Core Insights - Virtus Investment Partners, Inc. (VRTS) has entered into a definitive agreement to acquire a majority interest in Keystone National Group, an investment manager specializing in asset-centric private credit [1][4] Deal Details - The acquisition involves a total consideration of $200 million at closing, with an additional potential $170 million in deferred payments based on future revenue targets [2][8] - The transaction is expected to close in the first quarter of 2026, pending customary closing conditions and approvals [3][8] - The acquisition is anticipated to be accretive to VRTS's earnings in 2026 [3][8] Strategic Rationale - The addition of Keystone's capabilities is expected to enhance Virtus's multi-manager model by introducing differentiated asset-backed lending strategies, addressing the growing demand for private market solutions [4][6] - Keystone, founded in 2006, manages $2.5 billion in assets and has deployed over $6 billion across more than 750 transactions, showcasing its extensive experience in private credit [5] Market Context - The acquisition reflects a broader trend as investors increasingly shift towards private credit and alternative income sources amid ongoing market volatility [6] - Other firms, such as Charles Schwab and Goldman Sachs, are also expanding their private market offerings, indicating a growing industry focus on alternative investment strategies [11][12]

Core Viewpoint - The conference call is hosted by Virtus Investment Partners, indicating ongoing communication with investors and stakeholders [1] Group 1 - The call is being recorded and will be available for replay on the Virtus website, highlighting the company's commitment to transparency and accessibility for investors [1]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Summary of Virtus Investment Partners Conference Call Company Overview - **Company**: Virtus Investment Partners (NYSE: VRTS) - **Acquisition Target**: Keystone National Group - **Transaction Date**: Announcement on December 5, 2025 - **Transaction Value**: $200 million for a 56% majority stake, with up to $170 million in deferred consideration over two years [11][12] Key Points and Arguments Strategic Rationale - The acquisition of Keystone National Group aims to expand Virtus's investment capabilities to include private market strategies, particularly in asset-based lending [4][5] - Keystone specializes in asset-centric private credit, which is expected to meet the growing demand for differentiated private market strategies [5][6] - The transaction is anticipated to be immediately accretive to margins and Non-GAAP EPS upon closing in Q1 2026 [6][13] Financial Performance - Keystone has shown strong financial performance with a revenue and EBITDA CAGR exceeding 35% over the past three years [5] - The firm has grown assets under management to $2.5 billion, primarily through the RIA channel [7] - Keystone's flagship fund, the Keystone Private Income Fund, has gained traction with leading wealth managers due to its attractive performance [9][10] Investment Strategy - Keystone's asset-based lending approach is characterized by secured financing, shorter durations, and strong covenants, providing more downside protection compared to traditional private credit strategies [9][18] - The firm focuses on collateralized loans, ensuring that the underlying assets are critical to the borrower's operations [33] Market Position and Growth Opportunities - The acquisition is expected to enhance Keystone's ability to manage its strategies while benefiting from Virtus's support model, including distribution and marketing capabilities [10][11] - There are significant growth opportunities in both retail and institutional channels, with plans to expand Keystone's existing capabilities [36][37] Financial Impact - The transaction is projected to improve operating margins by approximately 200 basis points and contribute about $1.50 to adjusted EPS in 2026 [13] - Anticipated annual tax savings of approximately $5 million due to intangible assets created by the transaction [13] Additional Insights - The management teams of both companies share similar philosophies, emphasizing investment excellence and long-term value creation [6] - Keystone's management will retain significant equity and has entered into long-term employment agreements to ensure continuity [6][12] - The firm has a strong track record of sourcing and origination, focusing on smaller ticket sizes in less crowded market segments [29][30] Conclusion - The acquisition of Keystone National Group represents a strategic move for Virtus Investment Partners to enhance its private market offerings and capitalize on growth opportunities in the wealth management space. The transaction is expected to provide immediate financial benefits and align with the company's long-term strategic objectives.

Acquisition Overview - Virtus Investment Partners will acquire a 56% majority interest in Keystone National Group for $200 million in cash at closing[13] - Up to $170 million in deferred consideration, including earnout payments, may be paid based on future revenue targets[13] - Management will retain a 44% stake, with Virtus increasing ownership to 75% through staged equity purchases in years 3-6[13] Keystone National Group Highlights - Keystone manages $2.5 billion in assets under management (AUM) across four core strategies[8, 11] - Keystone's flagship $2.0 billion tender offer fund (KPIF) is available in the RIA market[8, 11] - Keystone has invested over $6 billion of capital in more than 750 transactions since its founding in 2006[11] - Keystone's Real Estate Private Credit AUM is ~$400 million and Real Estate Equity AUM is ~$100 million[12] Financial Impact - The transaction is expected to increase Virtus' operating margin by approximately 200 basis points[13] - The estimated contribution to 2026 EPS, as adjusted, is approximately $1.50[13] - Intangible assets are expected to create annual tax savings of approximately $5 million per year[13] Market Context - Non-bank financing represents $1.9 trillion of the ~$5.5 trillion US Specialty Finance market[20] - Private credit accounts for $200-300 billion of the Specialty Finance market[20]

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].

Core Viewpoint - Vertiqal Studios has appointed Nikki Stone to its Board of Directors, bringing extensive experience in media, marketing, and commerce to support the company's growth strategy [1][2][5]. Company Overview - Vertiqal Studios is a leading digital-channel network and video-production studio, owning North America's largest gaming and lifestyle network on social media [1][9]. - The company manages over 200 channels across platforms like TikTok, Instagram, YouTube, and Snapchat, producing more than 100 pieces of content daily for a community of over 52 million followers [10]. Appointment of Nikki Stone - Nikki Stone has over two decades of senior leadership experience and is recognized for transforming organizations and enhancing brand performance through data-driven strategies [2][3]. - Her previous role as Chief Commerce Officer at GroupM Canada involved modernizing the group's market approach and expanding capabilities across media and commerce [3][4]. - Stone's expertise aligns with Vertiqal's focus on monetization opportunities, strategic brand partnerships, and enhancing content and data connections [5]. Strategic Implications - The addition of Nikki Stone is expected to strengthen Vertiqal's competitive position and support its ongoing momentum in the digital media landscape [6]. - Stone's insights into strategy and operational excellence will be crucial for shaping Vertiqal's long-term roadmap and optimizing its business model for sustainable revenue growth [5][6].

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]