VRTS - Earnings call transcript Q3 2021 | Virtus Investment Partners, Inc.

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Operator

Good morning. My name is Richard and I'll 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. participants a all mode. time this are listen-only in At a there and time. After remarks be question-and-answer that the speakers' at will period follow instructions will will Sean your conference turn I host now the Rourke. to go Please ahead.

Sean Rourke

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

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

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

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

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

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

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

George Aylward

to for and we continued attributable quarter operating we prior-year of reported to strong operating period, in per flows it funds, share margin than our operating before adjusted, Sean levels strong We capital overview with income and separate everyone. as the net modestly earnings Thank over and of provide did net through results in accounts the an results delivered higher detail. positive turning good repurchases with negative record and very start today dividend. mutual flows although morning reported more level equity and return financial highest of morning and increases we our have retail more meaningfully institutional, you, investment share to Mike profitability I'll this of performance, double the both ETFs

We billion our positioning. enhance also acquisition actions October continued to to investment company's Management the our of and take event-driven Capital non-correlated further Westchester closed differentiated we strategies. with strategic diversifying $X.X on of offerings financial Xst, On

Stone year-end. among on other emerging remain existing multi-asset also our with with Stone process Partners products clients and Investment approval to consultants. transaction and well $XX track respected We billion Harbor's near complementary are complete highly credit Harbor the income in strategies our and to fixed debt markets

flexibility providing financial and In credit refinancing maturity addition costs. attractive our and of the arrangement additional more we extended borrowing profile completed

Now, modest turning billion, to June management the from a outflows. and assets performance net of XXth $XXX.X were down to review market results. due under Total X%

of a $X.X Net in weakness outflows of as performance, AGI annualized Sales primarily separate investment accounts year-to-date positive consistent model declined period outflows retail from funds while period. decline with net sales generated flows funds shift were equity. preferences change trailing billion and with $X.X and due organic in in positive increased growth ETFs, accounts the quarter positive past XX% ETFs. including funds $X.X mutual affiliates. positive Retail flows quarter an billion AUM to and continued the net which across the redemptions has the investor XX% offset third growth were retail the were rebalance the in with by model classes in essentially equity institutional. during rate domestic continued in due fifth Over include ETFs sales separate the the net the X% in for to increased billion, On organic assets, deliver period. traction on Institutional flat from sequentially basis, to growth exceeded net positive billion flows X% negative $X.X market and accounts, for addition open-end The asset were flows. positive separate Open-end flows a multiple have consecutive the and growth international were net XX-month for fourth generating all flows the consecutive flows. for strategies. quarter. Organic with year,

accounts institutional multi-asset Ares what solid we've the of separate continued In the domestic income billion international fixed in organically of and to strength we the and October, funds positive is $X.X are third October. the continues grow by seen seeing are offset net which in close in equities. generated ETFs. in alternatives third prior Westchester have far being flows of Capital. terms many momentum pipeline quarter including to flows In over past the so in In trends continued and retail the with quarter consistent, year. open-end

to quarter XX.X% from expenses. XX adjusted over higher XX.X% Our again percentage profitability revenues points reached more from prior as share adjusted and year high. the sequentially $X.XX increased income increased new than for X% were Operating Earnings per up prior by and sequentially and as and the the doubled X% related the prior a by quarter the in year. due margin stable at

Capital. to now Turning

meaningful increase. consecutive the we for $X.X shares the from of of the increased dividend the quarter, million $XX our shareholders We we and quarterly growth prior approximately to year. reflecting capital XX% past increased XX,XXX million in annual the representing flow up During fourth common cash repurchased quarter free return by over

Our net the the to growth quarter opportunity to continue Mike? continue to call cash significant a to Mike. cash we generate balance growth in invest I'll the flow turn over we strong as business the that, in providing shareholders. ended and sheet With the position of and remains to

Mike Angerthal

sequential billion $XXX.X reflected management $X.X down Starting under decline and George. you, billion outflows. under market everyone. September on $X.X billion with of from our The X, were Thank billion, $XXX.X assets morning, Good XX, results XX. of net June At management. decrease modestly assets Side at

assets XX, XX% approximately of strategies. assets strong in four rated funds. generate or Our performance September continued stars under fund star had management five were relative to XX% five and or three, four At across

XX from four of have five AUM with billion funds from more five a year rated managers. strategies eight set up of stars $X representing or diverse were or funds that We ago different a

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

equity. and of Net organic net Turning flows. quarter net than to and negative model nearly flows outflows and fifth positive outflows billion billion organic funds, domestic at outflows the X%. due of investment annualized the Within delivering funds five in had accounts separate consecutive all After X, billion net for net net modestly ETFs $X.X in for as positive accounts, $X.X Slide In outflows down billion net to flows. fourth consecutive due open-end in with were billion, negative which with $X.X international positive were positive $X.X to third retail international mandates the retail new equities, flows and to $X.X quarter July $X.X Reviewing equity specific trends. of strategies growth the multi-asset, were $X.X to flows of continued positive categories largely in second each billion, quarter. of the consecutive billion flows $X turned Retail of account included billion of for quarter separate August. across affiliates. quarter. institutional equity alternatives from ETFs generate all institutional rebalance. were flows which $X.X including asset quarters separate organic net the growth turned products an continued generated to fixed both primarily rebalance be positive to included all billion generated product, net in asset the By open-end income a and and for with were lower from sales more sales sequentially equity, multi-asset $X.X by rate were decreased again consistent product, down billion billion, billion, mandates. fund sales at which compared funding modestly notably large equity class billion. outflows $X.X global industry benefiting growth. the several Total sales quarter Institutional with multiple By the to from for $X.X each due equity $X.X sales international were of Domestic net quarter, and most sequentially new in

with Performance XX million X, $X.X increased as or down The million Slide the of average to basis quarter adjusted assets. fees in points, fees basis rate investment growth X% million was in prior Turning of $X.X sequentially. the points $XXX compared X.X fee $X.X sequentially, quarter. reflecting in million X% management average

fee points a proportion the XX.X with rate lower was assets. in fee of quarter. account institutional reflected fees The second performance rate average retail basis Excluding higher separate and and XX.X the compared

reasonable would to basis rate to range fee a points. assume be XX ahead, the it XX Looking in of

offset For $XX.X as to range to in of and end then XX, the flat expenses. Harbor. Stone profit-based by range sales-based of middle trend after employment of higher would the as we at move employment that the expect sequentially, lower were Total Slide was incentive for the fourth quarter, adjusted XXXX, expenses shows be on closing higher five-quarter the compensation. million

of markets a We As subject due from forward market-driven sales. a were XX.X%, on decline to modeling revenue and is range to expenses going XX% believe growth. employment variability based XX%, that revenues, percentage to for a XX.X%, reasonable

fourth range range, at be For the moving we XXXX, closing transaction. the upon for the Harbor lower middle Stone quarter, of to end the expect to that the of

of operating included other sequential grants a normalized modest in reflected well basis the as to $XX.X million Slide million expenses million, from business for of to and $X.X related the up adjusted on The sequential the $XX.X growth increase Directors. in which expenses. continued travel a Turning as Board $X.X grants were of increase as XX, million, annual

period percentage expenses of operating the prior down were both X.X%, sequentially business. As the of leveragability other a the revenues, from and year reflecting

operating expenses. increased same period more XX average we XX.X% in in earnings. of XX.X% by to a the XX.X the last other due as was as operating expect Operating to due adjusted XXX in million $XX sequentially second range. diluted the increase of in per with income than $XX growth trend X% Notably, operating The to from at from and of income essentially $X.XX up Slide basis $X.X forward, the quarter assets adjusted range adjusted million fourth due quarter of in revenues addition expenses and management. business the as illustrates of low by the flat doubled million increased adjusted operating of Looking XX.X% the higher year $XXX.X points revenues as increased that or points end million, assets. to from Net under sequentially, margin the including the share income or in from percentage higher prior-year quarter. $X.XX the AllianzGI X%

income and and unrealized included Regarding XXXX. share increase net X% of costs. fair on losses select GAAP loan from credit agreement, completed investments interest and our $X.XX the in On per Slide million the reflecting a $X.XX $X.XX our maturing following we of million in quarter $XXX and through of the items. trend results, balance XXXX. liability revolving in reduction $X.XX capital XX, shows $X.XX, And and the per of second minority acquisition value credit a share of the realized capacity, $XXX the term September of integration decreased items; refinancing new liquidity with XX the of sheet

in above generated approximately refinanced at current XX one-times, basis business In X.X rates. $XXX EBITDA million. ended from net a cash cash September gross agreement the million, Capital. the cash profile, We times the flow. net which growth the $XXX closing quarter income assets, addition period. year XX flexibility to XXth company's and XX% operating the growth significant the to of capital was payment position of flows XXth, down and at in borrowing return gross the million that excess extending refinancing to prior addition quarterly At of Westchester financial increased September quarter, appreciation sequentially exceeding quarter as well debt compared June to for positive was to by AUM credit of times, has costs, XXth, market the proceeds shareholders. the and debt reduces from Working due as September X% XX% EBITDA in from by up by at generated of points, after as the XXXX, We X.X due the $XXX with was capital cash the $XXX increasing a made net with and AGI maturity the over level, third acquisition in debt at of million meaningfully Then, we up sequentially

revenue payment be a payment Stone include obligations closing payment. Westchester for Harbor upcoming retention for first year-end, near the Additional and participation will Capital the that AllianzGI paid revenue

repurchased quarter we for $XX million, prior of the third $X.X shares XX,XXX quarter common During of above level million. the stock

our raised per annual share, fourth to $X.XX common the by also consecutive XX% We increase. quarterly dividend representing

free a the And we're to to me to meaningfully call continue the to to management. past We over flow, that, take balanced back shareholders quarter, approach the With cash significant in capital George? capital return third more turn growth in the pleased, year. reflecting George. let over

George Aylward

Thanks Mike.

your will open take you lines Richard, questions. We the up will please? now

Operator

Stanley. the of ask first question our Morgan Thank Michael question. your [Operator you. from have We Please Instructions] from Cyprys now line

Michael Cyprys

Thanks my referenced just the figure that for question. I million to Good to the equities. Great, think in rebalancing wanted you had thanks. taking model back $XXX morning. international circle I

your maybe us on model maybe there's color you your about could us if AUM can here? And the sits of how broader forward we in just could little share curious, a kind any with And from around also you remind go around additional today? you as initiatives models rebalancing portfolios? potential talk strategy of thoughts and any Just on much risk, any that bit

George Aylward

as we're when model term wholesale And and are pure we referring that the opposed sort Sure. home product. to things those office to established just use decided, of portfolios generally

still over indicated of the was rebalance it so again was sort $X.X it in included comments, We lot So, that area. of assets the outflows our strategy billion as equity left model a in a we have the in don't different want in of to see types making we home allocations decrease what strategies things, decisions decisions use. periodically, or they of allocations people, to time, to But making you'll offices models. increase periods see or things, to about either

lumpiness of flows wholesale some get pure will as it to some as you relates to the generally, So opposed the model flows.

think So quarter. the I we experience of about of that as in international did public the in you've Again, domestic some third in sort sort quarter. commentary third seen

open-end So the very were for those look in lot a of is don't and comments a really that way of other left I the model I sort that at the of And have was models. that were total a period of in reasonable equity, were funds. rebalance. it assets They the and we international then mutual that in strategies thing as outflows time, in in long indicated in in mean, we not in July equity sort it for But really August. our primarily mostly was month

of September. So of billion of was funds only in it in $X.X-ish outflows $X.X open-end the month of the

of really rest us the of was seeing run October. are so look But that, month July I know really rate kind significantly markets very in quarter. So August in the in None kind we're September, on of the of of what focusing and going kind that. to and far the the like improved fourth of same

Michael Cyprys

just the question is versa, Great. an to growth terms about grow products a that on of product some Westchester accelerate follow-up also whether going and help at are that introductions had Westchester accelerate new how it's property at your well? on then faster the help vice distribution Westchester both in update that just Thanks. on the could to and and relationships at distribution growth closed, thinking as sides just progressing you of them maybe Virtus around synergies existing integration deal opportunity how And

George Aylward

legacy, It's strategy, We're closed firm, an to great transaction. done job. have and very incredible good culture excited they've great great that a in

really of more their the they've have just bring assets to going the in product I element – itself, quality describe raised to are story. marketing boutique, – for certainly their as and really a table while process. As we strength allow to a of for speaking investment lot the to I And think that have a and another that, to telling own would great they smaller support terms voices them distribution

amplifying throughout look strategy we structures. retail in leverage think only availability think there's not product to of I channel, other possibly of their the So lot to a sort opportunities their forward will I other

X, think has incredibly well a put gone So into we integration so planning that. thought I of October far went on the closed – was and lot

now comments, weeks. only on even positive been they So how to we're we though close opportunity in continue even noted step, really a it's focused the the which since and next is pre-close the And and we do their how couple I maximize do we of organic growth them. see were as grow

Michael Cyprys

one I think sneak just I another And here. maybe in Great.

Just had And what strategies that flows, are year over and from kind you bring be including bigger what of us products traction to the or a maybe a you SMA are of wrappers about question like et the hoping was broadening the from that product strength the some would the of lot SMA sense How into underlying next wrapper? a just on product the within you looks AGI, cetera. give set SMAs just thinking Westchester, products where two into other strategy the selling lookout Harbor, I opportunity could you're ones? you've Stone on out what SMAs, a of you like standpoint maybe,

George Aylward

Yeah.

structure do really that separate we retail believe great So for account the is structure investors. a

our of side in probably available on the the equity, small-cap value A that last and in we've either But equity separate have on retail has equities, separate growth managers even accounts. fixed We where mid-cap. the other equity, separate have growth absolutely side of more quality of in actually the the accounts do income seen always in since mid-XXs, our the been we product, years few retail capabilities retail initial been been in business. our have back the we creation the – in lot over

a of area, has we growth So of have large for – selling us where that in a strength a an a in the number of and that the to equity the But side. lot been growth area driven we and continue experience an in lot we product. as that lot strategies on more other continued of see have of

Michael Cyprys

Thank you. Great.

George Aylward

you. Okay. Thank

Sean Rourke

question, Richard, can next the we please? take

Operator

of your question is Please from the question. from Sandler. line Piper next ask Our Mody Sumeet

Sumeet Mody

guys. thanks. morning, Good Hey,

sticking Just the with business. SMA

Just down of kept rates years. couple the kind fee last noticed the over of

should that we trend the from you if of moving think could here? drivers wondering Just forward how of kind talk about and that about

George Aylward

think through kind strategies there really they're is of of I like kind you more seen provided sort generally is lot manager of to little is fees. if resided components. active mean the a intermediary, look the of model And the both. manager capacity of do a that in so call fees. growth higher in Most like But industry constrained, traded of or traded. business model of to always This at opposed on sort a answered look that investment I question of and bit trends, sort are the so previous as pressure Sure, if we what I strategies only the the two we much more you've actually they of

seen Mike, have we levels else? by coming only market. moving asset So on anything model I as fee But is going to think the rate of be that more of some well. more

Mike Angerthal

market quarters over Yeah, or think point that I five dynamic. right. or the XX four I will on that XX in be it's and I dependent think range that's basis level basis been mean last points

George Aylward

Yeah.

Mike Angerthal

level the looking appropriate one forward. current an So I we think as is think about

Sumeet Mody

mandate color seeing institutional and yet Okay. one pipeline you been then kind the the concentrated? a update around that? where can on that of Great. just little of has you're kind funded today what but bit Just Thanks. not demand And pipeline,

George Aylward

Sure.

consistent any said what our of generally generally multiple the we've comments looking I pipeline -- color? think we Mike, we've sort we've seen multiple spoken about and affiliates in with is strategies.

Mike Angerthal

positive what think in exceeding -- And impacted we've about the bit last of that's wins the time right. but we funded in as yet a over any think sort of know we quarter. could flows can of talked I be out, lumpy. look on we And given where any period the entire strength we we it that comes I it But talk see redemptions, multiple Yeah, year known be at not given quarter from been that about over our that affiliates. looking

we're win to more across seeing multiple So the across continue mandates we is strategies. for we affiliates that traction mandates from affiliates, and and considered

the the dynamic can lumpy the quarter us now. some over gives we've of in a that can that that traction given last a a we're right bit. any pleased with half So again, speaking, seen But generally year But continue. is shift optimism and pipeline it business

George Aylward

the other non-US last itself and Yeah, growth, showed quarter is of element it right. some the

fortunate focused of and be bringing our we've So been -- the to in US our of base client on able grow been outside affiliates some trying mandates. non-US of to that have the several we've to be very

area continue that see We to an of growth. as

non-US to think haven't all we think because I about think in available when of us commented we bigger offerings our that in set represented ability one of the our in is make offshore opportunity we the attractive about have will of our a last much also clients, the quarter find we in markets. being Harbor had those the managers where Stone we to additive traditionally many things terms to I

that see a as growth good area. So as potentially very and that whole -- a about excited

Sumeet Mody

Great. pay capital quarter, in towards more the not any to repurchases kind Thanks. And down guys then of I decided the debt and closing. Westchester noticed presumably focus you

on can how conversations given with -- are here? update guys thinking about you're forward the So year. from you you pipeline now inorganic the about lines M&A that like I And in give to today? capital market? closed of going balanced, potential three have how future are us front on an targets and debt along the kind want the but float going levels, you guys maybe those know growth of two lower priorities the remain deals look this What thinking How you and

Mike Angerthal

From it M&A touch and the the that capital as components over we refinancing of the bring this is for we in standpoint, refinance a Mike. some the extend for start given the current I that loan, question guess quarter we capital LIBOR wouldn’t the on are position of payment I'll And period, were a to paying to conversations. down turn down to address to million approach, your September share our to debt end Sumeet, at and and will $X.X of cost George term continue quarter balanced pleased XX dividend. the on borrowing this repurchases up pleased be position the our this increase in up the anticipate maturities, flexibility $XX pick well rates and increase which quarter upcoming to the Westchester from we're and million the closing obligations. Okay.

So and really to sheet the flexibility grow pleased that we in invest business. also and the meaningful shareholders. capital to address returning business have to balance are continue levels And financial of to

we approach I've of in so be where the three term into to XX don't due think the due the so reset coming for I period maturity of reset extended longer-term timing shift that than months loan refinanced, more our The to coming capital that in we a read was balanced XXXX. than this any we So XXXX. less management in maturing in less terms years was revolver in is

would refinancing. terms with So approach of balanced in the that continue executing expect impacts implement just to that to none that we more of timing

George? So

George Aylward

on creation so M&A, always really we focus long-term so strategy on M&A we we is the Yes done existing That not period. as and transactions in and new growth and noted, important distribution of literally three our growth being said, on XX-month you think in that it's creation value as a have products question, then product. strategy say, organic that of increase just we of

structurally that activity. very So on focused we are

as lots We things, the very of product us fit before, strategic area. strategic or have diversification very in of other be either commented would in that I and it to think continue be We elements. for active see again terms to in we've

I be we the moving the our growth So it's not But that us terms will of quite forward activity in only and in again, on plans. sector sense think out continues sectors. a a our lot for M&A think things robust again to for to make continue of that's I lot of do for just us market

Sumeet Mody

Is few any keeping one that over Great. the just you front. way? at of guys on Thanks. kind the warehouses quarters And of last your anything to in are or eye right. there look CLO All kind next here on kind open that of

Mike Angerthal

think Yes, the CLO teams in refinance Sumeet, or active at in compelling able given our one of current were capability leverage to in the a we our our we'll close do that to in market transactions and and reset structure team recently extend product a close the it. existing be a position we've market, stay obviously, both through been refinancing market to finance to it's CLOs we those is and the stay outlook to

it's close a there consider time shareholder capital, at of use to this think nothing And we think we characteristics I it. is But specific we and if stay good we'll to market would it. report. believe the are compelling

Sumeet Mody

questions. Thanks my Great. taking right. All for

Mike Angerthal

Thank you.

Operator

question your Michael Stanley. a Please We ask have follow-up from question. of Morgan Cyprys

Michael Cyprys

Thanks for taking follow-up. the

CLOs, the back are Virtus from few do significant maybe some number CLOs capital? Virtus. dig industry other the restructuring points in just you it some participating side where on curious, Just what's on like the at doing to of the a raise, holding across and in sounds guys firms just across of we've a wanted seen we're amount with new new But a restructurings, industry the seeing starting CLOs, raise others across

Mike Angerthal

and reinvestment the those quarter the we in product of I extends in one structured billion management at the And there assets $X approximately look earlier close both actually completed it. and period post maturity the is does Yes, sides are one and market. stay under of got October, that it refinancing think XX in there of products category. the team we about elements We've book the to to existing or and two at which resetting sites

little I issuance a think XX our been over months. was last year cadence the a has ago from and XX new to anywhere months

past expect to the and meaningful. capital again we an is it's are to we that. certainly and area teams and appropriate think we have the support in if I'd that is the close stay willing the So opportunity we'd capabilities And demonstrated our

Michael Cyprys

just coming back management to we the theme, Great. large increase the And then dividend back capital in that August. saw

ratio. could more you're do for elaborate support think you bit and hoping clearly have How higher dividend the right the flows cash how maybe a a Virtus longer-term about payout you dividend that clarify you ratio to Just payout what thinking today? is about

So I back? guess what holds you

George Aylward

Yes, on that progression well, you've seen I think us right. for a

the So dividend of increases consecutive in reflective in our we've been have had business. growth four underlying annual they

recently So significant the EBITDA in some of look what that one on substantive grown and has really generation periods announced almost significantly an most change being the year-over-year instances has you cash obviously and just led depending we the reflective doubled a -- at. flow

think expectations dividend So think forward. dependability balanced quarter that stock that important cash we to the look we And -- of part with we also the of reliability But we of do in our when market. you as we opportunity use free how in stock the saw saw this buy and and strategy going trading is flow in repurchases. will our an at some is the the to of and capital that that that return do growth

closed-end no we funds, one Because manage sort that closed-end asked combined which is CLOs thing. and the we business. we growing and payout at continue ask takes as peers funds didn’t a to So think that investments of ratio with over asked no the will you years And about of the we we another to tool about look have done that question capital relative good use frequently within -- you've again, that.

areas other investing of lot growth a in we're business. the there's in So

best is think them balance in is the So way balancing shareholders. we want longer create to the of of the better for all value time those things over we period to because of combination

Michael Cyprys

others? as something were seen need for with putting we are are be closed-end because you with taking the about And Nice. since sense Virtus? or in Great. And ask for marketplace that successful marketplace, others I do just on the funds we've making through a new that do industry cost considering that issuance you guys it's you you P&L, would to issuance re-enter to through mentioned the been you another some reopening the seeing how issuance if fund think P&L that Is shop. across the closed-end cost

George Aylward

have a affiliates. We Mike to speak big it retail closed-end billion-ish $XX multiple a accounting of across side for investors non-retail is great Currently, funds in side and address and it. structure the I'll investors we're the Well, of then opportunity funds. think closed-end data will about But fact.

As gotten though are been out it's the you closed-end there busy its putting know of busy underwriters a funds. out lot gotten – very very

have managers attractive developed there that We've filing the several have a and fund on actually We actually offered. with we've probably out strategies.

and are we're underwriters. about unfortunately, other that So dialog lot active dialogs structure a very But in also in of product with active they're with excited people.

Mike, to So of the we and a opportunity continue have that's our several strategies. very on attractive think managers great

Mike Angerthal

Michael And the just think -- of works. way the I you kind accounting on it hit

they're that in closed-end seven the instances, to or accounting certain just the to could be period fund they in charge cost the the Although be cases indefinite structures structuring requires life in certain for can issued. XX absorbed years be the

usually we compelling So the to it's of up vehicle. way set we'll that look follow one at the accounting, it of the but capital required use very

use community ensure investment out is good which it think very investment expense a to call we'll the well aware of create, that capital. is we to that what of and shareholder So want

Michael Cyprys

going it just this maybe to is I guys Great. just Thanks. could one the last point. at you for one like higher if coming And back sounds bar M&A

filled M&A? make sounds on be plans. Just just you in what your of forward through as needs or But whitespace elaborate kind of sense what or sort It could year growth could be? the maybe look that to out over on like remain could two what move could it you gaps next that

George Aylward

evolved is three move the a to -- may two, we years was what Because as right. investment is consistent Yes the right value be left to a highest with, I of us differentiated just it whether higher what same so know to thing firms it always or that we But don't have but us. adding strategies ago the we've today, XXX, is and it as to was value may and not I think. continue said company, think

a good management active have the coverage on very traditional We side.

opportunities less there the think liquid the I is more correlated and of in non-traditional less strategy. great

earlier terms US outside we an increase to just about, in strategies, the our think that continue us. commented to to then of will that's us. I've continues structures area And continue think exposure of attractive we and business client our to product for Westchester other to non-correlated base be So diversifying

things So all organic. those we look at

us or specific could organic to as type strategy, forward liquid as opportunities growth. be anything to daily that's product move a capability something to well and our going that's it So to a business help capability, product again to generate continue specific is non-US a that of not

Michael Cyprys

Great. my Thanks a taking questions lot for

George Aylward

Okay. Thank Thank you you.

Mike Angerthal

Okay. Thank you

Operator

turn now our Please like to I concludes conference back would ahead. over to Mr. Aylward. This go session. question-and-answer the

George Aylward

encourage note have And Great. further you rest for to us you certainly a thank everyone, other And us. questions. I your of give call, to if the joining Enjoy any obviously, today I want day. send

Operator

Thank That you concludes for today's call. participating.

You may now disconnect.

Virtus Investment Partners (VRTS) 27 Oct 212021 Q3 Earnings call transcript