Virtus Investment Partners(VRTS) - 2024 Q4 - Annual Report

Assets Under Management - Total assets under management as of December 31, 2024, reached $175.0 billion, with open-end funds accounting for$56.1 billion and institutional accounts for $59.2 billion[31] - Retail separate accounts totaled$49.5 billion, while closed-end funds accounted for $10.2 billion as of December 31, 2024[31] - The company reported$2.3 billion in other fee-earning assets not included in total assets under management[40] Investment Management Fees - Investment management fees for 2024 totaled $773.8 million, reflecting an increase from$711.5 million in 2023[41] - The company derives substantially all of its revenues from investment management, distribution, service, administration, and shareholder service fees, which are based on the market value of assets under management[222] Investment Strategies - The company offers a diverse range of investment strategies across various asset classes, including equity, fixed income, and alternatives, managed by differentiated investment managers[22] - As of December 31, 2024, the largest investment manager, Kayne Anderson Rudnick Investment Management, managed $67.9 billion in assets, representing a significant portion of the total[24] - The company utilizes a multi-manager model, providing investment managers with distribution, business, and operational support[21] Financial Risks and Market Conditions - As of December 31, 2024, the fair value of investment securities is$83.771 million, and a 10% change in fair values would result in a corresponding $8.377 million change in pre-tax earnings[223] - The company's net interest in CIP is valued at$199.720 million, with a potential $19.972 million change in pre-tax earnings for a 10$283.491 million, with a potential $28.349 million change in pre-tax earnings for a 10$180.1 million invested in fixed- and floating-rate income products, with a hypothetical 100 basis point change in interest rates potentially affecting fair value by an estimated $2.4 million[225] - As of December 31, 2024, the company has$236.1 million outstanding under its Term Loan, with a 100 basis point change in the base rate potentially altering annual interest expense by an estimated $2.4 million[226] Workforce and Talent Management - The company employs 805 individuals across its offices in the U.S., U.K., and Singapore, focusing on creating an environment of excellence and opportunity[63] - The company emphasizes competitive salaries and a comprehensive suite of benefits to attract and retain talented individuals[64] - The company is committed to maintaining a diverse and inclusive work environment, supporting workforce diversity and community engagement[65] Regulatory Compliance - The company is subject to extensive regulatory compliance requirements, which may increase operational costs and necessitate additional resources[62] Future Outlook - Future outlook includes addressing known risks such as competition and regulatory changes that could impact financial results and liquidity[18] - The company emphasizes the importance of attracting and retaining key personnel to maintain competitive advantage in the investment management industry[18]