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].