Virtus Pushes Into Private Markets With Majority Stake in Keystone

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]