Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-10994

VIRTUS INVESTMENT PARTNERS, INC.

(Exact name of registrant as specified in its charter)



Delaware						26-3962811
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

One Financial Plaza, Hartford, CT 06103

(Address of principal executive offices, including Zip Code)

(800) 248-7971

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value

VRTS

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares outstanding of the registrant’s common stock was 7,082,071 as of August 1, 2024.

Table of Contents

VIRTUS INVESTMENT PARTNERS, INC.

INDEX


		Page
Part I. FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets (Unaudited) as of June 30 , 2024 and December 31, 2023	1
	Condensed Consolidated Statements of Operations (Unaudited) for the Three and Six Months Ended June 3 0 , 2024 and 2023	2
	Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Six Months Ended J une 3 0 , 2024 and 2023	3
	Condensed Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended June 3 0 , 2024 and 2023	4
	Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) for the Three and Six Months Ended June 3 0 , 2024 and 2023	5
	Notes to Condensed Consolidated Financial Statements (Unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28
Item 4.	Controls and Procedures	29

Part II. OTHER INFORMATION
Item 1.	Legal Proceedings	29
Item 1A.	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 5.	Other Information	30
Item 6.	Exhibits	30
	Signatures	32

"We," "us," "our," the "Company," and "Virtus" as used in this Quarterly Report on Form 10-Q (the "10-Q") refer to Virtus Investment Partners, Inc., a Delaware corporation, and its subsidiaries.

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

Virtus Investment Partners, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)


(in thousands, except share data)	June 30, 2024		December 31, 2023
Assets:
Cash and cash equivalents	$	183,001	$	239,602
Investments	122,316		132,696
Accounts receivable, net	105,638		109,076
Assets of consolidated investment products ("CIP")
Cash and cash equivalents of CIP	166,738		100,732
Cash pledged or on deposit of CIP	958		680
Investments of CIP	2,106,659		2,082,713
Other assets of CIP	39,187		43,235
Furniture, equipment and leasehold improvements, net	25,150		26,216

Intangible assets, net	401,586		432,119
Goodwill	397,098		397,098
Deferred taxes, net	24,471		25,024
Other assets	74,894		89,438
Total assets	$	3,647,696	$	3,678,629
Liabilities and Equity
Liabilities:
Accrued compensation and benefits	$	132,261	$	200,837
Accounts payable and accrued liabilities	30,275		38,756
Dividends payable	16,982		17,291
Contingent consideration	63,404		90,938
Debt	247,605		253,412
Other liabilities	63,137		91,471
Liabilities of CIP
Notes payable of CIP	1,990,338		1,922,243
Securities purchased payable and other liabilities of CIP	102,126		90,523
Total liabilities	2,646,128		2,705,471
Commitments and Contingencies (Note 14)
Redeemable noncontrolling interests	129,450		104,869
Equity:
Equity attributable to Virtus Investment Partners, Inc.:
Common stock, $0.01 par value, 1,000,000,000 shares authorized; 12,233,778 shares issued and 7,082,071 shares outstanding at June 30, 2024; and 12,163,228 shares issued and 7,087,728 shares outstanding at December 31, 2023	122		122
Additional paid-in capital	1,304,176		1,300,999
Retained earnings (accumulated deficit)	226,540		207,356
Accumulated other comprehensive income (loss)	(200)		(87)
Treasury stock, at cost, 5,151,707 and 5,075,500 shares at June 30, 2024 and December 31, 2023, respectively	(661,963)		(644,464)
Total equity attributable to Virtus Investment Partners, Inc.	868,675		863,926
Noncontrolling interests	3,443		4,363
Total equity	872,118		868,289
Total liabilities and equity	$	3,647,696	$	3,678,629

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Virtus Investment Partners, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share data)	2024		2023		2024		2023
Revenues
Investment management fees	$	191,652	$	179,979	$	380,012	$	344,457
Distribution and service fees	13,410		14,132		27,440		28,285
Administration and shareholder service fees	18,308		18,240		36,986		36,599
Other income and fees	1,014		1,185		1,988		2,069
Total revenues	224,384		213,536		446,426		411,410
Operating Expenses
Employment expenses	105,667		104,694		220,830		203,308
Distribution and other asset-based expenses	23,695		25,460		48,043		49,175
Other operating expenses	33,050		33,483		64,425		64,213
Other operating expenses of consolidated investment products ("CIP")	2,909		360		3,599		1,060
Change in fair value of contingent consideration	(3,300)		(6,800)		(3,300)		(6,800)
Restructuring expense	690		—		1,487		—
Depreciation expense	2,270		1,485		4,298		2,630
Amortization expense	15,198		15,808		30,533		30,199
Total operating expenses	180,179		174,490		369,915		343,785
Operating Income (Loss)	44,205		39,046		76,511		67,625
Other Income (Expense)
Realized and unrealized gain (loss) on investments, net	(1,553)		1,717		1,863		4,387
Realized and unrealized gain (loss) of CIP, net	(12,936)		(4,436)		(11,401)		(1,840)
Other income (expense), net	597		(847)		1,147		(1,190)
Total other income (expense), net	(13,892)		(3,566)		(8,391)		1,357
Interest Income (Expense)
Interest expense	(5,611)		(6,217)		(11,292)		(11,222)
Interest and dividend income	2,643		2,675		6,112		5,913
Interest and dividend income of investments of CIP	52,385		47,884		103,500		94,698
Interest expense of CIP	(41,960)		(38,732)		(81,972)		(73,935)
Total interest income (expense), net	7,457		5,610		16,348		15,454
Income (Loss) Before Income Taxes	37,770		41,090		84,468		84,436
Income tax expense (benefit)	11,748		10,910		20,579		19,613
Net Income (Loss)	26,022		30,180		63,889		64,823
Noncontrolling interests	(8,408)		77		(16,417)		4,058


Net Income (Loss) Attributable to Virtus Investment Partners, Inc.	$	17,614	$	30,257	$	47,472	$	68,881
Earnings (Loss) per Share—Basic	$	2.47	$	4.14	$	6.66	$	9.47
Earnings (Loss) per Share—Diluted	$	2.43	$	4.10	$	6.54	$	9.31


Weighted Average Shares Outstanding—Basic	7,127		7,308		7,123		7,277
Weighted Average Shares Outstanding—Diluted	7,242		7,385		7,264		7,398

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Virtus Investment Partners, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Net Income (Loss)	$	26,022	$	30,180	$	63,889	$	64,823
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of tax of $2 and $(42) for the three months ended June 30, 2024 and 2023, respectively and $38 and $(77) for the six months ended June 30, 2024 and 2023	(13)		112		(113)		211

Other comprehensive income (loss)	(13)		112		(113)		211
Comprehensive income (loss)	26,009		30,292		63,776		65,034
Comprehensive (income) loss attributable to noncontrolling interests	(8,408)		77		(16,417)		4,058
Comprehensive Income (Loss) Attributable to Virtus Investment Partners, Inc.	$	17,601	$	30,369	$	47,359	$	69,092

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Virtus Investment Partners, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Six Months Ended June 30,
(in thousands)	2024		2023
Cash Flows from Operating Activities:
Net income (loss)	$	63,889	$	64,823
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation expense, intangible asset and other amortization	36,533		34,476
Stock-based compensation	16,020		12,404
Equity in earnings of equity method investments	(1,436)		1,151
Distributions from equity method investments	2,341		1,080

Realized and unrealized (gains) losses on investments, net	(1,838)		(4,379)
Change in fair value of contingent consideration	(3,300)		(6,800)
Lease termination	(1,334)		—
Deferred taxes, net	653		(103)
Changes in operating assets and liabilities:
Sales (purchases) of investments, net	6,851		3,757
Accounts receivable, net and other assets	10,255		4,828
Accrued compensation and benefits, accounts payable, accrued liabilities and other liabilities	(101,798)		(71,676)
Operating activities of consolidated investment products ("CIP"):
Realized and unrealized (gains) losses on investments of CIP, net	7,231		(775)
Purchases of investments by CIP	(629,549)		(556,365)
Sales of investments by CIP	635,658		610,917
Net proceeds (purchases) of short-term investments and securities sold short by CIP	207		(271)
Change in other assets and liabilities of CIP	(6,843)		9,021
Amortization of discount on notes payable of CIP	1,887		—
Net cash provided by (used in) operating activities	35,427		102,088
Cash Flows from Investing Activities:
Capital expenditures	(3,251)		(2,548)
Acquisition of businesses, net of cash acquired of $4,395 for the six months ended June 30, 2023	—		(108,999)
Change in cash and cash equivalents of CIP due to consolidation (deconsolidation), net	(549)		(52)

Purchase of equity method investment	—		(11,645)
Net cash provided by (used in) investing activities	(3,800)		(123,244)
Cash Flows from Financing Activities:
Borrowings on credit agreement	—		50,000
Repayments on credit agreement	(6,375)		(11,375)

Common stock dividends paid	(28,597)		(26,367)
Repurchase of common shares	(17,499)		(10,000)
Payment of contingent consideration	(24,234)		(27,179)
Taxes paid related to net share settlement of restricted stock units	(10,444)		(13,222)
Affiliate equity sales (purchases)	(419)		—
Net contributions from (distributions to) noncontrolling interests	18,156		2,459
Financing activities of CIP:
Payments on borrowings by CIP	(690,496)		(175,043)
Borrowings by CIP	738,064		—
Net cash provided by (used in) financing activities	(21,844)		(210,727)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(100)		383
Net increase (decrease) in cash, cash equivalents and restricted cash	9,683		(231,500)
Cash, cash equivalents and restricted cash, beginning of period	341,014		589,179
Cash, cash equivalents and restricted cash, end of period	$	350,697	$	357,679






Non-Cash Financing Activities:
Increase (decrease) to noncontrolling interests due to consolidation (deconsolidation) of CIP, net	$	(10,199)	$	(3,447)
Common stock dividends payable	$	13,561	$	12,056


(in thousands)	June 30, 2024		December 31, 2023
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	$	183,001	$	239,602
Cash and cash equivalents of CIP	166,738		100,732
Cash pledged or on deposit of CIP	958		680
Cash, cash equivalents and restricted cash at end of period	$	350,697	$	341,014

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Virtus Investment Partners, Inc.

Condensed Consolidated Statements of Changes in Stockholders' Equity

(Unaudited)



	Permanent Equity															Temporary Equity
	Common Stock			Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Income (Loss)		Treasury Stock			Total Attributed To Virtus Investment Partners, Inc.		Non- controlling Interests		Total Equity		Redeemable Non- controlling Interests
(in thousands, except per share data)	Shares	Par Value									Shares									Amount
Balances at March 31, 2023	7,288,394	$	121		$	1,281,509	$	155,792	$	(259)	4,851,693	$	(599,248)	$	837,915	$	6,382	$	844,297		$	106,630

Net income (loss)	—	—			—		30,257		—		—	—		30,257		(650)		29,607			573

Foreign currency translation adjustments	—	—			—		—		112		—	—		112		—		112			—
Net subscriptions (redemptions) and other	—	—			—		—		—		—	—		—		(536)		(536)			3,196



Cash dividends declared ($1.65 per common share)	—	—			—		(12,038)		—		—	—		(12,038)		—		(12,038)			—
Repurchases of common shares	(51,840)	—			—		—		—		51,840	(10,000)		(10,000)		—		(10,000)			—

Issuance of common shares related to employee stock transactions	18,232	1			(1)		—		—		—	—		—		—		—			—
Taxes paid on stock-based compensation	—	—			(1,013)		—		—		—	—		(1,013)		—		(1,013)			—
Stock-based compensation	—	—			6,280		—		—		—	—		6,280		—		6,280			—
Balances at June 30, 2023	7,254,786	$	122		$	1,286,775	$	174,011	$	(147)	4,903,533	$	(609,248)	$	851,513	$	5,196	$	856,709		$	110,399
Balances at March 31, 2024	7,127,881	$	122		$	1,298,157	$	223,023	$	(187)	5,096,608	$	(649,463)	$	871,652	$	4,351	$	876,003		$	115,185

Net income (loss)	—	—			—		17,614		—		—	—		17,614		(673)		16,941			9,081

Foreign currency translation adjustments	—	—			—		—		(13)		—	—		(13)		—		(13)			—
Net subscriptions (redemptions) and other	—	—			62		—		—		—	—		62		(235)		(173)			5,184




Cash dividends declared ($1.90 per common share)	—	—			—		(14,097)		—		—	—		(14,097)		—		(14,097)			—
Repurchases of common shares	(55,099)	—			—		—		—		55,099	(12,500)		(12,500)		—		(12,500)			—

Issuance of common shares related to employee stock transactions	9,289	—			—		—		—		—	—		—		—		—			—
Taxes paid on stock-based compensation	—	—			(592)		—		—		—	—		(592)		—		(592)			—
Stock-based compensation	—	—			6,549		—		—		—	—		6,549		—		6,549			—
Balances at June 30, 2024	7,082,071	$	122		$	1,304,176	$	226,540	$	(200)	5,151,707	$	(661,963)	$	868,675	$	3,443	$	872,118		$	129,450


	Permanent Equity															Temporary Equity
	Common Stock			Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Income (Loss)		Treasury Stock			Total Attributed To Virtus Investment Partners, Inc.		Non- controlling Interests		Total Equity		Redeemable Non- controlling Interests
(in thousands, except per share data)	Shares	Par Value									Shares									Amount
Balances at December 31, 2022	7,181,554	$	120		$	1,286,244	$	130,261	$	(358)	4,851,693	$	(599,248)	$	817,019	$	5,917	$	822,936		$	113,718
Net income (loss)	—	—			—		68,881		—		—	—		68,881		115		68,996			(4,173)
Foreign currency translation adjustments	—	—			—		—		211		—	—		211		—		211			—
Net subscriptions (redemptions) and other	—	—			—		—		—		—	—		—		(836)		(836)			854




Cash dividends declared ($3.30 per common share)	—	—			—		(25,131)		—		—	—		(25,131)		—		(25,131)			—
Repurchases of common shares	(51,840)	—			—		—		—		51,840	(10,000)		(10,000)		—		(10,000)			—
Issuance of common shares related to employee stock transactions	125,072	2			(2)		—		—		—	—		—		—		—			—
Taxes paid on stock-based compensation	—	—			(13,222)		—		—		—	—		(13,222)		—		(13,222)			—
Stock-based compensation	—	—			13,755		—		—		—	—		13,755		—		13,755			—
Balances at June 30, 2023	7,254,786	$	122		$	1,286,775	$	174,011	$	(147)	4,903,533	$	(609,248)	$	851,513	$	5,196	$	856,709		$	110,399
Balances at December 31, 2023	7,087,728	$	122		$	1,300,999	$	207,356	$	(87)	5,075,500	$	(644,464)	$	863,926	$	4,363	$	868,289		$	104,869

Net income (loss)	—	—			—		47,472		—		—	—		47,472		(282)		47,190			16,699
Foreign currency translation adjustments	—	—			—		—		(113)		—	—		(113)		—		(113)			—
Net subscriptions (redemptions) and other	—	—			62		—		—		—	—		62		(638)		(576)			7,882
Cash dividends declared ($3.80 per common share)	—	—			—		(28,288)		—		—	—		(28,288)		—		(28,288)			—
Repurchases of common shares	(76,207)	—			—		—		—		76,207	(17,499)		(17,499)		—		(17,499)			—
Issuance of common shares related to employee stock transactions	70,550	—			—		—		—		—	—		—		—		—			—
Taxes paid on stock-based compensation	—	—			(10,444)		—		—		—	—		(10,444)		—		(10,444)			—
Stock-based compensation	—	—			13,559		—		—		—	—		13,559		—		13,559			—
Balances at June 30, 2024	7,082,071	$	122		$	1,304,176	$	226,540	$	(200)	5,151,707	$	(661,963)	$	868,675	$	3,443	$	872,118		$	129,450

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Virtus Investment Partners, Inc.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1. 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 subadvisory services to other investment advisers and Company sponsored 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 (the "open-end funds") that include U.S. retail funds, exchange-traded funds ("ETFs") and variable insurance funds; Undertaking for Collective Investment in Transferable Securities and Qualifying Investor Funds (collectively, "global funds"); closed-end funds (collectively, with open-end funds, the "funds"); and retail separate accounts that include intermediary-sold and private client accounts.

2. Basis of Presentation and Significant Accounting Policies

Basis of Presentation

The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the Company’s financial condition and results of operations. Operating results for the six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Annual Report on Form 10-K") filed with the Securities and Exchange Commission (the "SEC"). The Company’s significant accounting policies, which have been consistently applied, are summarized in its 2023 Annual Report on Form 10-K.

New Accounting Standards Not Yet Implemented

In November 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("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.

In March 2024, the FASB issued ASU 2024-01, Compensation - Stock Compensation (Topic 718), Scope Application of Profits Interest and Similar Awards. This standard provides clarity regarding whether profits interest and similar awards are within the scope of Topic 718 of the Accounting Standards Codification. 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.

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3. Revenues

The Company's revenues are recognized when a performance obligation is satisfied, which occurs when control of the services is transferred to clients. Investment management fees, distribution and service fees, and administration and shareholder service fees are generally calculated as a percentage of average net assets of the investment portfolios managed. The net asset values from which these fees are calculated are variable in nature and subject to factors outside of the Company's control, such as additional investments, withdrawals and market performance. Because of this, these fees are considered constrained until the end of the contractual measurement period (monthly or quarterly), which is when asset values are generally determinable.

Investment Management Fees by Source

The following table summarizes investment management fees by source:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Investment management fees
Open-end funds	$	79,883	$	78,161	$	158,563	$	149,427
Closed-end funds	14,405		14,674		28,799		29,352

Retail separate accounts	52,216		42,803		101,197		82,882
Institutional accounts	45,148		44,341		91,453		82,796



Total investment management fees	$	191,652	$	179,979	$	380,012	$	344,457

4. Acquisitions

AlphaSimplex Group, LLC

On April 1, 2023, the Company completed the acquisition of AlphaSimplex Group, LLC ("AlphaSimplex"), which was accounted for in accordance with Accounting Standards Codification ("ASC") 805, Business Combinations ("ASC 805"). The total purchase price paid of $113.4 million was allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of the acquisition. Goodwill of $48.3 million and intangible assets of $55.4 million were recorded for the acquisition.

5. Intangible Assets, Net

Below is a summary of intangible assets, net:


	Definite-Lived						Indefinite-Lived		Total
(in thousands)	Gross Book Value		Accumulated Amortization		Net Book Value		Net Book Value		Net Book Value
Balances at December 31, 2023	$	806,655	$	(416,834)	$	389,821	$	42,298	$	432,119

Intangible amortization	—		(30,533)		(30,533)		—		(30,533)
Balances at June 30, 2024	$	806,655	$	(447,367)	$	359,288	$	42,298	$	401,586

Definite-lived intangible asset amortization for the remainder of fiscal year 2024 and succeeding fiscal years is estimated as follows:


Fiscal Year	Amount (in thousands)
Remainder of 2024	$	25,766
2025	51,532
2026	50,552
2027	47,450
2028	41,787
2029 and thereafter	142,201
Total	$	359,288

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6. Investments

Investments consist primarily of investments in the Company's sponsored products. The Company's investments, excluding the assets of consolidated investment products ("CIP") discussed in Note 16, at June 30, 2024 and December 31, 2023 were as follows:


(in thousands)	June 30, 2024		December 31, 2023
Investment securities - fair value	$	86,248	$	97,304

Equity method investments (1)	22,055		22,710
Nonqualified retirement plan assets	14,013		12,682

Total investments	$	122,316	$	132,696

(1) The Company's equity method investments are valued on a three-month lag based upon the availability of financial information.

Investment Securities - fair value

Investment securities - fair value consist of investments in the Company's sponsored funds and separately managed accounts. The composition of the Company’s investment securities - fair value was as follows:


	June 30, 2024				December 31, 2023
(in thousands)	Cost		Fair Value		Cost		Fair Value
Investment Securities - fair value
Sponsored funds	$	65,205	$	64,420	$	80,794	$	77,433
Equity securities	18,954		21,828		16,353		19,871

Total investment securities - fair value	$	84,159	$	86,248	$	97,147	$	97,304

For the three and six months ended June 30, 2024, the Company recognized net realized gains of $1.0 million and $0.7 million, respectively, related to its investment securities - fair value. For the three and six months ended June 30, 2023, the Company recognized net realized gains of $0.8 million and $2.2 million, respectively, related to its investment securities - fair value.

7. Fair Value Measurements

The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of CIP discussed in Note 16, as of June 30, 2024 and December 31, 2023 by fair value hierarchy level were as follows:

June 30, 2024


(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	147,135	$	—	$	—	$	147,135
Investment securities - fair value
Sponsored funds	64,420		—		—		64,420
Equity securities	21,828		—		—		21,828


Nonqualified retirement plan assets	14,013		—		—		14,013
Total assets measured at fair value	$	247,396	$	—	$	—	$	247,396

Liabilities
Contingent consideration	$	—	$	—	$	38,408	$	38,408
Total liabilities measured at fair value	$	—	$	—	$	38,408	$	38,408

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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

The following is a discussion of the valuation methodologies used for the Company’s assets measured at fair value:

Cash equivalents represent investments in money market funds. Cash investments in money market funds are valued using published net asset values and are classified as Level 1.

Sponsored funds represent investments in open-end funds and closed-end funds for which the Company acts as the investment manager. The fair values of U.S. retail funds and global funds are 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 contingent payment arrangements made in connection with the Company’s business combinations. In these contingent payment arrangements, the Company agrees to pay additional transaction consideration to the seller based on future performance. Contingent consideration is remeasured at fair value each reporting date using a simulation model with the assistance of an independent valuation firm and approved by management and are categorized as Level 3.

The following table presents a reconciliation of beginning and ending balances of the Company's contingent consideration liabilities:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023









Contingent consideration, beginning of period	$	41,708	$	61,710	$	56,200	$	78,100


Reduction for payments made	—		—		(14,492)		(16,390)
Increase (reduction) of liability related to re-measurement of fair value	(3,300)		(6,800)		(3,300)		(6,800)
Contingent consideration, end of period	$	38,408	$	54,910	$	38,408	$	54,910

The contingent consideration related to the Westchester Capital Management transaction as of June 30, 2024, was $7.8 million measured using an options pricing model valuation technique. The most significant unobservable inputs used relate to revenue growth rates, discount rates (range of 6%-7%) and the market price of risk adjustment (9%). The NFJ Investment Group contingent consideration liability as of June 30, 2024, was $30.6 million measured using an options pricing model valuation technique. 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%).

Cash, accounts receivable, accounts payable and accrued liabilities equal or approximate fair value based on the short-term nature of these instruments.

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8. Equity Transactions

Dividends Declared

On May 15, 2024, the Company declared a quarterly cash dividend of $1.90 per common share to be paid on August 15, 2024 to shareholders of record at the close of business on July 31, 2024.

Common Stock Repurchases

During the three and six months ended June 30, 2024, the Company repurchased 55,099 and 76,207 common shares, respectively, at a weighted average price of $226.83 and $229.60 per share, respectively, for a total cost, including fees and expenses, of $12.5 million and $17.5 million, respectively, under its share repurchase program. As of June 30, 2024, 528,338 shares remained available for repurchase. Under the terms of the program, the Company may repurchase shares of its common stock from time to time at its discretion through open market repurchases, privately negotiated transactions and/or other mechanisms, depending on price, prevailing market and business conditions, tax and other financial considerations. The program, which has no specified term, may be suspended or terminated at any time.

9. Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) were as follows:


	Six Months Ended June 30,
(in thousands)	2024		2023
Balance at beginning of period	$	(87)	$	(358)
Net current-period other comprehensive income (loss) (1)	(113)		211
Balance at end of period	$	(200)	$	(147)

(1) Consists of foreign currency translation adjustments, net of tax of $38 and $(77) for the six months ended June 30, 2024 and 2023, respectively.

10. Stock-Based Compensation

Equity-based awards, including restricted stock units ("RSUs"), performance stock units ("PSUs"), and unrestricted shares of common stock, have been granted to officers, employees and directors of the Company pursuant to the Company's Omnibus Incentive and Equity Plan (the "Omnibus Plan"). At June 30, 2024, 818,989 shares of common stock remained available for issuance of the 3,825,000 shares that are authorized for issuance under the Omnibus Plan.

Stock-based compensation expense is summarized as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Stock-based compensation expense	$	9,189	$	6,655	$	16,020	$	12,404

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 to three years. Shares that are issued upon vesting are newly issued shares from the Omnibus Plan and are not issued from treasury stock.

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RSU activity, inclusive of PSUs, for the six months ended June 30, 2024 is summarized as follows:


	Number of Shares	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2023	344,717	$	204.48
Granted	120,563	$	235.06
Forfeited	(9,505)	$	256.00
Settled	(112,498)	$	229.57
Outstanding at June 30, 2024	343,277	$	205.57

For the six months ended June 30, 2024 and 2023, a total of 45,117 and 76,452 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 $10.4 million and $13.2 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 six months ended June 30, 2024 and 2023, the Company granted 26,757 and 44,583 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 June 30, 2024, unamortized stock-based compensation expense for unvested RSUs and PSUs was $40.5 million with a weighted-average remaining contractual life of 1.4 years.

11. Earnings (Loss) Per Share

Earnings (loss) per share ("EPS") is calculated in accordance with ASC 260, Earnings per Share. Basic EPS is computed by dividing net income (loss) attributable to Virtus Investment Partners, Inc. by the weighted-average number of common shares outstanding for the period, excluding dilution for potential common stock issuances. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, including shares issuable upon the vesting of RSUs and stock option exercises using the treasury stock method, as determined under the if-converted method.

The computation of basic and diluted EPS is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share amounts)	2024		2023		2024		2023
Net Income (Loss)	$	26,022	$	30,180	$	63,889	$	64,823
Noncontrolling interests	(8,408)		77		(16,417)		4,058


Net Income (Loss) Attributable to Virtus Investment Partners, Inc.	$	17,614	$	30,257	$	47,472	$	68,881
Shares:
Basic: Weighted-average number of shares outstanding	7,127		7,308		7,123		7,277
Plus: Incremental shares from assumed conversion of dilutive instruments	115		77		141		121
Diluted: Weighted-average number of shares outstanding	7,242		7,385		7,264		7,398
Earnings (Loss) per Share—Basic	$	2.47	$	4.14	$	6.66	$	9.47
Earnings (Loss) per Share—Diluted	$	2.43	$	4.10	$	6.54	$	9.31

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The following table details the securities that have been excluded from the above computation of weighted-average number of shares for diluted EPS, because the effect would be anti-dilutive.


	Three Months Ended June 30,		Six Months Ended June 30,
(in thousands)	2024	2023	2024	2023
Restricted stock units	13	36	4	36

Total anti-dilutive securities	13	36	4	36

12. Income Taxes

In calculating the provision for income taxes, the Company uses an estimate of the annual effective tax rate based upon the facts and circumstances at each interim period. On a quarterly basis, the estimated annual effective tax rate is adjusted, as appropriate, based upon changes in facts and circumstances, if any, compared to those forecasted at the beginning of the fiscal year and at each interim period thereafter.

The provision for income taxes reflected U.S. federal, state and local taxes at an estimated effective tax rate of 24.4% and 23.2% for the six months ended June 30, 2024 and 2023, respectively. The higher estimated effective tax rate for the six months ended June 30, 2024 was primarily due to a change in excess tax benefits associated with stock-based compensation and the change in valuation allowances in the current year related to the tax effects of unrealized gains on certain Company investments.

13. Debt

Credit Agreement

The Company's credit agreement, as amended (the "Credit Agreement"), comprises (i) a $275.0 million term loan with a seven-year term (the "Term Loan") expiring in September 2028, and (ii) a $175.0 million revolving credit facility with a five-year term expiring in September 2026. The Company repaid $6.4 million outstanding under the Term Loan during the six months ended June 30, 2024 and had $252.4 million outstanding under the Term Loan at June 30, 2024. In accordance with ASC 835, Interest, the amounts outstanding under the Company's Term Loan are presented on the Condensed Consolidated Balance Sheet net of related debt issuance costs, which were $4.8 million as of June 30, 2024.

14. 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 believes that 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 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.

15. Redeemable Noncontrolling Interests

Redeemable noncontrolling interests represent third-party investments in the Company's CIP and minority interests held in a consolidated affiliate. Minority interests held in the affiliate are subject to holder put rights and Company call rights at pre-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

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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 Condensed Consolidated Balance Sheets, and any changes in the estimated redemption value are recorded on the Condensed Consolidated Statements of Operations within noncontrolling interests.

Redeemable noncontrolling interests for the six months ended June 30, 2024 included the following amounts:


(in thousands)	CIP		Affiliate Noncontrolling Interests		Total
Balances at December 31, 2023	$	30,643	$	74,226	$	104,869

Net income (loss) attributable to noncontrolling interests	1,833		3,584		5,417
Changes in redemption value (1)	—		11,282		11,282
Total net income (loss) attributable to noncontrolling interests	1,833		14,866		16,699
Affiliate equity sales (purchases)	—		(419)		(419)
Net subscriptions (redemptions) and other	12,237		(3,936)		8,301

Balances at June 30, 2024	$	44,713	$	84,737	$	129,450

(1) Relates to noncontrolling interests redeemable at other than fair value.

16. Consolidation

The condensed 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.

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.

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The following table presents the balances of CIP that, after intercompany eliminations, were reflected on the Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023:


	As of
	June 30, 2024						December 31, 2023
	VOEs		VIEs				VOEs		VIEs
(in thousands)			CLOs		GFs				CLOs		GFs
Cash and cash equivalents	$	8,576	$	156,822	$	2,298	$	1,223	$	98,101	$	2,088
Investments	46,317		1,988,364		71,978		30,985		1,972,342		79,386
Other assets	1,255		37,022		910		174		41,985		1,076
Notes payable	—		(1,990,338)		—		—		(1,922,243)		—
Securities purchased payable and other liabilities	(772)		(99,797)		(1,557)		(740)		(89,167)		(616)
Noncontrolling interests	(17,880)		(3,443)		(26,833)		(7,316)		(4,363)		(23,327)
Net interests in CIP	$	37,496	$	88,630	$	46,796	$	24,326	$	96,655	$	58,607

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 condensed consolidated financial statements on a one-month lag based upon the availability of their financial information. A majority-owned consolidated private fund, whose primary purpose is to invest in CLOs for which the Company serves as the collateral manager, is also included. At June 30, 2024, the Company consolidated seven CLOs.

Investments of CLOs

The CLOs held investments of $2.0 billion at June 30, 2024, 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 2025 and 2032 and generally pay interest at SOFR plus a spread.

Notes Payable of CLOs

The CLOs held notes payable with a total value, at par, of $2.2 billion at June 30, 2024, consisting of senior secured floating rate notes payable with a par value of $2.0 billion and subordinated notes with a par value of $217.9 million. These note obligations bear interest at variable rates based on SOFR plus a pre-defined spread.

The Company's beneficial interests and maximum exposure to loss related to these consolidated CLOs is limited to (i) ownership in the subordinated notes and (ii) accrued management fees. The secured notes of the consolidated CLOs have contractual recourse only to the related assets of the CLO and are classified as financial liabilities. Although these beneficial interests are eliminated upon consolidation, the application of the measurement alternative prescribed by ASU 2014-13, Consolidation (Topic 810) ("ASU 2014-13"), results in the net assets of the consolidated CLOs shown above to be equivalent to the beneficial interests retained by the Company at June 30, 2024, as shown in the table below:





	(in thousands)
Subordinated notes	$	87,561
Accrued investment management fees	1,069
Total Beneficial Interests	$	88,630

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The following table represents income and expenses of the consolidated CLOs included on the Company’s Condensed Consolidated Statements of Operations for the period indicated:


	Six Months Ended June 30, 2024
	(in thousands)
Income:
Realized and unrealized gain (loss), net	$	(12,377)
Interest income	99,673

Total Income	87,296

Expenses:
Other operating expenses	3,224
Interest expense	81,972
Total Expense	85,196
Noncontrolling interests	282
Net Income (Loss) Attributable to CLOs	$	2,382

The following table represents the Company’s own economic interests in the consolidated CLOs, which are eliminated upon consolidation:


	Six Months Ended June 30, 2024
	(in thousands)
Distributions received and unrealized gains (losses) on the subordinated notes held by the Company	$	(2,059)
Investment management fees	4,441

Total Economic Interests	$	2,382

Fair Value Measurements of CIP

The assets and liabilities of CIP measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 by fair value hierarchy level were as follows:

As of June 30, 2024


(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	163,605	$	—	$	—	$	163,605
Debt investments	—		2,034,350		35,109		2,069,459
Equity investments	35,229		97		1,874		37,200
Derivatives	124		—		—		124
Total assets measured at fair value	$	198,958	$	2,034,447	$	36,983	$	2,270,388
Liabilities
Notes payable	$	—	$	1,990,338	$	—	$	1,990,338

Short sales	474		—		—		474
Total liabilities measured at fair value	$	474	$	1,990,338	$	—	$	1,990,812

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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

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 consist of notes payable 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 June 30, 2024 and December 31, 2023 approximated fair value due to the short-term nature of the instruments.

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The following table is a reconciliation of assets of CIP for Level 3 investments for which significant unobservable inputs were used to determine fair value:


	Six Months Ended June 30,
(in thousands)	2024		2023
Balance at beginning of period	$	37,062	$	43,581


Realized and unrealized gains (losses), net	629		(467)

Purchases	31		2,903


Sales	(19,845)		(7,231)
Transfers to Level 2	(54,857)		(48,337)
Transfers from Level 2	73,963		53,091
Balance at end of period (1)	$	36,983	$	43,540

(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 June 30, 2024, the carrying value and maximum risk of loss related to the Company's interest in these VIEs was $27.8 million.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Statement Regarding Forward Looking Statements

This Quarterly Report on Form 10-Q contains statements that are, or may be considered to be, forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, as amended, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements that are not historical facts, including statements about our beliefs or expectations, are "forward-looking statements." These statements may be identified by such forward-looking terminology as "expect," "estimate," "intent," "plan," "intend," "believe," "anticipate," "may," "will," "should," "could," "continue," "project," "opportunity," "predict," "would," "potential," "future," "forecast," "guarantee," "assume," "likely," "target" or similar statements or variations of such terms.

Our forward-looking statements are based on a series of expectations, assumptions and projections about the Company and the markets in which we operate, are not guarantees of future results or performance, and involve substantial risks and uncertainty, including assumptions and projections concerning our assets under management, net asset inflows and outflows, operating cash flows, business plans and ability to borrow, for all future periods. All forward-looking statements contained in this Quarterly Report on Form 10-Q are as of the date of this Quarterly Report on Form 10-Q only.

We can give no assurance that such expectations or forward-looking statements will prove to be correct. Actual results may differ materially. We do not undertake or plan to update or revise any such forward-looking statements to reflect actual results, changes in plans, assumptions, estimates or projections, or other circumstances occurring after the date of this Quarterly Report on Form 10-Q, even if such results, changes or circumstances make it clear that any forward-looking information will not be realized. If there are any future public statements or disclosures by us that modify or impact any of the forward-looking statements contained in or accompanying this Quarterly Report on Form 10-Q, such statements or disclosures will be deemed to modify or supersede such statements in this Quarterly Report on Form 10-Q.

Our business and our forward-looking statements involve substantial known and unknown risks and uncertainties, including those discussed under "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our 2023 Annual Report on Form 10-K and this Quarterly Report on Form 10-Q, resulting from: (i) any reduction in our assets under management; (ii) inability to achieve the expected benefits of strategic transactions; (iii) withdrawal, renegotiation or termination of investment management agreements; (iv) damage to our reputation; (v) inability to satisfy financial debt covenants and required payments; (vi) inability to attract and retain key personnel; (vii) challenges from competition; (viii) adverse developments related to unaffiliated subadvisers; (ix) negative changes in key distribution relationships; (x) interruptions, breaches, or failures of technology systems; (xi) loss on our investments; (xii) lack of sufficient capital on satisfactory terms; (xiii) adverse regulatory and legal developments; (xiv) failure to comply with investment guidelines or other contractual requirements; (xv) adverse civil litigation, government investigations, or proceedings; (xvi) unfavorable changes in tax laws or limitations; (xvii) inability to make common stock dividend payments; (xviii) impediments from certain corporate governance provisions; (xix) losses or costs not covered by insurance; (xx) impairment of goodwill or other intangible assets; and other risks and uncertainties. Any occurrence of, or any material adverse change in, one or more risk factors or risks and uncertainties referred to above, in our 2023 Annual Report on Form 10-K, this Quarterly Report on Form 10-Q and our other periodic reports filed with the Securities and Exchange Commission (the "SEC") could materially and adversely affect our operations, financial results, cash flows, prospects and liquidity.

Certain other factors that may impact our continuing operations, prospects, financial results and liquidity, or that may cause actual results to differ from such forward-looking statements, are discussed or included in the Company’s periodic reports filed with the SEC and are available on our website at www.virtus.com under "Investor Relations." You are urged to carefully consider all such factors.

Overview

Our Business

We provide investment management and related services to institutions and individuals. We use a multi-manager, multi-style approach, offering investment strategies from our investment managers, each having its own distinct investment style, autonomous investment process and individual brand, as well as from select unaffiliated managers for certain of our funds. By offering a broad array of products, we believe we can appeal to a greater number of investors and have offerings across market cycles and through changes in investor preferences. Our earnings are primarily from asset-based fees charged for services relating to these various products, including investment management, fund administration, distribution, and shareholder services.

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We offer investment strategies for institutional and individual investors in different investment products and through multiple distribution channels. Our investment strategies are available in a diverse range of styles and disciplines, managed by differentiated investment managers. We have offerings in various asset classes (equity, fixed income, multi-asset and alternatives), geographies (domestic, global, international and emerging), market capitalizations (large, mid and small), styles (growth, core and value) and investment approaches (fundamental and quantitative). Our institutional products are offered through institutional separate accounts and commingled accounts, including subadvisory services to other investment advisers and Company sponsored structured products to a variety of institutional clients. Our retail products include open-end funds, closed-end funds and retail separate accounts.

Our institutional distribution resources include affiliate-specific sales teams primarily focused on the U.S. market, supported by shared consultant relations and U.S. and non-U.S. institutional sales distribution. Our institutional products are marketed through relationships with consultants as well as directly to clients. We target key market segments, including foundations and endowments, corporations, public and private pension plans, sovereign wealth funds and subadvisory relationships.

Our retail distribution resources in the U.S. consist of regional sales professionals, a national account relationship group and specialized teams for retirement and ETFs. Our U.S. retail funds and retail separate accounts are distributed through financial intermediaries. We have broad distribution access in the U.S. retail market, with distribution partners that include national and regional broker-dealers, independent broker-dealers and registered investment advisers, banks and insurance companies. In many of these firms, we have a number of products that are on preferred "recommended" lists and on fee-based advisory programs. Our private client business is marketed directly to individual clients by financial advisory teams at our affiliated investment managers.

Financial Highlights

▪Net income per diluted share was $2.43 in the second quarter of 2024, a decrease of $1.67, or 40.7%, compared to net income per diluted share of $4.10 in the second quarter of 2023.

▪Total sales were $6.1 billion in the second quarter of 2024, a decrease of $1.4 billion, or 19.0%, from $7.6 billion in the second quarter of 2023. Net flows were $(2.6) billion in the second quarter of 2024 compared to neutral net flows in the second quarter of 2023.

▪Assets under management were $173.6 billion at June 30, 2024, an increase of $5.3 billion, or 3.1%, from June 30, 2023.

Assets Under Management

At June 30, 2024, total assets under management were $173.6 billion, representing an increase of $5.3 billion, or 3.1%, from June 30, 2023, and an increase of $1.3 billion, or 0.8%, from December 31, 2023. The increase in total assets under management from June 30, 2023 included $16.9 billion from positive market performance partially offset by $9.2 billion of net outflows. The increase in total assets under management from December 31, 2023 included $6.2 billion from positive market performance partially offset by $3.9 billion of net outflows.

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Assets Under Management by Product

The following table summarizes our assets under management by product:


	As of June 30,				Change
(in millions)	2024		2023		$		%
Open-End Funds (1)	$	55,852	$	56,828	$	(976)	(1.7)	%
Closed-End Funds	9,915		10,166		(251)		(2.5)	%
Retail Separate Accounts (2)	45,672		38,992		6,680		17.1	%
Institutional Accounts (3)	62,146		62,330		(184)		(0.3)	%


Total	$	173,585	$	168,316	$	5,269	3.1	%
Average Assets Under Management (4)	$	174,267	$	157,675	$	16,592	10.5	%

(1)Represents assets under management of U.S. retail funds, global funds, ETFs and variable insurance funds.

(2)Includes investment models provided to managed account sponsors.

(3)Represents assets under management of institutional separate and commingled accounts including structured products.

(4)Averages are calculated as follows:

–Funds - average daily or weekly balances

–Retail Separate Accounts - prior-quarter ending balances

–Institutional Accounts - average of month-end balances

Asset Flows by Product

The following table summarizes asset flows by product:


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023		2024		2023
Open-End Funds (1)
Beginning balance	$	57,818	$	53,865	$	56,062	$	53,000
Inflows	2,777		2,550		6,253		5,561
Outflows	(4,120)		(4,692)		(8,224)		(9,484)
Net flows	(1,343)		(2,142)		(1,971)		(3,923)
Market performance	(480)		2,163		2,080		4,934
Other (2)	(143)		2,942		(319)		2,817
Ending balance	$	55,852	$	56,828	$	55,852	$	56,828

Closed-End Funds
Beginning balance	$	10,064	$	10,358	$	10,026	$	10,361
Inflows	—		20		—		24
Outflows	(41)		—		(41)		—
Net flows	(41)		20		(41)		24
Market performance	83		(1)		322		204
Other (2)	(191)		(211)		(392)		(423)
Ending balance	$	9,915	$	10,166	$	9,915	$	10,166


Retail Separate Accounts (3)
Beginning balance	$	46,816	$	37,397	$	43,202	$	35,352
Inflows	2,172		1,346		4,545		2,713
Outflows	(1,688)		(1,434)		(3,383)		(2,722)
Net flows	484		(88)		1,162		(9)
Market performance	(1,631)		1,683		1,305		3,649
Other (2)	3		—		3		—
Ending balance	$	45,672	$	38,992	$	45,672	$	38,992

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	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023		2024		2023
Institutional Accounts (4)
Beginning balance	$	64,613	$	53,229	$	62,969	$	50,663
Inflows	1,188		3,660		2,922		5,512
Outflows	(2,913)		(1,478)		(5,935)		(3,525)
Net flows	(1,725)		2,182		(3,013)		1,987
Market performance	(549)		2,440		2,452		5,346
Other (2)	(193)		4,479		(262)		4,334
Ending balance	$	62,146	$	62,330	$	62,146	$	62,330


















Total
Beginning balance	$	179,311	$	154,849	$	172,259	$	149,376
Inflows	6,137		7,576		13,720		13,810
Outflows	(8,762)		(7,604)		(17,583)		(15,731)
Net flows	(2,625)		(28)		(3,863)		(1,921)
Market performance	(2,577)		6,285		6,159		14,133
Other (2)	(524)		7,210		(970)		6,728
Ending balance	$	173,585	$	168,316	$	173,585	$	168,316

(1)Represents assets under management of U.S. retail funds, global funds, ETFs and variable insurance funds.

(2)Represents open-end and closed-end fund distributions net of reinvestments, the net change in assets from cash management strategies, and the impact of non-sales related activities such as asset acquisitions/(dispositions), seed capital investments/(withdrawals), current income or capital returned by structured products and the use of leverage.

(3)Includes investment models provided to managed account sponsors.

(4)Represents assets under management of institutional separate and commingled accounts including structured products.

Assets Under Management by Asset Class

The following table summarizes assets under management by asset class:


	As of June 30,				Change				% of Total
(in millions)	2024		2023		$		%		2024		2023
Asset Class
Equity	$	99,224	$	91,211	$	8,013	8.8	%	57.2	%	54.2	%
Fixed income	36,970		38,361		(1,391)		(3.6)	%	21.3	%	22.8	%
Multi-asset (1)	21,060		20,914		146		0.7	%	12.1	%	12.4	%
Alternatives (2)	16,331		17,830		(1,499)		(8.4)	%	9.4	%	10.6	%
Total	$	173,585	$	168,316	$	5,269	3.1	%	100.0	%	100.0	%

(1) Consists of multi-asset offerings not included in equity, fixed income, and alternatives.

(2) Consists of managed futures, event-driven, real estate securities, infrastructure, long/short and other strategies.

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Average Assets Under Management and Average Fees Earned

The following tables summarize the average management fees earned in basis points and average assets under management:


	Three Months Ended June 30,
	Average Fee Earned (expressed in basis points)		Average Assets Under Management (in millions) (4)
	2024	2023	2024		2023
Products
Open-End Funds (1)	50.9	49.3	$	56,692	$	56,120
Closed-End Funds	58.6	57.6	9,894		10,224
Retail Separate Accounts (2)	43.3	44.1	46,816		37,397
Institutional Accounts (3)	30.7	31.6	61,773		59,248


All Products	42.2	42.2	$	175,175	$	162,989

	Six Months Ended June 30,
	Average Fee Earned (expressed in basis points)		Average Assets Under Management (in millions) (4)
	2024	2023	2024		2023
Products
Open-End Funds (1)	50.4	48.5	$	56,760	$	55,131
Closed-End Funds	58.6	57.3	9,878		10,323
Retail Separate Accounts (2)	43.6	44.2	45,009		36,375
Institutional Accounts (3)	30.8	31.7	62,620		55,846


All Products	42.0	42.1	$	174,267	$	157,675

(1)Represents assets under management of U.S. retail funds, global funds, ETFs and variable insurance funds.

(2)Includes investment models provided to managed account sponsors.

(3)Represents assets under management of institutional separate and commingled accounts including structured products.

(4)Averages are calculated as follows:

–Funds - average daily or weekly balances

–Retail Separate Accounts - prior-quarter ending balances

–Institutional Accounts - average of month-end balances

Average fees earned represent investment management fees, net of revenue-related adjustments, and excluding the impact of consolidated investment products ("CIP") divided by average net assets. Revenue-related adjustments are based on specific agreements and reflect the portion of investment management fees passed-through to third-party client intermediaries for services to investors in sponsored investment products. Fund fees are calculated based on average daily or weekly net assets. Retail separate account fees are calculated based on the end of the preceding or current quarter’s asset values or on an average of month-end balances. Institutional account fees are calculated based on an average of month-end balances, an average of current quarter’s asset values or on a combination of the underlying cash flows and the principal value of the product. Average fees earned will vary based on several factors, including the asset mix and expense reimbursements to the funds.

The average fee rate earned on all products was flat for the three and six months ended June 30, 2024 compared to the same periods in the prior year.

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Results of Operations

Summary Financial Data



	Three Months Ended June 30,				Change				Six Months Ended June 30,				Change
(in thousands)	2024		2023		$		%		2024		2023		$		%
Investment management fees	$	191,652	$	179,979	$	11,673	6.5	%	$	380,012	$	344,457	$	35,555	10.3	%
Other revenue	32,732		33,557		(825)		(2.5)	%	66,414		66,953		(539)		(0.8)	%
Total revenues	224,384		213,536		10,848		5.1	%	446,426		411,410		35,016		8.5	%
Total operating expenses	180,179		174,490		5,689		3.3	%	369,915		343,785		26,130		7.6	%
Operating income (loss)	44,205		39,046		5,159		13.2	%	76,511		67,625		8,886		13.1	%
Other income (expense), net	(13,892)		(3,566)		(10,326)		289.6	%	(8,391)		1,357		(9,748)		(718.3)	%
Interest income (expense), net	7,457		5,610		1,847		32.9	%	16,348		15,454		894		5.8	%
Income (loss) before income taxes	37,770		41,090		(3,320)		(8.1)	%	84,468		84,436		32		N/M
Income tax expense (benefit)	11,748		10,910		838		7.7	%	20,579		19,613		966		4.9	%
Net income (loss)	26,022		30,180		(4,158)		(13.8)	%	63,889		64,823		(934)		(1.4)	%
Noncontrolling interests	(8,408)		77		(8,485)		N/M		(16,417)		4,058		(20,475)		N/M


Net Income (Loss) Attributable to Virtus Investment Partners, Inc.	$	17,614	$	30,257	$	(12,643)	(41.8)	%	$	47,472	$	68,881	$	(21,409)	(31.1)	%
Earnings (loss) per share-diluted	$	2.43	$	4.10	$	(1.67)	(40.7)	%	$	6.54	$	9.31	$	(2.77)	(29.8)	%

N/M = Not Meaningful

In the second quarter of 2024, total revenues increased 5.1% to $224.4 million from $213.5 million in the second quarter of 2023, primarily as a result of increased average assets under management during the current year period compared to the prior year period. Operating income increased $5.2 million to $44.2 million in the second quarter of 2024 compared to $39.0 million in the second quarter of 2023, due primarily to the aforementioned increased revenue, partially offset by increased operating expenses.

Revenues

Revenues by source were as follows:


	Three Months Ended June 30,				Change				Six Months Ended June 30,				Change
(in thousands)	2024		2023		$		%		2024		2023		$		%
Investment management fees
Open-end funds	$	79,883	$	78,161	$	1,722	2.2	%	$	158,563	$	149,427	$	9,136	6.1	%
Closed-end funds	14,405		14,674		(269)		(1.8)	%	28,799		29,352		(553)		(1.9)	%

Retail separate accounts	52,216		42,803		9,413		22.0	%	101,197		82,882		18,315		22.1	%
Institutional accounts	45,148		44,341		807		1.8	%	91,453		82,796		8,657		10.5	%



Total investment management fees	191,652		179,979		11,673		6.5	%	380,012		344,457		35,555		10.3	%
Distribution and service fees	13,410		14,132		(722)		(5.1)	%	27,440		28,285		(845)		(3.0)	%
Administration and shareholder service fees	18,308		18,240		68		0.4	%	36,986		36,599		387		1.1	%
Other income and fees	1,014		1,185		(171)		(14.4)	%	1,988		2,069		(81)		(3.9)	%
Total Revenues	$	224,384	$	213,536	$	10,848	5.1	%	$	446,426	$	411,410	$	35,016	8.5	%

Investment Management Fees

Investment management fees are earned based on a percentage of assets under management and are paid pursuant to the terms of the respective investment management agreements, which generally require monthly or quarterly payments. Investment management fees increased by $11.7 million, or 6.5%, and $35.6 million, or 10.3% for the three and six months ended June 30, 2024, respectively, compared to the same periods in the prior year primarily due to the increase in average

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assets under management.

Distribution and Service Fees

Distribution and service fees are sales- and asset-based fees earned from open-end funds for marketing and distribution services. Distribution and service fees decreased by $0.7 million, or 5.1%, and $0.8 million, or 3.0%, for the three and six months ended June 30, 2024, respectively, compared to the same periods in the prior year primarily due to lower sales and average assets under management for open-end funds in share classes that have sales- and asset-based distribution and service fees.

Administration and Shareholder Service Fees

Administration and shareholder service fees represent fees earned for fund administration and shareholder services from our U.S. retail funds, ETFs and certain closed-end funds. Fund administration and shareholder service fees remained consistent during the three months ended June 30, 2024 compared to the same period in the prior year and increased by $0.4 million, or 1.1%, for the six months ended June 30, 2024, compared to the same period in the prior year. The increase for the six-month period was primarily due to the increase in average assets under management of our U.S. retail funds and ETFs.

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. Other income and fees decreased by $0.2 million, or 14.4%, for the three months ended June 30, 2024, and remained consistent during the six months ended June 30, 2024 compared to the same periods in the prior year. The decrease during the three-month period is primarily due to lower fees earned on other fee-earning assets and lower fees received for trading and investment services.

Operating Expenses

Operating expenses by category were as follows:


	Three Months Ended June 30,				Change				Six Months Ended June 30,				Change
(in thousands)	2024		2023		$		%		2024		2023		$		%
Operating expenses
Employment expenses	$	105,667	$	104,694	$	973	0.9	%	$	220,830	$	203,308	$	17,522	8.6	%
Distribution and other asset-based expenses	23,695		25,460		(1,765)		(6.9)	%	48,043		49,175		(1,132)		(2.3)	%
Other operating expenses	33,050		33,483		(433)		(1.3)	%	64,425		64,213		212		0.3	%
Other operating expenses of CIP	2,909		360		2,549		708.1	%	3,599		1,060		2,539		239.5	%
Change in fair value of contingent consideration	(3,300)		(6,800)		3,500		(51.5)	%	(3,300)		(6,800)		3,500		(51.5)	%
Restructuring expense	690		—		690		N/M		1,487		—		1,487		N/M
Depreciation expense	2,270		1,485		785		52.9	%	4,298		2,630		1,668		63.4	%
Amortization expense	15,198		15,808		(610)		(3.9)	%	30,533		30,199		334		1.1	%
Total operating expenses	$	180,179	$	174,490	$	5,689	3.3	%	$	369,915	$	343,785	$	26,130	7.6	%

N/M = Not Meaningful

Employment Expenses

Employment expenses consist of fixed and variable compensation and related employee benefit costs. Employment expenses of $105.7 million increased by $1.0 million, or 0.9%, for the three months ended June 30, 2024 primarily due to an increase in profit- and sales-based compensation. Employment expenses increased by $17.5 million, or 8.6%, for the six months ended June 30, 2024, compared to the same period in the prior year primarily due to an increase in profit- and sales-based compensation and the addition of AlphaSimplex.

Distribution and Other Asset-Based Expenses

Distribution and other asset-based expenses consist primarily of payments to third-party client intermediaries for providing services to investors in sponsored investment products. These payments are primarily based on assets under management. Distribution and other asset-based expenses also include the amortization of deferred sales commissions related

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to up-front commissions on shares sold without a front-end sales charge to shareholders. The deferred sales commissions are amortized on a straight-line basis over the period commissions are recovered from distribution fee revenues and contingent sales charges received upon redemption of shares. During the three and six months ended June 30, 2024, distribution and other asset-based expenses decreased by $1.8 million, or 6.9%, and $1.1 million, or 2.3%, respectively, compared to the same periods in the prior year primarily due to decreases in assets under management in share classes that have asset-based distribution and other expenses.

Other Operating Expenses

Other operating expenses primarily consist of investment research and technology costs, professional fees, travel and distribution-related costs, rent and occupancy expenses, and other business costs. Other operating expenses remained consistent during the three and six months ended June 30, 2024 compared to the same periods in the prior year.

Other Operating Expenses of CIP

Other operating expenses of CIP increased by $2.5 million, or 708.1%, and $2.5 million, or 239.5%, for the three and six months ended June 30, 2024, respectively, compared to the same periods in the prior year primarily due to the refinancing of two CLOs in the current year periods.

Change in Fair Value of Contingent Consideration

Contingent consideration related to the Company's acquisitions are fair valued on each reporting date incorporating changes in various estimates, including underlying performance estimates, discount rates and the amount of time until the conditions of the contingent payments are achieved. The change in fair value is recorded in the current period as a gain or loss. The $3.5 million change in fair value of contingent consideration for the three and six months ended June 30, 2024 compared to the same periods in the prior year was primarily attributable to changes in underlying performance estimates.

Depreciation Expense

Depreciation expense consists primarily of the straight-line depreciation of furniture, equipment and leasehold improvements. Depreciation expense increased $0.8 million, or 52.9%, and $1.7 million, or 63.4%, for the three and six months ended June 30, 2024, compared to the same periods in the prior year. The increase during both periods was primarily due to the acceleration of deprecation on leasehold improvements in the current year periods, software and equipment purchases in the current and prior year periods and depreciation expense for new office space.

Amortization Expense

Amortization expense consists of the amortization of definite-lived intangible assets over their estimated useful lives. Amortization expense decreased $0.6 million, or 3.9%, for the three months ended June 30, 2024, compared to the same period in the prior year, primarily due to intangible assets becoming fully amortized during the current year period. Amortization expense increased by $0.3 million, or 1.1%, for the six months ended June 30, 2024, compared to the same period in the prior year, primarily due to the addition of AlphaSimplex intangible assets in the second quarter of the prior year partially offset by intangible assets becoming fully amortized during the current year period.

Other Income (Expense)

Other Income (Expense), net by category were as follows:


	Three Months Ended June 30,				Change				Six Months Ended June 30,				Change
(in thousands)	2024		2023		$		%		2024		2023		$		%
Other Income (Expense)
Realized and unrealized gain (loss) on investments, net	$	(1,553)	$	1,717	$	(3,270)	(190.4)	%	$	1,863	$	4,387	$	(2,524)	(57.5)	%
Realized and unrealized gain (loss) of CIP, net	(12,936)		(4,436)		(8,500)		191.6	%	(11,401)		(1,840)		(9,561)		519.6	%
Other income (expense), net	597		(847)		1,444		(170.5)	%	1,147		(1,190)		2,337		(196.4)	%
Total Other Income (Expense), net	$	(13,892)	$	(3,566)	$	(10,326)	289.6	%	$	(8,391)	$	1,357	$	(9,748)	(718.3)	%

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Realized and unrealized gain (loss) on investments, net

Realized and unrealized gain (loss) on investments, net changed during the three and six months ended June 30, 2024 by $(3.3) million and $(2.5) million, respectively, compared to the same periods in the prior year. The realized and unrealized gains and losses reflect changes in overall market conditions for the respective periods.

Realized and unrealized gain (loss) of CIP, net

Realized and unrealized gain (loss) of CIP, net changed by $(8.5) million and $(9.6) million for the three and six months ended June 30, 2024, respectively, compared to the same periods in the prior year. The change for the three months ended June 30, 2024 consisted primarily of changes in unrealized losses of $32.1 million related to the value of the notes payable, partially offset by net unrealized and realized gains of $23.6 million due to changes in market values of leveraged loans. The change for the six months ended June 30, 2024 consisted primarily of changes in unrealized losses of $15.3 million related to the value of the notes payable, partially offset by net unrealized and realized gains of $5.7 million due to changes in market values of leveraged loans.

Other income (expense), net

Other income (expense), net changed by $1.4 million and $2.3 million for the three and six months ended June 30, 2024, respectively, compared to the same periods in the prior year primarily due to changes in the gains and losses on our equity method investments.

Interest Income (Expense)

Interest Income (Expense), net by category were as follows:


	Three Months Ended June 30,				Change				Six Months Ended June 30,				Change
(in thousands)	2024		2023		$		%		2024		2023		$		%
Interest Income (Expense)
Interest expense	$	(5,611)	$	(6,217)	$	606	(9.7)	%	$	(11,292)	$	(11,222)	$	(70)	0.6	%
Interest and dividend income	2,643		2,675		(32)		(1.2)	%	6,112		5,913		199		3.4	%
Interest and dividend income of investments of CIP	52,385		47,884		4,501		9.4	%	103,500		94,698		8,802		9.3	%
Interest expense of CIP	(41,960)		(38,732)		(3,228)		8.3	%	(81,972)		(73,935)		(8,037)		10.9	%
Total Interest Income (Expense), net	$	7,457	$	5,610	$	1,847	32.9	%	$	16,348	$	15,454	$	894	5.8	%

Interest Expense

Interest expense decreased $0.6 million, or 9.7%, for the three months ended June 30, 2024 and remained consistent during the six months ended June 30, 2024. The decrease during the three-month period was primarily due to lower average debt outstanding during the current year period.

Interest and Dividend Income

Interest and dividend income remained consistent during the three and six months ended June 30, 2024 compared to the same periods in the prior year.

Interest and Dividend Income of Investments of CIP

Interest and dividend income of investments of CIP increased $4.5 million, or 9.4%, and $8.8 million, or 9.3% for the three and six months ended June 30, 2024, respectively, compared to the same periods in the prior year. The increases were primarily due to the addition of a CLO in the third quarter of 2023 and higher average interest rates during the current year periods.

Interest Expense of CIP

Interest expense of CIP represents interest expense on the notes payable of CIP. Interest expense of CIP increased by $3.2 million, or 8.3%, and $8.0 million, or 10.9% for the three and six months ended June 30, 2024, compared to the same periods in the prior year primarily due to the addition of a CLO in the third quarter of 2023 and higher average interest rates in the current year periods.

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Income Tax Expense (Benefit)

Liquidity and Capital Resources

Certain Financial Data

The following table summarizes certain financial data relating to our liquidity and capital resources:


	June 30, 2024		December 31, 2023		Change
(in thousands)					$		%
Balance Sheet Data
Cash and cash equivalents	$	183,001	$	239,602	$	(56,601)	(23.6)	%
Investments	122,316		132,696		(10,380)		(7.8)	%
Contingent consideration	63,404		90,938		(27,534)		(30.3)	%
Debt	247,605		253,412		(5,807)		(2.3)	%
Redeemable noncontrolling interests	129,450		104,869		24,581		23.4	%
Total equity	872,118		868,289		3,829		0.4	%


	Six Months Ended June 30,				Change
(in thousands)	2024		2023		$		%
Cash Flow Data
Provided by (Used in):
Operating activities	$	35,427	$	102,088	$	(66,661)	(65.3)	%
Investing activities	(3,800)		(123,244)		119,444		(96.9)	%
Financing activities	(21,844)		(210,727)		188,883		(89.6)	%

Overview

At June 30, 2024, we had $183.0 million of cash and cash equivalents and $122.3 million of investments, which included $86.2 million of investment securities, compared to $239.6 million of cash and cash equivalents and $132.7 million of investments, which included $97.3 million of investment securities, at December 31, 2023.

Uses of Capital

Our operating expenses consist of employee compensation and related benefit costs and other operating expenses, which primarily consist of investment research, technology costs, professional fees, distribution and occupancy costs, as well as interest on our indebtedness and income taxes. Annual incentive compensation, our largest annual operating cash expenditure, is paid in the first quarter of the year. In 2024 and 2023, we paid $146.1 million and $142.1 million, respectively, in incentive compensation earned during the years ended December 31, 2023 and 2022, respectively.

In addition to operating activities, other uses of cash could include: (i) investments in organic growth, including seeding or launching new products and expanding distribution; (ii) debt principal payments through scheduled amortization or additional paydowns; (iii) dividend payments to common stockholders; (iv) repurchases of our common stock, or withholding obligations for the net settlement of employee share transactions; (v) investments in our technology infrastructure; (vi) investments in inorganic growth opportunities that may require upfront and/or future payments; (vii) integration costs, including restructuring and severance, related to acquisitions, if any; and (viii) purchases of affiliate equity interests.

Capital and Reserve Requirements

Certain of our subsidiaries are registered with the SEC, Central Bank of Ireland (CBI) or other regulators that subject them to certain rules regarding minimum net capital. Failure to meet these requirements could result in adverse consequences

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to us, including additional reporting requirements, or interruption of our business. At June 30, 2024, these subsidiaries were in compliance with all minimum net capital requirements.

Balance Sheet

Cash and cash equivalents consist of cash in banks and money market fund investments. Investments consist primarily of investments in our sponsored funds. CIP represent investment products for which we provide investment management services and where we have either a controlling financial interest or are considered the primary beneficiary of an investment product that is considered a variable interest entity.

Operating Cash Flow

Net cash provided by operating activities of $35.4 million for the six months ended June 30, 2024 decreased by $66.7 million from net cash provided by operating activities of $102.1 million for the same period in the prior year primarily due to a decrease of $48.0 million in net sales of investments by CIP in the current year period and an increase in payments of incentive compensation in the current year.

Investing Cash Flow

Cash flows from investing activities consist primarily of capital expenditures and other investing activities related to our business operations. Net cash used in investing activities of $3.8 million for the six months ended June 30, 2024 decreased by $119.4 million from net cash used in investing activities of $123.2 million for the same period in the prior year primarily due to the AlphaSimplex acquisition in the prior year.

Financing Cash Flow

Cash flows from financing activities consist primarily of transactions related to our common shares, issuance and repayment of debt by us and CIP, payments of contingent consideration and purchases and sales of noncontrolling interests. Net cash used in financing activities of $21.8 million for the six months ended June 30, 2024 decreased by $188.9 million from net cash used of $210.7 million for the same period in the prior year primarily due to a $222.6 million increase in net borrowings of CIP attributable to the refinancing of two CLOs in the current period partially offset by the prior year period $50.0 million borrowing on the credit facility as part of the AlphaSimplex acquisition.

Credit Agreement

Critical Accounting Policies and Estimates

Our financial statements and the accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America, which require the use of estimates. Actual results will vary from these estimates. A discussion of our critical accounting policies and estimates is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2023 Annual Report on Form 10-K. A complete description of our significant accounting policies is included in our 2023 Annual Report on Form 10-K. There were no material changes in our critical accounting policies and estimates in the three months ended June 30, 2024.

Recently Issued Accounting Pronouncements

For a discussion of accounting standards, see Note 2 in our condensed consolidated financial statements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The Company is primarily exposed to market risk associated with unfavorable movements in interest rates and securities prices. During the three and six months ended June 30, 2024, there were no material changes to the information contained in Part II, Item 7A of the Company's 2023 Annual Report on Form 10-K.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on their evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2024, the end of the period covered by this Quarterly Report on Form 10-Q.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) or 15d-15(f) under the Exchange Act) identified in connection with the evaluation required by Rules 13a-15(d) or 15d-15(d) of the Exchange Act that occurred during the period covered by this Quarterly Report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

The information set forth in response to Item 103 of Regulation S-K under "Legal Proceedings" is incorporated by reference from Part I, Financial Information Item 1. "Financial Statements" Note 14 "Commitments and Contingencies" of this Quarterly Report on Form 10-Q.

Item 1A. Risk Factors

There have been no material changes to the Company’s risk factors from those previously reported in our 2023 Annual Report on Form 10-K.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

An aggregate of 5,680,045 shares of our common stock have been authorized to be repurchased under a share repurchase program since it was initially approved in 2010 by our Board of Directors. As of June 30, 2024, 528,338 shares remained available for repurchase. Under the terms of the program, we may repurchase shares of our common stock from time to time at our discretion through open market repurchases, privately negotiated transactions and/or other mechanisms, depending on price, prevailing market and business conditions, tax and other financial considerations. The program, which has no specified term, may be suspended or terminated at any time.

The following table sets forth information regarding our share repurchases in each month during the quarter ended June 30, 2024.



Period	Total number of shares purchased	Average price paid per share (1)		Total number of shares purchased as part of publicly announced plans or programs (2)	Maximum number of shares that may yet be purchased under the plans or programs (2)
April 1-30, 2024	—	$	—	—	583,437
May 1-31, 2024	30,988	$	232.11	30,988	552,449
June 1-30, 2024	24,111	$	220.04	24,111	528,338
Total	55,099			55,099

(1)Average price paid per share is calculated on a settlement basis and excludes commissions and taxes.

(2)The share repurchases above were completed pursuant to a program announced in the fourth quarter of 2010 and most recently expanded in May 2022. This repurchase program is not subject to an expiration date.

Item 5. Other Information

During the three months ended June 30, 2024, none of the Company's directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934, as amended), adopted, terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K of the Securities Act of 1933, as amended).

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Item 6. Exhibits


Exhibit Number						Description

10.1*						Amended and Restated Virtus Investment Partners, Inc. Omnibus Incentive and Equity Plan (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K, filed May 16, 2024).

31.1						Certification of the Registrant’s Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2						Certification of the Registrant’s Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1#						Certification of the Registrant’s Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS						Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH						Inline XBRL Taxonomy Extension Schema Document

101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document

104						Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101)

* Management contract, compensatory plan or arrangement.

# This certification is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (Exchange Act), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended or the Exchange Act.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: August 8, 2024


			VIRTUS INVESTMENT PARTNERS, INC.
			(Registrant)

			By:			/s/ Michael A. Angerthal
						Michael A. Angerthal
						Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

Exhibit 31.1

CERTIFICATION UNDER SECTION 302

I, George R. Aylward, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Virtus Investment Partners, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2024



/S/ GEORGE R. AYLWARD
George R. Aylward
President, Chief Executive Officer and Director
(Principal Executive Officer)

Exhibit 31.2

CERTIFICATION UNDER SECTION 302

I, Michael A. Angerthal, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Virtus Investment Partners, Inc.;

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2024



/S/ MICHAEL A. ANGERTHAL
Michael A. Angerthal
Executive Vice President, Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

Exhibit 32.1

CERTIFICATIONS OF CEO AND CFO PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report on Form 10-Q of Virtus Investment Partners, Inc. (the “Company”) for the period ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

(1)the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 8, 2024



/S/ GEORGE R. AYLWARD
George R. Aylward
President, Chief Executive Officer and Director
(Principal Executive Officer)



/S/ MICHAEL A. ANGERTHAL
Michael A. Angerthal
Executive Vice President, Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2024	Aug. 01, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-10994
Entity Registrant Name	VIRTUS INVESTMENT PARTNERS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-3962811
Entity Address, Address Line One	One Financial Plaza
Entity Address, City or Town	Hartford
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06103
City Area Code	800
Local Phone Number	248-7971
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	VRTS
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,082,071
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000883237
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Assets:
Accounts receivable, net	$ 105,638	$ 109,076
Furniture, equipment and leasehold improvements, net	25,150	26,216
Intangible assets, net	401,586	432,119
Goodwill	397,098	397,098
Deferred taxes, net	24,471	25,024
Total assets	3,647,696	3,678,629
Liabilities:
Accrued compensation and benefits	132,261	200,837
Accounts payable and accrued liabilities	30,275	38,756
Dividends payable	16,982	17,291
Contingent consideration	63,404	90,938
Debt	247,605	253,412
Other liabilities	63,137	91,471
Total liabilities	2,646,128	2,705,471
Commitments and Contingencies (Note 14)
Redeemable noncontrolling interests	129,450	104,869
Equity attributable to Virtus Investment Partners, Inc.:
Common stock, $0.01 par value, 1,000,000,000 shares authorized; 12,233,778 shares issued and 7,082,071 shares outstanding at June 30, 2024; and 12,163,228 shares issued and 7,087,728 shares outstanding at December 31, 2023	122	122
Additional paid-in capital	1,304,176	1,300,999
Retained earnings (accumulated deficit)	226,540	207,356
Accumulated other comprehensive income (loss)	(200)	(87)
Treasury stock, at cost, 5,151,707 and 5,075,500 shares at June 30, 2024 and December 31, 2023, respectively	(661,963)	(644,464)
Total equity attributable to Virtus Investment Partners, Inc.	868,675	863,926
Total equity	872,118	868,289
Total liabilities and equity	3,647,696	3,678,629
Consolidated Entity excluding Consolidated Investment Products
Assets:
Cash and cash equivalents	183,001	239,602
Investments	122,316	132,696
Other assets	74,894	89,438
Consolidated Investment Products
Assets:
Cash and cash equivalents	166,738	100,732
Investments	2,106,659	2,082,713
Cash pledged or on deposit of CIP	958	680
Other assets	39,187	43,235
Liabilities:
Notes payable of CIP	1,990,338	1,922,243
Securities purchased payable and other liabilities of CIP	102,126	90,523
Equity attributable to Virtus Investment Partners, Inc.:
Noncontrolling interests	$ 3,443	$ 4,363

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
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)	12,233,778	12,163,228
Common stock, shares outstanding (in shares)	7,082,071	7,087,728
Treasury stock, shares (in shares)	5,151,707	5,075,500

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenues
Revenues	$ 224,384	$ 213,536	$ 446,426	$ 411,410
Operating Expenses
Employment expenses	105,667	104,694	220,830	203,308
Distribution and other asset-based expenses	23,695	25,460	48,043	49,175
Change in fair value of contingent consideration	(3,300)	(6,800)	(3,300)	(6,800)
Restructuring expense	690	0	1,487	0
Depreciation expense	2,270	1,485	4,298	2,630
Amortization expense	15,198	15,808	30,533	30,199
Total operating expenses	180,179	174,490	369,915	343,785
Operating Income (Loss)	44,205	39,046	76,511	67,625
Other Income (Expense)
Other income (expense), net	597	(847)	1,147	(1,190)
Total other income (expense), net	(13,892)	(3,566)	(8,391)	1,357
Interest Income (Expense)
Total interest income (expense), net	7,457	5,610	16,348	15,454
Income (Loss) Before Income Taxes	37,770	41,090	84,468	84,436
Income tax expense (benefit)	11,748	10,910	20,579	19,613
Net Income (Loss)	26,022	30,180	63,889	64,823
Noncontrolling interests	(8,408)	77	(16,417)	4,058
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.	$ 17,614	$ 30,257	$ 47,472	$ 68,881
Earnings (Loss) per Share—Basic (in dollars per share)	$ 2.47	$ 4.14	$ 6.66	$ 9.47
Earnings (Loss) per Share—Diluted (in dollars per share)	$ 2.43	$ 4.10	$ 6.54	$ 9.31
Weighted Average Shares Outstanding—Basic (in shares)	7,127	7,308	7,123	7,277
Weighted Average Shares Outstanding—Diluted (in shares)	7,242	7,385	7,264	7,398
Consolidated Entity excluding Consolidated Investment Products
Operating Expenses
Other operating expenses	$ 33,050	$ 33,483	$ 64,425	$ 64,213
Other Income (Expense)
Realized and unrealized gain (loss) on investments, net	(1,553)	1,717	1,863	4,387
Interest Income (Expense)
Interest expense	(5,611)	(6,217)	(11,292)	(11,222)
Interest and dividend income	2,643	2,675	6,112	5,913
Consolidated Investment Products
Operating Expenses
Other operating expenses	2,909	360	3,599	1,060
Other Income (Expense)
Realized and unrealized gain (loss) on investments, net	(12,936)	(4,436)	(11,401)	(1,840)
Interest Income (Expense)
Interest expense	(41,960)	(38,732)	(81,972)	(73,935)
Interest and dividend income	52,385	47,884	103,500	94,698
Investment management fees
Revenues
Revenues	191,652	179,979	380,012	344,457
Distribution and service fees
Revenues
Revenues	13,410	14,132	27,440	28,285
Administration and shareholder service fees
Revenues
Revenues	18,308	18,240	36,986	36,599
Other income and fees
Revenues
Revenues	$ 1,014	$ 1,185	$ 1,988	$ 2,069

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net Income (Loss)	$ 26,022	$ 30,180	$ 63,889	$ 64,823
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of tax of $2 and $(42) for the three months ended June 30, 2024 and 2023, respectively and $38 and $(77) for the six months ended June 30, 2024 and 2023	(13)	112	(113)	211
Other comprehensive income (loss)	(13)	112	(113)	211
Comprehensive income (loss)	26,009	30,292	63,776	65,034
Comprehensive (income) loss attributable to noncontrolling interests	(8,408)	77	(16,417)	4,058
Comprehensive Income (Loss) Attributable to Virtus Investment Partners, Inc.	$ 17,601	$ 30,369	$ 47,359	$ 69,092

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustment, tax	$ 2	$ (42)	$ 38	$ (77)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash Flows from Operating Activities:
Net income (loss)	$ 63,889	$ 64,823
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation expense, intangible asset and other amortization	36,533	34,476
Stock-based compensation	16,020	12,404
Equity in earnings of equity method investments	(1,436)	1,151
Distributions from equity method investments	2,341	1,080
Change in fair value of contingent consideration	(3,300)	(6,800)
Lease termination	(1,334)	0
Deferred taxes, net	653	(103)
Changes in operating assets and liabilities:
Sales (purchases) of investments, net	6,851	3,757
Accounts receivable, net and other assets	10,255	4,828
Accrued compensation and benefits, accounts payable, accrued liabilities and other liabilities	(101,798)	(71,676)
Operating activities of consolidated investment products ("CIP"):
Net cash provided by (used in) operating activities	35,427	102,088
Cash Flows from Investing Activities:
Capital expenditures	(3,251)	(2,548)
Acquisition of businesses, net of cash acquired of $4,395 for the six months ended June 30, 2023	0	(108,999)
Purchase of equity method investment	0	(11,645)
Net cash provided by (used in) investing activities	(3,800)	(123,244)
Cash Flows from Financing Activities:
Borrowings on credit agreement	0	50,000
Repayments on credit agreement	(6,375)	(11,375)
Common stock dividends paid	(28,597)	(26,367)
Repurchase of common shares	(17,499)	(10,000)
Payment of contingent consideration	(24,234)	(27,179)
Taxes paid related to net share settlement of restricted stock units	(10,444)	(13,222)
Affiliate equity sales (purchases)	(419)	0
Net contributions from (distributions to) noncontrolling interests	18,156	2,459
Net cash provided by (used in) financing activities	(21,844)	(210,727)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(100)	383
Net increase (decrease) in cash, cash equivalents and restricted cash	9,683	(231,500)
Cash, cash equivalents and restricted cash, beginning of period	341,014	589,179
Cash, cash equivalents and restricted cash, end of period	350,697	357,679
Non-Cash Financing Activities:
Increase (decrease) to noncontrolling interests due to consolidation (deconsolidation) of CIP, net	(10,199)	(3,447)
Common stock dividends payable	13,561	12,056
Reconciliation of cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash at end of period	350,697	357,679
Consolidated Entity excluding Consolidated Investment Products
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Realized and unrealized (gains) losses on investments, net	(1,838)	(4,379)
Operating activities of consolidated investment products ("CIP"):
Realized and unrealized (gains) losses on investments of CIP, net	(1,838)	(4,379)
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	183,001
Consolidated Investment Products
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Realized and unrealized (gains) losses on investments, net	7,231	(775)
Operating activities of consolidated investment products ("CIP"):
Realized and unrealized (gains) losses on investments of CIP, net	7,231	(775)
Purchases of investments by CIP	(629,549)	(556,365)
Sales of investments by CIP	635,658	610,917
Net proceeds (purchases) of short-term investments and securities sold short by CIP	207	(271)
Change in other assets and liabilities of CIP	(6,843)	9,021
Amortization of discount on notes payable of CIP	1,887	0
Cash Flows from Investing Activities:
Change in cash and cash equivalents of CIP due to consolidation (deconsolidation), net	(549)	(52)
Cash Flows from Financing Activities:
Payments on borrowings by CIP	(690,496)	(175,043)
Borrowings by CIP	738,064	$ 0
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	166,738
Cash pledged or on deposit of CIP	$ 958

Condensed Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Statement of Cash Flows [Abstract]
Acquisition of business, net of cash acquired	$ 4,395

Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Total Attributed To Virtus Investment Partners, Inc.	Common Stock	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Non- controlling Interests
Balance at beginning of period, common stock (in shares) at Dec. 31, 2022			7,181,554
Balance at beginning of period at Dec. 31, 2022	$ 822,936	$ 817,019	$ 120	$ 1,286,244	$ 130,261	$ (358)	$ (599,248)	$ 5,917
Balance at beginning of period, treasury stock (in shares) at Dec. 31, 2022							4,851,693
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	68,996	68,881			68,881			115
Foreign currency translation adjustments	211	211				211
Net subscriptions (redemptions) and other	(836)	0						(836)
Cash dividends declared, common	(25,131)	(25,131)			(25,131)
Repurchases of common shares (in shares)			(51,840)				51,840
Repurchases of common shares	(10,000)	(10,000)					$ (10,000)
Issuance of common shares related to employee stock transactions (in shares)			125,072
Issuance of common shares related to employee stock transactions	0	0	$ 2	(2)
Taxes paid on stock-based compensation	(13,222)	(13,222)		(13,222)
Stock-based compensation	13,755	13,755		13,755
Balance at end of period, common stock (in shares) at Jun. 30, 2023			7,254,786
Balance at end of period at Jun. 30, 2023	856,709	851,513	$ 122	1,286,775	174,011	(147)	$ (609,248)	5,196
Balance at end of period, treasury stock (in shares) at Jun. 30, 2023							4,903,533
Balance at Dec. 31, 2022	113,718
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]
Net income (loss)	(4,173)
Net subscriptions (redemptions) and other	854
Balance at Jun. 30, 2023	110,399
Balance at beginning of period, common stock (in shares) at Mar. 31, 2023			7,288,394
Balance at beginning of period at Mar. 31, 2023	844,297	837,915	$ 121	1,281,509	155,792	(259)	$ (599,248)	6,382
Balance at beginning of period, treasury stock (in shares) at Mar. 31, 2023							4,851,693
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	29,607	30,257			30,257			(650)
Foreign currency translation adjustments	112	112				112
Net subscriptions (redemptions) and other	(536)	0						(536)
Cash dividends declared, common	(12,038)	(12,038)			(12,038)
Issuance of common shares related to employee stock transactions (in shares)			18,232
Issuance of common shares related to employee stock transactions	0	0	$ 1	(1)
Taxes paid on stock-based compensation	(1,013)	(1,013)		(1,013)
Stock-based compensation	6,280	6,280		6,280
Balance at end of period, common stock (in shares) at Jun. 30, 2023			7,254,786
Balance at end of period at Jun. 30, 2023	856,709	851,513	$ 122	1,286,775	174,011	(147)	$ (609,248)	5,196
Balance at end of period, treasury stock (in shares) at Jun. 30, 2023							4,903,533
Balance at Mar. 31, 2023	106,630
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]
Net income (loss)	573
Net subscriptions (redemptions) and other	3,196
Balance at Jun. 30, 2023	$ 110,399
Balance at beginning of period, common stock (in shares) at Dec. 31, 2023	12,163,228		7,087,728
Balance at beginning of period at Dec. 31, 2023	$ 868,289	863,926	$ 122	1,300,999	207,356	(87)	$ (644,464)	4,363
Balance at beginning of period, treasury stock (in shares) at Dec. 31, 2023	5,075,500						5,075,500
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 47,190	47,472			47,472			(282)
Foreign currency translation adjustments	(113)	(113)				(113)
Net subscriptions (redemptions) and other	(576)	62		62				(638)
Cash dividends declared, common	(28,288)	(28,288)			(28,288)
Repurchases of common shares (in shares)			(76,207)				76,207
Repurchases of common shares	(17,499)	(17,499)					$ (17,499)
Issuance of common shares related to employee stock transactions (in shares)			70,550
Issuance of common shares related to employee stock transactions	0	0	$ 0	0
Taxes paid on stock-based compensation	(10,444)	(10,444)		(10,444)
Stock-based compensation	$ 13,559	13,559		13,559
Balance at end of period, common stock (in shares) at Jun. 30, 2024	12,233,778		7,082,071
Balance at end of period at Jun. 30, 2024	$ 872,118	868,675	$ 122	1,304,176	226,540	(200)	$ (661,963)	3,443
Balance at end of period, treasury stock (in shares) at Jun. 30, 2024	5,151,707						5,151,707
Balance at Dec. 31, 2023	$ 104,869
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]
Net income (loss)	16,699
Net subscriptions (redemptions) and other	7,882
Balance at Jun. 30, 2024	129,450
Balance at beginning of period, common stock (in shares) at Mar. 31, 2024			7,127,881
Balance at beginning of period at Mar. 31, 2024	876,003	871,652	$ 122	1,298,157	223,023	(187)	$ (649,463)	4,351
Balance at beginning of period, treasury stock (in shares) at Mar. 31, 2024							5,096,608
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	16,941	17,614			17,614			(673)
Foreign currency translation adjustments	(13)	(13)				(13)
Net subscriptions (redemptions) and other	(173)	62		62				(235)
Cash dividends declared, common	(14,097)	(14,097)			(14,097)
Repurchases of common shares (in shares)			(55,099)				55,099
Repurchases of common shares	(12,500)	(12,500)					$ (12,500)
Issuance of common shares related to employee stock transactions (in shares)			9,289
Issuance of common shares related to employee stock transactions	0	0
Taxes paid on stock-based compensation	(592)	(592)		(592)
Stock-based compensation	$ 6,549	6,549		6,549
Balance at end of period, common stock (in shares) at Jun. 30, 2024	12,233,778		7,082,071
Balance at end of period at Jun. 30, 2024	$ 872,118	$ 868,675	$ 122	$ 1,304,176	$ 226,540	$ (200)	$ (661,963)	$ 3,443
Balance at end of period, treasury stock (in shares) at Jun. 30, 2024	5,151,707						5,151,707
Balance at Mar. 31, 2024	$ 115,185
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]
Net income (loss)	9,081
Net subscriptions (redemptions) and other	5,184
Balance at Jun. 30, 2024	$ 129,450

Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares		3 Months Ended		6 Months Ended
	May 15, 2024	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Stockholders' Equity [Abstract]
Cash dividends declared per common share (in dollars per share)	$ 1.90	$ 1.90	$ 1.65	$ 3.80	$ 3.30

Organization and Business	6 Months Ended
Organization and Business	Jun. 30, 2024
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 subadvisory services to other investment advisers and Company sponsored 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 (the "open-end funds") that include U.S. retail funds, exchange-traded funds ("ETFs") and variable insurance funds; Undertaking for Collective Investment in Transferable Securities and Qualifying Investor Funds (collectively, "global funds"); closed-end funds (collectively, with open-end funds, the "funds"); and retail separate accounts that include intermediary-sold and private client accounts.

Basis of Presentation and Significant Accounting Policies	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	Basis of Presentation and Significant Accounting Policies Basis of Presentation The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the Company’s financial condition and results of operations. Operating results for the six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Annual Report on Form 10-K") filed with the Securities and Exchange Commission (the "SEC"). The Company’s significant accounting policies, which have been consistently applied, are summarized in its 2023 Annual Report on Form 10-K. New Accounting Standards Not Yet Implemented In November 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("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. In March 2024, the FASB issued ASU 2024-01, Compensation - Stock Compensation (Topic 718), Scope Application of Profits Interest and Similar Awards. This standard provides clarity regarding whether profits interest and similar awards are within the scope of Topic 718 of the Accounting Standards Codification. 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

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenues

Investment Management Fees by Source

The following table summarizes investment management fees by source:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Investment management fees
Open-end funds	$	79,883	$	78,161	$	158,563	$	149,427
Closed-end funds	14,405		14,674		28,799		29,352

Retail separate accounts	52,216		42,803		101,197		82,882
Institutional accounts	45,148		44,341		91,453		82,796



Total investment management fees	$	191,652	$	179,979	$	380,012	$	344,457

Acquisitions	6 Months Ended
Acquisitions	Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Acquisitions	Acquisitions AlphaSimplex Group, LLC On April 1, 2023, the Company completed the acquisition of AlphaSimplex Group, LLC ("AlphaSimplex"), which was accounted for in accordance with Accounting Standards Codification ("ASC") 805, Business Combinations ("ASC 805"). The total purchase price paid of $113.4 million was allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of the acquisition. Goodwill of $48.3 million and intangible assets of $55.4 million were recorded for the acquisition.

Intangible Assets, Net

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, Net

Below is a summary of intangible assets, net:


	Definite-Lived						Indefinite-Lived		Total
(in thousands)	Gross Book Value		Accumulated Amortization		Net Book Value		Net Book Value		Net Book Value
Balances at December 31, 2023	$	806,655	$	(416,834)	$	389,821	$	42,298	$	432,119

Intangible amortization	—		(30,533)		(30,533)		—		(30,533)
Balances at June 30, 2024	$	806,655	$	(447,367)	$	359,288	$	42,298	$	401,586

Definite-lived intangible asset amortization for the remainder of fiscal year 2024 and succeeding fiscal years is estimated as follows:


Fiscal Year	Amount (in thousands)
Remainder of 2024	$	25,766
2025	51,532
2026	50,552
2027	47,450
2028	41,787
2029 and thereafter	142,201
Total	$	359,288

Investments

6 Months Ended

Jun. 30, 2024

Schedule of Investments [Abstract]

Investments


(in thousands)	June 30, 2024		December 31, 2023
Investment securities - fair value	$	86,248	$	97,304

Equity method investments (1)	22,055		22,710
Nonqualified retirement plan assets	14,013		12,682

Total investments	$	122,316	$	132,696

(1) The Company's equity method investments are valued on a three-month lag based upon the availability of financial information.

Investment Securities - fair value


	June 30, 2024				December 31, 2023
(in thousands)	Cost		Fair Value		Cost		Fair Value
Investment Securities - fair value
Sponsored funds	$	65,205	$	64,420	$	80,794	$	77,433
Equity securities	18,954		21,828		16,353		19,871

Total investment securities - fair value	$	84,159	$	86,248	$	97,147	$	97,304

Fair Value Measurements

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

June 30, 2024


(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	147,135	$	—	$	—	$	147,135
Investment securities - fair value
Sponsored funds	64,420		—		—		64,420
Equity securities	21,828		—		—		21,828


Nonqualified retirement plan assets	14,013		—		—		14,013
Total assets measured at fair value	$	247,396	$	—	$	—	$	247,396

Liabilities
Contingent consideration	$	—	$	—	$	38,408	$	38,408
Total liabilities measured at fair value	$	—	$	—	$	38,408	$	38,408

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

The following is a discussion of the valuation methodologies used for the Company’s assets measured at fair value:

Cash equivalents represent investments in money market funds. Cash investments in money market funds are valued using published net asset values and are classified as Level 1.

The following table presents a reconciliation of beginning and ending balances of the Company's contingent consideration liabilities:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023









Contingent consideration, beginning of period	$	41,708	$	61,710	$	56,200	$	78,100


Reduction for payments made	—		—		(14,492)		(16,390)
Increase (reduction) of liability related to re-measurement of fair value	(3,300)		(6,800)		(3,300)		(6,800)
Contingent consideration, end of period	$	38,408	$	54,910	$	38,408	$	54,910

Cash, accounts receivable, accounts payable and accrued liabilities equal or approximate fair value based on the short-term nature of these instruments.

Equity Transactions	6 Months Ended
Equity Transactions	Jun. 30, 2024
Equity [Abstract]
Equity Transactions	Equity Transactions Dividends Declared On May 15, 2024, the Company declared a quarterly cash dividend of $1.90 per common share to be paid on August 15, 2024 to shareholders of record at the close of business on July 31, 2024. Common Stock Repurchases During the three and six months ended June 30, 2024, the Company repurchased 55,099 and 76,207 common shares, respectively, at a weighted average price of $226.83 and $229.60 per share, respectively, for a total cost, including fees and expenses, of $12.5 million and $17.5 million, respectively, under its share repurchase program. As of June 30, 2024, 528,338 shares remained available for repurchase. Under the terms of the program, the Company may repurchase shares of its common stock from time to time at its discretion through open market repurchases, privately negotiated transactions and/or other mechanisms, depending on price, prevailing market and business conditions, tax and other financial considerations. The program, which has no specified term, may be suspended or terminated at any time.

Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) were as follows:


	Six Months Ended June 30,
(in thousands)	2024		2023
Balance at beginning of period	$	(87)	$	(358)
Net current-period other comprehensive income (loss) (1)	(113)		211
Balance at end of period	$	(200)	$	(147)

(1) Consists of foreign currency translation adjustments, net of tax of $38 and $(77) for the six months ended June 30, 2024 and 2023, respectively.

Stock-Based Compensation

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-based compensation expense is summarized as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Stock-based compensation expense	$	9,189	$	6,655	$	16,020	$	12,404

Restricted Stock Units

RSU activity, inclusive of PSUs, for the six months ended June 30, 2024 is summarized as follows:


	Number of Shares	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2023	344,717	$	204.48
Granted	120,563	$	235.06
Forfeited	(9,505)	$	256.00
Settled	(112,498)	$	229.57
Outstanding at June 30, 2024	343,277	$	205.57

As of June 30, 2024, unamortized stock-based compensation expense for unvested RSUs and PSUs was $40.5 million with a weighted-average remaining contractual life of 1.4 years.

Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

The computation of basic and diluted EPS is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share amounts)	2024		2023		2024		2023
Net Income (Loss)	$	26,022	$	30,180	$	63,889	$	64,823
Noncontrolling interests	(8,408)		77		(16,417)		4,058


Net Income (Loss) Attributable to Virtus Investment Partners, Inc.	$	17,614	$	30,257	$	47,472	$	68,881
Shares:
Basic: Weighted-average number of shares outstanding	7,127		7,308		7,123		7,277
Plus: Incremental shares from assumed conversion of dilutive instruments	115		77		141		121
Diluted: Weighted-average number of shares outstanding	7,242		7,385		7,264		7,398
Earnings (Loss) per Share—Basic	$	2.47	$	4.14	$	6.66	$	9.47
Earnings (Loss) per Share—Diluted	$	2.43	$	4.10	$	6.54	$	9.31

The following table details the securities that have been excluded from the above computation of weighted-average number of shares for diluted EPS, because the effect would be anti-dilutive.


	Three Months Ended June 30,		Six Months Ended June 30,
(in thousands)	2024	2023	2024	2023
Restricted stock units	13	36	4	36

Total anti-dilutive securities	13	36	4	36

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes In calculating the provision for income taxes, the Company uses an estimate of the annual effective tax rate based upon the facts and circumstances at each interim period. On a quarterly basis, the estimated annual effective tax rate is adjusted, as appropriate, based upon changes in facts and circumstances, if any, compared to those forecasted at the beginning of the fiscal year and at each interim period thereafter. The provision for income taxes reflected U.S. federal, state and local taxes at an estimated effective tax rate of 24.4% and 23.2% for the six months ended June 30, 2024 and 2023, respectively. The higher estimated effective tax rate for the six months ended June 30, 2024 was primarily due to a change in excess tax benefits associated with stock-based compensation and the change in valuation allowances in the current year related to the tax effects of unrealized gains on certain Company investments.

Debt	6 Months Ended
Debt	Jun. 30, 2024
Debt Disclosure [Abstract]
Debt	Debt Credit Agreement The Company's credit agreement, as amended (the "Credit Agreement"), comprises (i) a $275.0 million term loan with a seven-year term (the "Term Loan") expiring in September 2028, and (ii) a $175.0 million revolving credit facility with a five-year term expiring in September 2026. The Company repaid $6.4 million outstanding under the Term Loan during the six months ended June 30, 2024 and had $252.4 million outstanding under the Term Loan at June 30, 2024. In accordance with ASC 835, Interest, the amounts outstanding under the Company's Term Loan are presented on the Condensed Consolidated Balance Sheet net of related debt issuance costs, which were $4.8 million as of June 30, 2024.

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2024
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 believes that 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 consolidated financial condition. However, in the event of unexpected subsequent developments, and given the inherent unpredictability of these legal and regulatory matters, the Company can provide no assurance that its assessment of any legal matter will reflect the ultimate outcome, and an adverse outcome in certain matters could have a material adverse effect on the Company's results of operations or cash flows in particular quarterly or annual periods.

Redeemable Noncontrolling Interests

6 Months Ended

Jun. 30, 2024

Noncontrolling Interest [Abstract]

Redeemable Noncontrolling Interests

Redeemable noncontrolling interests for the six months ended June 30, 2024 included the following amounts:


(in thousands)	CIP		Affiliate Noncontrolling Interests		Total
Balances at December 31, 2023	$	30,643	$	74,226	$	104,869

Net income (loss) attributable to noncontrolling interests	1,833		3,584		5,417
Changes in redemption value (1)	—		11,282		11,282
Total net income (loss) attributable to noncontrolling interests	1,833		14,866		16,699
Affiliate equity sales (purchases)	—		(419)		(419)
Net subscriptions (redemptions) and other	12,237		(3,936)		8,301

Balances at June 30, 2024	$	44,713	$	84,737	$	129,450

(1) Relates to noncontrolling interests redeemable at other than fair value.

Consolidation

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidation

The following table presents the balances of CIP that, after intercompany eliminations, were reflected on the Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023:


	As of
	June 30, 2024						December 31, 2023
	VOEs		VIEs				VOEs		VIEs
(in thousands)			CLOs		GFs				CLOs		GFs
Cash and cash equivalents	$	8,576	$	156,822	$	2,298	$	1,223	$	98,101	$	2,088
Investments	46,317		1,988,364		71,978		30,985		1,972,342		79,386
Other assets	1,255		37,022		910		174		41,985		1,076
Notes payable	—		(1,990,338)		—		—		(1,922,243)		—
Securities purchased payable and other liabilities	(772)		(99,797)		(1,557)		(740)		(89,167)		(616)
Noncontrolling interests	(17,880)		(3,443)		(26,833)		(7,316)		(4,363)		(23,327)
Net interests in CIP	$	37,496	$	88,630	$	46,796	$	24,326	$	96,655	$	58,607

Consolidated CLOs

Investments of CLOs

Notes Payable of CLOs





	(in thousands)
Subordinated notes	$	87,561
Accrued investment management fees	1,069
Total Beneficial Interests	$	88,630

The following table represents income and expenses of the consolidated CLOs included on the Company’s Condensed Consolidated Statements of Operations for the period indicated:


	Six Months Ended June 30, 2024
	(in thousands)
Income:
Realized and unrealized gain (loss), net	$	(12,377)
Interest income	99,673

Total Income	87,296

Expenses:
Other operating expenses	3,224
Interest expense	81,972
Total Expense	85,196
Noncontrolling interests	282
Net Income (Loss) Attributable to CLOs	$	2,382

The following table represents the Company’s own economic interests in the consolidated CLOs, which are eliminated upon consolidation:


	Six Months Ended June 30, 2024
	(in thousands)
Distributions received and unrealized gains (losses) on the subordinated notes held by the Company	$	(2,059)
Investment management fees	4,441

Total Economic Interests	$	2,382

Fair Value Measurements of CIP

The assets and liabilities of CIP measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 by fair value hierarchy level were as follows:

As of June 30, 2024


(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	163,605	$	—	$	—	$	163,605
Debt investments	—		2,034,350		35,109		2,069,459
Equity investments	35,229		97		1,874		37,200
Derivatives	124		—		—		124
Total assets measured at fair value	$	198,958	$	2,034,447	$	36,983	$	2,270,388
Liabilities
Notes payable	$	—	$	1,990,338	$	—	$	1,990,338

Short sales	474		—		—		474
Total liabilities measured at fair value	$	474	$	1,990,338	$	—	$	1,990,812

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

The following is a discussion of the valuation methodologies used for the assets and liabilities of the Company’s CIP measured at fair value:

The securities purchased payable at June 30, 2024 and December 31, 2023 approximated fair value due to the short-term nature of the instruments.

The following table is a reconciliation of assets of CIP for Level 3 investments for which significant unobservable inputs were used to determine fair value:


	Six Months Ended June 30,
(in thousands)	2024		2023
Balance at beginning of period	$	37,062	$	43,581


Realized and unrealized gains (losses), net	629		(467)

Purchases	31		2,903


Sales	(19,845)		(7,231)
Transfers to Level 2	(54,857)		(48,337)
Transfers from Level 2	73,963		53,091
Balance at end of period (1)	$	36,983	$	43,540

Nonconsolidated VIEs

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the Company’s financial condition and results of operations. Operating results for the six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Annual Report on Form 10-K") filed with the Securities and Exchange Commission (the "SEC"). The Company’s significant accounting policies, which have been consistently applied, are summarized in its 2023 Annual Report on Form 10-K.
New Accounting Standards Not Yet Implemented	New Accounting Standards Not Yet Implemented In November 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("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. In March 2024, the FASB issued ASU 2024-01, Compensation - Stock Compensation (Topic 718), Scope Application of Profits Interest and Similar Awards. This standard provides clarity regarding whether profits interest and similar awards are within the scope of Topic 718 of the Accounting Standards Codification. 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.
Revenue Recognition	The Company's revenues are recognized when a performance obligation is satisfied, which occurs when control of the services is transferred to clients. 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.
Fair Value Measurements	The following is a discussion of the valuation methodologies used for the Company’s assets measured at fair value: Cash equivalents represent investments in money market funds. Cash investments in money market funds are valued using published net asset values and are classified as Level 1. Sponsored funds represent investments in open-end funds and closed-end funds for which the Company acts as the investment manager. The fair values of U.S. retail funds and global funds are 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 contingent payment arrangements made in connection with the Company’s business combinations. In these contingent payment arrangements, the Company agrees to pay additional transaction consideration to the seller based on future performance. Contingent consideration is remeasured at fair value each reporting date using a simulation model with the assistance of an independent valuation firm and approved by management and 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 consist of notes payable 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.
Noncontrolling Interest	Redeemable noncontrolling interests represent third-party investments in the Company's CIP and minority interests held in a consolidated affiliate. Minority interests held in the affiliate are subject to holder put rights and Company call rights at pre-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 Condensed Consolidated Balance Sheets, and any changes in the estimated redemption value are recorded on the Condensed Consolidated Statements of Operations within noncontrolling interests.
Nonconsolidated VIEs	Nonconsolidated VIEs The Company serves as the collateral manager for other CLOs that are not consolidated. The assets and liabilities of these CLOs reside in bankruptcy remote, special purpose entities in which the Company has no ownership of, nor holds any notes issued by, the CLOs, and provides neither recourse nor guarantees. The Company has determined that the investment management fees it receives for serving as collateral manager for these CLOs did not represent a variable interest as (i) the fees the Company earns are compensation for services provided and are commensurate with the level of effort required to provide the investment management services, (ii) the Company does not hold other interests in the CLOs that individually, or in the aggregate, would absorb more than an insignificant amount of the CLOs' expected losses or receive more than an insignificant amount of the CLOs' expected residual return, and (iii) the investment management arrangement only includes terms, conditions and amounts that are customarily present in arrangements for similar services negotiated at arm's length. 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.

Revenues (Tables)

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

The following table summarizes investment management fees by source:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Investment management fees
Open-end funds	$	79,883	$	78,161	$	158,563	$	149,427
Closed-end funds	14,405		14,674		28,799		29,352

Retail separate accounts	52,216		42,803		101,197		82,882
Institutional accounts	45,148		44,341		91,453		82,796



Total investment management fees	$	191,652	$	179,979	$	380,012	$	344,457

Intangible Assets, Net (Tables)

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill and Intangible Assets, Net

Below is a summary of intangible assets, net:


	Definite-Lived						Indefinite-Lived		Total
(in thousands)	Gross Book Value		Accumulated Amortization		Net Book Value		Net Book Value		Net Book Value
Balances at December 31, 2023	$	806,655	$	(416,834)	$	389,821	$	42,298	$	432,119

Intangible amortization	—		(30,533)		(30,533)		—		(30,533)
Balances at June 30, 2024	$	806,655	$	(447,367)	$	359,288	$	42,298	$	401,586

Schedule of Estimated Amortization Expense of Intangible Assets Succeeding Years

Definite-lived intangible asset amortization for the remainder of fiscal year 2024 and succeeding fiscal years is estimated as follows:


Fiscal Year	Amount (in thousands)
Remainder of 2024	$	25,766
2025	51,532
2026	50,552
2027	47,450
2028	41,787
2029 and thereafter	142,201
Total	$	359,288

Investments (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of Investments [Abstract]

Schedule of Investments

The Company's investments, excluding the assets of consolidated investment products ("CIP") discussed in Note 16, at June 30, 2024 and December 31, 2023 were as follows:


(in thousands)	June 30, 2024		December 31, 2023
Investment securities - fair value	$	86,248	$	97,304

Equity method investments (1)	22,055		22,710
Nonqualified retirement plan assets	14,013		12,682

Total investments	$	122,316	$	132,696

(1) The Company's equity method investments are valued on a three-month lag based upon the availability of financial information.

Schedule of Marketable Securities

The composition of the Company’s investment securities - fair value was as follows:


	June 30, 2024				December 31, 2023
(in thousands)	Cost		Fair Value		Cost		Fair Value
Investment Securities - fair value
Sponsored funds	$	65,205	$	64,420	$	80,794	$	77,433
Equity securities	18,954		21,828		16,353		19,871

Total investment securities - fair value	$	84,159	$	86,248	$	97,147	$	97,304

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

June 30, 2024


(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	147,135	$	—	$	—	$	147,135
Investment securities - fair value
Sponsored funds	64,420		—		—		64,420
Equity securities	21,828		—		—		21,828


Nonqualified retirement plan assets	14,013		—		—		14,013
Total assets measured at fair value	$	247,396	$	—	$	—	$	247,396

Liabilities
Contingent consideration	$	—	$	—	$	38,408	$	38,408
Total liabilities measured at fair value	$	—	$	—	$	38,408	$	38,408

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

The assets and liabilities of CIP measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 by fair value hierarchy level were as follows:

As of June 30, 2024


(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	163,605	$	—	$	—	$	163,605
Debt investments	—		2,034,350		35,109		2,069,459
Equity investments	35,229		97		1,874		37,200
Derivatives	124		—		—		124
Total assets measured at fair value	$	198,958	$	2,034,447	$	36,983	$	2,270,388
Liabilities
Notes payable	$	—	$	1,990,338	$	—	$	1,990,338

Short sales	474		—		—		474
Total liabilities measured at fair value	$	474	$	1,990,338	$	—	$	1,990,812

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

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:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023









Contingent consideration, beginning of period	$	41,708	$	61,710	$	56,200	$	78,100


Reduction for payments made	—		—		(14,492)		(16,390)
Increase (reduction) of liability related to re-measurement of fair value	(3,300)		(6,800)		(3,300)		(6,800)
Contingent consideration, end of period	$	38,408	$	54,910	$	38,408	$	54,910

Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Schedule of Changes in Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) were as follows:


	Six Months Ended June 30,
(in thousands)	2024		2023
Balance at beginning of period	$	(87)	$	(358)
Net current-period other comprehensive income (loss) (1)	(113)		211
Balance at end of period	$	(200)	$	(147)

(1) Consists of foreign currency translation adjustments, net of tax of $38 and $(77) for the six months ended June 30, 2024 and 2023, respectively.

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Stock Based Compensation Expense

Stock-based compensation expense is summarized as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Stock-based compensation expense	$	9,189	$	6,655	$	16,020	$	12,404

Schedule of Restricted Stock Units Activity

RSU activity, inclusive of PSUs, for the six months ended June 30, 2024 is summarized as follows:


	Number of Shares	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2023	344,717	$	204.48
Granted	120,563	$	235.06
Forfeited	(9,505)	$	256.00
Settled	(112,498)	$	229.57
Outstanding at June 30, 2024	343,277	$	205.57

Earnings (Loss) Per Share (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Earnings Per Share

The computation of basic and diluted EPS is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share amounts)	2024		2023		2024		2023
Net Income (Loss)	$	26,022	$	30,180	$	63,889	$	64,823
Noncontrolling interests	(8,408)		77		(16,417)		4,058


Net Income (Loss) Attributable to Virtus Investment Partners, Inc.	$	17,614	$	30,257	$	47,472	$	68,881
Shares:
Basic: Weighted-average number of shares outstanding	7,127		7,308		7,123		7,277
Plus: Incremental shares from assumed conversion of dilutive instruments	115		77		141		121
Diluted: Weighted-average number of shares outstanding	7,242		7,385		7,264		7,398
Earnings (Loss) per Share—Basic	$	2.47	$	4.14	$	6.66	$	9.47
Earnings (Loss) per Share—Diluted	$	2.43	$	4.10	$	6.54	$	9.31

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.


	Three Months Ended June 30,		Six Months Ended June 30,
(in thousands)	2024	2023	2024	2023
Restricted stock units	13	36	4	36

Total anti-dilutive securities	13	36	4	36

Redeemable Noncontrolling Interests (Tables)

6 Months Ended

Jun. 30, 2024

Noncontrolling Interest [Abstract]

Schedule of Redeemable Noncontrolling Interest

Redeemable noncontrolling interests for the six months ended June 30, 2024 included the following amounts:


(in thousands)	CIP		Affiliate Noncontrolling Interests		Total
Balances at December 31, 2023	$	30,643	$	74,226	$	104,869

Net income (loss) attributable to noncontrolling interests	1,833		3,584		5,417
Changes in redemption value (1)	—		11,282		11,282
Total net income (loss) attributable to noncontrolling interests	1,833		14,866		16,699
Affiliate equity sales (purchases)	—		(419)		(419)
Net subscriptions (redemptions) and other	12,237		(3,936)		8,301

Balances at June 30, 2024	$	44,713	$	84,737	$	129,450

(1) Relates to noncontrolling interests redeemable at other than fair value.

Consolidation (Tables)

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Condensed Consolidated Balance Sheets

The following table presents the balances of CIP that, after intercompany eliminations, were reflected on the Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023:


	As of
	June 30, 2024						December 31, 2023
	VOEs		VIEs				VOEs		VIEs
(in thousands)			CLOs		GFs				CLOs		GFs
Cash and cash equivalents	$	8,576	$	156,822	$	2,298	$	1,223	$	98,101	$	2,088
Investments	46,317		1,988,364		71,978		30,985		1,972,342		79,386
Other assets	1,255		37,022		910		174		41,985		1,076
Notes payable	—		(1,990,338)		—		—		(1,922,243)		—
Securities purchased payable and other liabilities	(772)		(99,797)		(1,557)		(740)		(89,167)		(616)
Noncontrolling interests	(17,880)		(3,443)		(26,833)		(7,316)		(4,363)		(23,327)
Net interests in CIP	$	37,496	$	88,630	$	46,796	$	24,326	$	96,655	$	58,607

Schedule of VIE Consolidated Investment Product

Although these beneficial interests are eliminated upon consolidation, the application of the measurement alternative prescribed by ASU 2014-13, Consolidation (Topic 810) ("ASU 2014-13"), results in the net assets of the consolidated CLOs shown above to be equivalent to the beneficial interests retained by the Company at June 30, 2024, as shown in the table below:





	(in thousands)
Subordinated notes	$	87,561
Accrued investment management fees	1,069
Total Beneficial Interests	$	88,630

The following table represents income and expenses of the consolidated CLOs included on the Company’s Condensed Consolidated Statements of Operations for the period indicated:


	Six Months Ended June 30, 2024
	(in thousands)
Income:
Realized and unrealized gain (loss), net	$	(12,377)
Interest income	99,673

Total Income	87,296

Expenses:
Other operating expenses	3,224
Interest expense	81,972
Total Expense	85,196
Noncontrolling interests	282
Net Income (Loss) Attributable to CLOs	$	2,382

The following table represents the Company’s own economic interests in the consolidated CLOs, which are eliminated upon consolidation:


	Six Months Ended June 30, 2024
	(in thousands)
Distributions received and unrealized gains (losses) on the subordinated notes held by the Company	$	(2,059)
Investment management fees	4,441

Total Economic Interests	$	2,382

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

June 30, 2024


(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	147,135	$	—	$	—	$	147,135
Investment securities - fair value
Sponsored funds	64,420		—		—		64,420
Equity securities	21,828		—		—		21,828


Nonqualified retirement plan assets	14,013		—		—		14,013
Total assets measured at fair value	$	247,396	$	—	$	—	$	247,396

Liabilities
Contingent consideration	$	—	$	—	$	38,408	$	38,408
Total liabilities measured at fair value	$	—	$	—	$	38,408	$	38,408

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

The assets and liabilities of CIP measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 by fair value hierarchy level were as follows:

As of June 30, 2024


(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	163,605	$	—	$	—	$	163,605
Debt investments	—		2,034,350		35,109		2,069,459
Equity investments	35,229		97		1,874		37,200
Derivatives	124		—		—		124
Total assets measured at fair value	$	198,958	$	2,034,447	$	36,983	$	2,270,388
Liabilities
Notes payable	$	—	$	1,990,338	$	—	$	1,990,338

Short sales	474		—		—		474
Total liabilities measured at fair value	$	474	$	1,990,338	$	—	$	1,990,812

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

Schedule of Reconciliation of Assets of Consolidated Sponsored Investment Products For Level 3 Investments, Unobservable Inputs Used to Determine Fair Value

The following table is a reconciliation of assets of CIP for Level 3 investments for which significant unobservable inputs were used to determine fair value:


	Six Months Ended June 30,
(in thousands)	2024		2023
Balance at beginning of period	$	37,062	$	43,581


Realized and unrealized gains (losses), net	629		(467)

Purchases	31		2,903


Sales	(19,845)		(7,231)
Transfers to Level 2	(54,857)		(48,337)
Transfers from Level 2	73,963		53,091
Balance at end of period (1)	$	36,983	$	43,540

Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Revenues (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Revenues	$ 224,384	$ 213,536	$ 446,426	$ 411,410
Investment management fees
Disaggregation of Revenue [Line Items]
Revenues	191,652	179,979	380,012	344,457
Open-end funds
Disaggregation of Revenue [Line Items]
Revenues	79,883	78,161	158,563	149,427
Closed-end funds
Disaggregation of Revenue [Line Items]
Revenues	14,405	14,674	28,799	29,352
Retail separate accounts
Disaggregation of Revenue [Line Items]
Revenues	52,216	42,803	101,197	82,882
Institutional accounts
Disaggregation of Revenue [Line Items]
Revenues	$ 45,148	$ 44,341	$ 91,453	$ 82,796

Acquisitions (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Jun. 30, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Goodwill		$ 397,098	$ 397,098
AlphaSimplex Group, LLC
Business Acquisition [Line Items]
Purchase price	$ 113,400
Goodwill	48,300
Definite-lived intangible assets acquired	$ 55,400

Intangible Assets, Net - Goodwill and Intangible Assets, Net (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Definite-Lived
Gross book value, beginning of period	$ 806,655
Accumulated amortization, beginning of period	(416,834)
Definite-Lived net book value, beginning of period	389,821
Intangible amortization	(30,533)
Gross book value balance, end of period	806,655
Accumulated amortization, end of period	(447,367)
Definite-Lived net book value, end of period	359,288
Indefinite-Lived
Net book value, beginning of period	42,298
Net book value, end of period	42,298
Total
Net book value, beginning of period	432,119
Intangible amortization	(30,533)
Net book value, end of period	$ 401,586

Intangible Assets, Net - Estimated Amortization Expense of Intangible Assets Succeeding Years (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2024	$ 25,766
2025	51,532
2026	50,552
2027	47,450
2028	41,787
2029 and thereafter	142,201
Total	$ 359,288	$ 389,821

Investments - Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Schedule of Investments [Line Items]
Investment securities - fair value	$ 86,248	$ 97,304
Parent
Schedule of Investments [Line Items]
Investment securities - fair value	86,248	97,304
Equity method investments	22,055	22,710
Nonqualified retirement plan assets	14,013	12,682
Total investments	$ 122,316	$ 132,696

Investments - Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Investment Securities - fair value
Cost	$ 84,159	$ 97,147
Fair Value	86,248	97,304
Sponsored funds
Investment Securities - fair value
Cost	65,205	80,794
Fair Value	64,420	77,433
Equity securities
Investment Securities - fair value
Cost	18,954	16,353
Fair Value	$ 21,828	$ 19,871

Investments - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Investments - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Schedule of Investments [Abstract]
Realized (losses) gains on trading securities	$ 1.0	$ 0.8	$ 0.7	$ 2.2

Fair Value Measurements - Changes in Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Assets
Cash equivalents	$ 147,135	$ 197,240
Investment securities - fair value
Fair Value	86,248	97,304
Total assets measured at fair value	247,396	307,226
Liabilities
Total liabilities measured at fair value	38,408	56,200
Contingent consideration
Liabilities
Total liabilities measured at fair value	38,408	56,200
Sponsored funds
Investment securities - fair value
Fair Value	64,420	77,433
Equity securities
Investment securities - fair value
Fair Value	21,828	19,871
Nonqualified retirement plan assets
Investment securities - fair value
Nonqualified retirement plan assets	14,013	12,682
Level 1
Assets
Cash equivalents	147,135	197,240
Investment securities - fair value
Total assets measured at fair value	247,396	307,226
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	64,420	77,433
Level 1 \| Equity securities
Investment securities - fair value
Fair Value	21,828	19,871
Level 1 \| Nonqualified retirement plan assets
Investment securities - fair value
Nonqualified retirement plan assets	14,013	12,682
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	38,408	56,200
Level 3 \| Contingent consideration
Liabilities
Total liabilities measured at fair value	38,408	56,200
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 - Narrative (Details) $ in Thousands	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration	$ 63,404	$ 90,938
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
Westchester \| Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration	$ 7,800
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
NFJ Investment Group \| Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration	$ 30,600

Fair Value Measurements - Rollforward of the Contingent Consideration Liabilities Valued Using Level 3 Inputs (Details) - Level 3 - Contingent consideration - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Contingent consideration, beginning of period	$ 41,708	$ 61,710	$ 56,200	$ 78,100
Reduction for payments made	0	0	(14,492)	(16,390)
Increase (reduction) of liability related to re-measurement of fair value	(3,300)	(6,800)	(3,300)	(6,800)
Contingent consideration, end of period	$ 38,408	$ 54,910	$ 38,408	$ 54,910

Equity Transactions (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		6 Months Ended
	May 15, 2024	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Equity [Abstract]
Cash dividends declared per common share (in dollars per share)	$ 1.90	$ 1.90	$ 1.65	$ 3.80	$ 3.30
Stock repurchased during period, shares		55,099		76,207
Weighted average price (in dollars per share)		$ 226.83		$ 229.60
Stock repurchased during period, value		$ 12.5		$ 17.5
Shares available for repurchase (in shares)		528,338		528,338

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 876,003	$ 844,297	$ 868,289	$ 822,936
Net current-period other comprehensive income (loss)	(13)	112	(113)	211
Balance at end of period	872,118	856,709	872,118	856,709
Accumulated Foreign Currency Adjustment Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period			(87)	(358)
Net current-period other comprehensive income (loss)			(113)	211
Balance at end of period	$ (200)	$ (147)	(200)	(147)
Other comprehensive income (loss), before reclassifications, tax			$ 38	$ (77)

Stock-Based Compensation - Additional Information (Details) $ in Millions	6 Months Ended
	Jun. 30, 2024 USD ($) shares	Jun. 30, 2023 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for issuance (in shares)	818,989
Shares of common stock reserved for issuance (in shares)	3,825,000
RSUs and PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized stock-based compensation expense \| $	$ 40.5
Weighted-average remaining amortization period	1 year 4 months 24 days
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share settlement under RSUs (in shares)	45,117	76,452
Cash used for employee withholding tax payments \| $	$ 10.4	$ 13.2
Restricted stock units (RSUs), performance-based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)	26,757	44,583
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 - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock-based compensation expense	$ 9,189	$ 6,655	$ 16,020	$ 12,404

Stock-Based Compensation - Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs)	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Number of Shares
Number of shares, outstanding (in shares) \| shares	344,717
Number of shares, granted (in shares) \| shares	120,563
Number of shares, forfeited (in shares) \| shares	(9,505)
Number of shares, settled (in shares) \| shares	(112,498)
Number of shares, outstanding (in shares) \| shares	343,277
Weighted Average Grant Date Fair Value
Weighted average grant date fair value, outstanding (in dollars per share) \| $ / shares	$ 204.48
Weighted-average grant-date fair value (in dollars per share) \| $ / shares	235.06
Weighted average grant date fair value, forfeited (in dollars per share) \| $ / shares	256.00
Weighted average grant date fair value, settled (in dollars per share) \| $ / shares	229.57
Weighted average grant date fair value, outstanding (in dollars per share) \| $ / shares	$ 205.57

Earnings (Loss) Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Net Income (Loss)	$ 26,022	$ 30,180	$ 63,889	$ 64,823
Noncontrolling interests	(8,408)	77	(16,417)	4,058
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.	$ 17,614	$ 30,257	$ 47,472	$ 68,881
Shares:
Basic: Weighted-average number of shares outstanding (in shares)	7,127	7,308	7,123	7,277
Plus: Incremental shares from assumed conversion of dilutive instruments (in shares)	115	77	141	121
Diluted: Weighted-average number of shares outstanding (in shares)	7,242	7,385	7,264	7,398
Earnings (Loss) per Share—Basic (in dollars per share)	$ 2.47	$ 4.14	$ 6.66	$ 9.47
Earnings (Loss) per Share—Diluted (in dollars per share)	$ 2.43	$ 4.10	$ 6.54	$ 9.31

Earnings (Loss) Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive securities (in shares)	13	36	4	36
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive securities (in shares)	13	36	4	36

Income Taxes (Details)	6 Months Ended
Income Taxes (Details)	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Estimated effective income tax rate (as percent)	24.40%	23.20%

Debt (Details) - USD ($)		6 Months Ended
Debt (Details) - USD ($)	Sep. 28, 2021	Jun. 30, 2024
Term loan \| Secured Debt
Line of Credit Facility [Line Items]
Debt repayments		$ 6,400,000
Outstanding borrowings		252,400,000
Term loan \| Credit Agreement
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 275,000,000.0
Term of debt	7 years
Term loan \| Credit Facility 2017
Line of Credit Facility [Line Items]
Debt issuance costs		$ 4,800,000
Revolving credit facility \| Credit Agreement
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 175,000,000.0
Term of debt	5 years

Redeemable Noncontrolling Interests - Schedule of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]
Balance at beginning of period			$ 104,869
Net income (loss) attributable to noncontrolling interests			5,417
Changes in redemption value			(10,199)	$ (3,447)
Total net income (loss) attributable to noncontrolling interests	$ 9,081	$ 573	16,699	$ (4,173)
Affiliate equity sales (purchases)			(419)
Net subscriptions (redemptions) and other			8,301
Balance at end of period	129,450		129,450
CIP
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]
Balance at beginning of period			30,643
Net income (loss) attributable to noncontrolling interests			1,833
Total net income (loss) attributable to noncontrolling interests			1,833
Affiliate equity sales (purchases)			0
Net subscriptions (redemptions) and other			12,237
Balance at end of period	44,713		44,713
Affiliate Noncontrolling Interests
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]
Balance at beginning of period			74,226
Net income (loss) attributable to noncontrolling interests			3,584
Total net income (loss) attributable to noncontrolling interests			14,866
Affiliate equity sales (purchases)			(419)
Net subscriptions (redemptions) and other			(3,936)
Balance at end of period	$ 84,737		84,737
Portion at Other than Fair Value Measurement
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]
Changes in redemption value			11,282
Portion at Other than Fair Value Measurement \| CIP
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]
Changes in redemption value			0
Portion at Other than Fair Value Measurement \| Affiliate Noncontrolling Interests
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]
Changes in redemption value			$ 11,282

Consolidation - Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Variable Interest Entity [Line Items]
Noncontrolling interests	$ (129,450)	$ (115,185)	$ (104,869)	$ (110,399)	$ (106,630)	$ (113,718)
VOEs
Variable Interest Entity [Line Items]
Cash and cash equivalents	8,576		1,223
Investments	46,317		30,985
Other assets	1,255		174
Notes payable	0		0
Securities purchased payable and other liabilities	(772)		(740)
Noncontrolling interests	(17,880)		(7,316)
Net interests in CIP	37,496		24,326
CLOs
Variable Interest Entity [Line Items]
Cash and cash equivalents	156,822		98,101
Investments	1,988,364		1,972,342
Other assets	37,022		41,985
Notes payable	(1,990,338)		(1,922,243)
Securities purchased payable and other liabilities	(99,797)		(89,167)
Noncontrolling interests	(3,443)		(4,363)
Net interests in CIP	88,630		96,655
GFs
Variable Interest Entity [Line Items]
Cash and cash equivalents	2,298		2,088
Investments	71,978		79,386
Other assets	910		1,076
Notes payable	0		0
Securities purchased payable and other liabilities	(1,557)		(616)
Noncontrolling interests	(26,833)		(23,327)
Net interests in CIP	$ 46,796		$ 58,607

Consolidation - Additional Information (Details) $ in Thousands	Jun. 30, 2024 USD ($) collateralized_loan_obligation	Dec. 31, 2023 USD ($)
CLOs
Variable Interest Entity [Line Items]
Number of consolidated CLOs \| collateralized_loan_obligation	7
Investments	$ 1,988,364	$ 1,972,342
CLOs \| CLO subordinated notes
Variable Interest Entity [Line Items]
Debt par value	2,200,000
CLOs \| Senior Notes \| CLO senior secured floating rate notes
Variable Interest Entity [Line Items]
Debt par value	2,000,000
CLOs \| Subordinated Debt \| CLO subordinated notes
Variable Interest Entity [Line Items]
Debt par value	217,900
Nonconsolidated VIEs
Variable Interest Entity [Line Items]
Carrying value and maximum risk of loss	$ 27,800

Consolidation - Beneficial Interests of Consolidated Investment Product (Details) - CLOs $ in Thousands	Jun. 30, 2024 USD ($)
Variable Interest Entity [Line Items]
Subordinated notes	$ 87,561
Accrued investment management fees	1,069
Total Beneficial Interests	$ 88,630

Consolidation - Revenue and Expenses of Consolidated Investment Product (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Expenses:
Noncontrolling interests	$ (8,408)	$ 77	$ (16,417)	$ 4,058
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.	$ 17,614	$ 30,257	47,472	$ 68,881
CLOs
Income:
Realized and unrealized gain (loss), net			(12,377)
Interest income			99,673
Total Income			87,296
Expenses:
Other operating expenses			3,224
Interest expense			81,972
Total Expense			85,196
Noncontrolling interests			282
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.			$ 2,382

Consolidation - Economic Interests of Consolidated Investment Product (Details) - CLOs $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Variable Interest Entity [Line Items]
Distributions received and unrealized gains (losses) on the subordinated notes held by the Company	$ (2,059)
Investment management fees	4,441
Total Economic Interests	$ 2,382

Consolidation - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Assets
Cash equivalents	$ 147,135	$ 197,240
Total assets measured at fair value	247,396	307,226
Liabilities
Total liabilities measured at fair value	38,408	56,200
Level 1
Assets
Cash equivalents	147,135	197,240
Total assets measured at fair value	247,396	307,226
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	38,408	56,200
Fair Value, Measurements, Recurring \| Consolidated Investment Products
Assets
Cash equivalents	163,605	98,101
Derivatives	124
Total assets measured at fair value	2,270,388	2,180,814
Liabilities
Notes payable	1,990,338	1,922,243
Short sales	474	518
Total liabilities measured at fair value	1,990,812	1,922,761
Fair Value, Measurements, Recurring \| Debt investments \| Consolidated Investment Products
Assets
Investments	2,069,459	2,049,617
Fair Value, Measurements, Recurring \| Equity investments \| Consolidated Investment Products
Assets
Investments	37,200	33,096
Fair Value, Measurements, Recurring \| Level 1 \| Consolidated Investment Products
Assets
Cash equivalents	163,605	98,101
Derivatives	124
Total assets measured at fair value	198,958	130,984
Liabilities
Notes payable	0	0
Short sales	474	518
Total liabilities measured at fair value	474	518
Fair Value, Measurements, Recurring \| Level 1 \| Debt investments \| Consolidated Investment Products
Assets
Investments	0	241
Fair Value, Measurements, Recurring \| Level 1 \| Equity investments \| Consolidated Investment Products
Assets
Investments	35,229	32,642
Fair Value, Measurements, Recurring \| Level 2 \| Consolidated Investment Products
Assets
Cash equivalents	0	0
Derivatives	0
Total assets measured at fair value	2,034,447	2,012,768
Liabilities
Notes payable	1,990,338	1,922,243
Short sales	0	0
Total liabilities measured at fair value	1,990,338	1,922,243
Fair Value, Measurements, Recurring \| Level 2 \| Debt investments \| Consolidated Investment Products
Assets
Investments	2,034,350	2,012,760
Fair Value, Measurements, Recurring \| Level 2 \| Equity investments \| Consolidated Investment Products
Assets
Investments	97	8
Fair Value, Measurements, Recurring \| Level 3 \| Consolidated Investment Products
Assets
Cash equivalents	0	0
Derivatives	0
Total assets measured at fair value	36,983	37,062
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	35,109	36,616
Fair Value, Measurements, Recurring \| Level 3 \| Equity investments \| Consolidated Investment Products
Assets
Investments	$ 1,874	$ 446

Consolidation - Assets Related to Consolidated Sponsored Investment Products, Unobservable Input Reconciliation (Details) - Debt investments - Consolidated Investment Products - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Assets
Balance at beginning of period	$ 37,062	$ 43,581
Realized and unrealized gain (loss) on investments, net	629	(467)
Purchases	31	2,903
Sales	(19,845)	(7,231)
Transfers to Level 2	(54,857)	(48,337)
Transfers from Level 2	73,963	53,091
Balance at end of period	$ 36,983	$ 43,540

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