Virtus Investment Partners 8K Reconciliation of U.S. GAAP Consolidated Statement of Operations to Consolidated Non-GAAP Income Statement Information | VRTS 14 Apr 15

Exhibit 99.1

Virtus Investment Partners, Inc.

Reconciliation of U.S. GAAP Consolidated Statement of Operations to Consolidated Non-GAAP Income Statement Information

(Unaudited, dollars in thousands except per share)

Twelve months ended December 31, 2014

				Reclassifications						Adjustments
	U.S. GAAP Basis			Distribution and administration expenses			Consolidated sponsored investment products			Closed-end fund launch costs			Amortization of intangible assets			Seed capital investments impact			Other¹			Non-GAAP Basis
Revenues
Investment management fees	$	300,663		$	-		$	396		$	-		$	-		$	-		$	-		$	301,059
Distribution and service fees		91,950			-			48			-			-			-			-			91,998
Administration and transfer agent fees		56,016			-			217			-			-			-			-			56,233
Other income and fees		1,969			-			-			-			-			-			-			1,969
Distribution and administration expenses		-			(114,089	)		-			-			-			-			-			(114,089	)
Total revenues		450,598			(114,089	)		661			-			-			-			-			337,170

Operating Expenses
Employment expenses		139,809			-			-			(509	)		-			-			(859	)		138,441
Distribution and administration expenses		123,665			(114,089	)		-			(9,576	)		-			-			-			-
Other operating expenses		46,531			-			-			-			-			-			(1,050	)		45,481
Other operating expenses of consolidated sponsored investment products		3,038			-			(3,038	)		-			-			-			-			-
Restructuring and severance		294			-			-			-			-			-			(294	)		-
Depreciation and other amortization		2,763			-			-			-			-			-			-			2,763
Amortization expense		3,778			-			-			-			(3,778	)		-			-			-
Total operating expenses		319,878			(114,089	)		(3,038	)		(10,085	)		(3,778	)		-			(2,203	)		186,685

Operating Income		130,720			-			3,699			10,085			3,778			-			2,203			150,485

Other Income (Expense)
Realized and unrealized gain (loss) on investments, net		914			-			(3,495	)		-			-			2,232			-			(349	)
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net		(4,648	)		-			4,648			-			-			-			-			-
Other income (expense), net		891			-			-			-			-			-			-			891
Total other income (expense), net		(2,843	)		-			1,153			-			-			2,232			-			542

Interest Income (Expense)
Interest expense		(537	)		-			-			-			-			-			-			(537	)
Interest and dividend income		1,706			-			3,022			-			-			(3,771	)		-			957
Interest and dividend income of investments of consolidated sponsored investment products		7,268			-			(7,268	)		-			-			-			-			-
Total interest income (expense), net		8,437			-			(4,246	)		-			-			(3,771	)		-			420
Income Before Income Taxes		136,314			-			606			10,085			3,778			(1,539	)		2,203			151,447
Income tax expense		39,349			-			-			3,861			1,441			(2,981	)		16,055			57,725
Net Income		96,965			-			606			6,224			2,337			1,442			(13,852	)		93,722
Noncontrolling interests		735			-			(606	)		-			-			-			-			129
Net Income Attributable to Common Stockholders	$	97,700		$	-		$	-		$	6,224		$	2,337		$	1,442		$	(13,852	)	$	93,851
Earnings Per Share - Basic	$	10.75																				$	10.32
Earnings Per Share - Diluted	$	10.51																				$	10.10
Weighted Average Shares Outstanding - Basic (in thousands)		9,091																					9,091
Weighted Average Shares Outstanding - Diluted (in thousands)		9,292																					9,292

¹Reflects the following items and the associated income tax impact: Newfleet transition expenses, system transition expenses, restructuring and severance charges, and certain income tax items including valuation allowances, uncertain tax positions and other unusual items.

Virtus Investment Partners, Inc.

Reconciliation of U.S. GAAP Consolidated Statement of Operations to Consolidated Non-GAAP Income Statement Information

(Unaudited, dollars in thousands except per share)

Twelve months ended December 31, 2013

				Reclassifications						Adjustments
	U.S. GAAP Basis			Distribution and administration expenses			Consolidated sponsored investment products			Amortization of intangible assets			Seed capital investments impact			Other¹			Non-GAAP Basis
Revenues
Investment management fees	$	260,557		$	-		$	(138	)	$	-		$	-		$	-		$	260,419
Distribution and service fees		78,965			-			40			-			-			-			79,005
Administration and transfer agent fees		48,185			-			85			-			-			-			48,270
Other income and fees		1,508			-			-			-			-			-			1,508
Distribution and administration expenses		-			(97,786	)		-			-			-			-			(97,786	)
Total revenues		389,215			(97,786	)		(13	)		-			-			-			291,416

Operating Expenses
Employment expenses		131,768			-			-			-			-			(2,172	)		129,596
Distribution and administration expenses		97,786			(97,786	)		-			-			-			-			-
Other operating expenses		38,321			-			-			-			-			-			38,321
Other operating expenses of consolidated sponsored investment products		798			-			(798	)		-			-			-			-
Restructuring and severance		203			-			-			-			-			(203	)		-
Depreciation and other amortization		2,422			-			-			-			-			-			2,422
Amortization expense		4,413			-			-			(4,413	)		-			-			-
Total operating expenses		275,711			(97,786	)		(798	)		(4,413	)		-			(2,375	)		170,339

Operating Income		113,504			-			785			4,413			-			2,375			121,077

Other Income (Expense)
Realized and unrealized gain (loss) on investments, net		2,350			-			1,855			-			(4,230	)		-			(25	)
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net		3,515			-			(3,515	)		-			-			-			-
Other income (expense), net		74			-			-			-			-			-			74
Total other income (expense), net		5,939			-			(1,660	)		-			(4,230	)		-			49

Interest Income (Expense)
Interest expense		(782	)		-			-			-			-			-			(782	)
Interest and dividend income		664			-			1,460			-			(1,849	)		-			275
Interest and dividend income of investments of consolidated sponsored investment products		2,583			-			(2,583	)		-			-			-			-
Total interest income (expense), net		2,465			-			(1,123	)		-			(1,849	)		-			(507	)
Income Before Income Taxes		121,908			-			(1,998	)		4,413			(6,079	)		2,375			120,619
Income tax expense		44,778			-			-			1,669			(2,326	)		1,553			45,674
Net Income		77,130			-			(1,998	)		2,744			(3,753	)		822			74,945
Noncontrolling interests		(1,940	)		-			1,998			-			-			-			58
Net Income Attributable to Common Stockholders	$	75,190		$	-		$	-		$	2,744		$	(3,753	)	$	822		$	75,003
Earnings Per Share - Basic	$	9.18																	$	9.16
Earnings Per Share - Diluted	$	8.92																	$	8.89
Weighted Average Shares Outstanding - Basic (in thousands)		8,188																		8,188
Weighted Average Shares Outstanding - Diluted (in thousands)		8,433																		8,433

¹ Reflects the following items and the associated income tax impact: Newfleet transition expenses, system transition expenses, restructuring and severance charges, and certain income tax items including valuation allowances, uncertain tax positions and other unusual items.

Consolidated Non-GAAP Income Statement Information

(Dollars in thousands, except per share data)

	Twelve Months Ended
	12/31/14			12/31/13			Change
Revenues, as Adjusted
Investment management fees	$	301,059		$	260,419		16%
Distribution and service fees		91,998			79,005		16%
Administration and transfer agent fees		56,233			48,270		16%
Other income and fees		1,969			1,508		31%
Distribution and administration expenses		(114,089	)		(97,786	)	17%
Total Revenues, as Adjusted		337,170			291,416		16%

Operating Expenses, as Adjusted
Employment expenses		138,441			129,596		7%
Other operating expenses		45,481			38,321		19%
Depreciation of fixed assets		2,763			2,422		14%
Total Operating Expenses, as Adjusted		186,685			170,339		10%

Operating Income, as Adjusted		150,485			121,077		24%
Operating Margin, as Adjusted		44.6%			41.5%

Other Income (Expense)
Realized and unrealized loss on investments, net		(349	)		(25	)	N/M
Other income, net		891			74		N/M
Total other income, net		542			49		N/M

Interest Income (Expense)
Interest expense		(537	)		(782	)	(31)%
Interest and dividend income		957			275		248%
Total interest (expense), net		420			(507	)	(183)%
Pre-tax Income, as Adjusted		151,447			120,619		26%
Income tax expense, as adjusted		57,725			45,674		26%
Net Income, as Adjusted		93,722			74,945		25%
Noncontrolling interests		129			58		122%
Net Income Attributable to Common Stockholders, as Adjusted	$	93,851		$	75,003		25%
Earnings Per Share, as Adjusted - Basic	$	10.32		$	9.16		13%
Earnings Per Share, as Adjusted - Diluted	$	10.10		$	8.89		14%
Weighted Average Shares Outstanding - Basic (in thousands)		9,091			8,188		11%
Weighted Average Shares Outstanding - Diluted (in thousands)		9,292			8,433		10%

N/M - Not Meaningful

Virtus Investment Partners, Inc.

Reconciliation of U.S. GAAP Consolidated Statement of Operations to Consolidated Non-GAAP Income Statement Information

(Unaudited, dollars in thousands except per share)

Three months ended December 31, 2014

				Reclassifications						Adjustments
	U.S. GAAP Basis			Distribution and administration expenses			Consolidated sponsored investment products			Amortization of intangible assets				Seed capital investments impact			Other¹			Non-GAAP Basis
Revenues
Investment management fees	$	75,374		$	-		$	492		$	-			$	-		$	-		$	75,866
Distribution and service fees		21,901			-			18			-				-			-			21,919
Administration and transfer agent fees		14,197			-			78			-				-			-			14,275
Other income and fees		665			-			-			-				-			-			665
Distribution and administration expenses		-			(27,526	)		-			-				-			-			(27,526	)
Total revenues		112,137			(27,526	)		588			-				-			-			85,199
													��
Operating Expenses
Employment expenses		34,053			-			-			-				-			-			34,053
Distribution and administration expenses		27,526			(27,526	)		-			-				-			-			-
Other operating expenses		11,579			-			-			-				-			(359	)		11,220
Other operating expenses of consolidated sponsored investment products		664			-			(664	)		-				-			-			-
Restructuring and severance		-			-			-			-				-			-			-
Depreciation and other amortization		723			-			-			-				-			-			723
Amortization expense		927			-			-			(927	)			-			-			-
Total operating expenses		75,472			(27,526	)		(664	)		(927	)			-			(359	)		45,996

Operating Income		36,665			-			1,252			927				-			359			39,203

Other Income (Expense)
Realized and unrealized gain (loss) on investments, net		(798	)		-			(5,207	)		-				5,723			-			(282	)
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net		(5,798	)		-			5,798			-				-			-			-
Other income (expense), net		318			-			-			-				-			-			318
Total other income (expense), net		(6,278	)		-			591			-				5,723			-			36

Interest Income (Expense)
Interest expense		(125	)		-			-			-				-			-			(125	)
Interest and dividend income		653			-			1,116			-				(1,500	)		-			269
Interest and dividend income of investments of consolidated sponsored investment products		2,534			-			(2,534	)		-				-			-			-
Total interest income (expense), net		3,062			-			(1,418	)		-				(1,500	)		-			144
Income Before Income Taxes		33,449			-			425			927				4,223			359			39,383
Income tax expense		15,038			-						347				(782	)		135			14,738
Net Income		18,411			-			425			580				5,005			224			24,645
Noncontrolling interests		468			-			(425	)		-				-			-			43
Net Income Attributable to Common Stockholders	$	18,879		$	-		$	-		$	580			$	5,005		$	224		$	24,688
Earnings Per Share - Basic	$	2.09																		$	2.74
Earnings Per Share - Diluted	$	2.05																		$	2.68
Weighted Average Shares Outstanding - Basic (in thousands)		9,021																			9,021
Weighted Average Shares Outstanding - Diluted (in thousands)		9,203																			9,203

Virtus Investment Partners, Inc.

Reconciliation of U.S. GAAP Consolidated Statement of Operations to Consolidated Non-GAAP Income Statement Information

(Unaudited, dollars in thousands except per share)

Three months ended September 30, 2014

				Reclassifications						Adjustments
	U.S. GAAP Basis			Distribution and administration expenses			Consolidated sponsored investment products			Amortization of intangible assets			Seed capital investments impact			Other¹			Non-GAAP Basis
Revenues
Investment management fees	$	78,960		$	-		$	(111	)	$	-		$	-		$	-		$	78,849
Distribution and service fees		23,671			-			10			-			-			-			23,681
Administration and transfer agent fees		14,804			-			68			-			-			-			14,872
Other income and fees		406			-			-			-			-			-			406
Distribution and administration expenses		-			(29,180	)		-			-			-			-			(29,180	)
Total revenues		117,841			(29,180	)		(33	)		-			-			-			88,628

Operating Expenses
Employment expenses		35,246			-			-			-			-			-			35,246
Distribution and administration expenses		29,180			(29,180	)		-			-			-			-			-
Other operating expenses		11,288			-			-			-			-			(216	)		11,072
Other operating expenses of consolidated sponsored investment products		1,246			-			(1,246	)		-			-			-			-
Restructuring and severance		294			-			-			-			-			(294	)		-
Depreciation and other amortization		713			-			-			-			-			-			713
Amortization expense		947			-			-			(947	)		-			-			-
Total operating expenses		78,914			(29,180	)		(1,246	)		(947	)		-			(510	)		47,031

Operating Income		38,927			-			1,213			947			-			510			41,597

Other Income (Expense)
Realized and unrealized gain (loss) on investments, net		(1,039	)		-			(4,872	)		-			5,585			-			(326	)
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net		(5,330	)		-			5,330			-			-			-			-
Other income (expense), net		233			-			-			-			-			-			233
Total other income (expense), net		(6,136	)		-			458			-			5,585			-			(93	)

Interest Income (Expense)
Interest expense		(149	)		-			-			-			-			-			(149	)
Interest and dividend income		326			-			851			-			(951	)		-			226
Interest and dividend income of investments of consolidated sponsored investment products		2,222			-			(2,222	)		-			-			-			-
Total interest income (expense), net		2,399			-			(1,371	)		-			(951	)		-			77
Income Before Income Taxes		35,190			-			300			947			4,634			510			41,581
Income tax expense		(1,805	)		-			-			364			1,782			15,652			15,993
Net Income		36,995			-			300			583			2,852			(15,142	)		25,588
Noncontrolling interests		345			-			(300	)		-			-			-			45
Net Income Attributable to Common Stockholders	$	37,340		$	-		$	-		$	583		$	2,852		$	(15,142	)	$	25,633
Earnings Per Share - Basic	$	4.10																	$	2.82
Earnings Per Share - Diluted	$	4.02																	$	2.76
Weighted Average Shares Outstanding - Basic (in thousands)		9,096																		9,096
Weighted Average Shares Outstanding - Diluted (in thousands)		9,279																		9,279

Virtus Investment Partners, Inc.

Reconciliation of U.S. GAAP Consolidated Statement of Operations to Consolidated Non-GAAP Income Statement Information

(Unaudited, dollars in thousands except per share)

Three months ended June 30, 2014

				Reclassifications						Adjustments
	U.S. GAAP Basis			Distribution and administration expenses			Consolidated sponsored investment products			Closed-end fund launch costs			Amortization of intangible assets			Seed capital investments impact			Other¹			Non-GAAP Basis
Revenues
Investment management fees	$	74,537		$	-		$	63		$	-		$	-		$	-		$	-		$	74,600
Distribution and service fees		23,940			-			7			-			-			-			-			23,947
Administration and transfer agent fees		13,942			-			52			-			-			-			-			13,994
Other income and fees		330			-			-			-			-			-			-			330
Distribution and administration expenses		-			(29,646	)		-			-			-			-			-			(29,646	)
Total revenues		112,749			(29,646	)		122			-			-			-			-			83,225

Operating Expenses
Employment expenses		35,481			-			-			(509	)		-			-			(367	)		34,605
Distribution and administration expenses		39,222			(29,646	)		-			(9,576	)		-			-			-			-
Other operating expenses		13,130			-			-			-			-			-			(475	)		12,655
Other operating expenses of consolidated sponsored investment products		797			-			(797	)		-			-			-			-			-
Restructuring and severance		-			-			-			-			-			-			-			-
Depreciation and other amortization		670			-			-			-			-			-			-			670
Amortization expense		947			-			-			-			(947	)		-			-			-
Total operating expenses		90,247			(29,646	)		(797	)		(10,085	)		(947	)		-			(842	)		47,930

Operating Income		22,502			-			919			10,085			947			-			842			35,295

Other Income (Expense)
Realized and unrealized gain (loss) on investments, net		905			-			6,169			-			-			(6,921	)		-			153
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net		6,444			-			(6,444	)		-			-			-			-			-
Other income (expense), net		189			-			-			-			-			-			-			189
Total other income (expense), net		7,538			-			(275	)		-			-			(6,921	)		-			342

Interest Income (Expense)
Interest expense		(125	)		-			-			-			-			-			-			(125	)
Interest and dividend income		344			-			715			-			-			(816	)		-			243
Interest and dividend income of investments of consolidated sponsored investment products		1,639			-			(1,639	)		-			-			-			-			-
Total interest income (expense), net		1,858			-			(924	)		-			-			(816	)		-			118
Income Before Income Taxes		31,898			-			(280	)		10,085			947			(7,737	)		842			35,755
Income tax expense		12,106			-						3,861			363			(2,962	)		322			13,690
Net Income		19,792			-			(280	)		6,224			584			(4,775	)		520			22,065
Noncontrolling interests		(249	)		-			280			-			-			-			-			31
Net Income Attributable to Common Stockholders	$	19,543		$	-		$	-		$	6,224		$	584		$	(4,775	)	$	520		$	22,096
Earnings Per Share - Basic	$	2.14																				$	2.42
Earnings Per Share - Diluted	$	2.10																				$	2.37
Weighted Average Shares Outstanding - Basic (in thousands)		9,133																					9,133
Weighted Average Shares Outstanding - Diluted (in thousands)		9,325																					9,325

Virtus Investment Partners, Inc.

Reconciliation of U.S. GAAP Consolidated Statement of Operations to Consolidated Non-GAAP Income Statement Information

(Unaudited, dollars in thousands except per share)

Three months ended March 31, 2014

				Reclassifications						Adjustments
	U.S. GAAP Basis			Distribution and administration expenses			Consolidated sponsored investment products			Amortization of intangible assets			Seed capital investments impact			Other¹			Non-GAAP Basis
Revenues
Investment management fees	$	71,792		$	-		$	(48	)	$	-		$	-		$	-		$	71,744
Distribution and service fees		22,438			-			13			-			-			-			22,451
Administration and transfer agent fees		13,073			-			19			-			-			-			13,092
Other income and fees		568			-			-			-			-			-			568
Distribution and administration expenses		-			(27,737	)		-			-			-			-			(27,737	)
Total revenues		107,871			(27,737	)		(16	)		-			-			-			80,118

Operating Expenses
Employment expenses		35,029			-			-			-			-			(492	)		34,537
Distribution and administration expenses		27,737			(27,737	)		-			-			-			-			-
Other operating expenses		10,534			-			-			-			-			-			10,534
Other operating expenses of consolidated sponsored investment products		331			-			(331	)		-			-			-			-
Restructuring and severance		-			-			-			-			-			-			-
Depreciation and other amortization		657			-			-			-			-			-			657
Amortization expense		957			-			-			(957	)		-			-			-
Total operating expenses		75,245			(27,737	)		(331	)		(957	)		-			(492	)		45,728

Operating Income		32,626			-			315			957			-			492			34,390

Other Income (Expense)
Realized and unrealized gain (loss) on investments, net		1,846			-			415			-			(2,155	)		-			106
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net		36			-			(36	)		-			-			-			-
Other income (expense), net		151			-			-			-			-			-			151
Total other income (expense), net		2,033			-			379			-			(2,155	)		-			257

Interest Income (Expense)
Interest expense		(138	)		-			-			-			-			-			(138	)
Interest and dividend income		383			-			340			-			(504	)		-			219
Interest and dividend income of investments of consolidated sponsored investment products		873			-			(873	)		-			-			-			-
Total interest income (expense), net		1,118			-			(533	)		-			(504	)		-			81
Income Before Income Taxes		35,777			-			161			957			(2,659	)		492			34,728
Income tax expense		14,010			-			-			367			(1,019	)		(54	)		13,304
Net Income		21,767			-			161			590			(1,640	)		546			21,424
Noncontrolling interests		171			-			(161	)		-			-			-			10
Net Income Attributable to Common Stockholders	$	21,938		$	-		$	-		$	590		$	(1,640	)	$	546		$	21,434
Earnings Per Share - Basic	$	2.41																	$	2.35
Earnings Per Share - Diluted	$	2.34																	$	2.29
Weighted Average Shares Outstanding - Basic (in thousands)		9,116																		9,116
Weighted Average Shares Outstanding - Diluted (in thousands)		9,361																		9,361

Virtus Investment Partners, Inc.

Reconciliation of U.S. GAAP Consolidated Statement of Operations to Consolidated Non-GAAP Income Statement Information

(Unaudited, dollars in thousands except per share)

Three months ended December 31, 2013

				Reclassifications						Adjustments
	U.S. GAAP Basis			Distribution and administration expenses			Consolidated sponsored investment products			Amortization of intangible assets			Seed capital investments impact			Other¹			Non-GAAP Basis
Revenues
Investment management fees	$	71,186		$	-		$	65		$	-		$	-		$	-		$	71,251
Distribution and service fees		21,958			-			25			-			-			-			21,983
Administration and transfer agent fees		12,937			-			39			-			-			-			12,976
Other income and fees		417			-			-			-			-			-			417
Distribution and administration expenses		-			(26,653	)		-			-			-			-			(26,653	)
Total revenues		106,498			(26,653	)		129			-			-			-			79,974

Operating Expenses
Employment expenses		33,457			-			-			-			-			(487	)		32,970
Distribution and administration expenses		26,653			(26,653	)		-			-			-			-			-
Other operating expenses		10,543			-			-			-			-			-			10,543
Other operating expenses of consolidated sponsored investment products		251			-			(251	)		-			-			-			-
Restructuring and severance		-			-			-			-			-			-			-
Depreciation and other amortization		640			-			-			-			-			-			640
Amortization expense		1,062			-			-			(1,062	)		-			-			-
Total operating expenses		72,606			(26,653	)		(251	)		(1,062	)		-			(487	)		44,153

Operating Income		33,892			-			380			1,062			-			487			35,821

Other Income (Expense)
Realized and unrealized gain (loss) on investments, net		463			-			3,863			-			(4,322	)		-			4
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net		5,975			-			(5,975	)		-			-			-			-
Other income (expense), net		(8	)		-			-			-			-			-			(8	)
Total other income (expense), net		6,430			-			(2,112	)		-			(4,322	)		-			(4	)

Interest Income (Expense)
Interest expense		(148	)		-			-			-			-			-			(148	)
Interest and dividend income		238			-			507			-			(675	)		-			70
Interest and dividend income of investments of consolidated sponsored investment products		891			-			(891	)		-			-			-			-
Total interest income (expense), net		981			-			(384	)		-			(675	)		-			(78	)
Income Before Income Taxes		41,303			-			(2,116	)		1,062			(4,997	)		487			35,739
Income tax expense		14,443			-			-			409			(1,925	)		842			13,769
Net Income		26,860			-			(2,116	)		653			(3,072	)		(355	)		21,970
Noncontrolling interests		(2,104	)		-			2,116			-			-			-			12
Net Income Attributable to Common Stockholders	$	24,756		$	-		$	-		$	653		$	(3,072	)	$	(355	)	$	21,982
Earnings Per Share - Basic	$	2.72																	$	2.41
Earnings Per Share - Diluted	$	2.65																	$	2.35
Weighted Average Shares Outstanding - Basic (in thousands)		9,103																		9,103
Weighted Average Shares Outstanding - Diluted (in thousands)		9,347																		9,347

¹ Reflects the following items and the associated income tax impact: Newfleet transition expenses, system transition expenses, restructuring and severance charges, and certain income tax items including valuation allowances, uncertain tax positions and other unusual items.

Virtus Investment Partners, Inc.

Reconciliation of U.S. GAAP Consolidated Statement of Operations to Consolidated Non-GAAP Income Statement Information

(Unaudited, dollars in thousands except per share)

Three months ended September 30, 2013

				Reclassifications						Adjustments
	U.S. GAAP Basis			Distribution and administration expenses			Consolidated sponsored investment products			Amortization of intangible assets			Seed capital investments impact			Other¹			Non-GAAP Basis
Revenues
Investment management fees	$	67,119		$	-		$	(112	)	$	-		$	-		$	-		$	67,007
Distribution and service fees		20,322			-			7			-			-			-			20,329
Administration and transfer agent fees		12,492			-			15			-			-			-			12,507
Other income and fees		476			-			-			-			-			-			476
Distribution and administration expenses		-			(25,253	)		-			-			-			-			(25,253	)
Total revenues		100,409			(25,253	)		(90	)		-			-			-			75,066

Operating Expenses
Employment expenses		33,022			-			-			-			-			(485	)		32,537
Distribution and administration expenses		25,253			(25,253	)		-			-			-			-			-
Other operating expenses		8,538			-			-			-			-			-			8,538
Other operating expenses of consolidated sponsored investment products		231			-			(231	)		-			-			-			-
Restructuring and severance		-			-			-			-			-			-			-
Depreciation and other amortization		610			-			-			-			-			-			610
Amortization expense		1,125			-			-			(1,125	)		-			-			-
Total operating expenses		68,779			(25,253	)		(231	)		(1,125	)		-			(485	)		41,685

Operating Income		31,630			-			141			1,125			-			485			33,381

Other Income (Expense)
Realized and unrealized gain (loss) on investments, net		1,285			-			240			-			(1,521	)		-			4
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net		324			-			(324	)		-			-			-			-
Other income (expense), net		111			-			-			-			-			-			111
Total other income (expense), net		1,720			-			(84	)		-			(1,521	)		-			115

Interest Income (Expense)
Interest expense		(207	)		-			-			-			-			-			(207	)
Interest and dividend income		126			-			315			-			(377	)		-			64
Interest and dividend income of investments of consolidated sponsored investment products		600			-			(600	)		-			-			-			-
Total interest income (expense), net		519			-			(285	)		-			(377	)		-			(143	)
Income Before Income Taxes		33,869			-			(228	)		1,125			(1,898	)		485			33,353
Income tax expense		12,567			-			-			420			(709	)		180			12,458
Net Income		21,302			-			(228	)		705			(1,189	)		305			20,895
Noncontrolling interests		(213	)		-			228			-			-			-			15
Net Income Attributable to Common Stockholders	$	21,089		$	-		$	-		$	705		$	(1,189	)	$	305		$	20,910
Earnings Per Share - Basic	$	2.64																	$	2.62
Earnings Per Share - Diluted	$	2.56																	$	2.54
Weighted Average Shares Outstanding - Basic (in thousands)		7,995																		7,995
Weighted Average Shares Outstanding - Diluted (in thousands)		8,227																		8,227

¹ Reflects the following items and the associated income tax impact: Newfleet transition expenses, system transition expenses, restructuring and severance charges, and certain income tax items including valuation allowances, uncertain tax positions and other unusual items.

Virtus Investment Partners, Inc.

Reconciliation of U.S. GAAP Consolidated Statement of Operations to Consolidated Non-GAAP Income Statement Information

(Unaudited, dollars in thousands except per share)

Three months ended June 30, 2013

				Reclassifications						Adjustments
	U.S. GAAP Basis			Distribution and administration expenses			Consolidated sponsored investment products			Amortization of intangible assets			Seed capital investments impact			Other¹			Non-GAAP Basis
Revenues
Investment management fees	$	64,475		$	-		$	(24	)	$	-		$	-		$	-		$	64,451
Distribution and service fees		19,324			-			5			-			-			-			19,329
Administration and transfer agent fees		12,061			-			15			-			-			-			12,076
Other income and fees		280			-			-			-			-			-			280
Distribution and administration expenses		-			(24,252	)		-			-			-			-			(24,252	)
Total revenues		96,140			(24,252	)		(4	)		-			-			-			71,884

Operating Expenses
Employment expenses		32,878			-			-			-			-			(544	)		32,334
Distribution and administration expenses		24,252			(24,252	)		-			-			-			-			-
Other operating expenses		10,283			-			-			-			-			-			10,283
Other operating expenses of consolidated sponsored investment products		132			-			(132	)		-			-			-			-
Restructuring and severance		-			-			-			-			-			-			-
Depreciation and other amortization		597			-			-			-			-			-			597
Amortization expense		1,116			-			-			(1,116	)		-			-			-
Total operating expenses		69,258			(24,252	)		(132	)		(1,116	)		-			(544	)		43,214

Operating Income		26,882			-			128			1,116			-			544			28,670

Other Income (Expense)
Realized and unrealized gain (loss) on investments, net		(223	)		-			(2,427	)		-			2,614			-			(36	)
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net		(3,156	)		-			3,156			-			-			-			-
Other income (expense), net		(11	)		-			-			-			-			-			(11	)
Total other income (expense), net		(3,390	)		-			729			-			2,614			-			(47	)

Interest Income (Expense)
Interest expense		(206	)		-			-			-			-			-			(206	)
Interest and dividend income		203			-			344			-			(478	)		-			69
Interest and dividend income of investments of consolidated sponsored investment products		612			-			(612	)		-			-			-			-
Total interest income (expense), net		609			-			(268	)		-			(478	)		-			(137	)
Income Before Income Taxes		24,101			-			589			1,116			2,136			544			28,486
Income tax expense		9,318			-			-			421			806			206			10,751
Net Income		14,783			-			589			695			1,330			338			17,735
Noncontrolling interests		602			-			(589	)		-			-			-			13
Net Income Attributable to Common Stockholders	$	15,385		$	-		$	-		$	695		$	1,330		$	338		$	17,748
Earnings Per Share - Basic	$	1.97																	$	2.27
Earnings Per Share - Diluted	$	1.91																	$	2.20
Weighted Average Shares Outstanding - Basic (in thousands)		7,821																		7,821
Weighted Average Shares Outstanding - Diluted (in thousands)		8,058																		8,058

¹ Reflects the following items and the associated income tax impact: Newfleet transition expenses, system transition expenses, restructuring and severance charges, and certain income tax items including valuation allowances, uncertain tax positions and other unusual items.

Virtus Investment Partners, Inc.

Reconciliation of U.S. GAAP Consolidated Statement of Operations to Consolidated Non-GAAP Income Statement Information

(Unaudited, dollars in thousands except per share)

Three months ended March 31, 2013

				Reclassifications						Adjustments
	U.S. GAAP Basis			Distribution and administration expenses			Consolidated sponsored investment products			Amortization of intangible assets			Seed capital investments impact			Other¹			Non-GAAP Basis
Revenues
Investment management fees	$	57,777		$	-		$	(67	)	$	-		$	-		$	-		$	57,710
Distribution and service fees		17,361			-			3			-			-			-			17,364
Administration and transfer agent fees		10,695			-			16			-			-			-			10,711
Other income and fees		335			-			-			-			-			-			335
Distribution and administration expenses		-			(21,628	)		-			-			-			-			(21,628	)
Total revenues		86,168			(21,628	)		(48	)		-			-			-			64,492

Operating Expenses
Employment expenses		32,411			-			-			-			-			(656	)		31,755
Distribution and administration expenses		21,628			(21,628	)		-			-			-			-			-
Other operating expenses		8,957			-			-			-			-			-			8,957
Other operating expenses of consolidated sponsored investment products		184			-			(184	)		-			-			-			-
Restructuring and severance		203			-			-			-			-			(203	)		-
Depreciation and other amortization		575			-			-			-			-			-			575
Amortization expense		1,110			-			-			(1,110	)		-			-			-
Total operating expenses		65,068			(21,628	)		(184	)		(1,110	)		-			(859	)		41,287

Operating Income		21,100			-			136			1,110			-			859			23,205

Other Income (Expense)
Realized and unrealized gain (loss) on investments, net		825			-			179			-			(1,001	)		-			3
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net		372			-			(372	)		-			-			-			-
Other income (expense), net		(18	)		-			-			-			-			-			(18	)
Total other income (expense), net		1,179			-			(193	)		-			(1,001	)		-			(15	)

Interest Income (Expense)
Interest expense		(221	)		-			-			-			-			-			(221	)
Interest and dividend income		97			-			294			-			(319	)		-			72
Interest and dividend income of investments of consolidated sponsored investment products		480			-			(480	)		-			-			-			-
Total interest income (expense), net		356			-			(186	)		-			(319	)		-			(149	)
Income Before Income Taxes		22,635			-			(243	)		1,110			(1,320	)		859			23,041
Income tax expense		8,450			-			-			419			(498	)		325			8,696
Net Income		14,185			-			(243	)		691			(822	)		534			14,345
Noncontrolling interests		(225	)		-			243			-			-			-			18
Net Income Attributable to Common Stockholders	$	13,960		$	-		$	-		$	691		$	(822	)	$	534		$	14,363
Earnings Per Share - Basic	$	1.79																	$	1.84
Earnings Per Share - Diluted	$	1.73																	$	1.78
Weighted Average Shares Outstanding - Basic (in thousands)		7,820																		7,820
Weighted Average Shares Outstanding - Diluted (in thousands)		8,088																		8,088

¹ Reflects the following items and the associated income tax impact: Newfleet transition expenses, system transition expenses, restructuring and severance charges, and certain income tax items including valuation allowances, uncertain tax positions and other unusual items.

Consolidated Non-GAAP Income Statement Information

(Dollars in thousands, except per share data)

	Three Months Ended
	3/31/13			6/30/13			9/30/13			12/31/13			3/31/14			6/30/14			9/30/14			12/31/14
Revenues, as Adjusted
Investment management fees	$	57,710		$	64,451		$	67,007		$	71,251		$	71,744		$	74,600		$	78,849		$	75,866
Distribution and service fees		17,364			19,329			20,329			21,983			22,451			23,947			23,681			21,919
Administration and transfer agent fees		10,711			12,076			12,507			12,976			13,092			13,994			14,872			14,275
Other income and fees		335			280			476			417			568			330			406			665
Distribution and administration expenses		(21,628	)		(24,252	)		(25,253	)		(26,653	)		(27,737	)		(29,646	)		(29,180	)		(27,526	)
Total Revenues, as Adjusted		64,492			71,884			75,066			79,974			80,118			83,225			88,628			85,199

Operating Expenses, as Adjusted
Employment expenses		31,755			32,334			32,537			32,970			34,537			34,605			35,246			34,053
Other operating expenses		8,957			10,283			8,538			10,543			10,534			12,655			11,072			11,220
Depreciation of fixed assets		575			597			610			640			657			670			713			723
Total Operating Expenses, as Adjusted		41,287			43,214			41,685			44,153			45,728			47,930			47,031			45,996

Operating Income, as Adjusted		23,205			28,670			33,381			35,821			34,390			35,295			41,597			39,203
Operating Margin, as Adjusted		36.0%			39.9%			44.5%			44.8%			42.9%			42.4%			46.9%			46.0%

Other Income (Expense)
Realized and unrealized gain (loss) on investments, net		3			(36	)		4			4			106			153			(326	)		(282	)
Other income (expense), net		(18	)		(11	)		111			(8	)		151			189			233			318
Total other income (expense), net		(15	)		(47	)		115			(4	)		257			342			(93	)		36

Interest Income (Expense)
Interest expense		(221	)		(206	)		(207	)		(148	)		(138	)		(125	)		(149	)		(125	)
Interest and dividend income		72			69			64			70			219			243			226			269
Total interest (expense), net		(149	)		(137	)		(143	)		(78	)		81			118			77			144
Pre-tax Income, as Adjusted		23,041			28,486			33,353			35,739			34,728			35,755			41,581			39,383
Income tax expense, as adjusted		8,696			10,751			12,458			13,769			13,304			13,690			15,993			14,738
Net Income, as Adjusted		14,345			17,735			20,895			21,970	��		21,424			22,065			25,588			24,645
Noncontrolling interests		18			13			15			12			10			31			45			43
Net Income Attributable to Common Stockholders, as Adjusted	$	14,363		$	17,748		$	20,910		$	21,982		$	21,434		$	22,096		$	25,633		$	24,688
Earnings Per Share, as Adjusted - Basic	$	1.84		$	2.27		$	2.62		$	2.41		$	2.35		$	2.42		$	2.82		$	2.74
Earnings Per Share, as Adjusted - Diluted	$	1.78		$	2.20		$	2.54		$	2.35		$	2.29		$	2.37		$	2.76		$	2.68
Weighted Average Shares Outstanding - Basic (in thousands)		7,820			7,821			7,995			9,103			9,116			9,133			9,096			9,021
Weighted Average Shares Outstanding - Diluted (in thousands)		8,088			8,058			8,227			9,347			9,361			9,325			9,279			9,203

Virtus Investment Partners (VRTS) 8-KReconciliation of U.S. GAAP Consolidated Statement of Operations to Consolidated Non-GAAP Income Statement Information