VRTS - Earnings call transcript Q2 2021 | Virtus Investment Partners, Inc.

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Operator

Good morning. My name is Tawana and I will be your conference operator today. I would like to welcome everyone to the Virtus Investment Partners Quarterly Conference Call. The slide presentation for this call is available in the Investor Relations section of the Virtus website, www.virtus.com. This call is also being recorded and will be available for replay on the Virtus website. now conference will your I Instructions] turn to the host. [Operator you may Rourke, begin. Sean

Sean Rourke

good behalf the Thank Partners, everyone. for you morning and of quarter On operating financial like XXXX. welcome the second our I to of you of to discussion and results would Investment Virtus

Virtus today are of President Chief Angerthal, and Aylward, speakers Mike Financial Our CEO George and Officer.

will Following period. the Q&A prepared have a remarks, we

this unknown disclosures webcast. I meaning direct Litigation SEC matters actual results statements are presentation and your on news important Page and in discussed XXXX begin, including the and slide forward-looking cause X today’s uncertainties, Act limited filings. we uncertainties Reform statements. and this may materially set Before differ that of on such, in and but in to discussed These accompanies Certain discussed contain the forth Securities call to release the of attention of as subject risks our the risks those from to, known to may Private the not within those factors

certain results In have basis, we our measures to a evaluate GAAP to presented financial on results. addition non-GAAP

Reconciliations in substitutes with non-GAAP be available our today’s in measures financial should which financial the and measures supplement, read the non-GAAP these website. Our are results on measures financial GAAP and GAAP for are included financial not are results. to of GAAP conjunction applicable news release

to George. Now, I over to George? call like would the turn

George Aylward

before will announcement some Good results taking detail the give Partners. Sean. agreement on on Stone turning of morning, will comments Harbor an today the your and transaction provide on we Capital you, Thank morning of I to it Management questions, Westchester quarter. an the this Mike recent start with more Then everyone. to reported with overview Investment update the our before make I over

we of Turning our of strong managers. deliver and distinctive business demonstrating collection model to the performance very to for the investment the continued quarter, results value

in our return and increase cash as fifth double assets and consistent positive levels, significant earnings record profitability share of a generation quarter of level reported flows, we quarter, capital net EBITDA margin, debt consecutive the highest under and year reduction. to strong with prior operating of shareholders second than more the For adjusted, per management, of levels

Our strong of on the experienced supported and by is and offering the profitability to track we business record resources. build our and products execution a diverse of of partnership have strategy distribution growth product differentiated actions taken and compelling long-term managers, effective strategies

we and support to past as the provides opportunistic foundation, continued to Over year, capital of complementary maintaining with inorganic balance strategically a be scale have continued organic on built growth flexibility well investment capabilities while as that adding that return for opportunities. sheet

affiliates we strategies U.S. year, scale market, completing strategies well-regarded our and the acquire an that event-driven will finalized to are transaction our adding past executed the complementary in partnership expand Allianz Over GI offerings and and significant adding investment a opportunities. partnership multifaceted agreement like of AGI our value is additions element illustrative inorganic NFJ, our with the institutional Harbor key debt Virtus of proposition. sub-advisory Capital underscores The market and Harbor and capabilities of to emerging Stone our Westchester alternative and announced with with growth Stone Westchester and retail adding meaningfully enhancing approach Capital, non-U.S. our

support strategies their to our growth on and to model growth long-term offering by into and through is platform M&A, the structures. us not managers partner with additional dependent product broad distribution our distinctive our While designed is allow

to and partner managers is distinctive allows for investment us attractive to selectively high-quality particular firms with capabilities. model Our

X% at sequentially billion flows. assets market June to up So, $XXX.X turning increased now by total XX, net performance $XX to the management to under due billion and results, nearly

of year-to-date addition ETFs. assets. on positive on and by past XX% inflows a for has as of increased AUM our flows accounts, sales quarter the XX%, also performance the funds $X.X market billion Sales and basis AGI year, as and the in highest second growth of represented increased open-end separate Over well retail

due existing with billion from ETFs. traction $X.X Retail were achieved retail growth Institutional third the flows equity. and Organic mandates for new net generated positive we Open-end institutional quarter, and investment flows having affiliates major net period and continued consecutive positive asset outflows with across product and multiple with essentially double-digit continued accounts, had contributions X%, organic exceeded accounts. of separate flows XX-month separate deliver flows to in the flows. for positive categories both classes trailing largely positive growth net quarter a to modest rate positive funds For with all net in domestic the accounts strategies.

In terms July, activity still seeing seen so second the have any quarter, early in while quarter. far the in of we change are levels the flows we not in from fundamental

We some fixed trends see continue to remained strategies, income, favorable. pressure funds equity in including on though other

adjusted increased XX.X% growth than again sequentially higher nearly to revenues expenses. leverageability XX.X% and meaningful $X.XX, in assets from prior the quarter XX the prior quarter percentage adjusted under and sequentially the and as over a up more a same high, doubled ago. and points XX% of per income new share the by the Earnings in Operating reflecting for year by XX% lower model. and of profitability Our reached margin the year were the increased period due as from management related the

approximately shares paying capital, now million we or continue $XX.X settled XX,XXX and the during for debt. Turning to quarter, down net repurchased

strong remains in a ended capital. Our sheet quarter balance net the increased and we again position cash working and our

flexibility with has resources, in the to meaningfully and continuing invest significant generate shareholders. cash while existing growth business upcoming to the returning capital of fund to We payments transaction-related continue that providing increased to flow

look $X.X at assets to XX the over $X anticipating transaction for representing of me traditionally to annualized the organic billion double-digit low largely the growth. X% remain driven quarter. the update XX. June Mike offering had March markets management billion, our on investors, correlation process well, of have to of Westchester expanded let strong given track to Westchester flows $XXX at with invest-driven of call under Capital. increase on have the We retail seen detail closing a perform up the forward of recent some an transaction which with turn The through retail near we I the results, volatility markets. their the our on of Before by to the more end approval brief the strategies, particularly was provide sequentially We positive distribution from set continues million equity with in equity

EPS immediately expect transaction We be as to to accretive adjusted. the

as upon Mike? more than has updated pace Westchester turn EPS second accretion earnings We Capital call to with adjusted estimate our as that, X% have approximately very over With strong Mike. kept will our the to I based quarter growth.

Mike Angerthal

Good $X.X institutional market billion approximately $XXX.X XX% by XX. retail up XX% reflected diversified everyone. of $XXX.X increase Slide billion results and open-end Thank separate of management. product AUM March X% morning, on you, with $X.X assets assets accounts of appreciation Starting our at under billion, billion X, representing At from June flows. with funds, The George. management were respectively. and type under positive net XX, remains sequential XX%, AUM and

among of XX% and of specialty and classes, assets equity income alternatives XX were respectively. X% assets. with and small-cap were that X%. at In represented large, split global International multi-asset equity XX% XX% relatively was Fixed mid quarters terms assets evenly AUM asset in three and AUM, XX% and June domestic equity and of of of were

had of March at In fee we an assets XX. XX, earning $X.X addition, from June increase billion other at $X.X billion

or our performance X-star representing continue performance, are rated generate investment we X from a across stars relative funds. X We billion were X to to diverse strategies. had or XX% strong X stars, managers. have approximately X XX in AUM of XX% funds $X X assets and Turning June XX, set of of more currently different or At or X, that rated with strategies fund

June were years. of the In and and institutional strong XX% on peer of of account X-year as of retail separate benchmarks assets beating outperforming exceeding XX% institutional addition were XX% of fund performance to X-year their X median were separate the over of a on XX% their retail XXX% institutional of basis performance, account and assets benchmarks Also, basis. assets assets assets XX, their same groups

and multi-asset tenth new alternatives $X.X Total inflows billion flows $X.X this while increases inflows the Slide sales due annualized sales and were flows. continued funding fifth the in to partially product, flows net alternatives. sequentially By were net organic asset $X.X outflows separate fund from most Institutional positive flows income quarter the Institutional billion. class, several and net generated asset multi-asset and categories, XX% investment in with be multi-sector levels. first positive This consecutive separate Net separate strategies. breakeven record sales to in than in primarily for more quarter of positive the increased In as modestly organic Turning a the essentially marked specialty outflows. sales small accounts, leveraged X.X% sales as of net all from billion growth open-end for quarter of sequentially $X.X represented positive were hybrid By by rate and of are $X.X lower Retail categories large consecutive billion quarter to billion, and third for quarterly of with multiple ETFs, the XX%. a retail product, were flows. net $X.X affiliates. equity. consecutive investment institutional billion net down net new offset funds. flows from high billion with $X.X by fixed and X, retail across down equity quarter of in account equity, with fixed by income accounts, In an of organic growth, mandates positive offset finance, modest at compared in are in investment growth funds, rate flows of quarter marked the positive mandates. are benefiting cap in grade open-end driven prior quarter annualized fund negative equity sequentially By

was XX% prior The of Slide fee points additional the the to quarter. million lower or of rate $XXX.X up investment Performance on sequentially reflected $X.X AUM as $X.X the XX% $XX.X fees impact in average X, the Turning the assets. increased X.X assets. AGI basis month fees million adjusted XX.X in points, million, from the in were fee sequentially. basis The growth reflecting million management down average rate sequentially, quarter of

was with quarter. average compared first points the basis fee and rate fees, Excluding XX the XX.X points performance in basis

fee in the Going of decreased and $XX.X seasonal as shows the market Total of to XX adjusted equal expect variability. the quarter. in five-quarter X% for be reflecting million the we all subject impact being else modeling trend points, XX expenses to XX basis of employment the average forward, items purposes, Slide first quarterly in range rate employment expenses. to sequentially,

profit-based higher NFJ. to items, expenses full compensation employment our incentive $X.X million those or due new Excluding by of affiliate, impact and increased the X% quarter

As the quarter of quarter. growth impact employment market-driven the items, a a the revenues, a higher due by expenses XX.X%, due a items Adjusting to of declined XX.X% unaffiliated the first from revenue assets. of as sub-advised percentage points revenues, seasonal level XX.X% employment XXX for percentage expenses, first full the were seasonal to and basis in in from quarter of decline

of third percentage will a markets we anticipate For to sales. on second the and quarter, the would approximate that expenses as level variability subject based employment quarter revenues

our a XX, to Board including a of sequential from to of million, million, grants full annual affiliate. growth other were quarter on the adjusted Directors Slide to operating as due $XX.X and up Turning the with expenses million $X.X of business new $X.X basis

the While also the revenues anticipate by in XX.X% Normalizing The of XXX% XX.X% range related quarterly adjusted operating well second a XX% year. expenses, the average was operating expenses of XXX for travel I’d we Notably, income as and as $X.XX resumption earnings. points. Net prior of will expenses, due though points impact, million margin illustrates and employment the pre-COVID and it from quarter operating to expenses. by trend adjusted and below XXX adjusted in $XXX.X $XX previously from the due quarter activity had XX% million still We modest third income as note, the within other levels. $XX.X million adjusted there in Slide million employment last income the be sequentially, of a million expenses. lower increased $X.X increased $X.XX $XX to as sequentially operating in increased increased adjusted of the provided. basis revenues XX margin margin increased as first quarter higher seasonal Operating or operating increase primarily quarter. per from lower share increased over assets by or to minor basis diluted

from due X% debt-to-EBITDA at shareholders. sequentially business in excess and XX% in repayment increased the included and of gross Regarding XX, X.Xx of March up the capital net share of XX was cash following GAAP items: increase $X.XX to and $X.XX quarter, per reflecting $X.XX minority a the the fair by June from from down income generated of return XX, first reduction, At June per X.Xx to year results, debt value the costs, June prior share $X both gains of in XX of we Working acquisition liquidity X.Xx shows operating interest select XX the $XXX liability, and as and repaid $X.XX items. Gross debt at outstanding the investments. million million we in quarter. and trend sheet the significantly reduced during as unrealized realized and Slide $X.XX have on growing was integration balance at million capital capital, was debt of and $XXX income. the our

XX%. have cash the the flows debt and gross gross the XX% growth we the the AUM position in net the $XXX addition million. $XX year, net We quarter quarter, positive reduced of double with or as by generated EBITDA cash debt up past exceeding a the more second sequentially prior AGI from by year and ended has flow. increased cash million level, million of $XX market, Over than quarterly We meaningfully assets in

additional obligations. During $X.X for XX,XXX quarter, employee million we million, stock or of tax settled shares XX,XXX and the an net second common shares to $X.X repurchased satisfy

additional the from including us provide let upcoming XX the sheet resources, business and obligations months up over to the over invest revenue back Stone AGI non-controlling that, our million revenue for closing Westchester turn capital of an for first interests. payment fund balance to the other me $XX purchase the and Capital, shareholders payment to million and that $XXX in George? retention Our returned next include to available our cash payment closing With payment George. to affiliate and Harbor, continues obligations, to flexibility transaction-related positions call participation to

George Aylward

Mike. Thanks

I’d credit multi-asset questions, premier Stone Before most and manager the our manager primarily Harbor we largest of emerging clients, to take some debt agreement recently foundations wealth Stone add your with and management, like under offered pension is affiliated discuss global announced cyber as an of to Harbor billion $XX.X in the endowments. institutional sophisticated including strategies and to funds, assets market plans,

that will Harbor multiple geographies market relationships emerging base significantly fixed our overseas new We market channels Stone distribution that family complementing affiliated Harbor’s are non-U.S. of sites will managers. and well-regarded our our professionals capabilities, broaden credit cycles. our the and significantly and excited It to enhance debt resources clients of and add expand enhance growth will prospects from fleet Stone in proven to have strategies Harbor Stone in track have opportunities income offerings with a institutional record our regions. and capabilities. and those through

Harbor offers its independent an leveraged the affiliates. individual will end-to-end we brand operate XXX% Stone will The future of process from and us In acquire retaining can over addition, Under other agreement, Stone payment and potential platform as that and investment maintaining transaction risk principles. an culture upfront well upon structure management technology the autonomy provide in be take will the proprietary based earn-out Harbor identity. Harbor payments growth analytical would investment with business. Stone by operating the a includes as its and as

take accretive modestly to we be transaction near as expect look closer to anticipate We adjusted closing, We to providing upon place to the earnings we more which forward closing. will get details as year-end.

you your So open questions. up please? now Tawana, lines, take with that, will the can we

Operator

Piper Instructions] from Mody you. line Sumeet [Operator Thank comes Sandler. question the Our with first of

Your is open. line

Sumeet Mody

George, price on Harbor you on details Stone the guys. morning I Harbor? on that Stone on is follow-up plan the Good guys to of point, wanted just providing more sort there any that Thanks. last earn-out of

George Aylward

Yes.

general think an transaction what the payouts say and upfront potential which we’d I is the earnings then given we’ve is in future. structure, payment

the not growth So believing in about in too the structured of all together. dissimilar drivers would, AGI with think the I really structure, about behind which businesses our way, of sort is future some

may So little get information. the the a is. should that be that. way you way thinking But structure you additional is closer, of we see When the that’s

Sumeet Mody

And then we quarter do and XX like How on about XX the than we Can you points rate, there? think rate the Stone much great. two those seems remainder close. year, basis it declined fee were for the about to the this for on increase with of after inclusion. of Westchester like then less on resiliency expecting the first from after XXXX? And seems should Okay, those rate driver AGI’s the talk the secondly, appreciate I of deals guidance the it combined effects it Point

George Aylward

a will Sure. then expand mean, upon Mike couple of thoughts I and that.

rate the to prior impacted. average transaction ours, quarters. timing big rate the So going AGI obviously, versus change that Obviously, that is the was be their the fee a and of temporal of over driver

you continue variety Westchester get products them their separate be but And We as a business. at different sold go are they’ll into? when going to well activities to at other Harbor, then different rates in the Stone redeeming the rates. each have as different the ultimately do to with that want impacts, have co-mingled will you of Mike, and on the of

Mike Angerthal

Yes.

Sumeet. think either range, impacted be I total Westchester will Harbor. I XX% The of to don’t think by in right, or XX% the that’s Stone addition

giving rate, us that And XX% XX% between I pretty the holds redemptions sales its will fee Harbor we differential certainly, continued Westchester will have rate as So think items be predominantly confidence that Stone and the impact are funds, the with an our pleased fee rate own to is on of open-end range. line tight. that impacted each But overall, institutional. product on on and that structure and in predominantly

quarter, were so into points fee point XX, around but in at XX under basis XX on and where basis sales the the didn’t XX.X, redemptions redemption. X.X institutional just get the it, On the the sales about XX% were points this about included came increased at then and sales were we side, open-end really differential. And low about a I think basis as redemptions side,

pretty on guidance fee the that So we the we rate outlook feel good about the provided. in

Sumeet Mody

then great. have rate of know quarter, Stone of to second, comp it it think run talked in similarly Is roughly more on line third the after more with – close kind being Westchester I as about but is fair going quarter the the of guys considerations ratio, Or And a third Okay, fair especially and kind there term longer this of about a is outside to? Point forward? to you

George Aylward

Yes. I factor, growth mean, up, a factors big factors, the move that. So markets is multiple impact particularly right? revenue drive on as that the has that equity it really

and being our revenues our other it’s being up a side or since variable high then percentage and So divided flat? the and just by will the markets by based they comp profitability. up are of moving it impacted variable be And on revenue compensation is of upon

So highly given be Mike those factors. to a because it’s will think I rate in has particularly But run year. the influenced indication hard it say given like by

Mike Angerthal

level quarter at on. increased And Stone with I sales Yes. coming think on sub-advised this the levels, addition assets, and of market the have and moved quarter. And around Harbor bit impacted have that the looking impact and coming be have by forward, also assets George’s like of Westchester which will we the AGI full point, unaffiliated will a like certainly, ratio which factors

you. – the those impact bottom to reference of on talk ratio we you the as the about of a the of transactions additional frame transactions come line. on those on, give of that each think provide an will on We accretion in insight did else And all we on in, ratio, the is certainly, third ratio as second will being impact there update we quarter for we appropriate. But the the came the equal, get is that quarter, closer, if

Sumeet Mody

Okay. And could more one squeeze I then if in.

balance M&A in deals rate conversations you’re and on cash be kind set Just coming particularly given opportunity the the targets? more higher larger two nature? could potential the look run sheet Can flows. opportunities with the like about months on pending that having the your you talk closing today? of the of expected What’s pristine transformative with more in And and

George Aylward

always just that I what, on four Yes. we answering three our have period M&A. of by a long-term obviously, start strategy saying announced, in question time. But not dependent short growth is or

always have those we had So, conversations.

the return for strong Mike a are multiple indicated I As to and capital, that we debt for to significantly business I – the well opportunities. increased as to our us has involved continue look be do your sense expanded, it criteria are at we sheet pointed But those as potentially both cash balance things allowing to out in in conversations other and We the growth to in makes comments, a flow, to and as continue fund and future that point, has have in pay-down inorganic fit available. us, us. invest

we accretion. of market on from need things is growth additive or continued what focused be don’t to entirely is further business. coming buy to opportunities the or focused organic rest that It really resources short-term will So, capability going our on additive additive an facilitate

to see to in that lot terms a and a product ability will have the positioned relates opportunities be believe do continuing be what well that. it us I do good for in fit in as they is continue are a think agree we to consolidation So, more there, business. capability selective out to industry. of a or either of the we We

having Given just and creation nice will as of to future build towards fundamental opportunities of in terms to at ways value. business as fundamentals we balance the of other sheet the the a the profitability, of flows shareholder well and business and strength look and performance out continue investment

Sumeet Mody

great. Okay, for questions. Thanks my taking

George Aylward

Thank you.

Operator

you. Thank

from Michael next Stanley. the of Our question with Morgan comes Cyprys line

open. Your line is

Michael Cyprys

Michael. and George morning Good Thanks.

George Aylward

morning. Good

Michael Cyprys

question. Virtus of talk are Virtus your to footprint, today, look you little strategies taking bit you the think of kind And whether could the think of Virtus etcetera. for the vision I affiliates there, looks path hoping about does have that affiliates, might years. different types the What, view, how what XXXX it’s was we over getting way growth just of of of a for X the like? And about in do from going then your biggest you the on Thanks next and capabilities, impact to the sort if the global number firm? look

George Aylward

say we executing What vision Sure. a vision for we at some question. by basically best-in-class for and have have been the model, probably would many I differentiated is the years, argue business the is have to that. multi-boutique have the and that clients from No, X and of a is collection that where actually, would capabilities as them focus on them. And of on performance future and the open best great the least generating prior managers their of to channels XX we years to to of facilitate really business and then ability making strategies supporting individual perspective I we simultaneously great

been always vision the it’s business. the for So,

Over been the we building last aspects years, have many out of right. all that,

we strategies. pretty both and And seen actually So, and where capabilities investing our spectrum fill transactions, the a working would more bit you of distribution, institutional also pretty distribution, investment managed of kind have building on U.S. Westchester, traditional point, classes further then and alternative us etcetera. asset non-U.S., equity of have in wide much series fixed, into infrastructure. adding the this actively are at enhancing retail we you then argue, distribution. with I of a both little out over our Beneath, XX you through And a whole years or last seen years, in XX expanding are us non-U.S. the all

vision So, saying. is the same

are other we us terms The our to pieces commented non-U.S. grow base. our that that is still areas of continuing in have client footprint for on

So, U.S. base very that have Stone the do about things Harbor, they presence Harbor was Stone and of client nice one is of a the attractive outside many

see that green as our to continue a strategies. for of some We pasture

of that quarters. So, the – few last some lot have been into over a specific we winning we of mandates get didn’t our

We of RidgeWorth seeing from and started have made. as the transaction came that resources actually investments some other have actually we part

liquidity is something level see for capabilities. We to important that or that to business the opportunity that other our asset portfolios. have continue already part the an less relates have non-U.S. growing as as of capabilities, own have we be high there just And correlation less side, a on for think our started continue may it block other that of existing to may classes are that building

those could to find interesting. that So, be areas continue we

Michael Cyprys

maybe bit Thanks sort point globally? within building that. last little Harbor the to products on could more just presence, strategy. sales the Stone you international forth distribution Maybe you for of on what sort a execute that how imagine and Great. distribution just channel international you go-to-market through of other sites team that’s kept the over expand that with – your off Stone with of drive on Harbor new Harbor. But on how side coming incentivize so work that sort and distribution and is existing do fleet Stone and I institutional affiliates from

George Aylward

specific to add non-U.S. non-U.S. it, supportive for resources to in of those be that not the opportunity of affiliates. areas. multiple but piece to we existing the I that clear, have growth us Stone their market, am Harbor is resources giving to Well, the are facilitate their and Yes. In

opportunity non-U.S. can resources affiliates, you multiple as necessarily the only one not of think affiliate. So, support should

institutional in or affiliate by dedicate affiliate-centric fully and they going resources. and in either for be Our that where sense have model we strategy is each having driving support not to that should to growth. markets on it each no But to are really that help affiliate resources makes their channels available them

are can the in that growth Harbor from of thing. to shared meaningful other have we footprint same and plan. to and is the just to part of looking market. of resources It’s try the parts we some the So, resources the the our for for absolutely have been will advantage that be that some make additive take of outside extent we that wins business with seen things of that I one Stone U.S. our would say

Michael Cyprys

you do maybe you which And a the you strength? RIAs? you you of the a of the hoping could greater seeing? the color Maybe sets on you talk was think coming and little question Great. side is are your pretty lot product from flows as around those wires any have channels, bit just perspective strength sort that SME about of on are there, SME I And a SME. success on Is sustainable elaborate side in particular, that more are on consistently. having just follow-up with if how seeing your business, well there the or been

George Aylward

we I and say We a and talking are Yes. started then as get ago. SMEs well. high SME, many believers SMEs. emphasizing years some about Mike I to at will into The it of would level ask big in

pleased very the continued SMEs. the side the growth, with net are terms side for as on both success in flow the We well as sales of

We a continue important high opportunities one in see component also that not of assets. only is do we retail a at the is Cannes warehouse the that, great our net of our channels, a market. case, very – the have to do we at And Redneck but which and think area in worth stable nice, in business

growth. that as into open-end vehicle, see fit very on products to but continue we the that area an our well will focus in of we that addition funds, on area, to focus SME So, additional to continue

Mike Angerthal

and well is our equity across opportunity across of that different that, on growth the in we some think both as even on different equity strategies think believe and and certainly market multiple growth I side, of in expanding area And fixed have just growth on growth that and that, all seen affiliates product Yes. several capitalizations we income And structures. investment I core as an value. important

Michael Cyprys

traction the that. regular impacted and you seeing also past, are had activity seen the that with the But managers, the Obviously, And CLO I that pandemic, structured business, inflows. recovering, others been have in had I there we like relative in for with in upon CLO Great. a space. source update know just market you the to institutional is that can quarters could pipeline, another of on us maybe of institutional in side, if just little looking couple how And if just could question maybe has of past you on where some on if think, the of products sneak and it today bit there? some the the I particularly a now the give touch

curious product this bring you opportunity later to market might Just guys set to another year? be what maybe there for

George Aylward

Yes.

are really the on the of So, institutional evolution institutional, pleased with the we business.

sporadic we inflows over So, or ones past few something one we years, been consistent affiliates multiple at more out have affiliates. from periods focused to that on evolved have at building been and two the has of and

As we meaningful to mandates. alluded we to activity that in are those our continue mandates some with good prepared new added multiple at I that now remarks, affiliates to actually non-U.S. have levels see of mandates. of

have And of to ahead opportunities much expand the continues I has it terms we we what of So, opportunity of in with are says. trajectory ins greater by very so It think going still been and stuff you good. the but to opportunity. us, outs that that pleased level and a cycles and an like business, that. is, rebalancing having start you where We are as activity. have in nature, lumpy particularly market see

the are rotations both on of one the actually rotations. sides if If and those. of we model value, we opportunities So, reasons have growth in at our there are for is

we good want the that about Mike, if feel and CLOs? add So, to to then you that. pretty

Mike Angerthal

months where think XX opportunities managers we that, No, our are on seen you I perhaps seeing touched value months some to ago. we hadn’t opportunity those of XX Yes. with or

we So, there look the From at market. traction there. CLO to continue that is perspective,

the nothing we that certainly but an close we team product do stay update do an that but in market structure, haven’t as market. there imminent the our believe opportunities have if certainly they that that appropriate. market when to imminent to in the arise, nothing open issuers about we so I fixed space, regular is and think been and in and talked capital it’s of close deem of income and will the of that warehouse is a appropriate stay as But you support now, sponsor there good use use managers warehouse,

Michael Cyprys

you. Thank Great.

George Aylward

you. Thank

Operator

Thank you. in closing queue. session. showing back I concludes for would further questions like to the question-and-answer George remarks. I any now This turn the am not the call to over

George Aylward

any thank to for want you call Great. much. you you additional always, us, and out reach Thank I questions. as very Thank if to joining other encourage certainly everyone, And do have further you. our

Operator

today’s Ladies you gentlemen, participation. and this call. your Thank conference for concludes

You may disconnect. now

Virtus Investment Partners (VRTS) 28 Jul 212021 Q2 Earnings call transcript