Core Viewpoint - Virtus Investment Partners has announced a definitive agreement to acquire a majority interest in Keystone National Group, enhancing its offerings in private markets with asset-backed lending capabilities [1][3]. Company Overview - Virtus Investment Partners operates a multi-manager asset management business and is committed to the long-term success of individual and institutional investors [8]. - Keystone National Group, founded in 2006, specializes in asset-centric private credit and has managed $2.5 billion as of October 31, 2025, deploying over $6 billion in more than 750 transactions [2][7]. Transaction Details - The acquisition involves a purchase price of $200 million at closing, with an additional $170 million in deferred consideration based on future revenue targets [3]. - The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions, and is anticipated to be accretive to earnings in 2026 [5]. Strategic Implications - The partnership with Keystone allows Virtus to offer innovative asset-centric private credit strategies, catering to clients seeking alternative income sources and diversification beyond direct lending [3][5]. - Keystone will maintain its autonomy over investment processes and day-to-day operations, preserving its culture and brand identity post-acquisition [4]. Management and Team - Keystone's management team will retain significant equity and enter into long-term employment agreements, ensuring continuity in leadership and operations [4]. Market Position - Keystone's flagship fund, the Keystone Private Income Fund, has strong support from wealth managers due to its stable performance compared to other private credit and income-oriented funds [2]. - The acquisition positions Virtus to capitalize on increasing investment opportunities in the asset-backed credit space [5].

Vertiqal Studios Appoints Acclaimed Media Executive Nikki Stone to Board of DirectorsNovember 20, 2025 7:30 AM EST | Source: Vertiqal StudiosToronto, Ontario--(Newsfile Corp. - November 20, 2025) - Vertiqal Studios Corp. (TSX: VRTS) (FSE: 9PY0) ("Vertiqal" or "the Company") Vertiqal Studios, a leading digital-channel network and video-production studio, as well as the owner of North America's largest gaming and lifestyle network on social media, is pleased to announce the appointment of Nikki ...

Core Insights - Vertiqal Studios reported a revenue increase of 16% year-over-year for Q3 2025, reaching $2,158,802, attributed to the acquisition of Enthusiast Gaming assets [5][7] - The company aims to achieve positive normalized EBITDA in 2026, marking a significant milestone in its operational history [3] Financial Performance - Q3 2025 revenues were $2,158,802 compared to $1,863,636 in Q3 2024, reflecting a 16% increase [5] - Gross profit for Q3 2025 was $1,233,483, a 24% increase from $993,474 in Q3 2024, resulting in a gross margin of 57% [5][7] - Total expenses for Q3 2025 were $4,263,224, a significant increase of 668% compared to $555,297 in Q3 2024 [8] - Normalized EBITDA for Q3 2025 was $(576,315), a 40% increase in losses compared to $(465,962) in Q3 2024 [8] Management Strategy - The company is focused on integrating newly acquired assets and expects integration costs to decrease while synergy savings materialize in upcoming quarters [3][7] - Management is prioritizing the expansion of higher-margin direct advertising partnerships and aims to fully monetize its network through Q4 2025 and into 2026 [7] Company Overview - Vertiqal Studios operates North America's largest gaming and lifestyle network, managing over 200 channels across platforms like TikTok, Instagram, YouTube, and Snapchat [9][10] - The company produces over 100 pieces of content daily for a community of more than 52 million followers, generating revenue through direct brand partnerships and platform monetization [10]

Core Insights - Vertiqal Studios has renewed its partnership with a US government agency, marking its second deal with this agency in 2025, with total campaign spending reaching seven figures [1][2][4] - The company has significantly expanded its US audience footprint, primarily targeting Gen Z and young millennials, with over 50 million viewers engaged monthly [1][2][3] - The renewal of the partnership highlights the effectiveness of Vertiqal Studios in engaging younger demographics through culturally relevant content [2][3] Company Expansion - Following the acquisition of Enthusiast Gaming's digital media assets, Vertiqal Studios has increased its US audience base, with a majority of its audience now located in the US [2] - The company emphasizes the importance of relevance in its US expansion strategy, which has led to significant partnerships and campaign spending [4] Strategic Positioning - Vertiqal Studios is positioned as a strategic partner for both public and private institutions, leveraging data-driven approaches and creative expertise to connect with younger audiences [3] - The company’s platform is recognized for its effectiveness in communicating important messages to hard-to-reach demographics [3]

Core Viewpoint - Companies with a strong history of dividend payments and consistent increases are attractive to income-focused investors, with Virtus Investment, Fifth Third Bancorp, and VICI Properties recently announcing dividend hikes and offering yields up to nearly 6% [1] Group 1: Virtus Investment Partners - Virtus Investment Partners Inc. is an asset management company providing investment products and services to individual and institutional clients [2] - The company has raised its dividends every year for the last eight years, with a recent increase of 7% to $2.40 per share, resulting in an annual figure of $9.60 per share, leading to a current dividend yield of 5.99% [3] - As of June 30, the annual revenue stood at $884.72 million, with Q3 2025 revenues of $216.38 million reported on Oct. 24, surpassing the consensus estimate of $197.11 million, while EPS of $6.69 was slightly below the consensus of $6.75 [4] Group 2: Fifth Third Bancorp - Fifth Third Bancorp operates as the bank holding company for Fifth Third Bank in the U.S. [4] - The company has consecutively raised its dividends for the last 10 years, with an 8% increase in the most recent announcement to $0.40 per share, equating to an annual figure of $1.60 per share, resulting in a current dividend yield of 3.85% [5] - As of June 30, the annual revenue was $8.45 billion, with Q3 2025 revenues of $2.31 billion and EPS of $0.93, both exceeding market expectations [5] Group 3: VICI Properties - VICI Properties Inc. is a real estate investment trust specializing in casino and entertainment properties [6] - The company has increased its dividends every year for the last eight years, with a recent hike from $0.4325 to $0.45 per share, leading to an annual figure of $1.80 per share and a current dividend yield of 5.98% [7]

Financial Performance - Total sales in Q3 2025 were $6.3 billion, a decrease of $0.3 billion, or 4.9%, from $6.6 billion in Q3 2024[106] - Total revenues for Q3 2025 were $216.4 million, a decrease of $10.6 million, or 4.7%, from $227.0 million in Q3 2024[110] - Operating income for Q3 2025 was $47.1 million, down $8.2 million, or 14.8%, from $55.3 million in Q3 2024[110] - Net income per diluted share was $4.65 in Q3 2025, a decrease of $1.06, or 18.6%, from $5.71 in Q3 2024[110] - Net income attributable to Virtus Investment Partners, Inc. decreased by $9.1 million, or 22.1%, to $31.9 million for the three months ended September 30, 2025[123] Assets and Management - Total assets under management as of September 30, 2025, were $169.3 billion, a decrease of $14.4 billion, or 7.8%, from $183.7 billion as of September 30, 2024[107] - The average assets under management decreased by $4.6 billion, or 2.6%, from $174.8 billion in 2024 to $170.3 billion in 2025[108] - Institutional accounts saw a decrease of $8.7 billion, or 13.4%, in assets under management from $64.6 billion in 2024 to $55.9 billion in 2025[108] - Retail separate accounts experienced a decline of $3.8 billion, or 7.5%, from $50.6 billion in 2024 to $46.8 billion in 2025[108] Cash Flow and Investments - Operating cash flow for the nine months ended September 30, 2025, was $180.2 million, reflecting a 72.4% increase from $104.6 million in the same period last year[156] - Net cash used in investing activities was $5.4 million, an increase of 12.6% from $4.8 million in the prior year[157] - Net cash used in financing activities decreased to $114.2 million, down 11.8% from $129.5 million in the same period last year[158] - Investments increased to $149.5 million, a rise of 25.4% from $119.2 million at the end of 2024[150] Expenses - Operating expenses decreased by $2.4 million, or 1.4%, to $169.3 million for the three months ended September 30, 2025, and by $25.7 million, or 4.7%, to $516.0 million for the nine months ended September 30, 2025[130] - Employment expenses decreased by $6.7 million, or 6.4%, for the three months and by $20.5 million, or 6.3%, for the nine months ended September 30, 2025, primarily due to a decrease in profit- and sales-based compensation[131] - Distribution and other asset-based expenses decreased by $2.1 million, or 8.9%, for the three months and by $5.3 million, or 7.4%, for the nine months ended September 30, 2025, mainly due to decreases in assets under management[132] Debt and Equity - Total debt increased by 68.3% to $390.6 million from $232.1 million at the end of 2024[150] - The company refinanced its credit agreement, securing a $400.0 million term loan and a $250.0 million revolving credit facility[159] - Total equity rose to $919.8 million, a 2.0% increase from $901.6 million at the end of 2024[150] Market Trends - Net flows were $(3.9) billion in Q3 2025 compared to $(1.7) billion in Q3 2024, indicating a worsening trend in asset retention[106] - The company reported net outflows of $(10.8) billion from December 31, 2024, partially offset by $6.6 billion from positive market performance[107] - Equity assets decreased by $14.7 million, or 13.8%, while fixed income assets increased by $736 million, or 1.9%[115] Fees and Income - Average management fees for open-end funds decreased from 49.7 basis points in 2024 to 47.0 basis points in 2025[117] - Investment management fees decreased by $10.1 million, or 5.2%, for the three months ended September 30, 2025, primarily due to decreased average assets under management[126] - Distribution and service fees decreased by $1.1 million, or 7.7%, for the three months ended September 30, 2025, due to lower sales and average assets under management[127] Tax and Compliance - The provision for income taxes reflected an estimated effective tax rate of 27.0% for the nine months ended September 30, 2025, compared to 24.4% for the same period in 2024, primarily due to a change in valuation allowances[148] - The company remains compliant with all minimum net capital requirements for its subsidiaries as of September 30, 2025[153]

Core Points - Vertiqal Studios has successfully closed a non-brokered private placement of unsecured convertible debentures, raising gross proceeds of $2,298,000 [1][2] - The company targets over 50 million Gen Z and young millennial viewers monthly through its digital-channel network and video production services [1][10] - The debentures will mature on October 31, 2027, with an interest rate of 15% per annum, payable at maturity [3] - Holders of the debentures can convert them into common shares at a conversion price of $0.025 per share, starting 18 months before maturity [4] - The offering is subject to regulatory approvals and includes a four-month hold period for the issued securities [5] Company Overview - Vertiqal Studios is a leading digital strategy and creative holding company specializing in viral video production for brands [10] - The company manages over 130 channels across platforms like TikTok, Instagram, and Snapchat, producing more than 100 pieces of content daily [10] - Vertiqal Studios collaborates with major brands such as RBC, Samsung, and Coca-Cola to develop innovative advertising solutions [10]

Core Insights - The article discusses the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article emphasizes that users may be blocked from proceeding if an ad-blocker is enabled [1]

Financial Data and Key Metrics Changes - The company reported total assets under management (AUM) of $169 billion as of September 30, which is slightly below the previous quarter level due to net outflows despite favorable market performance [8] - Earnings per share (EPS) increased to $6.69 from $6.25 in the second quarter, reflecting a 7% increase, while year-over-year EPS decreased by 3% due to lower average assets [10][19] - Operating margin improved by 170 basis points to 33%, with an incremental margin above 50% [10][18] Business Line Data and Key Metrics Changes - The ETF business saw significant growth, with AUM reaching $4.7 billion, a 79% increase year-over-year, and the highest quarterly sales and net flows at $0.9 billion each [5][14] - Total sales increased by 12% to $6.3 billion, driven by higher sales in fixed income and alternative strategies [15] - Net outflows for the quarter were $3.9 billion, unchanged from the previous quarter, with institutional net outflows improving from $2.2 billion to $1.5 billion [8][15] Market Data and Key Metrics Changes - Positive net flows were observed in fixed income and alternative strategies, while equity strategies faced headwinds due to a focus on quality-oriented strategies [9][10] - The company noted that flows across products and asset classes in October were trending similarly to the third quarter, with strong ETF sales continuing [9] Company Strategy and Development Direction - The company aims to increase retail separate account offerings, expand ETF availability in key channels, and grow the wealth management business [4][5] - Inorganic growth opportunities remain a focus, with a disciplined approach to adding capabilities or increasing scale [7][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging environment for quality-oriented strategies, which have underperformed compared to momentum strategies over the past two years [27][33] - The company remains optimistic about the potential for quality strategies to regain favor, which could enhance performance and flows [27][33] Other Important Information - The company completed a debt refinancing, providing significant liquidity and flexibility to invest in the business and return capital to shareholders [11][20] - The quarterly dividend was increased for the eighth consecutive year, reflecting a commitment to returning capital to shareholders [5][11] Q&A Session Summary Question: What are the key strategies attracting interest in ETFs? - Management indicated that both the ETF wrapper and specific strategies are driving interest, with a focus on expanding access and offerings [24][25] Question: Any updates on inorganic opportunities? - Management confirmed that the environment remains active for potential acquisitions, focusing on high-performing capabilities and private market expansion [26][28] Question: How to improve net flows moving forward? - Management highlighted positive flows in fixed income and alternative strategies, while addressing the need to grow areas less correlated to quality-oriented strategies [32][33] Question: Details on office space consolidation and operating expenses? - Management noted that the benefits of office consolidation are now reflected in the run rate, with expectations for lower operating expenses moving forward [37][38] Question: Status of discrete expenses and buyback activity? - Management stated that discrete expenses related to inorganic activities are ongoing, and buybacks remain a core part of the capital strategy [43][45]

Financial Data and Key Metrics Changes - The company reported total assets under management (AUM) of $169 billion as of September 30, which is slightly below the previous quarter level due to net outflows despite favorable market performance [8][10] - Earnings per share (EPS) increased to $6.69 from $6.25 in the second quarter, marking a 7% increase sequentially, although it decreased 3% year-over-year due to lower average assets [10][19] - The operating margin improved by 170 basis points to 33%, or 33.4% excluding discrete items, with an incremental margin above 50% [10][18] Business Line Data and Key Metrics Changes - The ETF business saw significant growth, with AUM reaching $4.7 billion, up 79% year-over-year, and achieving the highest quarterly sales and net flows of $0.9 billion each [5][14] - Total sales increased by 12% to $6.3 billion, driven by higher sales in fixed income and alternative strategies, while net outflows remained unchanged at $3.9 billion [8][15] - Institutional sales rose to $2 billion from $1.3 billion in the previous quarter, primarily due to fixed income and multi-asset strategies [15] Market Data and Key Metrics Changes - The company experienced positive net flows in fixed income and alternative strategies, while equity strategies faced net outflows primarily due to a focus on quality-oriented strategies [9][16] - In October, flows across products and asset classes continued to trend similarly, with strong ETF sales and net flows, although U.S. retail mutual fund headwinds persisted [9][10] Company Strategy and Development Direction - The company aims to increase retail separate account offerings, expand ETF availability in key channels, and grow the wealth management business [4][5] - The management emphasized a disciplined approach to inorganic growth, focusing on opportunities that are financially and strategically compelling [7][28] - The company is actively exploring opportunities to enhance capabilities and scale, particularly in private markets and international client access [28][60] Management's Comments on Operating Environment and Future Outlook - Management noted that quality-oriented strategies have underperformed in a market favoring momentum, but they expect a reversion to favor quality strategies in the future [27][33] - The company remains optimistic about the potential for positive flows in fixed income and alternative strategies, despite the current challenges in equity strategies [32][33] Other Important Information - The company completed a debt refinancing, increasing financial flexibility with a new $400 million term loan and a $250 million revolving credit facility [11][20] - The quarterly dividend was raised by 7% to $2.40 per share, marking the eighth consecutive annual increase [11][20] Q&A Session Summary Question: What are the key strategies attracting interest in ETFs? - Management indicated that both the ETF wrapper and specific strategies are driving interest, with a focus on expanding access and building track records in various strategies [24][25] Question: Any updates on inorganic opportunities? - Management reiterated that the environment remains favorable for inorganic growth, focusing on high-performing capabilities and private market expansion [26][28] Question: How to improve net flows moving forward? - Management highlighted positive flows in fixed income and alternative strategies, while addressing the need to grow non-quality correlated strategies to offset net outflows [32][33] Question: What is the outlook for operating expenses following office consolidation? - Management confirmed that the benefits of office consolidation are reflected in the current run rate, with expectations for lower operating expenses moving forward [37][38] Question: What is the status of discrete expenses and buybacks? - Management stated that discrete expenses related to inorganic activities may persist, and buybacks remain a critical part of the capital strategy, although no specific plans were announced [43][45]