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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2023
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission File Number: 001-10994  
vrtslogo2019a02.jpg
VIRTUS INVESTMENT PARTNERS, INC.
(Exact name of registrant as specified in its charter)
Delaware 26-3962811
(State or other jurisdiction of
incorporation or organization)		 (I.R.S. Employer
Identification No.)
One Financial Plaza, Hartford, CT 06103
(Address of principal executive offices, including Zip Code)
(800) 248-7971
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value VRTSThe NASDAQ Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒ No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐ 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒
The number of shares outstanding of the registrant’s common stock was 7,184,989 as of October 27, 2023.









VIRTUS INVESTMENT PARTNERS, INC.
INDEX
 
  Page
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 5.
Item 6.
"We," "us," "our," the "Company," and "Virtus" as used in this Quarterly Report on Form 10-Q (the "10-Q") refer to Virtus Investment Partners, Inc., a Delaware corporation, and its subsidiaries.


PART I – FINANCIAL INFORMATION
 
Item 1.    Financial Statements
Virtus Investment Partners, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands, except share data)September 30,
2023		December 31,
2022
Assets:
Cash and cash equivalents$195,403 $338,234 
Investments152,349 100,330 
Accounts receivable, net107,014 99,274 
Assets of consolidated investment products ("CIP")
Cash and cash equivalents of CIP209,747 250,301 
Cash pledged or on deposit of CIP683 644 
Investments of CIP2,069,215 2,190,113 
Other assets of CIP34,481 45,445 
Furniture, equipment and leasehold improvements, net25,503 19,123 
Intangible assets, net452,338 442,519 
Goodwill397,098 348,836 
Deferred taxes, net23,659 23,171 
Other assets97,809 94,944 
Total assets$3,765,299 $3,952,934 
Liabilities and Equity
Liabilities:
Accrued compensation and benefits$161,745 $181,805 
Accounts payable and accrued liabilities32,740 33,200 
Dividends payable16,860 15,812 
Contingent consideration 94,421 128,400 
Debt273,815 255,025 
Other liabilities93,134 87,827 
Liabilities of CIP
Notes payable of CIP1,943,949 2,083,314 
Securities purchased payable and other liabilities of CIP184,817 230,897 
Total liabilities2,801,481 3,016,280 
Commitments and Contingencies (Note 14)
Redeemable noncontrolling interests96,266 113,718 
Equity:
Equity attributable to Virtus Investment Partners, Inc.:
Common stock, $0.01 par value, 1,000,000,000 shares authorized; 12,160,311 shares issued and 7,182,763 shares outstanding at September 30, 2023; and 12,033,247 shares issued and 7,181,554 shares outstanding at December 31, 2022
122 120 
Additional paid-in capital1,295,988 1,286,244 
Retained earnings (accumulated deficit)190,615 130,261 
Accumulated other comprehensive income (loss)(373)(358)
Treasury stock, at cost, 4,977,548 and 4,851,693 shares at September 30, 2023 and December 31, 2022, respectively
(624,248)(599,248)
Total equity attributable to Virtus Investment Partners, Inc.862,104 817,019 
Noncontrolling interests5,448 5,917 
Total equity 867,552 822,936 
Total liabilities and equity$3,765,299 $3,952,934 

The accompanying notes are an integral part of these condensed consolidated financial statements.
1
Virtus Investment Partners, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in thousands, except per share data)2023202220232022
Revenues
Investment management fees$184,869 $172,850 $529,326 $564,691 
Distribution and service fees14,333 15,746 42,618 52,912 
Administration and shareholder service fees19,069 20,563 55,668 66,889 
Other income and fees1,000 1,102 3,069 3,516 
Total revenues219,271 210,261 630,681 688,008 
Operating Expenses
Employment expenses101,587 88,230 304,895 283,583 
Distribution and other asset-based expenses24,157 26,818 73,332 88,247 
Other operating expenses30,494 31,096 94,707 94,367 
Operating expenses of consolidated investment products ("CIP")553 538 1,613 1,927 
Change in fair value of contingent consideration— — (6,800)2,900 
Restructuring expense691 4,015 691 4,015 
Depreciation expense1,504 938 4,134 2,835 
Amortization expense15,382 14,609 45,581 43,895 
Total operating expenses174,368 166,244 518,153 521,769 
Operating Income (Loss)44,903 44,017 112,528 166,239 
Other Income (Expense)
Realized and unrealized gain (loss) on investments, net(1,918)(2,493)2,469 (16,018)
Realized and unrealized gain (loss) of CIP, net(1,013)(8,440)(2,853)(43,443)
Other income (expense), net128 (659)(1,062)199 
Total other income (expense), net(2,803)(11,592)(1,446)(59,262)
Interest Income (Expense)
Interest expense(6,222)(3,557)(17,444)(8,661)
Interest and dividend income2,872 1,013 8,785 1,870 
Interest and dividend income of investments of CIP49,803 28,644 144,501 71,436 
Interest expense of CIP(38,218)(20,356)(112,153)(46,860)
Total interest income (expense), net8,235 5,744 23,689 17,785 
Income (Loss) Before Income Taxes50,335 38,169 134,771 124,762 
Income tax expense (benefit)12,181 10,754 31,794 43,969 
Net Income (Loss)38,154 27,415 102,977 80,793 
Noncontrolling interests(7,248)4,265 (3,190)1,348 
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.$30,906 $31,680 $99,787 $82,141 
Earnings (Loss) per Share—Basic$4.26 $4.33 $13.72 $11.05 
Earnings (Loss) per Share—Diluted$4.19 $4.25 $13.50 $10.76 
Weighted Average Shares Outstanding—Basic7,258 7,308 7,272 7,434 
Weighted Average Shares Outstanding—Diluted7,379 7,463 7,393 7,636 

The accompanying notes are an integral part of these condensed consolidated financial statements.
2
Virtus Investment Partners, Inc.
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
 
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in thousands)2023202220232022
Net Income (Loss)$38,154 $27,415 $102,977 $80,793 
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of tax of $82 and $31 for the three months ended September 30, 2023 and 2022, respectively and $5 and $280 for the nine months ended September 30, 2023 and 2022
(226)(504)(15)(791)
Other comprehensive income (loss)(226)(504)(15)(791)
Comprehensive income (loss)37,928 26,911 102,962 80,002 
Comprehensive (income) loss attributable to noncontrolling interests(7,248)4,265 (3,190)1,348 
Comprehensive Income (Loss) Attributable to Virtus Investment Partners, Inc.$30,680 $31,176 $99,772 $81,350 
The accompanying notes are an integral part of these condensed consolidated financial statements.
3
Virtus Investment Partners, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)

 Nine Months Ended
September 30,
(in thousands)20232022
Cash Flows from Operating Activities:
Net income (loss)$102,977 $80,793 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation expense, intangible asset and other amortization51,017 48,143 
Stock-based compensation20,072 19,267 
Amortization of deferred commissions1,261 3,653 
Payments of deferred commissions(1,105)(1,789)
Equity in earnings of equity method investments810 (527)
Distributions from equity method investments1,789 2,239 
Right of use asset— 3,222 
Realized and unrealized (gains) losses on investments, net(2,459)16,056 
Sales (purchases) of investments, net(24,881)(8,396)
Change in fair value of contingent consideration(6,800)2,900 
Deferred taxes, net2,735 (5,500)
Changes in operating assets and liabilities:
Accounts receivable, net and other assets3,441 32,940 
Accrued compensation and benefits, accounts payable, accrued liabilities and other liabilities(38,966)(76,639)
Operating activities of consolidated investment products ("CIP"):
Realized and unrealized (gains) losses on investments of CIP, net(1,769)41,312 
Purchases of investments by CIP(905,184)(601,749)
Sales of investments by CIP1,028,251 595,451 
Net proceeds (purchases) of short-term investments and securities sold short by CIP(168)(655)
Change in other assets and liabilities of CIP(1,181)4,129 
Net cash provided by (used in) operating activities229,840 154,850 
Cash Flows from Investing Activities:
Capital expenditures(6,438)(5,495)
Acquisition of businesses, net of cash acquired of $4,395 and $8,443 for the nine months ended September 30, 2023 and 2022, respectively
(108,999)(19,944)
Change in cash and cash equivalents of CIP due to consolidation (deconsolidation), net(267)(308)
Purchase of equity method investment(11,645)— 
Net cash provided by (used in) investing activities(127,349)(25,747)
Cash Flows from Financing Activities:
Borrowings on credit agreement50,000 — 
Repayments on credit agreement(32,063)(12,062)
Common stock dividends paid(38,385)(35,244)
Repurchase of common shares(25,000)(80,000)
Payment of contingent consideration(27,179)(33,036)
Taxes paid related to net share settlement of restricted stock units(13,436)(16,450)
Affiliate equity sales (purchases)(20,784)(11,089)
Net contributions from (distributions to) noncontrolling interests5,967 (1,091)
Financing activities of CIP:
Payments on borrowings by CIP(317,362)(129,996)
Borrowings by CIP132,473 — 
Net cash provided by (used in) financing activities(285,769)(318,968)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(68)(650)
Net increase (decrease) in cash, cash equivalents and restricted cash(183,346)(190,515)
Cash, cash equivalents and restricted cash, beginning of period589,179 586,145 
Cash, cash equivalents and restricted cash, end of period$405,833 $395,630 
Non-Cash Investing Activities:
Contingent consideration$— $1,200 
Non-Cash Financing Activities:
Increase (decrease) to noncontrolling interests due to consolidation (deconsolidation) of CIP, net$(7,170)$(338)
Common stock dividends payable$13,788 $12,014 

(in thousands)September 30,
2023		December 31, 2022
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents$195,403 $338,234 
Cash of CIP209,747 250,301 
Cash pledged or on deposit of CIP683 644 
Cash, cash equivalents and restricted cash at end of period$405,833 $589,179 

The accompanying notes are an integral part of these condensed consolidated financial statements.
4
Virtus Investment Partners, Inc.
Condensed Consolidated Statements of Changes in Stockholders' Equity
(Unaudited)
Permanent EquityTemporary Equity
 Common StockAdditional
Paid-in
Capital		Retained Earnings (Accumulated
Deficit)		Accumulated
Other
Comprehensive
Income (Loss)		Treasury StockTotal
Attributed To
Virtus Investment Partners, Inc.		Non-
controlling
Interests		Total
Equity		Redeemable
Non-
controlling
Interests
(in thousands, except per share data)SharesPar ValueSharesAmount
Balances at June 30, 20227,275,337 $120 $1,275,907 $88,196 $(267)4,747,951 $(579,248)$784,708 $6,997 $791,705 $139,147 
Net income (loss)— — — 31,680 — — — 31,680 151 31,831 (4,416)
Foreign currency translation adjustments— — — — (504)— — (504)— (504)— 
Net subscriptions (redemptions) and other— — 2,035 — — — — 2,035 (414)1,621 (10,289)
Cash dividends declared ($1.65 per common share)
— — — (12,552)— — — (12,552)— (12,552)— 
Repurchases of common shares(50,422)— — — — 50,422 (10,000)(10,000)— (10,000)— 
Issuance of common shares related to employee stock transactions7,058 — — — — — — — — — — 
Taxes paid on stock-based compensation— — (1,166)— — — — (1,166)— (1,166)— 
Stock-based compensation— — 5,004 — — — — 5,004 — 5,004 — 
Balances at September 30, 20227,231,973 $120 $1,281,780 $107,324 $(771)4,798,373 $(589,248)$799,205 $6,734 $805,939 $124,442 
Balances at June 30, 20237,254,786 $122 $1,286,775 $174,011 $(147)4,903,533 $(609,248)$851,513 $5,196 $856,709 $110,399 
Net income (loss)— — — 30,906 — — — 30,906 671 31,577 6,577 
Foreign currency translation adjustments— — — — (226)— — (226)— (226)— 
Net subscriptions (redemptions) and other— — 3,218 — — — — 3,218 (419)2,799 (20,710)
Cash dividends declared ($1.90 per common share)
— — — (14,302)— — — (14,302)— (14,302)— 
Repurchases of common shares(74,015)— — — — 74,015 (15,000)(15,000)— (15,000)— 
Issuance of common shares related to employee stock transactions1,992 — — — — — — — — — — 
Taxes paid on stock-based compensation— — (214)— — — — (214)— (214)— 
Stock-based compensation— — 6,209 — — — — 6,209 — 6,209 — 
Balances at September 30, 20237,182,763 $122 $1,295,988 $190,615 $(373)4,977,548 $(624,248)$862,104 $5,448 $867,552 $96,266 

Permanent EquityTemporary Equity
 Common StockAdditional
Paid-in
Capital		Retained Earnings (Accumulated
Deficit)		Accumulated
Other
Comprehensive
Income (Loss)		Treasury StockTotal
Attributed To
Virtus Investment Partners, Inc.		Non-
controlling
Interests		Total
Equity		Redeemable
Non-
controlling
Interests
(in thousands, except per share data)SharesPar ValueSharesAmount
Balances at December 31, 20217,506,151 $119 $1,276,424 $60,962 $20 4,400,596 $(509,248)$828,277 $8,350 $836,627 $138,965 
Net income (loss)— — — 82,141 — — — 82,141 (184)81,957 (1,164)
Foreign currency translation adjustments— — — — (791)— — (791)— (791)— 
Net subscriptions (redemptions) and other— — 2,035 — — — — 2,035 (1,432)603 (13,359)
Cash dividends declared ($4.65 per common share)
— — — (35,779)— — — (35,779)— (35,779)— 
Repurchases of common shares(397,777)— — — — 397,777 (80,000)(80,000)— (80,000)— 
Issuance of common shares related to employee stock transactions123,599 1 (1)— — — — — — — — 
Taxes paid on stock-based compensation— — (16,450)— — — — (16,450)— (16,450)— 
Stock-based compensation— — 19,772 — — — — 19,772 — 19,772 — 
Balances at September 30, 20227,231,973 $120 $1,281,780 $107,324 $(771)4,798,373 $(589,248)$799,205 $6,734 $805,939 $124,442 
Balances at December 31, 20227,181,554 $120 $1,286,244 $130,261 $(358)4,851,693 $(599,248)$817,019 $5,917 $822,936 $113,718 
Net income (loss)— — — 99,787 — — — 99,787 786 100,573 2,404 
Foreign currency translation adjustments— — — — (15)— — (15)— (15)— 
Net subscriptions (redemptions) and other— — 3,218 — — — — 3,218 (1,255)1,963 (19,856)
Cash dividends declared ($5.20 per common share)
— — — (39,433)— — — (39,433)— (39,433)— 
Repurchases of common shares(125,855)— — — — 125,855 (25,000)(25,000)— (25,000)— 
Issuance of common shares related to employee stock transactions127,064 2 (2)— — — — — — — — 
Taxes paid on stock-based compensation— — (13,436)— — — — (13,436)— (13,436)— 
Stock-based compensation— — 19,964 — — — — 19,964 — 19,964 — 
Balances at September 30, 20237,182,763 $122 $1,295,988 $190,615 $(373)4,977,548 $(624,248)$862,104 $5,448 $867,552 $96,266 

The accompanying notes are an integral part of these condensed consolidated financial statements.

5
Virtus Investment Partners, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
1. Organization and Business
Virtus Investment Partners, Inc. (the "Company," "we," "us," "our" or "Virtus"), a Delaware corporation, operates in the investment management industry through its subsidiaries.

The Company provides investment management and related services to institutions and individuals. The Company's investment strategies are offered to institutional clients through separate accounts and pooled, or commingled, structures. The Company’s retail investment management services are provided to individuals through products consisting of: mutual funds registered pursuant to the Investment Company Act of 1940, as amended ("U.S. retail funds"); Undertaking for Collective Investment in Transferable Securities and Qualifying Investor Funds (collectively, "global funds") and collectively with U.S. retail funds, variable insurance funds, and exchange-traded funds ("ETFs"), (the "open-end funds"); closed-end funds (collectively, with open-end funds, the "funds"); and retail separate accounts that include intermediary-sold and private client accounts. The Company also provides subadvisory services to other investment advisers and serves as the collateral manager for structured products.


2. Basis of Presentation and Significant Accounting Policies
Basis of Presentation
The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the Company’s financial condition and results of operations. Operating results for the nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the "2022 Annual Report on Form 10-K") filed with the Securities and Exchange Commission (the "SEC"). The Company’s significant accounting policies, which have been consistently applied, are summarized in its 2022 Annual Report on Form 10-K.


3. Revenues
The Company's revenues are recognized when a performance obligation is satisfied, which occurs when control of the services is transferred to customers. Investment management fees, distribution and service fees, and administration and shareholder service fees are generally calculated as a percentage of average net assets of the investment portfolios managed. The net asset values from which these fees are calculated are variable in nature and subject to factors outside of the Company's control, such as additional investments, withdrawals and market performance. Because of this, these fees are considered constrained until the end of the contractual measurement period (monthly or quarterly), which is when asset values are generally determinable.

Investment Management Fees by Source    
The following table summarizes investment management fees by source:
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in thousands)2023202220232022
Investment management fees
Open-end funds$80,294 $80,234 $229,721 $262,486 
Closed-end funds14,673 15,773 44,025 48,887 
Retail separate accounts44,441 39,154 127,323 134,069 
Institutional accounts45,461 37,689 128,257 119,249 
Total investment management fees$184,869 $172,850 $529,326 $564,691 
    
6

4. Acquisitions
AlphaSimplex Group, LLC
On April 1, 2023, the Company completed the acquisition of AlphaSimplex Group, LLC ("AlphaSimplex"), which was accounted for in accordance with Accounting Standards Codification ("ASC") 805, Business Combinations ("ASC 805"). The total purchase price paid of $113.4 million was allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of the acquisition. Goodwill of $48.3 million and intangible assets of $55.4 million were recorded for the acquisition. The Company expects $103.7 million of the purchase price, related to goodwill and intangibles, to be tax deductible over 15 years. The purchase price allocation is based upon preliminary information and is subject to change if additional information becomes available. The final fair value of the net assets acquired may result in adjustments to certain assets and liabilities, including goodwill. The revenues and operating income of AlphaSimplex were not material to the Company's results of operations for the three and nine months ended September 30, 2023.

The following table summarizes the identified acquired assets and liabilities assumed as of the AlphaSimplex acquisition date:
April 1, 2023
(in thousands)
Assets:
Cash and cash equivalents$4,395 
Investments8,567 
Accounts receivable5,422 
Furniture, equipment and leasehold improvements4,161 
Intangible assets55,400 
Goodwill48,262 
Other assets9,126 
Total Assets135,333 
Liabilities:
Accounts payable and accrued liabilities21,939 
Total Liabilities21,939 
Total Net Assets Acquired$113,394 

Identifiable Intangible Assets Acquired
In connection with the allocation of the AlphaSimplex purchase price, the Company identified the following intangible assets:
April 1, 2023
Approximate Fair Value
(in thousands)
Weighted Average of Useful Life
(in years)
Definite-lived intangible assets:
Investment management agreements52,000 10.5
Trade names3,400 9.0
Total definite-lived intangible assets$55,400 
The fair value of investment management agreements was estimated using a discounted cash flow method and the fair value of the trade names was estimated using a royalty savings method, each of which was prepared with the assistance of an independent valuation firm.

Stone Harbor Investment Partners
On January 1, 2022, the Company acquired Stone Harbor Investment Partners, LLC ("Stone Harbor"), which was accounted for in accordance with ASC 805. The total purchase price of $30.1 million was allocated to the assets acquired and liabilities assumed, based upon their estimated fair values at the date of the acquisition, as well as goodwill of $10.3 million and definite-lived intangible assets of $10.8 million.


7
5. Goodwill and Intangible Assets, Net
Activity in goodwill was as follows:
(in thousands)
Balance at December 31, 2022$348,836 
Acquisitions48,262 
Balance at September 30, 2023$397,098 

Below is a summary of intangible assets, net:
Definite-LivedIndefinite-LivedTotal
(in thousands)Gross Book ValueAccumulated AmortizationNet Book ValueNet Book ValueNet Book Value
Balances at December 31, 2022$756,028 $(355,807)$400,221 $42,298 $442,519 
Additions55,400 — 55,400 — 55,400 
Intangible amortization— (45,581)(45,581)— (45,581)
Balances at September 30, 2023$811,428 $(401,388)$410,040 $42,298 $452,338 

Definite-lived intangible asset amortization for the remainder of fiscal year 2023 and succeeding fiscal years is estimated as follows:
Fiscal Year
Amount
(in thousands)
Remainder of 2023$15,445 
202456,739 
202551,971 
202650,991 
202747,890 
2028 and thereafter187,004 
Total$410,040 


6. Investments
Investments consist primarily of investments in the Company's sponsored products. The Company's investments, excluding the assets of consolidated investment products ("CIP") discussed in Note 16, at September 30, 2023 and December 31, 2022 were as follows:
(in thousands)September 30, 2023December 31, 2022
Investment securities - fair value$118,464 $76,999 
Equity method investments (1)22,557 11,448 
Nonqualified retirement plan assets11,328 10,154 
Other investments— 1,729 
Total investments$152,349 $100,330 
(1)     The Company's equity method investments are valued on a three-month lag based upon the availability of financial information. On January 1, 2023, the Company made an additional investment in an existing minority interest in an affiliated manager for $11.6 million including transaction costs.

Investment Securities - fair value
Investment securities - fair value consist of investments in the Company's sponsored funds and separately managed accounts. The composition of the Company’s investment securities - fair value was as follows:
8
9
September 30, 2023December 31, 2022
(in thousands)CostFair ValueCostFair Value
Investment Securities - fair value
Sponsored funds$82,156 $76,958 $67,472 $62,744 
Equity securities15,829 17,167 13,440 14,255 
Debt securities24,339 24,339 — — 
Total investment securities - fair value$122,324 $118,464 $80,912 $76,999 

For the three and nine months ended September 30, 2023, the Company recognized net realized losses of $0.1 million and net realized gains $2.1 million, respectively, related to its investment securities - fair value. For the three and nine months ended September 30, 2022, the Company recognized net realized gains of $0.4 million and $0.4 million, respectively, related to its investment securities - fair value.


7. Fair Value Measurements
The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of CIP discussed in Note 16, as of September 30, 2023 and December 31, 2022 by fair value hierarchy level were as follows:
September 30, 2023  
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$157,635 $— $— $157,635 
Investment securities - fair value
Sponsored funds76,958 — — 76,958 
Equity securities17,167 — — 17,167 
Debt securities— — 24,339 24,339 
Nonqualified retirement plan assets11,328 — — 11,328 
Total assets measured at fair value$263,088 $— $24,339 $287,427 
Liabilities
Contingent consideration$— $— $54,910 $54,910 
Total liabilities measured at fair value$— $— $54,910 $54,910 

December 31, 2022  
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$287,126 $— $— $287,126 
Investment securities - fair value
Sponsored funds62,744 — — 62,744 
Equity securities14,255 — — 14,255 
Nonqualified retirement plan assets10,154 — — 10,154 
Total assets measured at fair value$374,279 $— $— $374,279 
Liabilities
Contingent consideration$— $— $78,100 $78,100 
Total liabilities measured at fair value$— $— $78,100 $78,100 
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The following is a discussion of the valuation methodologies used for the Company’s assets measured at fair value:
Cash equivalents represent investments in money market funds. Cash investments in money market funds are valued using published net asset values and are classified as Level 1.

Sponsored funds represent investments in open-end funds, closed-end funds and ETFs for which the Company acts as the investment manager. The fair value of open-end funds is determined based on their published net asset values and are categorized as Level 1. The fair value of closed-end funds and ETFs is determined based on the official closing price on the exchange on which they are traded and are categorized as Level 1.

Equity securities represent securities traded on active markets, are valued at the official closing price (typically the last sale or bid) on the exchange on which the securities are primarily traded and are categorized as Level 1.

Nonqualified retirement plan assets represent mutual funds within the Company's nonqualified retirement plan whose fair value is determined based on their published net asset value and are categorized as Level 1.

Debt securities represent investments in senior secured bank loans and are based on evaluated quotations received from independent pricing services and are categorized as Level 2 or Level 3.

Contingent consideration represents liabilities associated with the Company's business combinations. The estimated fair values are measured with simulation models using unobservable market data inputs prepared with the assistance of an independent valuation firm. These liabilities are categorized as Level 3.

Cash, accounts receivable, accounts payable and accrued liabilities equal or approximate fair value based on the short-term nature of these instruments.

The following tables present a reconciliation of beginning and ending balances of recurring fair value measurements classified as Level 3 assets and liabilities:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in thousands)2023202220232022
Assets
Balance at beginning of period$— $— $— $— 
Purchases (sales), net24,339 — 24,339 — 
Balance at end of period$24,339 $— $24,339 $— 
Liabilities
Balance at beginning of period$54,910 $72,980 $78,100 $88,400 
Additions for acquisition— — — 1,200 
Reduction for payments made— — (16,390)(19,520)
Increase (reduction) of liability related to re-measurement of fair value— — (6,800)2,900 
Balance at end of period$54,910 $72,980 $54,910 $72,980 


8. Equity Transactions
Dividends Declared
On August 16, 2023, the Company declared a quarterly cash dividend of $1.90 per common share to be paid on November 15, 2023 to stockholders of record at the close of business on October 31, 2023.

Common Stock Repurchases
During the three and nine months ended September 30, 2023, the Company repurchased 74,015 and 125,855 common shares, respectively, at a weighted average price of $202.63 and $198.61 per share, respectively, for a total cost, including fees and expenses, of $15.0 million and $25.0 million, respectively, under its share repurchase program. As of September 30, 2023, 702,497 shares remained available for repurchase. Under the terms of the program, the Company may repurchase shares of its
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common stock from time to time at its discretion through open market repurchases, privately negotiated transactions and/or other mechanisms, depending on price and prevailing market and business conditions. The program, which has no specified term, may be suspended or terminated at any time.


9. Accumulated Other Comprehensive Income (Loss)
The changes in accumulated other comprehensive income (loss) were as follows:
Nine Months Ended
September 30,
(in thousands)20232022
Balance at beginning of period$(358)$20 
Net current-period other comprehensive income (loss) (1)(15)(791)
Balance at end of period$(373)$(771)
(1)     Consists of foreign currency translation adjustments, net of tax of $5 and $280 for the nine months ended September 30, 2023 and 2022, respectively.


10. Stock-Based Compensation
Equity-based awards, including restricted stock units ("RSUs"), performance stock units ("PSUs"), stock options and unrestricted shares of common stock, may be granted to officers, employees and directors of the Company pursuant to the Company's Omnibus Incentive and Equity Plan (the "Omnibus Plan"). At September 30, 2023, 478,711 shares of common stock remained available for issuance of the 3,370,000 shares that are authorized for issuance under the Omnibus Plan.     
Stock-based compensation expense is summarized as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2023202220232022
Stock-based compensation expense$7,668 $5,148 $20,072 $19,267 

Restricted Stock Units
Each RSU entitles the holder to one share of common stock when the restriction expires. RSUs may be time-vested or performance-contingent (PSUs) that convert into RSUs after the performance measurement is complete and generally vest in one to three years. Shares that are issued upon vesting are newly issued shares from the Omnibus Plan and are not issued from treasury stock.
RSU activity, inclusive of PSUs, for the nine months ended September 30, 2023 is summarized as follows: 
Number
of Shares		Weighted Average
Grant Date
Fair Value
Outstanding at December 31, 2022377,087 $178.21 
Granted207,206 $160.10 
Forfeited(35,341)$146.07 
Settled(199,880)$119.68 
Outstanding at September 30, 2023349,072 $204.23 

For the nine months ended September 30, 2023 and 2022, a total of 77,583 and 77,508 RSUs, respectively, were withheld by the Company as a result of net share settlements to settle minimum employee tax withholding obligations. The Company paid $13.4 million and $16.5 million for the nine months ended September 30, 2023 and 2022, respectively, in minimum employee tax withholding obligations related to RSUs withheld for the net share settlements. These net share settlements had the effect of share repurchases by the Company as they reduced the number of shares that would have otherwise been issued as a result of the vesting.

During the nine months ended September 30, 2023, the Company granted 44,583 PSUs that contain performance-based metrics in addition to a service condition. Compensation expense for PSUs is generally recognized over a three-year service period based upon the value determined using a combination of (i) the intrinsic value method for awards that contain a performance metric that represents a "performance condition" in accordance with ASC 718, Stock Compensation ("ASC 718")
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and (ii) the Monte Carlo simulation valuation model for awards that contain a "market condition" performance metric under ASC 718. Compensation expense for PSU awards that contain a market condition is fixed at the date of grant and will not be adjusted in future periods based upon the achievement of the market condition. Compensation expense for PSU awards with a performance condition is recorded each period based upon a probability assessment of the expected outcome of the performance metric with a final adjustment upon measurement at the end of the performance period.

As of September 30, 2023, unamortized stock-based compensation expense for unvested RSUs and PSUs was $36.0 million with a weighted-average remaining contractual life of 1.3 years.


11. Earnings (Loss) Per Share
Earnings (loss) per share ("EPS") is calculated in accordance with ASC 260, Earnings per Share. Basic EPS is computed by dividing net income (loss) attributable to Virtus Investment Partners, Inc. by the weighted-average number of common shares outstanding for the period, excluding dilution for potential common stock issuances. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, including shares issuable upon the vesting of RSUs and stock option exercises using the treasury stock method, as determined under the if-converted method.
The computation of basic and diluted EPS is as follows: 
 Three Months Ended September 30,Nine Months Ended
September 30,
(in thousands, except per share amounts)2023202220232022
Net Income (Loss)$38,154 $27,415 $102,977 $80,793 
Noncontrolling interests(7,248)4,265 (3,190)1,348 
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.$30,906 $31,680 $99,787 $82,141 
Shares:
Basic: Weighted-average number of shares outstanding7,258 7,308 7,272 7,434 
Plus: Incremental shares from assumed conversion of dilutive instruments121 155 121 202 
Diluted: Weighted-average number of shares outstanding7,379 7,463 7,393 7,636 
Earnings (Loss) per Share—Basic$4.26 $4.33 $13.72 $11.05 
Earnings (Loss) per Share—Diluted$4.19 $4.25 $13.50 $10.76 

The following table details the securities that have been excluded from the above computation of weighted-average number of shares for diluted EPS, because the effect would be anti-dilutive.
 Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2023202220232022
Restricted stock units2 31 332 
Total anti-dilutive securities2 31 332 


12. Income Taxes
In calculating the provision for income taxes, the Company uses an estimate of the annual effective tax rate based upon the facts and circumstances at each interim period. On a quarterly basis, the estimated annual effective tax rate is adjusted, as appropriate, based upon changes in facts and circumstances, if any, compared to those forecasted at the beginning of the fiscal year and at each interim period thereafter.

The provision for income taxes reflected U.S. federal, state and local taxes at an estimated effective tax rate of 23.6% and 35.2% for the nine months ended September 30, 2023 and 2022, respectively. The lower estimated effective tax rate for the nine months ended September 30, 2023 was primarily due to excess tax benefits associated with stock-based compensation and the change in valuation allowances in the current year related to the tax effects of unrealized gains on certain Company investments. The higher effective tax rate in the prior year period was due to valuation allowances recorded for the tax effects of unrealized losses on certain Company investments.


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13. Debt
Credit Agreement
The Company's credit agreement (the "Credit Agreement"), most recently amended on June 20, 2023, changing the base interest rate from LIBOR to SOFR, comprises (i) a $275.0 million term loan with a seven-year term (the "Term Loan") expiring in September 2028, and (ii) a $175.0 million revolving credit facility with a five-year term expiring in September 2026. On April 3, 2023, the Company borrowed $50.0 million under the revolving credit facility to partially finance its acquisition of AlphaSimplex (see Note 4 for further information). During the nine months ended September 30, 2023, the Company repaid $30.0 million and $2.1 million outstanding under the revolving credit facility and Term Loan, respectively. At September 30, 2023, $20.0 million and $259.5 million was outstanding under the revolving credit facility and Term Loan, respectively. In accordance with ASC 835, Interest, the amounts outstanding under the Company's Term Loan are presented on the Condensed Consolidated Balance Sheet net of related debt issuance costs, which were $5.7 million as of September 30, 2023.


14. Commitments and Contingencies
Legal Matters
The Company is involved from time to time in litigation and arbitration, as well as examinations, inquiries and investigations by various regulatory bodies, involving its compliance with, among other things, securities laws, client investment guidelines, laws governing the activities of broker-dealers and other laws and regulations affecting its products and other activities.

The Company records a liability when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. Based on information currently available, available insurance coverage, indemnities and established reserves, the Company believes that the outcomes of its legal and regulatory proceedings are not likely, either individually or in the aggregate, to have a material adverse effect on the Company's results of operations, cash flows or its consolidated financial condition. However, in the event of unexpected subsequent developments, and given the inherent unpredictability of these legal and regulatory matters, the Company can provide no assurance that its assessment of any legal matter will reflect the ultimate outcome, and an adverse outcome in certain matters could have a material adverse effect on the Company's results of operations or cash flows in particular quarterly or annual periods.


15. Redeemable Noncontrolling Interests
Redeemable noncontrolling interests represent third-party investments in the Company's CIP and minority interests held in a consolidated affiliate. Minority interests held in the affiliate are subject to holder put rights and Company call rights at established multiples of earnings before interest, taxes, depreciation and amortization and, as such, are considered redeemable at other than fair value. The rights are exercisable at pre-established intervals (between four and seven years from their issuance) or upon certain conditions, such as retirement. The put and call rights are not legally detachable or separately exercisable and are deemed to be embedded in the related noncontrolling interests. The Company, in purchasing affiliate equity, has the option to settle in cash or shares of the Company's common stock and is entitled to the cash flow associated with any purchased equity. These minority interests in the affiliate are recorded at estimated redemption value within redeemable noncontrolling interests on the Company's Condensed Consolidated Balance Sheets, and any changes in the estimated redemption value are recorded on the Condensed Consolidated Statements of Operations within noncontrolling interests.


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Redeemable noncontrolling interests for the nine months ended September 30, 2023 included the following amounts:
(in thousands)CIPAffiliate Noncontrolling InterestsTotal
Balances at December 31, 2022$18,268 $95,450 $113,718 
Net income (loss) attributable to noncontrolling interests772 5,245 6,017 
Changes in redemption value (1)— (3,613)(3,613)
Total net income (loss) attributable to noncontrolling interests772 1,632 2,404 
Affiliate equity sales (purchases)— (20,784)(20,784)
Net subscriptions (redemptions) and other6,676 (5,748)928 
Balances at September 30, 2023$25,716 $70,550 $96,266 
(1)     Relates to noncontrolling interests redeemable at other than fair value.


16. Consolidation
The condensed consolidated financial statements include the accounts of the Company, its subsidiaries and investment products that are consolidated. A voting interest entity ("VOE") is consolidated when the Company is considered to have a controlling financial interest, which is typically present when the Company owns a majority of the voting interest in an entity or otherwise has the power to govern the financial and operating policies of the entity.

The Company evaluates any variable interest entity ("VIE") in which the Company has a variable interest for consolidation. A VIE is an entity in which either (i) the equity investment at risk is not sufficient to permit the entity to finance its own activities without additional financial support, or (ii) where as a group, the holders of the equity investment at risk do not possess any one of the following: (a) the power through voting or similar rights to direct the activities that most significantly impact the entity's economic performance, (b) the obligation to absorb expected losses or the right to receive expected residual returns of the entity, or (c) proportionate voting and economic interests and where substantially all of the entity's activities either involve or are conducted on behalf of an investor with disproportionately fewer voting rights. If an entity has any of these characteristics, it is considered a VIE and is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that has both the power to direct the activities that most significantly impact the VIE's economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE.

In the normal course of its business, the Company sponsors various investment products, some of which are consolidated by the Company. CIP includes both VOEs, made up primarily of open-end funds in which the Company holds a controlling financial interest, and VIEs, which consist of collateralized loan obligations ("CLO") and certain global and private funds ("GF") of which the Company is considered the primary beneficiary. The consolidation and deconsolidation of these investment products have no impact on net income (loss) attributable to Virtus Investment Partners, Inc. The Company's risk with respect to these investment products is limited to its beneficial interests in these products. The Company has no right to the benefits from, and does not bear the risks associated with, these investment products beyond the Company's investments in, and fees generated from, these products.

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The following table presents the balances of CIP that, after intercompany eliminations, were reflected on the Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022:
As of
 September 30, 2023December 31, 2022
VOEsVIEsVOEsVIEs
(in thousands)CLOs GFsCLOsGFs
Cash and cash equivalents$865 $208,056 $1,509 $1,153 $249,003 $789 
Investments19,147 1,978,308 71,760 24,669 2,106,764 58,680 
Other assets110 33,143 1,228 295 43,993 1,157 
Notes payable— (1,943,949)— — (2,083,314)— 
Securities purchased payable and other liabilities(547)(183,520)(750)(573)(230,141)(183)
Noncontrolling interests(6,451)(5,448)(19,265)(7,879)(5,917)(10,389)
Net interests in CIP$13,124 $86,590 $54,482 $17,665 $80,388 $50,054 

Consolidated CLOs
The majority of the Company's CIP that are VIEs are CLOs. The financial information of certain CLOs is included on the Company's condensed consolidated financial statements on a one-month lag based upon the availability of their financial information. A majority-owned consolidated private fund, whose primary purpose is to invest in CLOs for which the Company serves as the collateral manager, is also included. At September 30, 2023, the Company consolidated eight CLOs. During the month of September 2023, one of the CLOs was issued and the Company made a $26.4 million investment in the subordinated notes.

Investments of CLOs
The CLOs held investments of $2.0 billion at September 30, 2023 consisting of bank loan investments that comprise the majority of the CLOs' portfolio asset collateral and are senior secured corporate loans across a variety of industries. These bank loan investments mature at various dates between 2023 and 2032 and pay interest at LIBOR or SOFR plus a spread. The CLOs have a reinvestment period where any prepayments received on bank loan investments may be reinvested. Generally, subsequent prepayments received after the reinvestment period must be used to pay down the note payable obligations. The reinvestment periods end between October 2019 and October 2026, depending on the CLO. At September 30, 2023, the fair value of the bank loan investments was less than the unpaid principal (par) balance by $107.0 million. At September 30, 2023, there were no material collateral assets in default.

Notes Payable of CLOs
The CLOs held notes payable with a total value, at par, of $2.2 billion at September 30, 2023, consisting of senior secured floating rate notes payable with a par value of $1.9 billion and subordinated notes with a par value of $237.4 million. These note obligations bear interest at variable rates based on LIBOR plus a pre-defined spread ranging from 0.8% to 9.1%. The principal amounts outstanding of these note obligations mature on dates ranging from October 2027 to October 2034.

The Company's beneficial interests and maximum exposure to loss related to these consolidated CLOs is limited to (i) ownership in the subordinated notes and (ii) accrued management fees. The secured notes of the consolidated CLOs have contractual recourse only to the related assets of the CLO and are classified as financial liabilities. Although these beneficial interests are eliminated upon consolidation, the application of the measurement alternative prescribed by ASU 2014-13, Consolidation (Topic 810) ("ASU 2014-13"), results in the net assets of the consolidated CLOs shown above to be equivalent to the beneficial interests retained by the Company at September 30, 2023, as shown in the table below:
(in thousands)
Subordinated notes$85,556 
Accrued investment management fees1,034 
Total Beneficial Interests$86,590 

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The following table represents income and expenses of the consolidated CLOs included on the Company’s Condensed Consolidated Statements of Operations for the period indicated:
Nine Months Ended September 30, 2023
(in thousands)
Income:
Realized and unrealized gain (loss), net$(3,317)
Interest income140,078 
Total Income136,761 
Expenses:
Other operating expenses1,236 
Interest expense112,153 
Total Expense113,389 
Noncontrolling interests(786)
Net Income (Loss) Attributable to CLOs$22,586 

The following table represents the Company’s own economic interests in the consolidated CLOs, which are eliminated upon consolidation:
Nine Months Ended September 30, 2023
(in thousands)
Distributions received and unrealized gains (losses) on the subordinated notes held by the Company$15,907 
Investment management fees6,679 
Total Economic Interests$22,586 

Fair Value Measurements of CIP
The assets and liabilities of CIP measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022 by fair value hierarchy level were as follows:
As of September 30, 2023
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$208,056 $— $— $208,056 
Debt investments167 1,976,568 61,939 2,038,674 
Equity investments 28,761 437 1,343 30,541 
Total assets measured at fair value$236,984 $1,977,005 $63,282 $2,277,271 
Liabilities
Notes payable$— $1,943,949 $— $1,943,949 
Short sales489 — — 489 
Total liabilities measured at fair value$489 $1,943,949 $— $1,944,438 

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As of December 31, 2022
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$249,003 $— $— $249,003 
Debt investments243 2,119,082 42,246 2,161,571 
Equity investments25,003 2,204 1,335 28,542 
Total assets measured at fair value$274,249 $2,121,286 $43,581 $2,439,116 
Liabilities
Notes payable$— $2,083,314 $— $2,083,314 
Short sales414 — — 414 
Total liabilities measured at fair value$414 $2,083,314 $— $2,083,728 

The following is a discussion of the valuation methodologies used for the assets and liabilities of the Company’s CIP measured at fair value:

Level 1 assets represent cash investments in money market funds and debt and equity investments that are valued using published net asset values or the official closing price on the exchange on which the securities are traded.

Level 2 assets represent most debt securities, including bank loans and certain equity securities (including non-U.S. securities), for which closing prices are not readily available or are deemed to not reflect readily available market prices, and are valued using an independent pricing service. Debt investments are valued based on quotations received from independent pricing services or from dealers who make markets in such securities. Bank loan investments, which are included as debt investments, are generally priced at the average mid-point of bid and ask quotations obtained from a third-party pricing service. Fair value may also be based upon valuations obtained from independent third-party brokers or dealers utilizing matrix pricing models that consider information regarding securities with similar characteristics.

Level 3 assets include debt and equity securities that are not widely traded, are illiquid or are priced by dealers based on pricing models used by market makers in the security.

Level 1 liabilities consist of short sales transactions in which a security is sold that is not owned or is owned but there is no intention to deliver, in anticipation that the price of the security will decline. Short sales are recorded on the Condensed Consolidated Balance Sheets within other liabilities of CIP and are classified as Level 1 based on the underlying equity security.

Level 2 liabilities consists of notes payables issued by CLOs and are measured using the measurement alternative in ASU 2014-13. Accordingly, the fair value of CLO liabilities was measured as the fair value of CLO assets less the sum of (i) the fair value of the beneficial interests held by the Company, and (ii) the carrying value of any beneficial interests that represent compensation for services. The fair value of the beneficial interests held by the Company is based on third-party pricing information without adjustment.

The securities purchased payable at September 30, 2023 and December 31, 2022 approximated fair value due to the short-term nature of the instruments.

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The following table is a reconciliation of assets of CIP for Level 3 investments for which significant unobservable inputs were used to determine fair value:
 Nine Months Ended September 30,
 (in thousands)
20232022
Balance at beginning of period$43,581 $3,157 
Realized gains (losses), net(4,306)(596)
Change in unrealized gains (losses), net3,980 (425)
Purchases3,430 1,930 
Amortization284 9 
Sales(7,890)(12,142)
Transfers to Level 2(79,288)(53,746)
Transfers from Level 2103,491 107,622 
Balance at end of period (1)$63,282 $45,809 
(1)The investments that are categorized as Level 3 were valued utilizing third-party pricing information without adjustment. Transfers in and/or out of levels are reflected when significant inputs, including market inputs or performance attributes, used for the fair value measurement become observable/unobservable at period end.

Nonconsolidated VIEs
The Company serves as the collateral manager for other CLOs that are not consolidated. The assets and liabilities of these CLOs reside in bankruptcy remote, special purpose entities in which the Company has no ownership of, nor holds any notes issued by, the CLOs, and provides neither recourse nor guarantees. The Company has determined that the investment management fees it receives for serving as collateral manager for these CLOs did not represent a variable interest as (i) the fees the Company earns are compensation for services provided and are commensurate with the level of effort required to provide the investment management services, (ii) the Company does not hold other interests in the CLOs that individually, or in the aggregate, would absorb more than an insignificant amount of the CLOs' expected losses or receive more than an insignificant amount of the CLOs' expected residual return, and (iii) the investment management arrangement only includes terms, conditions and amounts that are customarily present in arrangements for similar services negotiated at arm's length.
    
The Company has interests in certain other VIEs that the Company does not consolidate as it is not the primary beneficiary since its interest in these entities does not provide the Company with the power to direct the activities that most significantly impact the entities' economic performance. At September 30, 2023, the carrying value and maximum risk of loss related to the Company's interest in these VIEs was $25.3 million.


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Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations
Cautionary Statement Regarding Forward Looking Statements
This Quarterly Report on Form 10-Q contains statements that are, or may be considered to be, forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, as amended, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements that are not historical facts, including statements about our beliefs or expectations, are "forward-looking statements." These statements may be identified by such forward-looking terminology as "expect," "estimate," "intent," "plan," "intend," "believe," "anticipate," "may," "will," "should," "could," "continue," "project," "opportunity," "predict," "would," "potential," "future," "forecast," "guarantee," "assume," "likely," "target" or similar statements or variations of such terms.

Our forward-looking statements are based on a series of expectations, assumptions and projections about the Company and the markets in which we operate, are not guarantees of future results or performance, and involve substantial risks and uncertainty, including assumptions and projections concerning our assets under management, net asset inflows and outflows, operating cash flows, business plans and ability to borrow, for all future periods. All forward-looking statements contained in this Quarterly Report on Form 10-Q are as of the date of this Quarterly Report on Form 10-Q only.

We can give no assurance that such expectations or forward-looking statements will prove to be correct. Actual results may differ materially. We do not undertake or plan to update or revise any such forward-looking statements to reflect actual results, changes in plans, assumptions, estimates or projections, or other circumstances occurring after the date of this Quarterly Report on Form 10-Q, even if such results, changes or circumstances make it clear that any forward-looking information will not be realized. If there are any future public statements or disclosures by us that modify or impact any of the forward-looking statements contained in or accompanying this Quarterly Report on Form 10-Q, such statements or disclosures will be deemed to modify or supersede such statements in this Quarterly Report on Form 10-Q.

Our business and our forward-looking statements involve substantial known and unknown risks and uncertainties, including those discussed under "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our 2022 Annual Report on Form 10-K and this Quarterly Report on Form 10-Q, resulting from: (i) any reduction in our assets under management; (ii) inability to achieve the expected benefits of our strategic transactions; (iii) withdrawal, renegotiation or termination of investment advisory agreements; (iv) damage to our reputation; (v) inability to satisfy financial debt covenants and required payments; (vi) inability to attract and retain key personnel; (vii) challenges from competition; (viii) adverse developments related to unaffiliated subadvisers; (ix) negative changes in key distribution relationships; (x) interruptions, breaches, or failures of technology systems; (xi) loss on our investments; (xii) lack of sufficient capital on satisfactory terms; (xiii) adverse regulatory and legal developments; (xiv) failure to comply with investment guidelines or other contractual requirements; (xv) adverse civil litigation, government investigations, or proceedings; (xvi) unfavorable changes in tax laws or limitations; (xvii) inability to make common stock dividend payments; (xviii) impediments from certain corporate governance provisions; (xix) losses or costs not covered by insurance; (xx) impairment of goodwill or other intangible assets; and other risks and uncertainties. Any occurrence of, or any material adverse change in, one or more risk factors or risks and uncertainties referred to above, in our 2022 Annual Report on Form 10-K, this Quarterly Report on Form 10-Q and our other periodic reports filed with the Securities and Exchange Commission (the "SEC") could materially and adversely affect our operations, financial results, cash flows, prospects and liquidity.

Certain other factors that may impact our continuing operations, prospects, financial results and liquidity, or that may cause actual results to differ from such forward-looking statements, are discussed or included in the Company’s periodic reports filed with the SEC and are available on our website at www.virtus.com under "Investor Relations." You are urged to carefully consider all such factors.

Overview
    Our Business
We provide investment management and related services to institutions and individuals. We use a multi-manager, multi-style approach, offering investment strategies from affiliated managers, each having its own distinct investment style, autonomous investment process and individual brand, as well as from select unaffiliated subadvisers for certain of our retail funds. By offering a broad array of products, we believe we can appeal to a greater number of investors and have offerings across market cycles and through changes in investor preferences. Our earnings are primarily from asset-based fees charged for services relating to these various products, including investment management, fund administration, distribution, and shareholder services.


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We offer investment strategies for institutional and individual investors in different investment products and through multiple distribution channels. Our investment strategies are available in a diverse range of styles and disciplines, managed by differentiated investment managers. We have offerings in various asset classes (equity, fixed income, multi-asset and alternatives), geographies (domestic, global, international and emerging), market capitalizations (large, mid and small), styles (growth, core and value) and investment approaches (fundamental and quantitative). Our institutional products are offered through separate accounts and pooled or commingled structures to a variety of institutional clients. Our retail products include open-end funds, closed-end funds and retail separate accounts. We also provide subadvisory services to other investment advisers and serve as the collateral manager for structured products.

Our institutional distribution resources include affiliate specific sales teams primarily focused on the U.S. market, supported by shared consultant relation support and non-U.S. institutional distribution. Our institutional products are marketed through relationships with consultants as well as directly to clients. We target key market segments, including foundations and endowments, corporations, public and private pension plans, sovereign wealth funds and subadvisory relationships.

Our retail distribution resources in the U.S. consist of regional sales professionals, a national account relationship group and specialized teams for retirement and ETFs. Our U.S. retail funds and retail separate accounts are distributed through financial intermediaries. We have broad distribution access in the U.S. retail market, with distribution partners that include national and regional broker-dealers, independent broker-dealers and registered investment advisers, banks and insurance companies. In many of these firms, we have a number of products that are on preferred "recommended" lists and on fee-based advisory programs. Our private client business is marketed directly to individual clients by financial advisory teams at our affiliated investment managers.

Financial Highlights 
▪Net income per diluted share was $4.19 in the third quarter of 2023, a decrease of $0.06, or 1.4%, compared to net income per diluted share of $4.25 in the third quarter of 2022.
▪Total sales were $5.8 billion in the third quarter of 2023, an increase of $0.1 billion, or 1.5%, from $5.7 billion in the third quarter of 2022. Net flows were $(1.5) billion in the third quarter of 2023 compared to net flows of $(3.3) billion in the third quarter of 2022.
▪Assets under management were $162.5 billion at September 30, 2023, an increase of $17.6 billion, or 12.1%, from September 30, 2022.

AlphaSimplex
On April 1, 2023, the Company completed the acquisition of AlphaSimplex Group, LLC ("AlphaSimplex") for $113.4 million in cash at closing, including $50.0 million drawn from the Company's revolving credit facility. At September 30, 2023, the Company had repaid $30.0 million of the amount drawn on the credit facility.

Assets Under Management
At September 30, 2023, total assets under management were $162.5 billion, representing an increase of $17.6 billion, or 12.1%, from September 30, 2022, and an increase of $13.2 billion, or 8.8%, from December 31, 2022. The increase from September 30, 2022 was due to $19.3 billion of positive market performance and $7.8 billion from the acquisition of AlphaSimplex, partially offset by $6.8 billion of net outflows. The increase from December 31, 2022 was due to $10.5 billion in positive market performance and $7.8 billion from the acquisition of AlphaSimplex, partially offset by $3.4 billion of net outflows.


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Assets Under Management by Product
The following table summarizes our assets under management by product:
As of September 30,Change
(in millions)20232022$%
Open-End Funds (1)$54,145 $54,454 $(309)(0.6)%
Closed-End Funds9,472 10,146 (674)(6.6)%
Retail Separate Accounts38,665 33,381 5,284 15.8 %
Institutional Accounts (2)60,257 46,993 13,264 28.2 %
Total$162,539 $144,974 $17,565 12.1 %
Average Assets Under Management (3)$161,074 $172,853 $(11,779)(6.8)%
(1)Represents assets under management of U.S. retail funds, global funds, ETFs and variable insurance funds.
(2)Represents assets under management of institutional separate and commingled accounts including structured products.
(3)Averages are calculated as follows:
–Funds - average daily or weekly balances
–Retail Separate Accounts - prior-quarter ending balances
–Institutional Accounts - average of month-end balances


Asset Flows by Product    
The following table summarizes asset flows by product:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2023202220232022
Open-End Funds (1)
Beginning balance$56,828 $59,479 $53,000 $78,706 
Inflows2,687 2,880 8,248 10,956 
Outflows(4,137)(5,689)(13,621)(21,710)
Net flows(1,450)(2,809)(5,373)(10,754)
Market performance(1,034)(2,012)3,900 (17,919)
Other (2)(199)(204)2,618 4,421 
Ending balance$54,145 $54,454 $54,145 $54,454 
Closed-End Funds
Beginning balance$10,166 $10,645 $10,361 $12,068 
Inflows— 157 24 189 
Outflows— — — — 
Net flows— 157 24 189 
Market performance(504)(531)(300)(1,977)
Other (2)(190)(125)(613)(134)
Ending balance$9,472 $10,146 $9,472 $10,146 
Retail Separate Accounts
Beginning balance$38,992 $35,248 $35,352 $44,538 
Inflows1,849 1,179 4,562 4,489 
Outflows(1,524)(1,418)(4,246)(4,789)
Net flows325 (239)316 (300)
Market performance(652)(1,628)2,997 (10,857)
Other (2)— — — — 
Ending balance$38,665 $33,381 $38,665 $33,381 
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Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2023202220232022
Institutional Accounts (3)
Beginning balance$62,330 $50,048 $50,663 $51,874 
Inflows1,274 1,507 6,786 7,408 
Outflows(1,648)(1,930)(5,173)(6,585)
Net flows(374)(423)1,613 823 
Market performance(1,434)(2,475)3,912 (15,144)
Other (2)(265)(157)4,069 9,440 
Ending balance$60,257 $46,993 $60,257 $46,993 
Total
Beginning balance$168,316 $155,420 $149,376 $187,186 
Inflows5,810 5,723 19,620 23,042 
Outflows(7,309)(9,037)(23,040)(33,084)
Net flows(1,499)(3,314)(3,420)(10,042)
Market performance(3,624)(6,646)10,509 (45,897)
Other (2)(654)(486)6,074 13,727 
Ending balance$162,539 $144,974 $162,539 $144,974 
(1)Represents assets under management of U.S. retail funds, global funds, ETFs and variable insurance funds.
(2)Represents open-end and closed-end fund distributions net of reinvestments, the net change in assets from cash management strategies, and the impact of non-sales related activities such as asset acquisitions/(dispositions), seed capital investments/(withdrawals), current income or capital returned by structured products and the use of leverage.
(3)Represents assets under management of institutional separate and commingled accounts including structured products.


Assets Under Management by Asset Class
The following table summarizes assets under management by asset class:
 As of September 30,Change% of Total
(in millions)20232022$%20232022
Asset Class
Equity$87,984 $78,034 $9,950 12.8 %54.1 %53.7 %
Fixed income37,352 36,910 442 1.2 %23.0 %25.5 %
Multi-asset (1)19,937 19,364 573 3.0 %12.3 %13.4 %
Alternatives (2)17,266 10,666 6,600 61.9 %10.6 %7.4 %
Total$162,539 $144,974 $17,565 12.1 %100.0 %100.0 %
 
(1)     Consists of strategies and client accounts with substantial holdings in at least two of the following asset classes: equity, fixed income, and alternatives.
(2)     Consists of managed futures, event-driven, real estate securities, infrastructure, long/short, and other strategies.


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Average Assets Under Management and Average Fees Earned
The following tables summarize the average management fees earned in basis points and average assets under management:
 Three Months Ended September 30,
Average Fee Earned
(expressed in basis points)
Average Assets Under
 Management
 (in millions) (3)
 2023202220232022
Products
Open-End Funds (1)51.1 46.8 $56,511 $60,185 
Closed-End Funds58.2 57.0 10,001 10,971 
Retail Separate Accounts43.3 42.2 38,992 35,248 
Institutional Accounts (2)30.3 31.3 62,368 50,668 
All Products42.0 41.5 $167,872 $157,072 
 Nine Months Ended September 30,
Average Fee Earned
(expressed in basis points)
Average Assets Under
 Management
 (in millions) (3)
 2023202220232022
Products
Open-End Funds (1)49.446.4$55,591 $67,105 
Closed-End Funds57.657.4$10,216 $11,379 
Retail Separate Accounts43.942.9$37,247 $40,203 
Institutional Accounts (2)31.231.1$58,020 $54,166 
All Products42.141.5$161,074 $172,853 
(1)Represents assets under management of U.S. retail funds, global funds, ETFs and variable insurance funds.
(2)Represents assets under management of institutional separate and commingled accounts including structured products.
(3)Averages are calculated as follows:
–Funds - average daily or weekly balances
–Retail Separate Accounts - prior-quarter ending balances
–Institutional Accounts - average of month-end balances

Average fees earned represent investment management fees, net of revenue-related adjustments, divided by average net assets, excluding the impact of consolidated investment products ("CIP"). Revenue-related adjustments are based on specific agreements and reflect the portion of investment management fees passed-through to third-party client intermediaries for services to investors in sponsored investment products. Fund fees are calculated based on average daily or weekly net assets. Retail separate account fees are calculated based on the end of the preceding or current quarter’s asset values or on an average of month-end balances. Institutional account fees are calculated based on an average of month-end balances, an average of current quarter’s asset values or on a combination of the underlying cash flows and the principal value of the product. Average fees earned will vary based on several factors, including the asset mix and expense reimbursements to the funds.

The average fee rate earned on all products for the three and nine months ended September 30, 2023 increased by 0.5 basis points and 0.6 basis points, respectively, compared to the same periods in the prior year primarily due to the addition of alternative strategies with higher fee rates from the AlphaSimplex acquisition.

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Results of Operations
Summary Financial Data
Three Months Ended
September 30,		ChangeNine Months Ended
September 30,		Change
(in thousands)20232022$%20232022$%
Investment management fees$184,869 $172,850 $12,019 7.0 %$529,326 $564,691 $(35,365)(6.3)%
Other revenue34,402 37,411 (3,009)(8.0)%101,355 123,317 (21,962)(17.8)%
Total revenues219,271 210,261 9,010 4.3 %630,681 688,008 (57,327)(8.3)%
Total operating expenses174,368 166,244 8,124 4.9 %518,153 521,769 (3,616)(0.7)%
Operating income (loss)44,903 44,017 886 2.0 %112,528 166,239 (53,711)(32.3)%
Other income (expense), net(2,803)(11,592)8,789 (75.8)%(1,446)(59,262)57,816 (97.6)%
Interest income (expense), net8,235 5,744 2,491 43.4 %23,689 17,785 5,904 33.2 %
Income (loss) before income taxes50,335 38,169 12,166 31.9 %134,771 124,762 10,009 8.0 %
Income tax expense (benefit)12,181 10,754 1,427 13.3 %31,794 43,969 (12,175)(27.7)%
Net income (loss)38,154 27,415 10,739 39.2 %102,977 80,793 22,184 27.5 %
Noncontrolling interests(7,248)4,265 (11,513)(269.9)%(3,190)1,348 (4,538)(336.6)%
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.$30,906 $31,680 $(774)(2.4)%$99,787 $82,141 $17,646 21.5 %
Earnings (loss) per share-diluted$4.19 $4.25 $(0.06)(1.4)%$13.50 $10.76 $2.74 25.5 %
In the third quarter of 2023, total revenues increased 4.3% to $219.3 million from $210.3 million in the third quarter of 2022, primarily as a result of the addition of AlphaSimplex. Operating income increased $0.9 million to $44.9 million in the third quarter of 2023 compared to $44.0 million in the third quarter of 2022, due primarily to the aforementioned increased revenue, partially offset by increased operating expenses due to the addition of AlphaSimplex.

Revenues
Revenues by source were as follows:
Three Months Ended
September 30,		ChangeNine Months Ended
September 30,		Change
(in thousands)20232022$%20232022$%
Investment management fees
Open-end funds$80,294 $80,234 $60 0.1 %$229,721 $262,486 $(32,765)(12.5)%
Closed-end funds14,673 15,773 (1,100)(7.0)%44,025 48,887 (4,862)(9.9)%
Retail separate accounts44,441 39,154 5,287 13.5 %127,323 134,069 (6,746)(5.0)%
Institutional accounts45,461 37,689 7,772 20.6 %128,257 119,249 9,008 7.6 %
Total investment management fees184,869 172,850 12,019 7.0 %529,326 564,691 (35,365)(6.3)%
Distribution and service fees14,333 15,746 (1,413)(9.0)%42,618 52,912 (10,294)(19.5)%
Administration and shareholder service fees19,069 20,563 (1,494)(7.3)%55,668 66,889 (11,221)(16.8)%
Other income and fees1,000 1,102 (102)(9.3)%3,069 3,516 (447)(12.7)%
Total revenues$219,271 $210,261 $9,010 4.3 %$630,681 $688,008 $(57,327)(8.3)%

Investment Management Fees
Investment management fees are earned based on a percentage of assets under management and are paid pursuant to the terms of the respective investment management contracts, which generally require monthly or quarterly payments. Investment management fees increased by $12.0 million, or 7.0%, and decreased $35.4 million, or 6.3%, for the three and nine months ended September 30, 2023, respectively, compared to the same periods in the prior year. The increase for the three months ended September 30, 2023 was primarily due to the addition of AlphaSimplex. The decrease for the nine months ended September 30, 2023 was primarily due to lower average assets under management, partially offset by the addition of AlphaSimplex.

Distribution and Service Fees
Distribution and service fees are sales- and asset-based fees earned from open-end funds for marketing and distribution services. Distribution and service fees decreased by $1.4 million, or 9.0%, and $10.3 million, or 19.5%, for the three and nine months ended September 30, 2023, respectively, compared to the same periods in the prior year, primarily due to lower average assets for open-end funds in share classes that have sales- and asset-based distribution and service fees.
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Administration and Shareholder Service Fees
Administration and shareholder service fees represent fees earned for fund administration and shareholder services from our U.S. retail funds and certain of our closed-end funds. Fund administration and shareholder service fees decreased by $1.5 million, or 7.3%, and $11.2 million, or 16.8%, for the three and nine months ended September 30, 2023, respectively, compared to the same periods in the prior year primarily due to the decrease in average assets under management in open-end funds during the periods as a result of market performance and net outflows.

Other Income and Fees
Other income and fees primarily represent fees related to other fee-earning assets and contingent sales charges earned from investor redemptions of certain shares sold without a front-end sales charge. Other income and fees decreased by $0.1 million, or 9.3%, and $0.4 million, or 12.7%, for the three and nine months ended September 30, 2023, respectively, compared to the same periods in the prior year. The decline was primarily due to lower redemption income as well as the decline in average other fee-earning assets in the current year periods.

Operating Expenses
Operating expenses by category were as follows:
Three Months Ended
September 30,		ChangeNine Months Ended
September 30,		Change
(in thousands)20232022$%20232022$%
Operating expenses
Employment expenses$101,587 $88,230 $13,357 15.1 %$304,895 $283,583 $21,312 7.5 %
Distribution and other asset-based expenses24,157 26,818 (2,661)(9.9)%73,332 88,247 (14,915)(16.9)%
Other operating expenses30,494 31,096 (602)(1.9)%94,707 94,367 340 0.4 %
Other operating expenses of CIP553 538 15 2.8 %1,613 1,927 (314)(16.3)%
Restructuring expense691 4,015 (3,324)(82.8)%691 4,015 (3,324)(82.8)%
Change in fair value of contingent consideration— — — — %(6,800)2,900 (9,700)(334.5)%
Depreciation expense1,504 938 566 60.3 %4,134 2,835 1,299 45.8 %
Amortization expense15,382 14,609 773 5.3 %45,581 43,895 1,686 3.8 %
Total operating expenses$174,368 $166,244 $8,124 4.9 %$518,153 $521,769 $(3,616)(0.7)%

Employment Expenses
Employment expenses consist of fixed and variable compensation and related employee benefit costs. Employment expenses for the three and nine months ended September 30, 2023 were $101.6 million and $304.9 million, respectively, which represented an increase of $13.4 million, or 15.1%, and $21.3 million, or 7.5%, respectively, compared to the same periods in the prior year. The increases were primarily due to the addition of AlphaSimplex, which includes retention payments to employees as part of the transaction consideration that were classified as employment expense.

Distribution and Other Asset-Based Expenses
Distribution and other asset-based expenses consist primarily of payments to third-party client intermediaries for providing services to investors in sponsored investment products. These payments are primarily based on assets under management. Distribution and other asset-based expenses also include the amortization of deferred sales commissions related to up-front commissions on shares sold without a front-end sales charge to shareholders. The deferred sales commissions are amortized on a straight-line basis over the period commissions are recovered from distribution fee revenues and contingent sales charges received upon redemption of shares. During the three and nine months ended September 30, 2023, distribution and other asset-based expenses decreased $2.7 million, or 9.9%, and $14.9 million, or 16.9%, respectively, compared to the same periods in the prior year primarily due to a decrease in assets under management in share classes that have asset-based distribution and other asset-based expenses.

Other Operating Expenses
Other operating expenses primarily consist of investment research and technology costs, professional fees, travel-and distribution-related costs, rent and occupancy expenses, and other business costs. Other operating expenses decreased $0.6 million, or 1.9%, and increased $0.3 million, or 0.4%, for the three and nine months ended September 30, 2023, respectively, compared to the same periods in the prior year. The decrease in the three-month period ended September 30, 2023 was
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primarily attributable to lower legal expenses and other third-party support costs partially offset by the addition of AlphaSimplex. The increase for the nine-month period ended September 30, 2023 was primarily due to the addition of AlphaSimplex, partially offset by a decrease in other third-party support costs.

Other Operating Expenses of CIP
Other operating expenses of CIP remained consistent during the three and nine months ended September 30, 2023 compared to the respective periods in the prior year.

Change in Fair Value of Contingent Consideration
Contingent consideration related to the Company's acquisitions are fair valued on each reporting date taking into consideration changes in various estimates, including underlying performance estimates, discount rates and amount of time until the conditions of the contingent payments are achieved. The change in fair value is recorded in the current period as a gain or loss. The $9.7 million change in fair value of contingent consideration for the nine months ended September 30, 2023 compared to the respective period in the prior year was primarily attributable to changes in underlying performance estimates and discount rates.

Depreciation Expense
Depreciation expense consists primarily of the straight-line depreciation of furniture, equipment and leasehold improvements. Depreciation expense increased $0.6 million, or 60.3%, and $1.3 million, or 45.8%, for the three and nine months ended September 30, 2023, respectively, compared to the respective periods in the prior year. The increases were primarily due to the addition of AlphaSimplex, as well as software and equipment purchases made in the current year periods.

Amortization Expense
Amortization expense consists of the amortization of definite-lived intangible assets over their estimated useful lives. Amortization expense increased $0.8 million, or 5.3%, and $1.7 million, or 3.8%, for the three and nine months ended September 30, 2023, respectively, compared to the same periods in the prior year, primarily due to the addition of AlphaSimplex.

Other Income (Expense)
Other Income (Expense), net by category were as follows:
Three Months Ended
September 30,		ChangeNine Months Ended
September 30,		Change
(in thousands)20232022$%20232022$%
Other Income (Expense)
Realized and unrealized gain (loss) on investments, net$(1,918)$(2,493)$575 (23.1)%$2,469 $(16,018)$18,487 (115.4)%
Realized and unrealized gain (loss) of CIP, net(1,013)(8,440)7,427 (88.0)%(2,853)(43,443)40,590 (93.4)%
Other income (expense), net128 (659)787 (119.4)%(1,062)199 (1,261)(633.7)%
Total Other Income (Expense), net$(2,803)$(11,592)$8,789 (75.8)%$(1,446)$(59,262)$57,816 (97.6)%

Realized and unrealized gain (loss) on investments, net
Realized and unrealized gain (loss) on investments, net changed during the three and nine months ended September 30, 2023 by $0.6 million and $18.5 million, respectively, compared to the same periods in the prior year. The realized and unrealized gains and losses reflect changes in overall market conditions for the respective periods.

Realized and unrealized gain (loss) of CIP, net
Realized and unrealized gain (loss) of CIP, net changed by $7.4 million and $40.6 million during the three and nine months ended September 30, 2023, respectively, compared to the same periods in the prior year. The change for the three months ended September 30, 2023 consisted primarily of unrealized gains of $41.8 million due to changes in market values of leveraged loans, partially offset by changes in unrealized losses of $34.4 million related to the value of the notes payable. The change for the nine months ended September 30, 2023 consisted primarily of unrealized gains of $124.8 million due to changes in market values of leveraged loans, partially offset by changes in unrealized losses of $84.2 million related to the value of the notes payable.

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Other income (expense), net    
Other income (expense), net changed by $0.8 million and $1.3 million during the three and nine months ended September 30, 2023, respectively, compared to the same periods in the prior year primarily due to changes in the gains and losses on our equity method investments.

Interest Income (Expense)
Interest Income (Expense), net by category were as follows:
Three Months Ended
September 30,		ChangeNine Months Ended
September 30,		Change
(in thousands)20232022$%20232022$%
Interest Income (Expense)
Interest expense$(6,222)$(3,557)$(2,665)74.9 %$(17,444)$(8,661)$(8,783)101.4 %
Interest and dividend income2,872 1,013 1,859 183.5 %8,785 1,870 6,915 369.8 %
Interest and dividend income of investments of CIP49,803 28,644 21,159 73.9 %144,501 71,436 73,065 102.3 %
Interest expense of CIP(38,218)(20,356)(17,862)87.7 %(112,153)(46,860)(65,293)139.3 %
Total Interest Income (Expense), net$8,235 $5,744 $2,491 43.4 %$23,689 $17,785 $5,904 33.2 %

Interest Expense
Interest expense increased $2.7 million, or 74.9%, and $8.8 million, or 101.4%, during the three and nine months ended September 30, 2023, respectively, compared to the same periods in the prior year. The increases were attributable to higher average interest rates and higher average debt balances during the current year periods.

Interest and Dividend Income
Interest and dividend income increased $1.9 million, or 183.5%, and $6.9 million, or 369.8%, during the three and nine months ended September 30, 2023, respectively, compared to the same periods in the prior year. The increases were primarily attributable to higher interest earned on cash balances during the current year periods compared to the prior year periods.

Interest and Dividend Income of Investments of CIP    
Interest and dividend income of investments of CIP increased $21.2 million, or 73.9%, and $73.1 million, or 102.3%, for the three and nine months ended September 30, 2023, respectively, compared to the same periods in the prior year. The increases were primarily due to higher average interest rates during the current year periods and the addition of a CLO in the third and fourth quarter of 2023 and 2022, respectively.

Interest Expense of CIP    
Interest expense of CIP represents interest expense on the notes payable of CIP. Interest expense of CIP increased $17.9 million, or 87.7%, and $65.3 million, or 139.3%, for the three and nine months ended September 30, 2023, respectively, compared to the same periods in the prior year. The increases during the three and nine months ended September 30, 2023 were primarily due to higher average interest rates and the addition of a CLO in the third and fourth quarter of 2023 and 2022 respectively.

Income Tax Expense (Benefit)
The provision for income taxes reflected U.S. federal, state and local taxes at an estimated effective tax rate of 23.6% and 35.2% for the nine months ended September 30, 2023 and 2022, respectively. The lower estimated effective tax rate for the nine months ended September 30, 2023 was primarily due to excess tax benefits associated with stock-based compensation and the change in valuation allowances in the current year related to the tax effects of unrealized gains on certain of our investments. The higher effective tax rate in the prior-year period was due to valuation allowances recorded for the tax effects of unrealized losses on certain of our investments.


28
Liquidity and Capital Resources
Certain Financial Data
The following table summarizes certain financial data relating to our liquidity and capital resources:
 September 30, 2023December 31, 2022Change
(in thousands)$%
Balance Sheet Data
Cash and cash equivalents$195,403 $338,234 $(142,831)(42.2)%
Investments152,349 100,330 52,019 51.8 %
Contingent consideration94,421 128,400 (33,979)(26.5)%
Debt273,815 255,025 18,790 7.4 %
Redeemable noncontrolling interests96,266 113,718 (17,452)(15.3)%
Total equity867,552 822,936 44,616 5.4 %
 
 Nine Months Ended
September 30,		Change
(in thousands)20232022$%
Cash Flow Data
Provided by (Used in):
Operating activities$229,840 $154,850 $74,990 48.4 %
Investing activities(127,349)(25,747)(101,602)394.6 %
Financing activities(285,769)(318,968)33,199 (10.4)%

Overview
At September 30, 2023, we had $195.4 million of cash and cash equivalents and $152.3 million of investments, which included $118.5 million of investment securities, compared to $338.2 million of cash and cash equivalents and $100.3 million of investments, which included $77.0 million of investment securities, at December 31, 2022.

Uses of Capital
Our main uses of capital related to operating activities comprise employee compensation and related benefit costs, other operating expenses, which primarily consist of investment research, technology costs, professional fees, distribution and occupancy costs, interest on our indebtedness and income taxes. Annual incentive compensation, which is one of the largest annual operating cash expenditures, is typically paid in the first quarter of the year. In the first quarters of 2023 and 2022, we paid $142.1 million and $151.6 million, respectively, in incentive compensation earned during the years ended December 31, 2022 and 2021, respectively.

In addition to operating activities, other uses of cash could include: (i) investments in organic growth, including seeding or launching new products and expanding distribution; (ii) debt principal payments through scheduled amortization, excess cash flow payment requirements or additional paydowns; (iii) dividend payments to common stockholders; (iv) repurchases of our common stock, or withholding obligations for the net settlement of employee share transactions; (v) investments in our infrastructure; (vi) investments in inorganic growth opportunities that may require upfront and/or future payments; (vii) integration costs, including restructuring and severance, related to acquisitions, if any; and (viii) purchases of affiliate equity interests.
    
Capital and Reserve Requirements
We operate an SEC registered broker-dealer subsidiary that is subject to certain rules regarding minimum net capital. Failure to meet these requirements could result in adverse consequences to us, including additional reporting requirements or interruption of our business. At September 30, 2023, our broker-dealer net capital was significantly greater than the required minimum.

Balance Sheet
Cash and cash equivalents consist of cash in banks and money market fund investments. Investments consist primarily of investments in our sponsored funds. CIP represent investment products for which we provide investment management
29
services and where we either have a controlling financial interest or are considered the primary beneficiary of an investment product that is considered a variable interest entity.

Operating Cash Flow
Net cash provided by operating activities of $229.8 million for the nine months ended September 30, 2023 increased by $75.0 million from net cash provided by operating activities of $154.9 million for the same period in the prior year primarily due to an increase of $129.9 million in net sales of investments by CIP.

Investing Cash Flow
Cash flows from investing activities consist primarily of capital expenditures and other investing activities related to our business operations. Net cash used in investing activities was $127.3 million for the nine months ended September 30, 2023 compared to net cash used in investing activities of $25.7 million in the same period for the prior year. The increase in cash used in investing activities during the nine months ended September 30, 2023 compared to the prior year period was primarily due to the acquisition of AlphaSimplex.

Financing Cash Flow
Cash flows from financing activities consist primarily of transactions related to our common shares, issuance and repayment of debt by us and CIP, payments of contingent consideration and changes to noncontrolling interests. Net cash used in financing activities decreased by $33.2 million to $285.8 million for the nine months ended September 30, 2023 from $319.0 million for the nine months ended September 30, 2022. The net change was primarily due to a $55.0 million decrease in share repurchases and an increase of $30.0 million in net borrowings on the credit agreement in the current year, partially offset by a $54.9 million increase on the repayment on borrowings of CIP.

Credit Agreement
The Company's credit agreement (the "Credit Agreement"), most recently amended on June 20, 2023, changing the base interest rate from LIBOR to SOFR, comprises (i) a $275.0 million term loan with a seven-year term (the "Term Loan") expiring in September 2028, and (ii) a $175.0 million revolving credit facility with a five-year term expiring in September 2026. During the nine months ended September 30, 2023, the Company repaid $30.0 million and $2.1 million outstanding under the revolving credit facility and Term Loan, respectively. At September 30, 2023, $20.0 million and $259.5 million were outstanding under the revolving credit facility and Term Loan, respectively. In accordance with ASC 835, Interest, the amounts outstanding under the Company's Term Loan are presented on the Condensed Consolidated Balance Sheet net of related debt issuance costs, which were $5.7 million as of September 30, 2023.

Critical Accounting Policies and Estimates
Our financial statements and the accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America, which require the use of estimates. Actual results will vary from these estimates. A discussion of our critical accounting policies and estimates is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2022 Annual Report on Form 10-K. A complete description of our significant accounting policies is included in our 2022 Annual Report on Form 10-K. There were no material changes in our critical accounting policies and estimates in the three months ended September 30, 2023.

Recently Issued Accounting Pronouncements
For a discussion of accounting standards, see Note 2 in our condensed consolidated financial statements. 


Item 3.    Quantitative and Qualitative Disclosures About Market Risk
The Company is primarily exposed to market risk associated with unfavorable movements in interest rates and securities prices. During the three and nine months ended September 30, 2023, there were no material changes to the information contained in Part II, Item 7A of the Company's 2022 Annual Report on Form 10-K.


Item 4.    Controls and Procedures
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and that such information is
30
accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on their evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective at the reasonable assurance level as of September 30, 2023, the end of the period covered by this Quarterly Report on Form 10-Q.

Changes in Internal Control over Financial Reporting
There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) or 15d-15(f) under the Exchange Act) that occurred during the period covered by this Quarterly Report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.


PART II – OTHER INFORMATION
 
Item 1.    Legal Proceedings
The information set forth in response to Item 103 of Regulation S-K under "Legal Proceedings" is incorporated by reference from Part I, Financial Information Item 1. "Financial Statements" Note 14 "Commitments and Contingencies" of this Quarterly Report on Form 10-Q.


Item 1A.    Risk Factors    
There have been no material changes to the Company’s risk factors from those previously reported in our 2022 Annual Report on Form 10-K.


Item 2.    Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities
An aggregate of 5,680,045 shares of our common stock have been authorized to be repurchased under a share repurchase program since it was initially approved in 2010 by our Board of Directors. As of September 30, 2023, 702,497 shares remained available for repurchase. Under the terms of the program, we may repurchase shares of our common stock from time to time at our discretion through open market repurchases, privately negotiated transactions and/or other mechanisms, depending on price, prevailing market and business conditions, tax and other financial considerations. The program, which has no specified term, may be suspended or terminated at any time.

The following table sets forth information regarding our share repurchases in each month during the quarter ended September 30, 2023.
PeriodTotal number of shares purchasedAverage price paid per share (1)Total number of shares purchased as part of publicly announced plans or programs (2)Maximum number of shares that may yet be purchased under the plans or programs (2)
July 1-31, 20231,900 $206.69 1,900 774,612 
August 1-31, 202343,618 $201.82 43,618 730,994 
September 1-30, 202328,497 $203.60 28,497 702,497 
Total74,015 74,015 

(1)Average price paid per share is calculated on a settlement basis and excludes commissions.    
(2)The share repurchases above were completed pursuant to a program announced in the fourth quarter of 2010 and most recently expanded in May 2022. This repurchase program is not subject to an expiration date.

31


Item 5.    Other Information
During the three months ended September 30, 2023, none of the Company's directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934, as amended), adopted, terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K of the Securities Act of 1933, as amended).

Item 6.    Exhibits
Exhibit
Number
Description
Certification of the Registrant’s Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Certification of the Registrant’s Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Certification of the Registrant’s Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101The following information is formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets (Unaudited) as of September 30, 2023 and December 31, 2022, (ii) Condensed Consolidated Statements of Operations (Unaudited) for the three and nine months ended September 30, 2023 and 2022, (iii) Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the three and nine months ended September 30, 2023 and 2022, (iv) Condensed Consolidated Statements of Cash Flows (Unaudited) for the nine months ended September 30, 2023 and 2022, (v) Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended September 30, 2023 and 2022 and (vi) Notes to Condensed Consolidated Financial Statements (Unaudited).
104Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101)


32
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: November 8, 2023
VIRTUS INVESTMENT PARTNERS, INC.
(Registrant)
By:/s/ Michael A. Angerthal
Michael A. Angerthal
Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)


Exhibit 31.1
CERTIFICATION UNDER SECTION 302
I, George R. Aylward, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of Virtus Investment Partners, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: November 8, 2023
 
/S/     GEORGE R. AYLWARD
George R. Aylward
President, Chief Executive Officer and Director
(Principal Executive Officer)



Exhibit 31.2
CERTIFICATION UNDER SECTION 302
I, Michael A. Angerthal, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of Virtus Investment Partners, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: November 8, 2023
 
/S/     MICHAEL A. ANGERTHAL
Michael A. Angerthal
Executive Vice President, Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)



Exhibit 32.1
CERTIFICATIONS OF CEO AND CFO PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with this Quarterly Report on Form 10-Q of Virtus Investment Partners, Inc. (the “Company”) for the period ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:
 
(1)the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Dated: November 8, 2023
 
/S/    GEORGE R. AYLWARD
George R. Aylward
President, Chief Executive Officer and Director
(Principal Executive Officer)
 
/S/    MICHAEL A. ANGERTHAL
Michael A. Angerthal
Executive Vice President, Chief Financial Officer
(Principal Financial Officer and
Principal Accounting Officer)


v3.23.3
Cover - shares
 9 Months Ended
Sep. 30, 2023
Oct. 27, 2023
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2023  
Document Transition Report false  
Entity File Number 001-10994  
Entity Registrant Name VIRTUS INVESTMENT PARTNERS, INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 26-3962811  
Entity Address, Address Line One One Financial Plaza  
Entity Address, City or Town Hartford  
Entity Address, State or Province CT  
Entity Address, Postal Zip Code 06103  
City Area Code 800  
Local Phone Number 248-7971  
Title of 12(b) Security Common Stock, $0.01 par value  
Trading Symbol VRTS  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   7,184,989
Amendment Flag false  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q3  
Entity Central Index Key 0000883237  
Current Fiscal Year End Date --12-31  
v3.23.3
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Assets:    
Accounts receivable, net $ 107,014 $ 99,274
Furniture, equipment and leasehold improvements, net 25,503 19,123
Intangible assets, net 452,338 442,519
Goodwill 397,098 348,836
Deferred taxes, net 23,659 23,171
Total assets 3,765,299 3,952,934
Liabilities:    
Accrued compensation and benefits 161,745 181,805
Accounts payable and accrued liabilities 32,740 33,200
Dividends payable 16,860 15,812
Contingent consideration 94,421 128,400
Debt 273,815 255,025
Other liabilities 93,134 87,827
Total liabilities 2,801,481 3,016,280
Commitments and Contingencies (Note 14)
Redeemable noncontrolling interests 96,266 113,718
Equity attributable to Virtus Investment Partners, Inc.:    
Common stock, $0.01 par value, 1,000,000,000 shares authorized; 12,160,311 shares issued and 7,182,763 shares outstanding at September 30, 2023; and 12,033,247 shares issued and 7,181,554 shares outstanding at December 31, 2022 122 120
Additional paid-in capital 1,295,988 1,286,244
Retained earnings (accumulated deficit) 190,615 130,261
Accumulated other comprehensive income (loss) (373) (358)
Treasury stock, at cost, 4,977,548 and 4,851,693 shares at September 30, 2023 and December 31, 2022, respectively (624,248) (599,248)
Total equity attributable to Virtus Investment Partners, Inc. 862,104 817,019
Total equity 867,552 822,936
Total liabilities and equity 3,765,299 3,952,934
Consolidated entity excluding consolidated investment products    
Assets:    
Cash and cash equivalents 195,403 338,234
Investments 152,349 100,330
Other assets 97,809 94,944
Consolidated Investment Products    
Assets:    
Cash and cash equivalents 209,747 250,301
Investments 2,069,215 2,190,113
Cash pledged or on deposit of CIP 683 644
Other assets 34,481 45,445
Liabilities:    
Notes payable of CIP 1,943,949 2,083,314
Securities purchased payable and other liabilities of CIP 184,817 230,897
Equity attributable to Virtus Investment Partners, Inc.:    
Noncontrolling interests $ 5,448 $ 5,917
v3.23.3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Sep. 30, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 1,000,000,000 1,000,000,000
Common stock, shares issued (in shares) 12,160,311 12,033,247
Common stock, shares outstanding (in shares) 7,182,763 7,181,554
Treasury stock, shares (in shares) 4,977,548 4,851,693
v3.23.3
Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Revenues        
Revenues $ 219,271 $ 210,261 $ 630,681 $ 688,008
Operating Expenses        
Employment expenses 101,587 88,230 304,895 283,583
Distribution and other asset-based expenses 24,157 26,818 73,332 88,247
Change in fair value of contingent consideration 0 0 (6,800) 2,900
Restructuring expense     691 4,015
Depreciation expense 1,504 938 4,134 2,835
Amortization expense 15,382 14,609 45,581 43,895
Total operating expenses 174,368 166,244 518,153 521,769
Operating Income (Loss) 44,903 44,017 112,528 166,239
Other Income (Expense)        
Other income (expense), net 128 (659) (1,062) 199
Total other income (expense), net (2,803) (11,592) (1,446) (59,262)
Interest Income (Expense)        
Total interest income (expense), net 8,235 5,744 23,689 17,785
Income (Loss) Before Income Taxes 50,335 38,169 134,771 124,762
Income tax expense (benefit) 12,181 10,754 31,794 43,969
Net Income (Loss) 38,154 27,415 102,977 80,793
Noncontrolling interests (7,248) 4,265 (3,190) 1,348
Net Income (Loss) Attributable to Virtus Investment Partners, Inc. $ 30,906 $ 31,680 $ 99,787 $ 82,141
Earnings (Loss) per Share—Basic (in dollars per share) $ 4.26 $ 4.33 $ 13.72 $ 11.05
Earnings (Loss) per Share—Diluted (in dollars per share) $ 4.19 $ 4.25 $ 13.50 $ 10.76
Weighted Average Shares Outstanding—Basic (in shares) 7,258 7,308 7,272 7,434
Weighted Average Shares Outstanding—Diluted (in shares) 7,379 7,463 7,393 7,636
Consolidated entity excluding consolidated investment products        
Operating Expenses        
Other operating expenses $ 30,494 $ 31,096 $ 94,707 $ 94,367
Other Income (Expense)        
Realized and unrealized gain (loss) on investments, net (1,918) (2,493) 2,469 (16,018)
Interest Income (Expense)        
Interest expense (6,222) (3,557) (17,444) (8,661)
Interest and dividend income 2,872 1,013 8,785 1,870
Consolidated Investment Products        
Operating Expenses        
Other operating expenses 553 538 1,613 1,927
Other Income (Expense)        
Realized and unrealized gain (loss) on investments, net (1,013) (8,440) (2,853) (43,443)
Interest Income (Expense)        
Interest expense (38,218) (20,356) (112,153) (46,860)
Interest and dividend income 49,803 28,644 144,501 71,436
Investment management fees        
Revenues        
Revenues 184,869 172,850 529,326 564,691
Distribution and service fees        
Revenues        
Revenues 14,333 15,746 42,618 52,912
Administration and shareholder service fees        
Revenues        
Revenues 19,069 20,563 55,668 66,889
Other income and fees        
Revenues        
Revenues $ 1,000 $ 1,102 $ 3,069 $ 3,516
v3.23.3
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Statement of Comprehensive Income [Abstract]        
Net Income (Loss) $ 38,154 $ 27,415 $ 102,977 $ 80,793
Other comprehensive income (loss), net of tax:        
Foreign currency translation adjustment, net of tax of $82 and $31 for the three months ended September 30, 2023 and 2022, respectively and $5 and $280 for the nine months ended September 30, 2023 and 2022 (226) (504) (15) (791)
Other comprehensive income (loss) (226) (504) (15) (791)
Comprehensive income (loss) 37,928 26,911 102,962 80,002
Comprehensive (income) loss attributable to noncontrolling interests (7,248) 4,265 (3,190) 1,348
Comprehensive Income (Loss) Attributable to Virtus Investment Partners, Inc. $ 30,680 $ 31,176 $ 99,772 $ 81,350
v3.23.3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Statement of Comprehensive Income [Abstract]        
Foreign currency translation adjustment, tax $ 82 $ 31 $ 5 $ 280
v3.23.3
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Cash Flows from Operating Activities:    
Net income (loss) $ 102,977 $ 80,793
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation expense, intangible asset and other amortization 51,017 48,143
Stock-based compensation 20,072 19,267
Amortization of deferred commissions 1,261 3,653
Payments of deferred commissions (1,105) (1,789)
Equity in earnings of equity method investments 810 (527)
Distributions from equity method investments 1,789 2,239
Right of use asset 0 3,222
Sales (purchases) of investments, net (24,881) (8,396)
Change in fair value of contingent consideration (6,800) 2,900
Deferred taxes, net 2,735 (5,500)
Changes in operating assets and liabilities:    
Accounts receivable, net and other assets 3,441 32,940
Accrued compensation and benefits, accounts payable, accrued liabilities and other liabilities (38,966) (76,639)
Operating activities of consolidated investment products ("CIP"):    
Net cash provided by (used in) operating activities 229,840 154,850
Cash Flows from Investing Activities:    
Capital expenditures (6,438) (5,495)
Acquisition of businesses, net of cash acquired of $4,395 and $8,443 for the nine months ended September 30, 2023 and 2022, respectively (108,999) (19,944)
Purchase of equity method investment (11,645) 0
Net cash provided by (used in) investing activities (127,349) (25,747)
Cash Flows from Financing Activities:    
Borrowings on credit agreement 50,000 0
Repayments on credit agreement (32,063) (12,062)
Common stock dividends paid (38,385) (35,244)
Repurchase of common shares (25,000) (80,000)
Payment of contingent consideration (27,179) (33,036)
Taxes paid related to net share settlement of restricted stock units (13,436) (16,450)
Affiliate equity sales (purchases) (20,784) (11,089)
Net contributions from (distributions to) noncontrolling interests 5,967 (1,091)
Net cash provided by (used in) financing activities (285,769) (318,968)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (68) (650)
Net increase (decrease) in cash, cash equivalents and restricted cash (183,346) (190,515)
Cash, cash equivalents and restricted cash, beginning of period 589,179 586,145
Cash, cash equivalents and restricted cash, end of period 405,833 395,630
Non-Cash Investing Activities:    
Contingent consideration 0 1,200
Non-Cash Financing Activities:    
Increase (decrease) to noncontrolling interests due to consolidation (deconsolidation) of CIP, net (7,170) (338)
Common stock dividends payable 13,788 12,014
Reconciliation of cash, cash equivalents and restricted cash    
Cash, cash equivalents and restricted cash at end of period 405,833 395,630
Consolidated entity excluding consolidated investment products    
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Realized and unrealized (gains) losses on investments, net (2,459) 16,056
Operating activities of consolidated investment products ("CIP"):    
Realized and unrealized (gains) losses on investments of CIP, net (2,459) 16,056
Reconciliation of cash, cash equivalents and restricted cash    
Cash and cash equivalents 195,403  
Consolidated Investment Products    
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Realized and unrealized (gains) losses on investments, net (1,769) 41,312
Operating activities of consolidated investment products ("CIP"):    
Realized and unrealized (gains) losses on investments of CIP, net (1,769) 41,312
Purchases of investments by CIP (905,184) (601,749)
Sales of investments by CIP 1,028,251 595,451
Net proceeds (purchases) of short-term investments and securities sold short by CIP (168) (655)
Change in other assets and liabilities of CIP (1,181) 4,129
Cash Flows from Investing Activities:    
Change in cash and cash equivalents of CIP due to consolidation (deconsolidation), net (267) (308)
Cash Flows from Financing Activities:    
Payments on borrowings by CIP (317,362) (129,996)
Borrowings by CIP 132,473 $ 0
Reconciliation of cash, cash equivalents and restricted cash    
Cash and cash equivalents 209,747  
Cash pledged or on deposit of CIP $ 683  
v3.23.3
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Statement of Cash Flows [Abstract]    
Acquisition of business, net of cash acquired $ 4,395 $ 8,443
v3.23.3
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Total
Total Attributed To Virtus Investment Partners, Inc.
Common Stock
Additional Paid-in Capital
Retained Earnings (Accumulated Deficit)
Accumulated Other Comprehensive Income (Loss)
Treasury Stock
Non- controlling Interests
Balance at beginning of period, common stock (in shares) at Dec. 31, 2021     7,506,151          
Balance at beginning of period at Dec. 31, 2021 $ 836,627 $ 828,277 $ 119 $ 1,276,424 $ 60,962 $ 20 $ (509,248) $ 8,350
Balance at beginning of period, treasury stock (in shares) at Dec. 31, 2021             4,400,596  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income (loss) 81,957 82,141     82,141     (184)
Foreign currency translation adjustments (791) (791)       (791)    
Net subscriptions (redemptions) and other 603 2,035   2,035       (1,432)
Cash dividends declared, common (35,779) (35,779)     (35,779)      
Repurchases of common shares (in shares)     397,777       397,777  
Repurchases of common shares (80,000) (80,000)         $ (80,000)  
Issuance of common shares related to employee stock transactions (in shares)     123,599          
Issuance of common shares related to employee stock transactions 0 0 $ 1 (1)        
Taxes paid on stock-based compensation (16,450) (16,450)   (16,450)        
Stock-based compensation 19,772 19,772   19,772        
Balance at end of period, common stock (in shares) at Sep. 30, 2022     7,231,973          
Balance at end of period at Sep. 30, 2022 805,939 799,205 $ 120 1,281,780 107,324 (771) $ (589,248) 6,734
Balance at end of period, treasury stock (in shares) at Sep. 30, 2022             4,798,373  
Balance at beginning of period at Dec. 31, 2021 138,965              
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]                
Total net income (loss) attributable to noncontrolling interests (1,164)              
Net subscriptions (redemptions) and other (13,359)              
Balance at end of period at Sep. 30, 2022 124,442              
Balance at beginning of period, common stock (in shares) at Jun. 30, 2022     7,275,337          
Balance at beginning of period at Jun. 30, 2022 791,705 784,708 $ 120 1,275,907 88,196 (267) $ (579,248) 6,997
Balance at beginning of period, treasury stock (in shares) at Jun. 30, 2022             4,747,951  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income (loss) 31,831 31,680     31,680     151
Foreign currency translation adjustments (504) (504)       (504)    
Net subscriptions (redemptions) and other 1,621 2,035   2,035       (414)
Cash dividends declared, common (12,552) (12,552)     (12,552)      
Repurchases of common shares (in shares)     50,422       50,422  
Repurchases of common shares (10,000) (10,000)         $ (10,000)  
Issuance of common shares related to employee stock transactions (in shares)     7,058          
Issuance of common shares related to employee stock transactions 0 0            
Taxes paid on stock-based compensation (1,166) (1,166)   (1,166)        
Stock-based compensation 5,004 5,004   5,004        
Balance at end of period, common stock (in shares) at Sep. 30, 2022     7,231,973          
Balance at end of period at Sep. 30, 2022 805,939 799,205 $ 120 1,281,780 107,324 (771) $ (589,248) 6,734
Balance at end of period, treasury stock (in shares) at Sep. 30, 2022             4,798,373  
Balance at beginning of period at Jun. 30, 2022 139,147              
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]                
Total net income (loss) attributable to noncontrolling interests (4,416)              
Net subscriptions (redemptions) and other (10,289)              
Balance at end of period at Sep. 30, 2022 $ 124,442              
Balance at beginning of period, common stock (in shares) at Dec. 31, 2022 12,033,247   7,181,554          
Balance at beginning of period at Dec. 31, 2022 $ 822,936 817,019 $ 120 1,286,244 130,261 (358) $ (599,248) 5,917
Balance at beginning of period, treasury stock (in shares) at Dec. 31, 2022 4,851,693           4,851,693  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income (loss) $ 100,573 99,787     99,787     786
Foreign currency translation adjustments (15) (15)       (15)    
Net subscriptions (redemptions) and other 1,963 3,218   3,218       (1,255)
Cash dividends declared, common (39,433) (39,433)     (39,433)      
Repurchases of common shares (in shares)     125,855       125,855  
Repurchases of common shares (25,000) (25,000)         $ (25,000)  
Issuance of common shares related to employee stock transactions (in shares)     127,064          
Issuance of common shares related to employee stock transactions 0 0 $ 2 (2)        
Taxes paid on stock-based compensation (13,436) (13,436)   (13,436)        
Stock-based compensation $ 19,964 19,964   19,964        
Balance at end of period, common stock (in shares) at Sep. 30, 2023 12,160,311   7,182,763          
Balance at end of period at Sep. 30, 2023 $ 867,552 862,104 $ 122 1,295,988 190,615 (373) $ (624,248) 5,448
Balance at end of period, treasury stock (in shares) at Sep. 30, 2023 4,977,548           4,977,548  
Balance at beginning of period at Dec. 31, 2022 $ 113,718              
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]                
Total net income (loss) attributable to noncontrolling interests 2,404              
Net subscriptions (redemptions) and other (19,856)              
Balance at end of period at Sep. 30, 2023 96,266              
Balance at beginning of period, common stock (in shares) at Jun. 30, 2023     7,254,786          
Balance at beginning of period at Jun. 30, 2023 856,709 851,513 $ 122 1,286,775 174,011 (147) $ (609,248) 5,196
Balance at beginning of period, treasury stock (in shares) at Jun. 30, 2023             4,903,533  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income (loss) 31,577 30,906     30,906     671
Foreign currency translation adjustments (226) (226)       (226)    
Net subscriptions (redemptions) and other 2,799 3,218   3,218       (419)
Cash dividends declared, common (14,302) (14,302)     (14,302)      
Repurchases of common shares (in shares)     74,015       74,015  
Repurchases of common shares (15,000) (15,000)         $ (15,000)  
Issuance of common shares related to employee stock transactions (in shares)     1,992          
Issuance of common shares related to employee stock transactions 0 0            
Taxes paid on stock-based compensation (214) (214)   (214)        
Stock-based compensation $ 6,209 6,209   6,209        
Balance at end of period, common stock (in shares) at Sep. 30, 2023 12,160,311   7,182,763          
Balance at end of period at Sep. 30, 2023 $ 867,552 $ 862,104 $ 122 $ 1,295,988 $ 190,615 $ (373) $ (624,248) $ 5,448
Balance at end of period, treasury stock (in shares) at Sep. 30, 2023 4,977,548           4,977,548  
Balance at beginning of period at Jun. 30, 2023 $ 110,399              
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]                
Total net income (loss) attributable to noncontrolling interests 6,577              
Net subscriptions (redemptions) and other (20,710)              
Balance at end of period at Sep. 30, 2023 $ 96,266              
v3.23.3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares
 3 Months Ended 9 Months Ended
Aug. 16, 2023
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Statement of Stockholders' Equity [Abstract]          
Cash dividends declared per common share (in dollars per share) $ 1.90 $ 1.90 $ 1.65 $ 5.20 $ 4.65
v3.23.3
Organization and Business
 9 Months Ended
Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Business Organization and Business
Virtus Investment Partners, Inc. (the "Company," "we," "us," "our" or "Virtus"), a Delaware corporation, operates in the investment management industry through its subsidiaries.

The Company provides investment management and related services to institutions and individuals. The Company's investment strategies are offered to institutional clients through separate accounts and pooled, or commingled, structures. The Company’s retail investment management services are provided to individuals through products consisting of: mutual funds registered pursuant to the Investment Company Act of 1940, as amended ("U.S. retail funds"); Undertaking for Collective Investment in Transferable Securities and Qualifying Investor Funds (collectively, "global funds") and collectively with U.S. retail funds, variable insurance funds, and exchange-traded funds ("ETFs"), (the "open-end funds"); closed-end funds (collectively, with open-end funds, the "funds"); and retail separate accounts that include intermediary-sold and private client accounts. The Company also provides subadvisory services to other investment advisers and serves as the collateral manager for structured products.
v3.23.3
Basis of Presentation and Significant Accounting Policies
 9 Months Ended
Sep. 30, 2023
Accounting Policies [Abstract]  
Basis of Presentation and Significant Accounting Policies Basis of Presentation and Significant Accounting Policies
Basis of Presentation
The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the Company’s financial condition and results of operations. Operating results for the nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the "2022 Annual Report on Form 10-K") filed with the Securities and Exchange Commission (the "SEC"). The Company’s significant accounting policies, which have been consistently applied, are summarized in its 2022 Annual Report on Form 10-K.
v3.23.3
Revenues
 9 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
The Company's revenues are recognized when a performance obligation is satisfied, which occurs when control of the services is transferred to customers. Investment management fees, distribution and service fees, and administration and shareholder service fees are generally calculated as a percentage of average net assets of the investment portfolios managed. The net asset values from which these fees are calculated are variable in nature and subject to factors outside of the Company's control, such as additional investments, withdrawals and market performance. Because of this, these fees are considered constrained until the end of the contractual measurement period (monthly or quarterly), which is when asset values are generally determinable.

Investment Management Fees by Source    
The following table summarizes investment management fees by source:
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in thousands)2023202220232022
Investment management fees
Open-end funds$80,294 $80,234 $229,721 $262,486 
Closed-end funds14,673 15,773 44,025 48,887 
Retail separate accounts44,441 39,154 127,323 134,069 
Institutional accounts45,461 37,689 128,257 119,249 
Total investment management fees$184,869 $172,850 $529,326 $564,691 
v3.23.3
Acquisitions
 9 Months Ended
Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]  
Acquisitions Acquisitions
AlphaSimplex Group, LLC
On April 1, 2023, the Company completed the acquisition of AlphaSimplex Group, LLC ("AlphaSimplex"), which was accounted for in accordance with Accounting Standards Codification ("ASC") 805, Business Combinations ("ASC 805"). The total purchase price paid of $113.4 million was allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of the acquisition. Goodwill of $48.3 million and intangible assets of $55.4 million were recorded for the acquisition. The Company expects $103.7 million of the purchase price, related to goodwill and intangibles, to be tax deductible over 15 years. The purchase price allocation is based upon preliminary information and is subject to change if additional information becomes available. The final fair value of the net assets acquired may result in adjustments to certain assets and liabilities, including goodwill. The revenues and operating income of AlphaSimplex were not material to the Company's results of operations for the three and nine months ended September 30, 2023.

The following table summarizes the identified acquired assets and liabilities assumed as of the AlphaSimplex acquisition date:
April 1, 2023
(in thousands)
Assets:
Cash and cash equivalents$4,395 
Investments8,567 
Accounts receivable5,422 
Furniture, equipment and leasehold improvements4,161 
Intangible assets55,400 
Goodwill48,262 
Other assets9,126 
Total Assets135,333 
Liabilities:
Accounts payable and accrued liabilities21,939 
Total Liabilities21,939 
Total Net Assets Acquired$113,394 

Identifiable Intangible Assets Acquired
In connection with the allocation of the AlphaSimplex purchase price, the Company identified the following intangible assets:
April 1, 2023
Approximate Fair Value
(in thousands)
Weighted Average of Useful Life
(in years)
Definite-lived intangible assets:
Investment management agreements52,000 10.5
Trade names3,400 9.0
Total definite-lived intangible assets$55,400 
The fair value of investment management agreements was estimated using a discounted cash flow method and the fair value of the trade names was estimated using a royalty savings method, each of which was prepared with the assistance of an independent valuation firm.

Stone Harbor Investment Partners
On January 1, 2022, the Company acquired Stone Harbor Investment Partners, LLC ("Stone Harbor"), which was accounted for in accordance with ASC 805. The total purchase price of $30.1 million was allocated to the assets acquired and liabilities assumed, based upon their estimated fair values at the date of the acquisition, as well as goodwill of $10.3 million and definite-lived intangible assets of $10.8 million.
v3.23.3
Goodwill and Intangible Assets, Net
 9 Months Ended
Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net Goodwill and Intangible Assets, Net
Activity in goodwill was as follows:
(in thousands)
Balance at December 31, 2022$348,836 
Acquisitions48,262 
Balance at September 30, 2023$397,098 

Below is a summary of intangible assets, net:
Definite-LivedIndefinite-LivedTotal
(in thousands)Gross Book ValueAccumulated AmortizationNet Book ValueNet Book ValueNet Book Value
Balances at December 31, 2022$756,028 $(355,807)$400,221 $42,298 $442,519 
Additions55,400 — 55,400 — 55,400 
Intangible amortization— (45,581)(45,581)— (45,581)
Balances at September 30, 2023$811,428 $(401,388)$410,040 $42,298 $452,338 

Definite-lived intangible asset amortization for the remainder of fiscal year 2023 and succeeding fiscal years is estimated as follows:
Fiscal Year
Amount
(in thousands)
Remainder of 2023$15,445 
202456,739 
202551,971 
202650,991 
202747,890 
2028 and thereafter187,004 
Total$410,040 
v3.23.3
Investments
 9 Months Ended
Sep. 30, 2023
Schedule of Investments [Abstract]  
Investments Investments
Investments consist primarily of investments in the Company's sponsored products. The Company's investments, excluding the assets of consolidated investment products ("CIP") discussed in Note 16, at September 30, 2023 and December 31, 2022 were as follows:
(in thousands)September 30, 2023December 31, 2022
Investment securities - fair value$118,464 $76,999 
Equity method investments (1)22,557 11,448 
Nonqualified retirement plan assets11,328 10,154 
Other investments— 1,729 
Total investments$152,349 $100,330 
(1)     The Company's equity method investments are valued on a three-month lag based upon the availability of financial information. On January 1, 2023, the Company made an additional investment in an existing minority interest in an affiliated manager for $11.6 million including transaction costs.

Investment Securities - fair value
Investment securities - fair value consist of investments in the Company's sponsored funds and separately managed accounts. The composition of the Company’s investment securities - fair value was as follows:
September 30, 2023December 31, 2022
(in thousands)CostFair ValueCostFair Value
Investment Securities - fair value
Sponsored funds$82,156 $76,958 $67,472 $62,744 
Equity securities15,829 17,167 13,440 14,255 
Debt securities24,339 24,339 — — 
Total investment securities - fair value$122,324 $118,464 $80,912 $76,999 

For the three and nine months ended September 30, 2023, the Company recognized net realized losses of $0.1 million and net realized gains $2.1 million, respectively, related to its investment securities - fair value. For the three and nine months ended September 30, 2022, the Company recognized net realized gains of $0.4 million and $0.4 million, respectively, related to its investment securities - fair value.
v3.23.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of CIP discussed in Note 16, as of September 30, 2023 and December 31, 2022 by fair value hierarchy level were as follows:
September 30, 2023  
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$157,635 $— $— $157,635 
Investment securities - fair value
Sponsored funds76,958 — — 76,958 
Equity securities17,167 — — 17,167 
Debt securities— — 24,339 24,339 
Nonqualified retirement plan assets11,328 — — 11,328 
Total assets measured at fair value$263,088 $— $24,339 $287,427 
Liabilities
Contingent consideration$— $— $54,910 $54,910 
Total liabilities measured at fair value$— $— $54,910 $54,910 

December 31, 2022  
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$287,126 $— $— $287,126 
Investment securities - fair value
Sponsored funds62,744 — — 62,744 
Equity securities14,255 — — 14,255 
Nonqualified retirement plan assets10,154 — — 10,154 
Total assets measured at fair value$374,279 $— $— $374,279 
Liabilities
Contingent consideration$— $— $78,100 $78,100 
Total liabilities measured at fair value$— $— $78,100 $78,100 
The following is a discussion of the valuation methodologies used for the Company’s assets measured at fair value:
Cash equivalents represent investments in money market funds. Cash investments in money market funds are valued using published net asset values and are classified as Level 1.

Sponsored funds represent investments in open-end funds, closed-end funds and ETFs for which the Company acts as the investment manager. The fair value of open-end funds is determined based on their published net asset values and are categorized as Level 1. The fair value of closed-end funds and ETFs is determined based on the official closing price on the exchange on which they are traded and are categorized as Level 1.

Equity securities represent securities traded on active markets, are valued at the official closing price (typically the last sale or bid) on the exchange on which the securities are primarily traded and are categorized as Level 1.

Nonqualified retirement plan assets represent mutual funds within the Company's nonqualified retirement plan whose fair value is determined based on their published net asset value and are categorized as Level 1.

Debt securities represent investments in senior secured bank loans and are based on evaluated quotations received from independent pricing services and are categorized as Level 2 or Level 3.

Contingent consideration represents liabilities associated with the Company's business combinations. The estimated fair values are measured with simulation models using unobservable market data inputs prepared with the assistance of an independent valuation firm. These liabilities are categorized as Level 3.

Cash, accounts receivable, accounts payable and accrued liabilities equal or approximate fair value based on the short-term nature of these instruments.

The following tables present a reconciliation of beginning and ending balances of recurring fair value measurements classified as Level 3 assets and liabilities:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in thousands)2023202220232022
Assets
Balance at beginning of period$— $— $— $— 
Purchases (sales), net24,339 — 24,339 — 
Balance at end of period$24,339 $— $24,339 $— 
Liabilities
Balance at beginning of period$54,910 $72,980 $78,100 $88,400 
Additions for acquisition— — — 1,200 
Reduction for payments made— — (16,390)(19,520)
Increase (reduction) of liability related to re-measurement of fair value— — (6,800)2,900 
Balance at end of period$54,910 $72,980 $54,910 $72,980 
v3.23.3
Equity Transactions
 9 Months Ended
Sep. 30, 2023
Equity [Abstract]  
Equity Transactions Equity Transactions
Dividends Declared
On August 16, 2023, the Company declared a quarterly cash dividend of $1.90 per common share to be paid on November 15, 2023 to stockholders of record at the close of business on October 31, 2023.

Common Stock Repurchases
During the three and nine months ended September 30, 2023, the Company repurchased 74,015 and 125,855 common shares, respectively, at a weighted average price of $202.63 and $198.61 per share, respectively, for a total cost, including fees and expenses, of $15.0 million and $25.0 million, respectively, under its share repurchase program. As of September 30, 2023, 702,497 shares remained available for repurchase. Under the terms of the program, the Company may repurchase shares of its
common stock from time to time at its discretion through open market repurchases, privately negotiated transactions and/or other mechanisms, depending on price and prevailing market and business conditions. The program, which has no specified term, may be suspended or terminated at any time.
v3.23.3
Accumulated Other Comprehensive Income (Loss)
 9 Months Ended
Sep. 30, 2023
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss)
The changes in accumulated other comprehensive income (loss) were as follows:
Nine Months Ended
September 30,
(in thousands)20232022
Balance at beginning of period$(358)$20 
Net current-period other comprehensive income (loss) (1)(15)(791)
Balance at end of period$(373)$(771)
(1)     Consists of foreign currency translation adjustments, net of tax of $5 and $280 for the nine months ended September 30, 2023 and 2022, respectively.
v3.23.3
Stock-Based Compensation
 9 Months Ended
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Equity-based awards, including restricted stock units ("RSUs"), performance stock units ("PSUs"), stock options and unrestricted shares of common stock, may be granted to officers, employees and directors of the Company pursuant to the Company's Omnibus Incentive and Equity Plan (the "Omnibus Plan"). At September 30, 2023, 478,711 shares of common stock remained available for issuance of the 3,370,000 shares that are authorized for issuance under the Omnibus Plan.     
Stock-based compensation expense is summarized as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2023202220232022
Stock-based compensation expense$7,668 $5,148 $20,072 $19,267 

Restricted Stock Units
Each RSU entitles the holder to one share of common stock when the restriction expires. RSUs may be time-vested or performance-contingent (PSUs) that convert into RSUs after the performance measurement is complete and generally vest in one to three years. Shares that are issued upon vesting are newly issued shares from the Omnibus Plan and are not issued from treasury stock.
RSU activity, inclusive of PSUs, for the nine months ended September 30, 2023 is summarized as follows: 
Number
of Shares		Weighted Average
Grant Date
Fair Value
Outstanding at December 31, 2022377,087 $178.21 
Granted207,206 $160.10 
Forfeited(35,341)$146.07 
Settled(199,880)$119.68 
Outstanding at September 30, 2023349,072 $204.23 

For the nine months ended September 30, 2023 and 2022, a total of 77,583 and 77,508 RSUs, respectively, were withheld by the Company as a result of net share settlements to settle minimum employee tax withholding obligations. The Company paid $13.4 million and $16.5 million for the nine months ended September 30, 2023 and 2022, respectively, in minimum employee tax withholding obligations related to RSUs withheld for the net share settlements. These net share settlements had the effect of share repurchases by the Company as they reduced the number of shares that would have otherwise been issued as a result of the vesting.

During the nine months ended September 30, 2023, the Company granted 44,583 PSUs that contain performance-based metrics in addition to a service condition. Compensation expense for PSUs is generally recognized over a three-year service period based upon the value determined using a combination of (i) the intrinsic value method for awards that contain a performance metric that represents a "performance condition" in accordance with ASC 718, Stock Compensation ("ASC 718")
and (ii) the Monte Carlo simulation valuation model for awards that contain a "market condition" performance metric under ASC 718. Compensation expense for PSU awards that contain a market condition is fixed at the date of grant and will not be adjusted in future periods based upon the achievement of the market condition. Compensation expense for PSU awards with a performance condition is recorded each period based upon a probability assessment of the expected outcome of the performance metric with a final adjustment upon measurement at the end of the performance period.

As of September 30, 2023, unamortized stock-based compensation expense for unvested RSUs and PSUs was $36.0 million with a weighted-average remaining contractual life of 1.3 years.
v3.23.3
Earnings (Loss) Per Share
 9 Months Ended
Sep. 30, 2023
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share Earnings (Loss) Per Share
Earnings (loss) per share ("EPS") is calculated in accordance with ASC 260, Earnings per Share. Basic EPS is computed by dividing net income (loss) attributable to Virtus Investment Partners, Inc. by the weighted-average number of common shares outstanding for the period, excluding dilution for potential common stock issuances. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, including shares issuable upon the vesting of RSUs and stock option exercises using the treasury stock method, as determined under the if-converted method.
The computation of basic and diluted EPS is as follows: 
 Three Months Ended September 30,Nine Months Ended
September 30,
(in thousands, except per share amounts)2023202220232022
Net Income (Loss)$38,154 $27,415 $102,977 $80,793 
Noncontrolling interests(7,248)4,265 (3,190)1,348 
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.$30,906 $31,680 $99,787 $82,141 
Shares:
Basic: Weighted-average number of shares outstanding7,258 7,308 7,272 7,434 
Plus: Incremental shares from assumed conversion of dilutive instruments121 155 121 202 
Diluted: Weighted-average number of shares outstanding7,379 7,463 7,393 7,636 
Earnings (Loss) per Share—Basic$4.26 $4.33 $13.72 $11.05 
Earnings (Loss) per Share—Diluted$4.19 $4.25 $13.50 $10.76 

The following table details the securities that have been excluded from the above computation of weighted-average number of shares for diluted EPS, because the effect would be anti-dilutive.
 Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2023202220232022
Restricted stock units2 31 332 
Total anti-dilutive securities2 31 332 
v3.23.3
Income Taxes
 9 Months Ended
Sep. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
In calculating the provision for income taxes, the Company uses an estimate of the annual effective tax rate based upon the facts and circumstances at each interim period. On a quarterly basis, the estimated annual effective tax rate is adjusted, as appropriate, based upon changes in facts and circumstances, if any, compared to those forecasted at the beginning of the fiscal year and at each interim period thereafter.

The provision for income taxes reflected U.S. federal, state and local taxes at an estimated effective tax rate of 23.6% and 35.2% for the nine months ended September 30, 2023 and 2022, respectively. The lower estimated effective tax rate for the nine months ended September 30, 2023 was primarily due to excess tax benefits associated with stock-based compensation and the change in valuation allowances in the current year related to the tax effects of unrealized gains on certain Company investments. The higher effective tax rate in the prior year period was due to valuation allowances recorded for the tax effects of unrealized losses on certain Company investments.
v3.23.3
Debt
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Debt DebtCredit Agreement The Company's credit agreement (the "Credit Agreement"), most recently amended on June 20, 2023, changing the base interest rate from LIBOR to SOFR, comprises (i) a $275.0 million term loan with a seven-year term (the "Term Loan") expiring in September 2028, and (ii) a $175.0 million revolving credit facility with a five-year term expiring in September 2026. On April 3, 2023, the Company borrowed $50.0 million under the revolving credit facility to partially finance its acquisition of AlphaSimplex (see Note 4 for further information). During the nine months ended September 30, 2023, the Company repaid $30.0 million and $2.1 million outstanding under the revolving credit facility and Term Loan, respectively. At September 30, 2023, $20.0 million and $259.5 million was outstanding under the revolving credit facility and Term Loan, respectively. In accordance with ASC 835, Interest, the amounts outstanding under the Company's Term Loan are presented on the Condensed Consolidated Balance Sheet net of related debt issuance costs, which were $5.7 million as of September 30, 2023.
v3.23.3
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Legal Matters
The Company is involved from time to time in litigation and arbitration, as well as examinations, inquiries and investigations by various regulatory bodies, involving its compliance with, among other things, securities laws, client investment guidelines, laws governing the activities of broker-dealers and other laws and regulations affecting its products and other activities.

The Company records a liability when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. Based on information currently available, available insurance coverage, indemnities and established reserves, the Company believes that the outcomes of its legal and regulatory proceedings are not likely, either individually or in the aggregate, to have a material adverse effect on the Company's results of operations, cash flows or its consolidated financial condition. However, in the event of unexpected subsequent developments, and given the inherent unpredictability of these legal and regulatory matters, the Company can provide no assurance that its assessment of any legal matter will reflect the ultimate outcome, and an adverse outcome in certain matters could have a material adverse effect on the Company's results of operations or cash flows in particular quarterly or annual periods.
v3.23.3
Redeemable Noncontrolling Interests
 9 Months Ended
Sep. 30, 2023
Noncontrolling Interest [Abstract]  
Redeemable Noncontrolling Interests Redeemable Noncontrolling InterestsRedeemable noncontrolling interests represent third-party investments in the Company's CIP and minority interests held in a consolidated affiliate. Minority interests held in the affiliate are subject to holder put rights and Company call rights at established multiples of earnings before interest, taxes, depreciation and amortization and, as such, are considered redeemable at other than fair value. The rights are exercisable at pre-established intervals (between four and seven years from their issuance) or upon certain conditions, such as retirement. The put and call rights are not legally detachable or separately exercisable and are deemed to be embedded in the related noncontrolling interests. The Company, in purchasing affiliate equity, has the option to settle in cash or shares of the Company's common stock and is entitled to the cash flow associated with any purchased equity. These minority interests in the affiliate are recorded at estimated redemption value within redeemable noncontrolling interests on the Company's Condensed Consolidated Balance Sheets, and any changes in the estimated redemption value are recorded on the Condensed Consolidated Statements of Operations within noncontrolling interests.
Redeemable noncontrolling interests for the nine months ended September 30, 2023 included the following amounts:
(in thousands)CIPAffiliate Noncontrolling InterestsTotal
Balances at December 31, 2022$18,268 $95,450 $113,718 
Net income (loss) attributable to noncontrolling interests772 5,245 6,017 
Changes in redemption value (1)— (3,613)(3,613)
Total net income (loss) attributable to noncontrolling interests772 1,632 2,404 
Affiliate equity sales (purchases)— (20,784)(20,784)
Net subscriptions (redemptions) and other6,676 (5,748)928 
Balances at September 30, 2023$25,716 $70,550 $96,266 
(1)     Relates to noncontrolling interests redeemable at other than fair value.
v3.23.3
Consolidation
 9 Months Ended
Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Consolidation Consolidation
The condensed consolidated financial statements include the accounts of the Company, its subsidiaries and investment products that are consolidated. A voting interest entity ("VOE") is consolidated when the Company is considered to have a controlling financial interest, which is typically present when the Company owns a majority of the voting interest in an entity or otherwise has the power to govern the financial and operating policies of the entity.

The Company evaluates any variable interest entity ("VIE") in which the Company has a variable interest for consolidation. A VIE is an entity in which either (i) the equity investment at risk is not sufficient to permit the entity to finance its own activities without additional financial support, or (ii) where as a group, the holders of the equity investment at risk do not possess any one of the following: (a) the power through voting or similar rights to direct the activities that most significantly impact the entity's economic performance, (b) the obligation to absorb expected losses or the right to receive expected residual returns of the entity, or (c) proportionate voting and economic interests and where substantially all of the entity's activities either involve or are conducted on behalf of an investor with disproportionately fewer voting rights. If an entity has any of these characteristics, it is considered a VIE and is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that has both the power to direct the activities that most significantly impact the VIE's economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE.

In the normal course of its business, the Company sponsors various investment products, some of which are consolidated by the Company. CIP includes both VOEs, made up primarily of open-end funds in which the Company holds a controlling financial interest, and VIEs, which consist of collateralized loan obligations ("CLO") and certain global and private funds ("GF") of which the Company is considered the primary beneficiary. The consolidation and deconsolidation of these investment products have no impact on net income (loss) attributable to Virtus Investment Partners, Inc. The Company's risk with respect to these investment products is limited to its beneficial interests in these products. The Company has no right to the benefits from, and does not bear the risks associated with, these investment products beyond the Company's investments in, and fees generated from, these products.
The following table presents the balances of CIP that, after intercompany eliminations, were reflected on the Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022:
As of
 September 30, 2023December 31, 2022
VOEsVIEsVOEsVIEs
(in thousands)CLOs GFsCLOsGFs
Cash and cash equivalents$865 $208,056 $1,509 $1,153 $249,003 $789 
Investments19,147 1,978,308 71,760 24,669 2,106,764 58,680 
Other assets110 33,143 1,228 295 43,993 1,157 
Notes payable— (1,943,949)— — (2,083,314)— 
Securities purchased payable and other liabilities(547)(183,520)(750)(573)(230,141)(183)
Noncontrolling interests(6,451)(5,448)(19,265)(7,879)(5,917)(10,389)
Net interests in CIP$13,124 $86,590 $54,482 $17,665 $80,388 $50,054 

Consolidated CLOs
The majority of the Company's CIP that are VIEs are CLOs. The financial information of certain CLOs is included on the Company's condensed consolidated financial statements on a one-month lag based upon the availability of their financial information. A majority-owned consolidated private fund, whose primary purpose is to invest in CLOs for which the Company serves as the collateral manager, is also included. At September 30, 2023, the Company consolidated eight CLOs. During the month of September 2023, one of the CLOs was issued and the Company made a $26.4 million investment in the subordinated notes.

Investments of CLOs
The CLOs held investments of $2.0 billion at September 30, 2023 consisting of bank loan investments that comprise the majority of the CLOs' portfolio asset collateral and are senior secured corporate loans across a variety of industries. These bank loan investments mature at various dates between 2023 and 2032 and pay interest at LIBOR or SOFR plus a spread. The CLOs have a reinvestment period where any prepayments received on bank loan investments may be reinvested. Generally, subsequent prepayments received after the reinvestment period must be used to pay down the note payable obligations. The reinvestment periods end between October 2019 and October 2026, depending on the CLO. At September 30, 2023, the fair value of the bank loan investments was less than the unpaid principal (par) balance by $107.0 million. At September 30, 2023, there were no material collateral assets in default.

Notes Payable of CLOs
The CLOs held notes payable with a total value, at par, of $2.2 billion at September 30, 2023, consisting of senior secured floating rate notes payable with a par value of $1.9 billion and subordinated notes with a par value of $237.4 million. These note obligations bear interest at variable rates based on LIBOR plus a pre-defined spread ranging from 0.8% to 9.1%. The principal amounts outstanding of these note obligations mature on dates ranging from October 2027 to October 2034.

The Company's beneficial interests and maximum exposure to loss related to these consolidated CLOs is limited to (i) ownership in the subordinated notes and (ii) accrued management fees. The secured notes of the consolidated CLOs have contractual recourse only to the related assets of the CLO and are classified as financial liabilities. Although these beneficial interests are eliminated upon consolidation, the application of the measurement alternative prescribed by ASU 2014-13, Consolidation (Topic 810) ("ASU 2014-13"), results in the net assets of the consolidated CLOs shown above to be equivalent to the beneficial interests retained by the Company at September 30, 2023, as shown in the table below:
(in thousands)
Subordinated notes$85,556 
Accrued investment management fees1,034 
Total Beneficial Interests$86,590 
The following table represents income and expenses of the consolidated CLOs included on the Company’s Condensed Consolidated Statements of Operations for the period indicated:
Nine Months Ended September 30, 2023
(in thousands)
Income:
Realized and unrealized gain (loss), net$(3,317)
Interest income140,078 
Total Income136,761 
Expenses:
Other operating expenses1,236 
Interest expense112,153 
Total Expense113,389 
Noncontrolling interests(786)
Net Income (Loss) Attributable to CLOs$22,586 

The following table represents the Company’s own economic interests in the consolidated CLOs, which are eliminated upon consolidation:
Nine Months Ended September 30, 2023
(in thousands)
Distributions received and unrealized gains (losses) on the subordinated notes held by the Company$15,907 
Investment management fees6,679 
Total Economic Interests$22,586 

Fair Value Measurements of CIP
The assets and liabilities of CIP measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022 by fair value hierarchy level were as follows:
As of September 30, 2023
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$208,056 $— $— $208,056 
Debt investments167 1,976,568 61,939 2,038,674 
Equity investments 28,761 437 1,343 30,541 
Total assets measured at fair value$236,984 $1,977,005 $63,282 $2,277,271 
Liabilities
Notes payable$— $1,943,949 $— $1,943,949 
Short sales489 — — 489 
Total liabilities measured at fair value$489 $1,943,949 $— $1,944,438 
As of December 31, 2022
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$249,003 $— $— $249,003 
Debt investments243 2,119,082 42,246 2,161,571 
Equity investments25,003 2,204 1,335 28,542 
Total assets measured at fair value$274,249 $2,121,286 $43,581 $2,439,116 
Liabilities
Notes payable$— $2,083,314 $— $2,083,314 
Short sales414 — — 414 
Total liabilities measured at fair value$414 $2,083,314 $— $2,083,728 

The following is a discussion of the valuation methodologies used for the assets and liabilities of the Company’s CIP measured at fair value:

Level 1 assets represent cash investments in money market funds and debt and equity investments that are valued using published net asset values or the official closing price on the exchange on which the securities are traded.

Level 2 assets represent most debt securities, including bank loans and certain equity securities (including non-U.S. securities), for which closing prices are not readily available or are deemed to not reflect readily available market prices, and are valued using an independent pricing service. Debt investments are valued based on quotations received from independent pricing services or from dealers who make markets in such securities. Bank loan investments, which are included as debt investments, are generally priced at the average mid-point of bid and ask quotations obtained from a third-party pricing service. Fair value may also be based upon valuations obtained from independent third-party brokers or dealers utilizing matrix pricing models that consider information regarding securities with similar characteristics.

Level 3 assets include debt and equity securities that are not widely traded, are illiquid or are priced by dealers based on pricing models used by market makers in the security.

Level 1 liabilities consist of short sales transactions in which a security is sold that is not owned or is owned but there is no intention to deliver, in anticipation that the price of the security will decline. Short sales are recorded on the Condensed Consolidated Balance Sheets within other liabilities of CIP and are classified as Level 1 based on the underlying equity security.

Level 2 liabilities consists of notes payables issued by CLOs and are measured using the measurement alternative in ASU 2014-13. Accordingly, the fair value of CLO liabilities was measured as the fair value of CLO assets less the sum of (i) the fair value of the beneficial interests held by the Company, and (ii) the carrying value of any beneficial interests that represent compensation for services. The fair value of the beneficial interests held by the Company is based on third-party pricing information without adjustment.

The securities purchased payable at September 30, 2023 and December 31, 2022 approximated fair value due to the short-term nature of the instruments.
The following table is a reconciliation of assets of CIP for Level 3 investments for which significant unobservable inputs were used to determine fair value:
 Nine Months Ended September 30,
 (in thousands)
20232022
Balance at beginning of period$43,581 $3,157 
Realized gains (losses), net(4,306)(596)
Change in unrealized gains (losses), net3,980 (425)
Purchases3,430 1,930 
Amortization284 9 
Sales(7,890)(12,142)
Transfers to Level 2(79,288)(53,746)
Transfers from Level 2103,491 107,622 
Balance at end of period (1)$63,282 $45,809 
(1)The investments that are categorized as Level 3 were valued utilizing third-party pricing information without adjustment. Transfers in and/or out of levels are reflected when significant inputs, including market inputs or performance attributes, used for the fair value measurement become observable/unobservable at period end.

Nonconsolidated VIEs
The Company serves as the collateral manager for other CLOs that are not consolidated. The assets and liabilities of these CLOs reside in bankruptcy remote, special purpose entities in which the Company has no ownership of, nor holds any notes issued by, the CLOs, and provides neither recourse nor guarantees. The Company has determined that the investment management fees it receives for serving as collateral manager for these CLOs did not represent a variable interest as (i) the fees the Company earns are compensation for services provided and are commensurate with the level of effort required to provide the investment management services, (ii) the Company does not hold other interests in the CLOs that individually, or in the aggregate, would absorb more than an insignificant amount of the CLOs' expected losses or receive more than an insignificant amount of the CLOs' expected residual return, and (iii) the investment management arrangement only includes terms, conditions and amounts that are customarily present in arrangements for similar services negotiated at arm's length.
    
The Company has interests in certain other VIEs that the Company does not consolidate as it is not the primary beneficiary since its interest in these entities does not provide the Company with the power to direct the activities that most significantly impact the entities' economic performance. At September 30, 2023, the carrying value and maximum risk of loss related to the Company's interest in these VIEs was $25.3 million.
v3.23.3
Insider Trading Arrangements
 3 Months Ended
Sep. 30, 2023
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.23.3
Basis of Presentation and Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2023
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the Company’s financial condition and results of operations. Operating results for the nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the "2022 Annual Report on Form 10-K") filed with the Securities and Exchange Commission (the "SEC"). The Company’s significant accounting policies, which have been consistently applied, are summarized in its 2022 Annual Report on Form 10-K.
Fair Value Measurements
Cash equivalents represent investments in money market funds. Cash investments in money market funds are valued using published net asset values and are classified as Level 1.

Sponsored funds represent investments in open-end funds, closed-end funds and ETFs for which the Company acts as the investment manager. The fair value of open-end funds is determined based on their published net asset values and are categorized as Level 1. The fair value of closed-end funds and ETFs is determined based on the official closing price on the exchange on which they are traded and are categorized as Level 1.

Equity securities represent securities traded on active markets, are valued at the official closing price (typically the last sale or bid) on the exchange on which the securities are primarily traded and are categorized as Level 1.

Nonqualified retirement plan assets represent mutual funds within the Company's nonqualified retirement plan whose fair value is determined based on their published net asset value and are categorized as Level 1.

Debt securities represent investments in senior secured bank loans and are based on evaluated quotations received from independent pricing services and are categorized as Level 2 or Level 3.

Contingent consideration represents liabilities associated with the Company's business combinations. The estimated fair values are measured with simulation models using unobservable market data inputs prepared with the assistance of an independent valuation firm. These liabilities are categorized as Level 3.

Cash, accounts receivable, accounts payable and accrued liabilities equal or approximate fair value based on the short-term nature of these instruments.
cash investments in money market funds and debt and equity investments that are valued using published net asset values or the official closing price on the exchange on which the securities are traded.
Level 2 assets represent most debt securities, including bank loans and certain equity securities (including non-U.S. securities), for which closing prices are not readily available or are deemed to not reflect readily available market prices, and are valued using an independent pricing service. Debt investments are valued based on quotations received from independent pricing services or from dealers who make markets in such securities. Bank loan investments, which are included as debt investments, are generally priced at the average mid-point of bid and ask quotations obtained from a third-party pricing service. Fair value may also be based upon valuations obtained from independent third-party brokers or dealers utilizing matrix pricing models that consider information regarding securities with similar characteristics.

Level 3 assets include debt and equity securities that are not widely traded, are illiquid or are priced by dealers based on pricing models used by market makers in the security.

Level 1 liabilities consist of short sales transactions in which a security is sold that is not owned or is owned but there is no intention to deliver, in anticipation that the price of the security will decline. Short sales are recorded on the Condensed Consolidated Balance Sheets within other liabilities of CIP and are classified as Level 1 based on the underlying equity security.

Level 2 liabilities consists of notes payables issued by CLOs and are measured using the measurement alternative in ASU 2014-13. Accordingly, the fair value of CLO liabilities was measured as the fair value of CLO assets less the sum of (i) the fair value of the beneficial interests held by the Company, and (ii) the carrying value of any beneficial interests that represent compensation for services. The fair value of the beneficial interests held by the Company is based on third-party pricing information without adjustment.
Nonconsolidated VIEs
Nonconsolidated VIEs
The Company serves as the collateral manager for other CLOs that are not consolidated. The assets and liabilities of these CLOs reside in bankruptcy remote, special purpose entities in which the Company has no ownership of, nor holds any notes issued by, the CLOs, and provides neither recourse nor guarantees. The Company has determined that the investment management fees it receives for serving as collateral manager for these CLOs did not represent a variable interest as (i) the fees the Company earns are compensation for services provided and are commensurate with the level of effort required to provide the investment management services, (ii) the Company does not hold other interests in the CLOs that individually, or in the aggregate, would absorb more than an insignificant amount of the CLOs' expected losses or receive more than an insignificant amount of the CLOs' expected residual return, and (iii) the investment management arrangement only includes terms, conditions and amounts that are customarily present in arrangements for similar services negotiated at arm's length.
    
The Company has interests in certain other VIEs that the Company does not consolidate as it is not the primary beneficiary since its interest in these entities does not provide the Company with the power to direct the activities that most significantly impact the entities' economic performance. At September 30, 2023, the carrying value and maximum risk of loss related to the Company's interest in these VIEs was $25.3 million.
v3.23.3
Revenues (Tables)
 9 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
Schedule of Investment Management Fees by Source
The following table summarizes investment management fees by source:
 Three Months Ended
September 30,		Nine Months Ended
September 30,
(in thousands)2023202220232022
Investment management fees
Open-end funds$80,294 $80,234 $229,721 $262,486 
Closed-end funds14,673 15,773 44,025 48,887 
Retail separate accounts44,441 39,154 127,323 134,069 
Institutional accounts45,461 37,689 128,257 119,249 
Total investment management fees$184,869 $172,850 $529,326 $564,691 
v3.23.3
Acquisitions (Tables)
 9 Months Ended
Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The following table summarizes the identified acquired assets and liabilities assumed as of the AlphaSimplex acquisition date:
April 1, 2023
(in thousands)
Assets:
Cash and cash equivalents$4,395 
Investments8,567 
Accounts receivable5,422 
Furniture, equipment and leasehold improvements4,161 
Intangible assets55,400 
Goodwill48,262 
Other assets9,126 
Total Assets135,333 
Liabilities:
Accounts payable and accrued liabilities21,939 
Total Liabilities21,939 
Total Net Assets Acquired$113,394 
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination
In connection with the allocation of the AlphaSimplex purchase price, the Company identified the following intangible assets:
April 1, 2023
Approximate Fair Value
(in thousands)
Weighted Average of Useful Life
(in years)
Definite-lived intangible assets:
Investment management agreements52,000 10.5
Trade names3,400 9.0
Total definite-lived intangible assets$55,400 
v3.23.3
Goodwill and Intangible Assets, Net (Tables)
 9 Months Ended
Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill and Intangible Assets, Net
Activity in goodwill was as follows:
(in thousands)
Balance at December 31, 2022$348,836 
Acquisitions48,262 
Balance at September 30, 2023$397,098 

Below is a summary of intangible assets, net:
Definite-LivedIndefinite-LivedTotal
(in thousands)Gross Book ValueAccumulated AmortizationNet Book ValueNet Book ValueNet Book Value
Balances at December 31, 2022$756,028 $(355,807)$400,221 $42,298 $442,519 
Additions55,400 — 55,400 — 55,400 
Intangible amortization— (45,581)(45,581)— (45,581)
Balances at September 30, 2023$811,428 $(401,388)$410,040 $42,298 $452,338 
Schedule of Estimated Amortization Expense of Intangible Assets Succeeding Years
Definite-lived intangible asset amortization for the remainder of fiscal year 2023 and succeeding fiscal years is estimated as follows:
Fiscal Year
Amount
(in thousands)
Remainder of 2023$15,445 
202456,739 
202551,971 
202650,991 
202747,890 
2028 and thereafter187,004 
Total$410,040 
v3.23.3
Investments (Tables)
 9 Months Ended
Sep. 30, 2023
Schedule of Investments [Abstract]  
Schedule of Investments The Company's investments, excluding the assets of consolidated investment products ("CIP") discussed in Note 16, at September 30, 2023 and December 31, 2022 were as follows:
(in thousands)September 30, 2023December 31, 2022
Investment securities - fair value$118,464 $76,999 
Equity method investments (1)22,557 11,448 
Nonqualified retirement plan assets11,328 10,154 
Other investments— 1,729 
Total investments$152,349 $100,330 
(1)     The Company's equity method investments are valued on a three-month lag based upon the availability of financial information. On January 1, 2023, the Company made an additional investment in an existing minority interest in an affiliated manager for $11.6 million including transaction costs.
Schedule of Marketable Securities The composition of the Company’s investment securities - fair value was as follows:
September 30, 2023December 31, 2022
(in thousands)CostFair ValueCostFair Value
Investment Securities - fair value
Sponsored funds$82,156 $76,958 $67,472 $62,744 
Equity securities15,829 17,167 13,440 14,255 
Debt securities24,339 24,339 — — 
Total investment securities - fair value$122,324 $118,464 $80,912 $76,999 
v3.23.3
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis
The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of CIP discussed in Note 16, as of September 30, 2023 and December 31, 2022 by fair value hierarchy level were as follows:
September 30, 2023  
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$157,635 $— $— $157,635 
Investment securities - fair value
Sponsored funds76,958 — — 76,958 
Equity securities17,167 — — 17,167 
Debt securities— — 24,339 24,339 
Nonqualified retirement plan assets11,328 — — 11,328 
Total assets measured at fair value$263,088 $— $24,339 $287,427 
Liabilities
Contingent consideration$— $— $54,910 $54,910 
Total liabilities measured at fair value$— $— $54,910 $54,910 

December 31, 2022  
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$287,126 $— $— $287,126 
Investment securities - fair value
Sponsored funds62,744 — — 62,744 
Equity securities14,255 — — 14,255 
Nonqualified retirement plan assets10,154 — — 10,154 
Total assets measured at fair value$374,279 $— $— $374,279 
Liabilities
Contingent consideration$— $— $78,100 $78,100 
Total liabilities measured at fair value$— $— $78,100 $78,100 
The assets and liabilities of CIP measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022 by fair value hierarchy level were as follows:
As of September 30, 2023
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$208,056 $— $— $208,056 
Debt investments167 1,976,568 61,939 2,038,674 
Equity investments 28,761 437 1,343 30,541 
Total assets measured at fair value$236,984 $1,977,005 $63,282 $2,277,271 
Liabilities
Notes payable$— $1,943,949 $— $1,943,949 
Short sales489 — — 489 
Total liabilities measured at fair value$489 $1,943,949 $— $1,944,438 
As of December 31, 2022
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$249,003 $— $— $249,003 
Debt investments243 2,119,082 42,246 2,161,571 
Equity investments25,003 2,204 1,335 28,542 
Total assets measured at fair value$274,249 $2,121,286 $43,581 $2,439,116 
Liabilities
Notes payable$— $2,083,314 $— $2,083,314 
Short sales414 — — 414 
Total liabilities measured at fair value$414 $2,083,314 $— $2,083,728 
Schedule of Assets and Liabilities of Consolidated Sponsored Investment Products For Level 3 Investments, Unobservable Inputs Used to Determine Fair Value
The following tables present a reconciliation of beginning and ending balances of recurring fair value measurements classified as Level 3 assets and liabilities:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in thousands)2023202220232022
Assets
Balance at beginning of period$— $— $— $— 
Purchases (sales), net24,339 — 24,339 — 
Balance at end of period$24,339 $— $24,339 $— 
Liabilities
Balance at beginning of period$54,910 $72,980 $78,100 $88,400 
Additions for acquisition— — — 1,200 
Reduction for payments made— — (16,390)(19,520)
Increase (reduction) of liability related to re-measurement of fair value— — (6,800)2,900 
Balance at end of period$54,910 $72,980 $54,910 $72,980 
v3.23.3
Accumulated Other Comprehensive Income (Loss) (Tables)
 9 Months Ended
Sep. 30, 2023
Equity [Abstract]  
Schedule of Changes in Accumulated Other Comprehensive Income (Loss)
The changes in accumulated other comprehensive income (loss) were as follows:
Nine Months Ended
September 30,
(in thousands)20232022
Balance at beginning of period$(358)$20 
Net current-period other comprehensive income (loss) (1)(15)(791)
Balance at end of period$(373)$(771)
(1)     Consists of foreign currency translation adjustments, net of tax of $5 and $280 for the nine months ended September 30, 2023 and 2022, respectively.
v3.23.3
Stock-Based Compensation (Tables)
 9 Months Ended
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock Based Compensation Expense
Stock-based compensation expense is summarized as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2023202220232022
Stock-based compensation expense$7,668 $5,148 $20,072 $19,267 
Schedule of Restricted Stock Units Activity
RSU activity, inclusive of PSUs, for the nine months ended September 30, 2023 is summarized as follows: 
Number
of Shares		Weighted Average
Grant Date
Fair Value
Outstanding at December 31, 2022377,087 $178.21 
Granted207,206 $160.10 
Forfeited(35,341)$146.07 
Settled(199,880)$119.68 
Outstanding at September 30, 2023349,072 $204.23 
v3.23.3
Earnings (Loss) Per Share (Tables)
 9 Months Ended
Sep. 30, 2023
Earnings Per Share [Abstract]  
Schedule of Computation of Basic and Diluted Earnings Per Share
The computation of basic and diluted EPS is as follows: 
 Three Months Ended September 30,Nine Months Ended
September 30,
(in thousands, except per share amounts)2023202220232022
Net Income (Loss)$38,154 $27,415 $102,977 $80,793 
Noncontrolling interests(7,248)4,265 (3,190)1,348 
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.$30,906 $31,680 $99,787 $82,141 
Shares:
Basic: Weighted-average number of shares outstanding7,258 7,308 7,272 7,434 
Plus: Incremental shares from assumed conversion of dilutive instruments121 155 121 202 
Diluted: Weighted-average number of shares outstanding7,379 7,463 7,393 7,636 
Earnings (Loss) per Share—Basic$4.26 $4.33 $13.72 $11.05 
Earnings (Loss) per Share—Diluted$4.19 $4.25 $13.50 $10.76 
Schedule of Securities Excluded from Computation of Diluted EPS
The following table details the securities that have been excluded from the above computation of weighted-average number of shares for diluted EPS, because the effect would be anti-dilutive.
 Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2023202220232022
Restricted stock units2 31 332 
Total anti-dilutive securities2 31 332 
v3.23.3
Redeemable Noncontrolling Interests (Tables)
 9 Months Ended
Sep. 30, 2023
Noncontrolling Interest [Abstract]  
Schedule of Redeemable Noncontrolling Interest
Redeemable noncontrolling interests for the nine months ended September 30, 2023 included the following amounts:
(in thousands)CIPAffiliate Noncontrolling InterestsTotal
Balances at December 31, 2022$18,268 $95,450 $113,718 
Net income (loss) attributable to noncontrolling interests772 5,245 6,017 
Changes in redemption value (1)— (3,613)(3,613)
Total net income (loss) attributable to noncontrolling interests772 1,632 2,404 
Affiliate equity sales (purchases)— (20,784)(20,784)
Net subscriptions (redemptions) and other6,676 (5,748)928 
Balances at September 30, 2023$25,716 $70,550 $96,266 
(1)     Relates to noncontrolling interests redeemable at other than fair value.
v3.23.3
Consolidation (Tables)
 9 Months Ended
Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Condensed Consolidated Balance Sheets The following table presents the balances of CIP that, after intercompany eliminations, were reflected on the Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022:
As of
 September 30, 2023December 31, 2022
VOEsVIEsVOEsVIEs
(in thousands)CLOs GFsCLOsGFs
Cash and cash equivalents$865 $208,056 $1,509 $1,153 $249,003 $789 
Investments19,147 1,978,308 71,760 24,669 2,106,764 58,680 
Other assets110 33,143 1,228 295 43,993 1,157 
Notes payable— (1,943,949)— — (2,083,314)— 
Securities purchased payable and other liabilities(547)(183,520)(750)(573)(230,141)(183)
Noncontrolling interests(6,451)(5,448)(19,265)(7,879)(5,917)(10,389)
Net interests in CIP$13,124 $86,590 $54,482 $17,665 $80,388 $50,054 
Schedule of VIE Consolidated Investment Product Although these beneficial interests are eliminated upon consolidation, the application of the measurement alternative prescribed by ASU 2014-13, Consolidation (Topic 810) ("ASU 2014-13"), results in the net assets of the consolidated CLOs shown above to be equivalent to the beneficial interests retained by the Company at September 30, 2023, as shown in the table below:
(in thousands)
Subordinated notes$85,556 
Accrued investment management fees1,034 
Total Beneficial Interests$86,590 
The following table represents income and expenses of the consolidated CLOs included on the Company’s Condensed Consolidated Statements of Operations for the period indicated:
Nine Months Ended September 30, 2023
(in thousands)
Income:
Realized and unrealized gain (loss), net$(3,317)
Interest income140,078 
Total Income136,761 
Expenses:
Other operating expenses1,236 
Interest expense112,153 
Total Expense113,389 
Noncontrolling interests(786)
Net Income (Loss) Attributable to CLOs$22,586 

The following table represents the Company’s own economic interests in the consolidated CLOs, which are eliminated upon consolidation:
Nine Months Ended September 30, 2023
(in thousands)
Distributions received and unrealized gains (losses) on the subordinated notes held by the Company$15,907 
Investment management fees6,679 
Total Economic Interests$22,586 
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis
The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of CIP discussed in Note 16, as of September 30, 2023 and December 31, 2022 by fair value hierarchy level were as follows:
September 30, 2023  
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$157,635 $— $— $157,635 
Investment securities - fair value
Sponsored funds76,958 — — 76,958 
Equity securities17,167 — — 17,167 
Debt securities— — 24,339 24,339 
Nonqualified retirement plan assets11,328 — — 11,328 
Total assets measured at fair value$263,088 $— $24,339 $287,427 
Liabilities
Contingent consideration$— $— $54,910 $54,910 
Total liabilities measured at fair value$— $— $54,910 $54,910 

December 31, 2022  
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$287,126 $— $— $287,126 
Investment securities - fair value
Sponsored funds62,744 — — 62,744 
Equity securities14,255 — — 14,255 
Nonqualified retirement plan assets10,154 — — 10,154 
Total assets measured at fair value$374,279 $— $— $374,279 
Liabilities
Contingent consideration$— $— $78,100 $78,100 
Total liabilities measured at fair value$— $— $78,100 $78,100 
The assets and liabilities of CIP measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022 by fair value hierarchy level were as follows:
As of September 30, 2023
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$208,056 $— $— $208,056 
Debt investments167 1,976,568 61,939 2,038,674 
Equity investments 28,761 437 1,343 30,541 
Total assets measured at fair value$236,984 $1,977,005 $63,282 $2,277,271 
Liabilities
Notes payable$— $1,943,949 $— $1,943,949 
Short sales489 — — 489 
Total liabilities measured at fair value$489 $1,943,949 $— $1,944,438 
As of December 31, 2022
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$249,003 $— $— $249,003 
Debt investments243 2,119,082 42,246 2,161,571 
Equity investments25,003 2,204 1,335 28,542 
Total assets measured at fair value$274,249 $2,121,286 $43,581 $2,439,116 
Liabilities
Notes payable$— $2,083,314 $— $2,083,314 
Short sales414 — — 414 
Total liabilities measured at fair value$414 $2,083,314 $— $2,083,728 
Schedule of Reconciliation of Assets of Consolidated Sponsored Investment Products For Level 3 Investments, Unobservable Inputs Used to Determine Fair Value
The following table is a reconciliation of assets of CIP for Level 3 investments for which significant unobservable inputs were used to determine fair value:
 Nine Months Ended September 30,
 (in thousands)
20232022
Balance at beginning of period$43,581 $3,157 
Realized gains (losses), net(4,306)(596)
Change in unrealized gains (losses), net3,980 (425)
Purchases3,430 1,930 
Amortization284 9 
Sales(7,890)(12,142)
Transfers to Level 2(79,288)(53,746)
Transfers from Level 2103,491 107,622 
Balance at end of period (1)$63,282 $45,809 
(1)The investments that are categorized as Level 3 were valued utilizing third-party pricing information without adjustment. Transfers in and/or out of levels are reflected when significant inputs, including market inputs or performance attributes, used for the fair value measurement become observable/unobservable at period end.
v3.23.3
Revenues (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Disaggregation of Revenue [Line Items]        
Revenues $ 219,271 $ 210,261 $ 630,681 $ 688,008
Total investment management fees        
Disaggregation of Revenue [Line Items]        
Revenues 184,869 172,850 529,326 564,691
Open-end funds        
Disaggregation of Revenue [Line Items]        
Revenues 80,294 80,234 229,721 262,486
Closed-end funds        
Disaggregation of Revenue [Line Items]        
Revenues 14,673 15,773 44,025 48,887
Retail separate accounts        
Disaggregation of Revenue [Line Items]        
Revenues 44,441 39,154 127,323 134,069
Institutional accounts        
Disaggregation of Revenue [Line Items]        
Revenues $ 45,461 $ 37,689 $ 128,257 $ 119,249
v3.23.3
Acquisitions - Narrative (Details) - USD ($)
$ in Thousands
Apr. 01, 2023
Jan. 01, 2022
Sep. 30, 2023
Dec. 31, 2022
Business Acquisition [Line Items]        
Goodwill     $ 397,098 $ 348,836
AlphaSimplex Group, LLC        
Business Acquisition [Line Items]        
Purchase price $ 113,400      
Goodwill 48,262      
Intangible assets 55,400      
Business acquisition, goodwill, expected tax deductible amount $ 103,700      
Business acquisition, goodwill, expected tax deductible period 15 years      
Stone Harbor Investment Partners, LLC        
Business Acquisition [Line Items]        
Purchase price   $ 30,100    
Goodwill   10,300    
Intangible assets   $ 10,800    
v3.23.3
Acquisitions - Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Apr. 01, 2023
Dec. 31, 2022
Assets:      
Goodwill $ 397,098   $ 348,836
AlphaSimplex Group, LLC      
Assets:      
Cash and cash equivalents   $ 4,395  
Investments   8,567  
Accounts receivable   5,422  
Furniture, equipment and leasehold improvements   4,161  
Intangible assets   55,400  
Goodwill   48,262  
Other assets   9,126  
Total Assets   135,333  
Liabilities:      
Accounts payable and accrued liabilities   21,939  
Total Liabilities   21,939  
Total Net Assets Acquired   $ 113,394  
v3.23.3
Acquisitions - Intangible Assets Acquired (Details) - AlphaSimplex Group, LLC
$ in Thousands
Apr. 01, 2023
USD ($)
Definite-lived intangible assets:  
Approximate Fair Value (in thousands) $ 55,400
Investment management agreements  
Definite-lived intangible assets:  
Approximate Fair Value (in thousands) $ 52,000
Weighted Average of Useful Life (in years) 10 years 6 months
Trade names  
Definite-lived intangible assets:  
Approximate Fair Value (in thousands) $ 3,400
Weighted Average of Useful Life (in years) 9 years
v3.23.3
Goodwill and Intangible Assets, Net - Goodwill and Intangible Assets, Net (Details)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
USD ($)
Goodwill  
Balance, beginning of period $ 348,836
Acquisitions 48,262
Balance, ending of period 397,098
Definite-Lived  
Gross book value, beginning of period 756,028
Accumulated amortization, beginning of period (355,807)
Net book value, beginning of period 400,221
Additions 55,400
Intangible amortization (45,581)
Gross book value, end of period 811,428
Accumulated amortization, end of period (401,388)
Net book value, end of period 410,040
Indefinite-Lived  
Net book value, beginning of period 42,298
Net book value, end of period 42,298
Total  
Net book value, beginning of period 442,519
Intangible amortization (45,581)
Net book value, end of period $ 452,338
v3.23.3
Goodwill and Intangible Assets, Net - Estimated Amortization Expense of Intangible Assets Succeeding Years (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]    
Remainder of 2023 $ 15,445  
2024 56,739  
2025 51,971  
2026 50,991  
2027 47,890  
2028 and thereafter 187,004  
Total $ 410,040 $ 400,221
v3.23.3
Investments - Investments (Details) - USD ($)
$ in Thousands
Jan. 01, 2023
Sep. 30, 2023
Dec. 31, 2022
Schedule of Investments [Line Items]      
Investment securities - fair value   $ 118,464 $ 76,999
Parent      
Schedule of Investments [Line Items]      
Investment securities - fair value   118,464 76,999
Equity method investments   22,557 11,448
Nonqualified retirement plan assets   11,328 10,154
Other investments   0 1,729
Total investments   $ 152,349 $ 100,330
Payments to acquire investments $ 11,600    
v3.23.3
Investments - Marketable Securities (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Investment Securities - fair value    
Cost $ 122,324 $ 80,912
Fair Value 118,464 76,999
Sponsored funds    
Investment Securities - fair value    
Cost 82,156 67,472
Fair Value 76,958 62,744
Equity securities    
Investment Securities - fair value    
Cost 15,829 13,440
Fair Value 17,167 14,255
Debt securities    
Investment Securities - fair value    
Cost 24,339 0
Fair Value $ 24,339 $ 0
v3.23.3
Investments - Narrative (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Schedule of Investments [Abstract]        
Realized (losses) gains on trading securities $ (100,000) $ 400,000 $ 2,100,000 $ 400,000
v3.23.3
Fair Value Measurements - Changes in Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Assets    
Cash equivalents $ 157,635 $ 287,126
Investment securities - fair value    
Fair Value 118,464 76,999
Debt securities 24,339  
Total assets measured at fair value 287,427 374,279
Liabilities    
Total liabilities measured at fair value 54,910 78,100
Contingent consideration    
Liabilities    
Total liabilities measured at fair value 54,910 78,100
Sponsored funds    
Investment securities - fair value    
Fair Value 76,958 62,744
Equity securities    
Investment securities - fair value    
Fair Value 17,167 14,255
Nonqualified retirement plan assets    
Investment securities - fair value    
Nonqualified retirement plan assets 11,328 10,154
Level 1    
Assets    
Cash equivalents 157,635 287,126
Investment securities - fair value    
Debt securities 0  
Total assets measured at fair value 263,088 374,279
Liabilities    
Total liabilities measured at fair value 0 0
Level 1 | Contingent consideration    
Liabilities    
Total liabilities measured at fair value 0 0
Level 1 | Sponsored funds    
Investment securities - fair value    
Fair Value 76,958 62,744
Level 1 | Equity securities    
Investment securities - fair value    
Fair Value 17,167 14,255
Level 1 | Nonqualified retirement plan assets    
Investment securities - fair value    
Nonqualified retirement plan assets 11,328 10,154
Level 2    
Assets    
Cash equivalents 0 0
Investment securities - fair value    
Debt securities 0  
Total assets measured at fair value 0 0
Liabilities    
Total liabilities measured at fair value 0 0
Level 2 | Contingent consideration    
Liabilities    
Total liabilities measured at fair value 0 0
Level 2 | Sponsored funds    
Investment securities - fair value    
Fair Value 0 0
Level 2 | Equity securities    
Investment securities - fair value    
Fair Value 0 0
Level 2 | Nonqualified retirement plan assets    
Investment securities - fair value    
Nonqualified retirement plan assets 0 0
Level 3    
Assets    
Cash equivalents 0 0
Investment securities - fair value    
Debt securities 24,339  
Total assets measured at fair value 24,339 0
Liabilities    
Total liabilities measured at fair value 54,910 78,100
Level 3 | Contingent consideration    
Liabilities    
Total liabilities measured at fair value 54,910 78,100
Level 3 | Sponsored funds    
Investment securities - fair value    
Fair Value 0 0
Level 3 | Equity securities    
Investment securities - fair value    
Fair Value 0 0
Level 3 | Nonqualified retirement plan assets    
Investment securities - fair value    
Nonqualified retirement plan assets $ 0 $ 0
v3.23.3
Fair Value Measurements - Rollforward of the Contingent Consideration Liabilities Valued Using Level 3 Inputs (Details) - Level 3 - Contingent consideration - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Assets        
Balance at beginning of period $ 0 $ 0 $ 0 $ 0
Purchases (sales), net 24,339 0 24,339 0
Balance at end of period 24,339 0 24,339 0
Liabilities        
Balance at beginning of period 54,910 72,980 78,100 88,400
Additions for acquisition 0 0 0 1,200
Reduction for payments made 0 0 (16,390) (19,520)
Increase (reduction) of liability related to re-measurement of fair value 0 0 (6,800) 2,900
Balance at end of period $ 54,910 $ 72,980 $ 54,910 $ 72,980
v3.23.3
Equity Transactions (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 9 Months Ended
Aug. 16, 2023
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Equity [Abstract]          
Cash dividends declared per common share (in dollars per share) $ 1.90 $ 1.90 $ 1.65 $ 5.20 $ 4.65
Stock repurchased during period, shares   74,015   125,855  
Weighted average price (in dollars per share)   $ 202.63   $ 198.61  
Stock repurchased during period, value   $ 15.0   $ 25.0  
Shares available for repurchase (in shares)   702,497   702,497  
v3.23.3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period $ 856,709 $ 791,705 $ 822,936 $ 836,627
Net current-period other comprehensive income (loss) (226) (504) (15) (791)
Balance at end of period 867,552 805,939 867,552 805,939
Accumulated Foreign Currency Adjustment Attributable to Parent        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance at beginning of period     (358) 20
Net current-period other comprehensive income (loss)     (15) (791)
Balance at end of period $ (373) $ (771) (373) (771)
Other comprehensive income (loss), before reclassifications, tax     $ 5 $ 280
v3.23.3
Stock-Based Compensation - Narrative (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2023
USD ($)
shares
Sep. 30, 2022
USD ($)
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Shares of common stock available for issuance (in shares) 478,711  
Shares of common stock reserved for issuance (in shares) 3,370,000  
RSUs and PSUs    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Unamortized stock-based compensation expense | $ $ 36.0  
Weighted-average remaining amortization period 1 year 3 months 18 days  
Restricted Stock Units (RSUs)    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share settlement under RSUs (in shares) 77,583 77,508
Cash used for employee withholding tax payments | $ $ 13.4 $ 16.5
Performance Share Units (PSUs)    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Awards granted (in shares) 44,583  
Period for recognition of compensation expense 3 years  
Minimum | Restricted Stock Units (RSUs)    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period 1 year  
Maximum | Restricted Stock Units (RSUs)    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period 3 years  
Common Stock | Restricted Stock Units (RSUs)    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Conversion ratio 1  
v3.23.3
Stock-Based Compensation - Stock Based Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]        
Stock-based compensation expense $ 7,668 $ 5,148 $ 20,072 $ 19,267
v3.23.3
Stock-Based Compensation - Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs)
 9 Months Ended
Sep. 30, 2023
$ / shares
shares
Number of Shares  
Number of shares, beginning balance (in shares) | shares 377,087
Number of shares, granted (in shares) | shares 207,206
Number of shares, forfeited (in shares) | shares (35,341)
Number of shares, settled (in shares) | shares (199,880)
Number of shares, ending balance (in shares) | shares 349,072
Weighted Average Grant Date Fair Value  
Weighted average grant date fair value, beginning balance (in dollars per share) | $ / shares $ 178.21
Weighted-average grant-date fair value (in dollars per share) | $ / shares 160.10
Weighted average grant date fair value, forfeited (in dollars per share) | $ / shares 146.07
Weighted average grant date fair value, settled (in dollars per share) | $ / shares 119.68
Weighted average grant date fair value, ending balance (in dollars per share) | $ / shares $ 204.23
v3.23.3
Earnings (Loss) Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Earnings Per Share [Abstract]        
Net Income (Loss) $ 38,154 $ 27,415 $ 102,977 $ 80,793
Noncontrolling interests (7,248) 4,265 (3,190) 1,348
Net Income (Loss) Attributable to Virtus Investment Partners, Inc. $ 30,906 $ 31,680 $ 99,787 $ 82,141
Shares:        
Basic: Weighted-average number of shares outstanding (in shares) 7,258 7,308 7,272 7,434
Plus: Incremental shares from assumed conversion of dilutive instruments (in shares) 121 155 121 202
Diluted: Weighted-average number of shares outstanding (in shares) 7,379 7,463 7,393 7,636
Earnings (Loss) per Share—Basic (in dollars per share) $ 4.26 $ 4.33 $ 13.72 $ 11.05
Earnings (Loss) per Share—Diluted (in dollars per share) $ 4.19 $ 4.25 $ 13.50 $ 10.76
v3.23.3
Earnings (Loss) Per Share - Securities Excluded from Computation of Diluted EPS (Details) - shares
shares in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Total anti-dilutive securities (in shares) 2 31 3 32
Restricted stock units        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Total anti-dilutive securities (in shares) 2 31 3 32
v3.23.3
Income Taxes (Details)
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Income Tax Disclosure [Abstract]    
Estimated effective income tax rate (as percent) 23.60% 35.20%
v3.23.3
Debt (Details) - USD ($)
$ in Thousands
 9 Months Ended
Apr. 03, 2023
Sep. 28, 2021
Sep. 30, 2023
Sep. 30, 2022
Line of Credit Facility [Line Items]        
Borrowings on credit agreement     $ 50,000 $ 0
Credit Agreement | Revolving credit facility        
Line of Credit Facility [Line Items]        
Maximum borrowing capacity   $ 175,000    
Term of debt   5 years    
Debt repayments     30,000  
Outstanding borrowings     20,000  
Credit Agreement | Revolving credit facility | AlphaSimplex Group, LLC        
Line of Credit Facility [Line Items]        
Borrowings on credit agreement $ 50,000      
Secured Debt | Term loan        
Line of Credit Facility [Line Items]        
Maximum borrowing capacity   $ 275,000    
Term of debt   7 years    
Debt repayments     2,100  
Outstanding borrowings     259,500  
Debt issuance costs     $ 5,700  
v3.23.3
Redeemable Noncontrolling Interests - Narrative (Details)
 9 Months Ended
Sep. 30, 2023
Minimum  
Noncontrolling Interest [Line Items]  
Exercise period 4 years
Maximum  
Noncontrolling Interest [Line Items]  
Exercise period 7 years
v3.23.3
Redeemable Noncontrolling Interests - Redeemable Noncontrolling Interest (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]        
Beginning balance     $ 113,718  
Net income (loss) attributable to noncontrolling interests     6,017  
Changes in redemption value     (7,170) $ (338)
Total net income (loss) attributable to noncontrolling interests $ 6,577 $ (4,416) 2,404 $ (1,164)
Affiliate equity sales (purchases)     (20,784)  
Net subscriptions (redemptions) and other     928  
Ending balance 96,266   96,266  
CIP        
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]        
Beginning balance     18,268  
Net income (loss) attributable to noncontrolling interests     772  
Total net income (loss) attributable to noncontrolling interests     772  
Affiliate equity sales (purchases)     0  
Net subscriptions (redemptions) and other     6,676  
Ending balance 25,716   25,716  
Affiliate Noncontrolling Interests        
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]        
Beginning balance     95,450  
Net income (loss) attributable to noncontrolling interests     5,245  
Total net income (loss) attributable to noncontrolling interests     1,632  
Affiliate equity sales (purchases)     (20,784)  
Net subscriptions (redemptions) and other     (5,748)  
Ending balance $ 70,550   70,550  
Portion at Other than Fair Value Measurement        
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]        
Changes in redemption value     (3,613)  
Portion at Other than Fair Value Measurement | CIP        
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]        
Changes in redemption value     0  
Portion at Other than Fair Value Measurement | Affiliate Noncontrolling Interests        
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]        
Changes in redemption value     $ (3,613)  
v3.23.3
Consolidation - Condensed Consolidated Balance Sheets (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Jun. 30, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Dec. 31, 2021
Variable Interest Entity [Line Items]            
Noncontrolling interests $ (96,266) $ (110,399) $ (113,718) $ (124,442) $ (139,147) $ (138,965)
VOEs            
Variable Interest Entity [Line Items]            
Cash and cash equivalents 865   1,153      
Investments 19,147   24,669      
Other assets 110   295      
Notes payable 0   0      
Securities purchased payable and other liabilities (547)   (573)      
Noncontrolling interests (6,451)   (7,879)      
Net interests in CIP 13,124   17,665      
CLOs            
Variable Interest Entity [Line Items]            
Cash and cash equivalents 208,056   249,003      
Investments 1,978,308   2,106,764      
Other assets 33,143   43,993      
Notes payable (1,943,949)   (2,083,314)      
Securities purchased payable and other liabilities (183,520)   (230,141)      
Noncontrolling interests (5,448)   (5,917)      
Net interests in CIP 86,590   80,388      
GFs            
Variable Interest Entity [Line Items]            
Cash and cash equivalents 1,509   789      
Investments 71,760   58,680      
Other assets 1,228   1,157      
Notes payable 0   0      
Securities purchased payable and other liabilities (750)   (183)      
Noncontrolling interests (19,265)   (10,389)      
Net interests in CIP $ 54,482   $ 50,054      
v3.23.3
Consolidation - Narrative (Details)
 1 Months Ended 9 Months Ended
Sep. 30, 2023
USD ($)
collateralized_loan_obligation
Sep. 30, 2023
USD ($)
collateralized_loan_obligation
Dec. 31, 2022
USD ($)
Variable Interest Entity [Line Items]      
Derivative liabilities $ 0 $ 0  
CLOs      
Variable Interest Entity [Line Items]      
Number of CLOs consolidated | collateralized_loan_obligation 8 8  
Investments $ 1,978,308,000 $ 1,978,308,000 $ 2,106,764,000
Nonconsolidated      
Variable Interest Entity [Line Items]      
Carrying value and maximum risk of loss 25,300,000 25,300,000  
Subordinated Debt | CLOs      
Variable Interest Entity [Line Items]      
Payments to acquire investments 26,400,000    
Senior Notes | CLOs      
Variable Interest Entity [Line Items]      
Unpaid principal balance exceeds fair value 107,000,000 107,000,000  
Subordinated Notes - Newfleet CLO 2016-1 | CLOs      
Variable Interest Entity [Line Items]      
Debt par value 2,200,000,000 2,200,000,000  
Subordinated Notes - Newfleet CLO 2016-1 | Subordinated Debt | CLOs      
Variable Interest Entity [Line Items]      
Debt par value 237,400,000 237,400,000  
Senior Secured Floating Rate Notes - Newfleet CLO 2016-1 | Senior Notes | CLOs      
Variable Interest Entity [Line Items]      
Debt par value $ 1,900,000,000 $ 1,900,000,000  
Minimum | Senior Secured Floating Rate Notes - Newfleet CLO 2016-1 | LIBOR | CLOs      
Variable Interest Entity [Line Items]      
Basis spread on variable rate (as percent)   0.80%  
Maximum | Senior Secured Floating Rate Notes - Newfleet CLO 2016-1 | LIBOR | CLOs      
Variable Interest Entity [Line Items]      
Basis spread on variable rate (as percent)   9.10%  
v3.23.3
Consolidation - Beneficial Interests of Consolidated Investment Product (Details) - CLOs
$ in Thousands
Sep. 30, 2023
USD ($)
Variable Interest Entity [Line Items]  
Subordinated notes $ 85,556
Accrued investment management fees 1,034
Total Beneficial Interests $ 86,590
v3.23.3
Consolidation - Revenue and Expenses of Consolidated Investment Product (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Expenses:        
Noncontrolling interests $ (7,248) $ 4,265 $ (3,190) $ 1,348
Net Income (Loss) Attributable to Virtus Investment Partners, Inc. $ 30,906 $ 31,680 99,787 $ 82,141
CLOs        
Income:        
Realized and unrealized gain (loss), net     (3,317)  
Interest income     140,078  
Total Income     136,761  
Expenses:        
Other operating expenses     1,236  
Interest expense     112,153  
Total Expense     113,389  
Noncontrolling interests     (786)  
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.     $ 22,586  
v3.23.3
Consolidation - Economic Interests of Consolidated Investment Product (Details) - CLOs
$ in Thousands
 9 Months Ended
Sep. 30, 2023
USD ($)
Variable Interest Entity [Line Items]  
Distributions received and unrealized gains (losses) on the subordinated notes held by the Company $ 15,907
Investment management fees 6,679
Total Economic Interests $ 22,586
v3.23.3
Consolidation - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Assets    
Cash equivalents $ 157,635 $ 287,126
Total assets measured at fair value 287,427 374,279
Liabilities    
Total liabilities measured at fair value 54,910 78,100
Level 1    
Assets    
Cash equivalents 157,635 287,126
Total assets measured at fair value 263,088 374,279
Liabilities    
Total liabilities measured at fair value 0 0
Level 2    
Assets    
Cash equivalents 0 0
Total assets measured at fair value 0 0
Liabilities    
Total liabilities measured at fair value 0 0
Level 3    
Assets    
Cash equivalents 0 0
Total assets measured at fair value 24,339 0
Liabilities    
Total liabilities measured at fair value 54,910 78,100
Fair Value, Measurements, Recurring | Consolidated Investment Products    
Assets    
Cash equivalents 208,056 249,003
Total assets measured at fair value 2,277,271 2,439,116
Liabilities    
Notes payable 1,943,949 2,083,314
Short sales 489 414
Total liabilities measured at fair value 1,944,438 2,083,728
Fair Value, Measurements, Recurring | Debt investments | Consolidated Investment Products    
Assets    
Investments 2,038,674 2,161,571
Fair Value, Measurements, Recurring | Equity investments | Consolidated Investment Products    
Assets    
Investments 30,541 28,542
Fair Value, Measurements, Recurring | Level 1 | Consolidated Investment Products    
Assets    
Cash equivalents 208,056 249,003
Total assets measured at fair value 236,984 274,249
Liabilities    
Notes payable 0 0
Short sales 489 414
Total liabilities measured at fair value 489 414
Fair Value, Measurements, Recurring | Level 1 | Debt investments | Consolidated Investment Products    
Assets    
Investments 167 243
Fair Value, Measurements, Recurring | Level 1 | Equity investments | Consolidated Investment Products    
Assets    
Investments 28,761 25,003
Fair Value, Measurements, Recurring | Level 2 | Consolidated Investment Products    
Assets    
Cash equivalents 0 0
Total assets measured at fair value 1,977,005 2,121,286
Liabilities    
Notes payable 1,943,949 2,083,314
Short sales 0 0
Total liabilities measured at fair value 1,943,949 2,083,314
Fair Value, Measurements, Recurring | Level 2 | Debt investments | Consolidated Investment Products    
Assets    
Investments 1,976,568 2,119,082
Fair Value, Measurements, Recurring | Level 2 | Equity investments | Consolidated Investment Products    
Assets    
Investments 437 2,204
Fair Value, Measurements, Recurring | Level 3 | Consolidated Investment Products    
Assets    
Cash equivalents 0 0
Total assets measured at fair value 63,282 43,581
Liabilities    
Notes payable 0 0
Short sales 0 0
Total liabilities measured at fair value 0 0
Fair Value, Measurements, Recurring | Level 3 | Debt investments | Consolidated Investment Products    
Assets    
Investments 61,939 42,246
Fair Value, Measurements, Recurring | Level 3 | Equity investments | Consolidated Investment Products    
Assets    
Investments $ 1,343 $ 1,335
v3.23.3
Consolidation - Assets Related to Consolidated Sponsored Investment Products, Unobservable Input Reconciliation (Details) - Debt investments - Consolidated Investment Products - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Assets    
Balance at beginning of period $ 43,581 $ 3,157
Realized gains (losses), net (4,306) (596)
Change in unrealized gains (losses), net 3,980 (425)
Purchases 3,430 1,930
Amortization 284 9
Sales (7,890) (12,142)
Transfers to Level 2 (79,288) (53,746)
Transfers from Level 2 103,491 107,622
Balance at end of period $ 63,282 $ 45,809
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