 Total assets measured at fair value $ 307,226 — $ — $ 307,226 Liabilities Contingent consideration $ — $ — $ 56,200 $ 56,200 Total liabilities measured at fair value $ — $ — $ 56,200 $ 56,200 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 December 31, 2023 and 2022 by fair value hierarchy level were as follows: As of December 31, 2023 (in thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 98,101 $ — $ — $ 98,101 Debt investments 241 2,012,760 36,616 2,049,617 Equity investments 32,642 8 446 33,096 Total assets measured at fair value $ 130,984 $ 2,012,768 $ 37,062 $ 2,180,814 Liabilities Notes payable $ — $ 1,922,243 $ — $ 1,922,243 Short sales 518 — — 518 Total liabilities measured at fair value $ 518 $ 1,922,243 $ — $ 1,922,761 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. Year Ended December 31, (in thousands) 2023 2022 Level 3 Investments of CIP (1) Balance at beginning of period $ 43,581 $ 3,157 Purchases 6,213 4,118 Sales (21,784) (18,076) Amortization 327 107 Change in unrealized gains (losses), net 8,768 (958) Realized gains (loss), net (9,886) (585) Transfers to Level 2 (120,536) (87,458) Transfers from Level 2 130,379 143,276 Balance at end of period $ 37,062 $ 43,581 (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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Number of operating segments | segment | 1 | ||
Fees paid to unaffiliated advisers | $ | $ 54.7 | $ 77 | $ 115.5 |
Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Weighted average of useful life | 4 years | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Weighted average of useful life | 16 years | ||
Furniture and Office Equipment | Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of furniture and equipment | 3 years | ||
Furniture and Office Equipment | Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of furniture and equipment | 7 years | ||
Computer Equipment and Software | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of furniture and equipment | 3 years |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 845,268 | $ 886,379 | $ 979,234 |
Investment management fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 711,475 | 728,339 | 781,585 |
Open-end funds | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 305,238 | 335,585 | 395,152 |
Closed-end funds | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 58,136 | 63,841 | 63,301 |
Retail separate accounts | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 171,357 | 171,509 | 174,919 |
Institutional accounts | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 176,744 | $ 157,404 | $ 148,213 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Jan. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 397,098 | $ 348,836 | $ 338,406 | ||
AlphaSimplex Group, LLC | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 113,400 | ||||
Goodwill | 48,262 | ||||
Definite-lived intangible assets acquired | 55,400 | ||||
Business acquisition, goodwill, expected tax deductible amount | $ 103,700 | ||||
Goodwill and other intangible assets, amount expected to be tax deductible | 15 years | ||||
Stone Harbor Investment Partners, LLC | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 30,100 | ||||
Goodwill | 10,300 | ||||
Definite-lived intangible assets acquired | $ 10,800 |
Acquisitions - Recognized Ident
Acquisitions - Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||||
Goodwill | $ 397,098 | $ 348,836 | $ 338,406 | |
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 Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill and Intangible Assets, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill | ||
Balance, beginning of period | $ 348,836 | $ 338,406 |
Acquisitions | 48,262 | 10,430 |
Balance, end of period | 397,098 | 348,836 |
Definite-Lived | ||
Gross book value, beginning of period | 756,028 | 755,576 |
Accumulated amortization, beginning of period | (355,807) | (297,303) |
Definite-Lived net book value, beginning of period | 400,221 | 458,273 |
Additions | 55,400 | 10,800 |
Adjustments | (4,773) | (10,348) |
Intangible amortization | 61,027 | 58,504 |
Gross book value balance, end of period | 806,655 | 756,028 |
Accumulated amortization, end of period | (416,834) | (355,807) |
Definite-Lived net book value, end of period | 389,821 | 400,221 |
Indefinite-Lived | ||
Net book value, beginning of period | 42,298 | 42,298 |
Additions | 0 | 0 |
Net book value, ending of period | 42,298 | 42,298 |
Total | ||
Net book value, beginning of period | 442,519 | 500,571 |
Additions | 55,400 | 10,800 |
Intangible amortization | (61,027) | (58,504) |
Net book value, end of period | $ 432,119 | $ 442,519 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Estimated Amortization Expense of Intangible Assets Succeeding Years (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2024 | $ 56,299 | ||
2025 | 51,532 | ||
2026 | 50,552 | ||
2027 | 47,450 | ||
2028 | 41,787 | ||
2029 and thereafter | 142,201 | ||
Total | $ 389,821 | $ 400,221 | $ 458,273 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Details) | Dec. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Weighted average estimated remaining amortization period | 8 years 2 months 12 days |
Investments - Summary of Invest
Investments - Summary of Investments (Details) - USD ($) $ in Thousands | Jan. 01, 2023 | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Investments [Line Items] | |||
Investment securities - fair value | $ 97,304 | $ 76,999 | |
Parent | |||
Schedule of Investments [Line Items] | |||
Investment securities - fair value | 97,304 | 76,999 | |
Equity method investments | 22,710 | 11,448 | |
Nonqualified retirement plan assets | 12,682 | 10,154 | |
Other investments | 0 | 1,729 | |
Total investments | $ 132,696 | $ 100,330 | |
Payments to acquire investments | $ 11,600 |
Investments - Marketable Securi
Investments - Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost | $ 97,147 | $ 80,912 |
Fair Value | 97,304 | 76,999 |
Sponsored funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 80,794 | 67,472 |
Fair Value | 77,433 | 62,744 |
Equity investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 16,353 | 13,440 |
Fair Value | $ 19,871 | $ 14,255 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Investments [Line Items] | |||
Realized (loss) gain on trading securities | $ 2,100 | $ (1,400) | $ 5,000 |
Distributions from equity method investments | 2,327 | $ 2,244 | $ 3,710 |
Capital commitments | |||
Schedule of Investments [Line Items] | |||
Future capital commitment (up to) | $ 200 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash equivalents | $ 197,240 | $ 287,126 |
Investment securities - fair value | ||
Fair Value | 97,304 | 76,999 |
Total assets measured at fair value | 307,226 | 374,279 |
Liabilities | ||
Total liabilities measured at fair value | 56,200 | 78,100 |
Contingent consideration | ||
Liabilities | ||
Total liabilities measured at fair value | 56,200 | 78,100 |
Sponsored funds | ||
Investment securities - fair value | ||
Fair Value | 77,433 | 62,744 |
Equity securities | ||
Investment securities - fair value | ||
Fair Value | 19,871 | 14,255 |
Nonqualified retirement plan assets | ||
Investment securities - fair value | ||
Nonqualified retirement plan assets | 12,682 | 10,154 |
Level 1 | ||
Assets | ||
Cash equivalents | 197,240 | 287,126 |
Investment securities - fair value | ||
Total assets measured at fair value | 307,226 | 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 | 77,433 | 62,744 |
Level 1 | Equity securities | ||
Investment securities - fair value | ||
Fair Value | 19,871 | 14,255 |
Level 1 | Nonqualified retirement plan assets | ||
Investment securities - fair value | ||
Nonqualified retirement plan assets | 12,682 | 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 | 56,200 | 78,100 |
Level 3 | Contingent consideration | ||
Liabilities | ||
Total liabilities measured at fair value | 56,200 | 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 - Narra
Fair Value Measurements - Narrative (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration | $ 90,938 | $ 128,400 |
Westchester | Measurement Input, Comparability Adjustment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 0.09 | |
Westchester | Minimum | Measurement Input, Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 0.06 | |
Westchester | Maximum | Measurement Input, Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 0.07 | |
NFJ Investment Group | Measurement Input, Comparability Adjustment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 0.07 | |
NFJ Investment Group | Minimum | Measurement Input, Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 0.06 | |
NFJ Investment Group | Maximum | Measurement Input, Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Business combination, contingent consideration, liability, measurement input | 0.07 | |
Level 3 | Westchester | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration | $ 11,100 | |
Level 3 | NFJ Investment Group | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration | $ 45,100 |
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 | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Contingent consideration, beginning of year | $ 78,100 | $ 88,400 |
Additions for acquisitions | 0 | 1,200 |
Reduction for payments made | (16,390) | (19,520) |
Increase (reduction) of liability related to re-measurement of fair value | (5,510) | 8,020 |
Contingent consideration, end of year | $ 56,200 | $ 78,100 |
Furniture, Equipment and Leas_3
Furniture, Equipment and Leasehold Improvements, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Leasehold improvements | $ 26,710 | $ 22,657 |
Furniture and office equipment | 15,459 | 12,389 |
Computer equipment and software | 6,671 | 5,764 |
Subtotal | 48,840 | 40,810 |
Accumulated depreciation and amortization | (22,624) | (21,687) |
Furniture, equipment and leasehold improvements, net | $ 26,216 | $ 19,123 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Weighted average remaining lease term | 5 years 8 months 12 days | ||
Operating lease, right-of-use asset, statement of financial position enumeration | Other assets | ||
Operating lease, liability, statement of financial position enumeration | Other liabilities | ||
Operating lease right of use assets | $ 63,200 | ||
Operating lease liabilities | $ 78,142 | ||
Incremental borrowing rate (as a percent) | 3.70% | ||
Lease cost | $ 14,700 | $ 14,000 | $ 5,600 |
Operating cash flows from operating leases | $ 16,400 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining initial lease term | 8 months 12 days | ||
Term of options to extend | 3 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining initial lease term | 9 years 9 months 18 days | ||
Term of options to extend | 10 years |
Leases - Schedule of Maturity o
Leases - Schedule of Maturity of Operating Lease Liabilities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 17,168 |
2025 | 16,758 |
2026 | 14,909 |
2027 | 14,216 |
2028 | 12,033 |
Thereafter | 12,984 |
Total lease payments | 88,068 |
Less: Imputed interest | 9,926 |
Present value of lease liabilities | $ 78,142 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current | |||
Federal | $ 33,523 | $ 40,113 | $ 75,525 |
State | 10,171 | 19,107 | 24,974 |
Total current tax expense (benefit) | 43,694 | 59,220 | 100,499 |
Deferred | |||
Federal | 789 | (1,506) | (6,241) |
State | 605 | (454) | (3,423) |
Total deferred tax expense (benefit) | 1,394 | (1,960) | (9,664) |
Income tax expense (benefit) | $ 45,088 | $ 57,260 | $ 90,835 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Tax at statutory rate | $ 39,178 | $ 34,416 | $ 74,271 |
State taxes, net of federal benefit | 9,240 | 14,736 | 17,283 |
Excess tax benefits related to share-based compensation | (1,767) | (2,792) | (4,095) |
Nondeductible compensation | 2,106 | 2,356 | 3,461 |
Effect of net (income) loss attributable to noncontrolling interests | (2,299) | (1,435) | (2,637) |
Change in valuation allowance | (1,547) | 9,596 | 1,941 |
Other, net | 177 | 383 | 611 |
Income tax expense (benefit) | $ 45,088 | $ 57,260 | $ 90,835 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Tax at statutory rate | 21% | 21% | 21% |
State taxes, net of federal benefit | 5% | 9% | 5% |
Excess tax benefits related to share-based compensation | (1.00%) | (1.00%) | (1.00%) |
Nondeductible compensation | 1% | 1% | 1% |
Effect of net (income) loss attributable to noncontrolling interests | (1.00%) | (1.00%) | (1.00%) |
Change in valuation allowance | (1.00%) | 6% | 1% |
Other, net | 0% | 0% | 0% |
Income tax expense (benefit) | 24% | 35% | 26% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Reconciliation [Line Items] | ||||
Estimated effective income tax rate | 24% | 35% | 26% | |
Valuation allowance for deferred tax assets | $ 16,539,000 | $ 19,480,000 | ||
Deferred tax assets related to net operating losses for federal income tax purposes | $ 10,754,000 | 11,881,000 | ||
Percentage increasing ownership | 5% | |||
Pre-tax net operating loss carryovers | $ 7,000,000 | |||
Built-in losses annual limitation | 1,100,000 | |||
Unrecognized tax benefits that would impact effective tax rate | 700,000 | |||
Unrecognized tax benefits | 856,000 | 856,000 | $ 1,235,000 | $ 1,021,000 |
Interest or penalties related to unrecognized tax benefits | $ 0 | $ 0 | $ 0 | |
Large Shareholders | ||||
Income Tax Reconciliation [Line Items] | ||||
Ownership percentage | 50% | |||
Federal | ||||
Income Tax Reconciliation [Line Items] | ||||
Deferred tax assets related to net operating losses for federal income tax purposes | $ 6,100,000 | |||
State | ||||
Income Tax Reconciliation [Line Items] | ||||
Deferred tax assets related to net operating losses for federal income tax purposes | $ 4,600,000 |
Income Taxes - Summary of Tax E
Income Taxes - Summary of Tax Effects of Temporary Differences (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Intangible assets | $ 19,206 | $ 17,773 |
Net operating losses | 10,754 | 11,881 |
Compensation accruals | 19,614 | 16,813 |
Lease liability | 19,009 | 10,026 |
Investments | 11,643 | 18,283 |
Capital losses | 6,139 | 2,197 |
Other | 2,188 | 94 |
Gross deferred tax assets | 88,553 | 77,067 |
Valuation allowance | (16,539) | (19,480) |
Gross deferred tax assets after valuation allowance | 72,014 | 57,587 |
Deferred tax liabilities: | ||
Intangible assets | (26,746) | (24,163) |
Right of use asset | (15,677) | (7,672) |
Fixed assets | (4,197) | (1,869) |
Other investments | (370) | (712) |
Gross deferred tax liabilities | (46,990) | (34,416) |
Deferred tax assets, net | $ 25,024 | $ 23,171 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of year | $ 856 | $ 1,235 | $ 1,021 |
Decrease related to tax positions taken in prior years | (214) | (593) | 0 |
Increase related to positions taken in the current year | 214 | 214 | 214 |
Balance, end of year | $ 856 | $ 856 | $ 1,235 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 12 Months Ended | ||
Apr. 03, 2023 | Sep. 28, 2021 | Dec. 31, 2023 | |
Credit Agreement | SOFR | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (as a percent) | 2.25% | ||
Credit Agreement | Base Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (as a percent) | 1.25% | ||
Term Loan | Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 275,000,000 | ||
Term of debt | 7 years | ||
Debt repayments | $ 50,000,000 | ||
Annual principal payment (as a percent) | 1% | ||
Amount required to be prepaid as a proportion of excess cash flow (as a percent) | 50% | ||
Proportion of net proceeds of certain asset sales (as a percent) | 50% | ||
Proportion of proceeds incurred to refinance term loan (as a percent) | 100% | ||
Repricing period | 6 months | ||
Premium due if prepaid in connection with repricing transaction within six months of credit agreement closing (as a percent) | 1% | ||
Threshold proportion of credit facility outstanding (as a percent) | 35% | ||
Term Loan | Credit Agreement | Leverage Ratio Below 2.00 | |||
Line of Credit Facility [Line Items] | |||
Amount required to be prepaid as a proportion of excess cash flow (as a percent) | 25% | ||
Secured net leverage ratio | 2 | ||
Term Loan | Credit Agreement | Leverage Ratio Below 1.50 | |||
Line of Credit Facility [Line Items] | |||
Amount required to be prepaid as a proportion of excess cash flow (as a percent) | 0% | ||
Secured net leverage ratio | 1.5 | ||
Term Loan | Secured Debt | |||
Line of Credit Facility [Line Items] | |||
Debt repayments | 2,800,000 | ||
Outstanding borrowings | 258,800,000 | ||
Term Loan | Credit Facility 2017 | |||
Line of Credit Facility [Line Items] | |||
Debt issuance costs | $ 5,400,000 | ||
Revolving Credit Facility | Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 175,000,000 | ||
Term of debt | 5 years | ||
Unused commitment fee (as a percent) | 0.50% | ||
Revolving Credit Facility | Credit Agreement | Minimum | |||
Line of Credit Facility [Line Items] | |||
Unused commitment fee (as a percent) | 0.375% | ||
Revolving Credit Facility | Credit Agreement | Maximum | |||
Line of Credit Facility [Line Items] | |||
Unused commitment fee (as a percent) | 0.50% | ||
Revolving Credit Facility | Credit Agreement | AlphaSimplex Group, LLC | |||
Line of Credit Facility [Line Items] | |||
Borrowings on credit agreement | $ 50,000,000 |
Debt - Summary of Future Debt M
Debt - Summary of Future Debt Maturities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 2,750 |
2025 | 2,750 |
2026 | 2,750 |
2027 | 2,750 |
2028 | 247,813 |
Long-term debt, gross | $ 258,813 |
Equity Transactions (Details)
Equity Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | |||||||
Cash dividends declared per common share (in dollars per share) | $ 1.90 | $ 1.90 | $ 1.65 | $ 1.65 | $ 7.10 | $ 6.30 | $ 4.64 |
Dividends | $ 53,500 | ||||||
Dividends payable | $ 17,291 | $ 17,291 | $ 15,812 | ||||
Repurchases of common shares (in shares) | 223,807 | ||||||
Weighted average price (in dollars per share) | $ 200.73 | ||||||
Total cost of shares repurchased | $ 45,200 | ||||||
Shares available for repurchase (in shares) | 604,545 | 604,545 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 822,936 | $ 836,627 | $ 720,940 |
Net current-period other comprehensive income (loss) | 271 | (378) | (9) |
Ending Balance | 868,289 | 822,936 | 836,627 |
Foreign Currency Translation Adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (358) | 20 | |
Net current-period other comprehensive income (loss) | 271 | (378) | |
Ending Balance | (87) | (358) | $ 20 |
Other comprehensive income (loss), before reclassifications, tax | $ (96) | $ 135 |
Retirement Savings Plan (Detail
Retirement Savings Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Company matching contribution percentage | 100% | ||
Percentage of employee's gross pay matched | 5% | ||
Matching contributions | $ 8.3 | $ 7.4 | $ 5.9 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock available for issuance (in shares) | shares | 478,216 | ||
Shares of common stock reserved for issuance (in shares) | shares | 3,370,000 | ||
Share-based payment arrangement, amount capitalized | $ | $ 0 | $ 0 | $ 0 |
Restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant-date intrinsic value | $ | $ 33,800,000 | ||
Share settlement under RSUs (in shares) | shares | 79,516 | 79,471 | 73,069 |
Cash used for employee withholding tax payments | $ | $ 13,800,000 | $ 16,800,000 | $ 19,500,000 |
Unamortized stock-based compensation expense | $ | $ 30,300,000 | $ 27,700,000 | |
Weighted average remaining amortization period | 1 year 1 month 6 days | 1 year | |
Restricted stock units (RSUs), performance-based | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards granted (in shares) | shares | 44,583 | 30,516 | |
Performance Stock Units, Incentive | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
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 | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Stock-based compensation expense | $ 26,825 | $ 24,042 | $ 26,225 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units Activity (Details) - Restricted stock units (RSUs) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of shares | |||
Number of shares, outstanding (in shares) | 377,087 | ||
Number of shares, granted (in shares) | 210,420 | ||
Number of shares, forfeited (in shares) | (38,060) | ||
Number of shares, settled (in shares) | (204,730) | ||
Number of shares, outstanding (in shares) | 344,717 | 377,087 | |
Weighted Average Grant Date Fair Value | |||
Weighted average grant date fair value, outstanding (in dollars per share) | $ 178.21 | ||
Weighted-average grant-date fair value (in dollars per share) | 160.74 | $ 194.46 | $ 268.65 |
Weighted average grant date fair value, forfeited (in dollars per share) | 150.13 | ||
Weighted average grant date fair value, settled (in dollars per share) | 121.26 | ||
Weighted average grant date fair value, outstanding (in dollars per share) | $ 204.48 | $ 178.21 |
Stock-Based Compensation - Gran
Stock-Based Compensation - Grant-date Intrinsic Value of RSUs Granted (Details) - Restricted stock units (RSUs) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant-date fair value (in dollars per share) | $ 160.74 | $ 194.46 | $ 268.65 |
Fair value of RSUs vested | $ 24.8 | $ 23.8 | $ 22.8 |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net Income (Loss) | $ 141,476 | $ 106,628 | $ 262,835 |
Noncontrolling interests | (10,855) | 10,913 | (54,704) |
Net Income (Loss) Attributable to Virtus Investment Partners, Inc. | $ 130,621 | $ 117,541 | $ 208,131 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||
Basic: Weighted-average number of shares outstanding (in shares) | 7,249 | 7,391 | 7,672 |
Plus: Incremental shares from assumed conversion of dilutive instruments (in shares) | 126 | 191 | 331 |
Weighted Average Shares Outstanding—Diluted (in shares) | 7,375 | 7,582 | 8,003 |
Earnings per share—basic (in dollars per share) | $ 18.02 | $ 15.90 | $ 27.13 |
Earnings per share—diluted (in dollars per share) | $ 17.71 | $ 15.50 | $ 26.01 |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 2 | 33 | 3 |
Restricted stock units and stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 2 | 33 | 3 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests - Schedule of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward] | |||
Balance at beginning of period | $ 113,718 | ||
Net income (loss) attributable to noncontrolling interests | 9,103 | ||
Total net income (loss) attributable to noncontrolling interests | 10,785 | $ (10,148) | $ 53,887 |
Affiliate equity sales (purchases) | (20,784) | ||
Net subscriptions (redemptions) and other | 1,150 | ||
Balance at end of period | 104,869 | 113,718 | |
Consolidated Investment Products | |||
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward] | |||
Balance at beginning of period | 18,268 | ||
Net income (loss) attributable to noncontrolling interests | 2,805 | ||
Changes in redemption value | (7,170) | (338) | $ (30,550) |
Total net income (loss) attributable to noncontrolling interests | 2,805 | ||
Affiliate equity sales (purchases) | 0 | ||
Net subscriptions (redemptions) and other | 9,570 | ||
Balance at end of period | 30,643 | 18,268 | |
Affiliate Noncontrolling Interests | |||
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward] | |||
Balance at beginning of period | 95,450 | ||
Net income (loss) attributable to noncontrolling interests | 6,298 | ||
Total net income (loss) attributable to noncontrolling interests | 7,980 | ||
Affiliate equity sales (purchases) | (20,784) | ||
Net subscriptions (redemptions) and other | (8,420) | ||
Balance at end of period | 74,226 | $ 95,450 | |
Portion at Other than Fair Value Measurement | |||
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward] | |||
Changes in redemption value | 1,682 | ||
Portion at Other than Fair Value Measurement | Consolidated Investment Products | |||
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 | $ 1,682 |
Consolidation - Condensed Conso
Consolidation - Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||||
Noncontrolling interests | $ (104,869) | $ (113,718) | $ (138,965) | $ (115,513) |
VOEs | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 1,223 | 1,153 | ||
Investments | 30,985 | 24,669 | ||
Other assets | 174 | 295 | ||
Notes payable | 0 | 0 | ||
Securities purchased payable and other liabilities | (740) | (573) | ||
Noncontrolling interests | (7,316) | (7,879) | ||
Net interests in CIP | 24,326 | 17,665 | ||
CLOs | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 98,101 | 249,003 | ||
Investments | 1,972,342 | 2,106,764 | ||
Other assets | 41,985 | 43,993 | ||
Notes payable | (1,922,243) | (2,083,314) | ||
Securities purchased payable and other liabilities | (89,167) | (230,141) | ||
Noncontrolling interests | (4,363) | (5,917) | ||
Net interests in CIP | 96,655 | 80,388 | ||
GFs | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 2,088 | 789 | ||
Investments | 79,386 | 58,680 | ||
Other assets | 1,076 | 1,157 | ||
Notes payable | 0 | 0 | ||
Securities purchased payable and other liabilities | (616) | (183) | ||
Noncontrolling interests | (23,327) | (10,389) | ||
Net interests in CIP | $ 58,607 | $ 50,054 |
Consolidation - Additional Info
Consolidation - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) collateralized_loan_obligation | Dec. 31, 2022 USD ($) | |
CLOs | ||
Variable Interest Entity [Line Items] | ||
Number of consolidated CLOs | collateralized_loan_obligation | 8 | |
Investments | $ 1,972,342,000 | $ 2,106,764,000 |
Derivative liabilities | $ 0 | |
CLOs | LIBOR | Minimum | ||
Variable Interest Entity [Line Items] | ||
Basis spread on variable rate (as a percent) | 0.80% | |
CLOs | LIBOR | Maximum | ||
Variable Interest Entity [Line Items] | ||
Basis spread on variable rate (as a percent) | 9.10% | |
CLOs | Senior notes | ||
Variable Interest Entity [Line Items] | ||
Unpaid principal balance exceeds fair value | $ 104,400,000 | |
CLOs | CLO subordinated notes | ||
Variable Interest Entity [Line Items] | ||
Debt par value | 2,100,000,000 | |
CLOs | CLO subordinated notes | Subordinated debt | ||
Variable Interest Entity [Line Items] | ||
Debt par value | 215,100,000 | |
CLOs | CLO senior secured floating rate notes | Senior notes | ||
Variable Interest Entity [Line Items] | ||
Debt par value | 1,900,000,000 | |
Nonconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Carrying value and maximum risk of loss | $ 25,700,000 |
Consolidation - Beneficial Inte
Consolidation - Beneficial Interests of Consolidated Investment Product (Details) - CLOs $ in Thousands | Dec. 31, 2023 USD ($) |
Variable Interest Entity [Line Items] | |
Subordinated notes | $ 95,490 |
Accrued investment management fees | 1,165 |
Total Beneficial Interests | $ 96,655 |
Consolidation - Revenue and Exp
Consolidation - Revenue and Expenses of Consolidated Investment Product (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Expenses: | |||
Noncontrolling interests | $ (10,855) | $ 10,913 | $ (54,704) |
Net Income (Loss) Attributable to Virtus Investment Partners, Inc. | 130,621 | $ 117,541 | $ 208,131 |
CLOs | |||
Income: | |||
Realized and unrealized gain (loss), net | (9,083) | ||
Interest income | 191,755 | ||
Total Income | 182,672 | ||
Expenses: | |||
Other operating expenses | 3,704 | ||
Interest expense | 155,335 | ||
Total Expense | 159,039 | ||
Noncontrolling interests | (70) | ||
Net Income (Loss) Attributable to Virtus Investment Partners, Inc. | $ 23,563 |
Consolidation - Economic Intere
Consolidation - Economic Interests of Consolidated Investment Product (Details) - CLOs $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Variable Interest Entity [Line Items] | |
Distributions received and unrealized gains (losses) on the subordinated notes held by the Company | $ 14,831 |
Investment management fees | 8,732 |
Total Economic Interests | $ 23,563 |
Consolidation - Summary of Asse
Consolidation - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash equivalents | $ 197,240 | $ 287,126 |
Total assets measured at fair value | 307,226 | 374,279 |
Liabilities | ||
Total liabilities measured at fair value | 56,200 | 78,100 |
Level 1 | ||
Assets | ||
Cash equivalents | 197,240 | 287,126 |
Total assets measured at fair value | 307,226 | 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 | 56,200 | 78,100 |
Fair Value, Measurements, Recurring | Consolidated Investment Products | ||
Assets | ||
Cash equivalents | 98,101 | 249,003 |
Total assets measured at fair value | 2,180,814 | 2,439,116 |
Liabilities | ||
Notes payable | 1,922,243 | 2,083,314 |
Short sales | 518 | 414 |
Total liabilities measured at fair value | 1,922,761 | 2,083,728 |
Fair Value, Measurements, Recurring | Debt investments | Consolidated Investment Products | ||
Assets | ||
Investments | 2,049,617 | 2,161,571 |
Fair Value, Measurements, Recurring | Equity investments | Consolidated Investment Products | ||
Assets | ||
Investments | 33,096 | 28,542 |
Fair Value, Measurements, Recurring | Level 1 | Consolidated Investment Products | ||
Assets | ||
Cash equivalents | 98,101 | 249,003 |
Total assets measured at fair value | 130,984 | 274,249 |
Liabilities | ||
Notes payable | 0 | 0 |
Short sales | 518 | 414 |
Total liabilities measured at fair value | 518 | 414 |
Fair Value, Measurements, Recurring | Level 1 | Debt investments | Consolidated Investment Products | ||
Assets | ||
Investments | 241 | 243 |
Fair Value, Measurements, Recurring | Level 1 | Equity investments | Consolidated Investment Products | ||
Assets | ||
Investments | 32,642 | 25,003 |
Fair Value, Measurements, Recurring | Level 2 | Consolidated Investment Products | ||
Assets | ||
Cash equivalents | 0 | 0 |
Total assets measured at fair value | 2,012,768 | 2,121,286 |
Liabilities | ||
Notes payable | 1,922,243 | 2,083,314 |
Short sales | 0 | 0 |
Total liabilities measured at fair value | 1,922,243 | 2,083,314 |
Fair Value, Measurements, Recurring | Level 2 | Debt investments | Consolidated Investment Products | ||
Assets | ||
Investments | 2,012,760 | 2,119,082 |
Fair Value, Measurements, Recurring | Level 2 | Equity investments | Consolidated Investment Products | ||
Assets | ||
Investments | 8 | 2,204 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Investment Products | ||
Assets | ||
Cash equivalents | 0 | 0 |
Total assets measured at fair value | 37,062 | 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 | 36,616 | 42,246 |
Fair Value, Measurements, Recurring | Level 3 | Equity investments | Consolidated Investment Products | ||
Assets | ||
Investments | $ 446 | $ 1,335 |
Consolidation - Assets Related
Consolidation - Assets Related to Consolidated Sponsored Investment Products, Unobservable Input Reconciliation (Details) - Consolidated Investment Products - Debt investments - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 43,581 | $ 3,157 |
Purchases | 6,213 | 4,118 |
Sales | (21,784) | (18,076) |
Amortization | 327 | 107 |
Change in unrealized gains (losses), net | 8,768 | (958) |
Realized gains (loss), net | (9,886) | (585) |
Transfers to Level 2 | (120,536) | (87,458) |
Transfers from Level 2 | 130,379 | 143,276 |
Balance at end of period | $ 37,062 | $ 43,581 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||||||
Feb. 21, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Subsequent Event [Line Items] | ||||||||
Cash dividends declared per common share (in dollars per share) | $ 1.90 | $ 1.90 | $ 1.65 | $ 1.65 | $ 7.10 | $ 6.30 | $ 4.64 | |
Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Cash dividends declared per common share (in dollars per share) | $ 1.90 |