10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File Number: 001-10994

VIRTUS INVESTMENT PARTNERS, INC.

(Exact name of registrant as specified in its charter)

Delaware	26-3962811
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

One Financial Plaza, Hartford, CT 06103

(Address of principal executive offices, including Zip Code)

(800) 248-7971

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	VRTS	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒ No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐ 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

The number of shares outstanding of the registrant’s common stock was 7,275,337 as of July 29, 2022.

VIRTUS INVESTMENT PARTNERS, INC.

INDEX

		Page
Part I. FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets (Unaudited) as of June 30, 2022 and December 31, 2021	1
	Condensed Consolidated Statements of Operations (Unaudited) for the Three and Six Months Ended June 30, 2022 and 2021	2
	Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Six Months Ended June 30, 2022 and 2021	3
	Condensed Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended June 30, 2022 and 2021	4
	Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) for the Three and Six Months Ended June 30, 2022 and 2021	5
	Notes to Condensed Consolidated Financial Statements (Unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	30
Part II. OTHER INFORMATION
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 6.	Exhibits	31
	Signatures	32

"We," "us," "our," the "Company," and "Virtus" as used in this Quarterly Report on Form 10-Q refer to Virtus Investment Partners, Inc., a Delaware corporation, and its subsidiaries.

PART I – FINANCIAL INFORMATION

Item 1.    Financial Statements

Virtus Investment Partners, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands, except share data)	June 30, 2022		December 31, 2021
Assets:
Cash and cash equivalents	$	250,530	$	378,921
Investments	102,840		108,890
Accounts receivable, net	108,248		123,873
Assets of consolidated investment products ("CIP")
Cash and cash equivalents of CIP	107,674		206,620
Cash pledged or on deposit of CIP	627		604
Investments of CIP	1,990,159		2,140,238
Other assets of CIP	17,041		44,210
Furniture, equipment and leasehold improvements, net	19,016		12,542
Intangible assets, net	482,085		500,571
Goodwill	347,423		338,406
Deferred taxes, net	21,721		19,204
Other assets	96,551		60,102
Total assets	$	3,543,915	$	3,934,181
Liabilities and Equity
Liabilities:
Accrued compensation and benefits	$	105,106	$	187,449
Accounts payable and accrued liabilities	40,800		48,496
Dividends payable	13,861		14,824
Contingent consideration (Note 4)	133,628		162,564
Debt	255,832		266,346
Other liabilities	93,502		60,225
Liabilities of CIP
Notes payable of CIP	1,904,444		2,033,617
Securities purchased payable and other liabilities of CIP	65,890		185,068
Total liabilities	2,613,063		2,958,589
Commitments and Contingencies (Note 14)
Redeemable noncontrolling interests	139,147		138,965
Equity:
Equity attributable to Virtus Investment Partners, Inc.:
Common stock, $0.01 par value, 1,000,000,000 shares authorized; 12,023,288 shares issued and 7,275,337 shares outstanding at June 30, 2022; and 11,906,747 shares issued and 7,506,151 shares outstanding at December 31, 2021	120		119
Additional paid-in capital	1,275,907		1,276,424
Retained earnings (accumulated deficit)	88,196		60,962
Accumulated other comprehensive income (loss)	(267)		20
Treasury stock, at cost, 4,747,951 and 4,400,596 shares at June 30, 2022 and December 31, 2021, respectively	(579,248)		(509,248)
Total equity attributable to Virtus Investment Partners, Inc.	784,708		828,277
Noncontrolling interests	6,997		8,350
Total equity	791,705		836,627
Total liabilities and equity	$	3,543,915	$	3,934,181

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

1

Virtus Investment Partners, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share data)	2022		2021		2022		2021
Revenues
Investment management fees	$	185,024	$	193,510	$	391,841	$	366,779
Distribution and service fees	17,159		23,450		37,166		43,798
Administration and shareholder service fees	21,982		25,877		46,326		48,437
Other income and fees	1,142		1,174		2,414		1,894
Total revenues	225,307		244,011		477,747		460,908
Operating Expenses
Employment expenses	89,360		87,630		195,353		179,389
Distribution and other asset-based expenses	28,583		36,021		61,429		68,315
Other operating expenses	31,559		21,946		63,271		41,526
Operating expenses of consolidated investment products ("CIP")	649		659		1,389		1,218
Change in fair value of contingent consideration	2,900		—		2,900		—
Depreciation expense	962		981		1,897		2,079
Amortization expense	14,624		10,363		29,286		19,828
Total operating expenses	168,637		157,600		355,525		312,355
Operating Income (Loss)	56,670		86,411		122,222		148,553
Other Income (Expense)
Realized and unrealized gain (loss) on investments, net	(10,543)		2,494		(13,525)		3,385
Realized and unrealized gain (loss) of CIP, net	(21,659)		2,747		(35,003)		(1,940)
Other income (expense), net	571		826		858		2,597
Total other income (expense), net	(31,631)		6,067		(47,670)		4,042
Interest Income (Expense)
Interest expense	(2,825)		(2,256)		(5,104)		(4,570)
Interest and dividend income	529		166		857		302
Interest and dividend income of investments of CIP	22,412		22,562		42,792		46,438
Interest expense of CIP	(14,416)		(14,452)		(26,504)		(28,900)
Total interest income (expense), net	5,700		6,020		12,041		13,270
Income (Loss) Before Income Taxes	30,739		98,498		86,593		165,865
Income tax expense (benefit)	16,480		22,401		33,215		37,554
Net Income (Loss)	14,259		76,097		53,378		128,311
Noncontrolling interests	3,143		(13,130)		(2,917)		(28,756)
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.	$	17,402	$	62,967	$	50,461	$	99,555
Earnings (Loss) per Share—Basic	$	2.34	$	8.18	$	6.73	$	12.97
Earnings (Loss) per Share—Diluted	$	2.29	$	7.86	$	6.54	$	12.39
Weighted Average Shares Outstanding—Basic	7,449		7,698		7,496		7,674
Weighted Average Shares Outstanding—Diluted	7,607		8,007		7,721		8,038

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

2

Virtus Investment Partners, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Net Income (Loss)	$	14,259	$	76,097	$	53,378	$	128,311
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of tax of $176 and $(2) for the three months ended June 30, 2022 and 2021, respectively, and $249 and $(2) for the six months ended June 30, 2022 and 2021, respectively.	(237)		0		(287)		6
Other comprehensive income (loss)	(237)		0		(287)		6
Comprehensive income (loss)	14,022		76,097		53,091		128,317
Comprehensive (income) loss attributable to noncontrolling interests	3,143		(13,130)		(2,917)		(28,756)
Comprehensive Income (Loss) Attributable to Virtus Investment Partners, Inc.	$	17,165	$	62,967	$	50,174	$	99,561

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

3

Virtus Investment Partners, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Six Months Ended June 30,
(in thousands)	2022		2021
Cash Flows from Operating Activities:
Net income (loss)	$	53,378	$	128,311
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation expense, intangible asset and other amortization	32,223		23,196
Stock-based compensation	14,119		15,844
Amortization of deferred commissions	2,700		1,462
Payments of deferred commissions	(1,962)		(3,241)
Equity in earnings of equity method investments	(977)		(2,561)
Realized and unrealized (gains) losses on investments, net	13,562		(3,381)
Distributions from equity method investments	2,102		1,908
Sales (purchases) of investments, net	(9,952)		(3,395)
Change in fair value of contingent consideration	2,900		—
Deferred taxes, net	(2,271)		(1,518)
Changes in operating assets and liabilities:
Accounts receivable, net and other assets	31,069		(43,203)
Accrued compensation and benefits, accounts payable, accrued liabilities and other liabilities	(110,581)		(12,651)
Operating activities of consolidated investment products ("CIP"):
Realized and unrealized (gains) losses on investments of CIP, net	33,715		(1,961)
Purchases of investments by CIP	(441,042)		(664,837)
Sales of investments by CIP	417,706		790,575
Net proceeds (purchases) of short-term investments and securities sold short by CIP	(45)		15,103
Change in other assets and liabilities of CIP	967		(471)
Net cash provided by (used in) operating activities	37,611		239,180
Cash Flows from Investing Activities:
Capital expenditures and other asset purchases	(4,361)		(4,336)
Acquisition of businesses, net of cash acquired of $8,443	(19,773)		—
Change in cash and cash equivalents of CIP due to consolidation (deconsolidation), net	(308)		(1,191)
Net cash provided by (used in) investing activities	(24,442)		(5,527)
Cash Flows from Financing Activities:
Payment of long-term debt	(11,375)		(11,826)
Common stock dividends paid	(24,190)		(13,748)
Repurchase of common shares	(70,000)		(12,499)
Payment of contingent consideration	(33,036)		—
Taxes paid related to net share settlement of restricted stock units	(15,284)		(19,214)
Net contributions from (distributions to) noncontrolling interests	(3,598)		(6,636)
Financing activities of CIP:
Payments on borrowings by CIP	(82,694)		(103,722)
Net cash provided by (used in) financing activities	(240,177)		(167,645)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(306)		—
Net increase (decrease) in cash, cash equivalents and restricted cash	(227,314)		66,008
Cash, cash equivalents and restricted cash, beginning of period	586,145		339,849
Cash, cash equivalents and restricted cash, end of period	$	358,831	$	405,857
Non-Cash Investing Activities:
Contingent consideration	$	1,200	$	137,664
Non-Cash Financing Activities:
Increase (decrease) to noncontrolling interests due to consolidation (deconsolidation) of CIP, net	$	(338)	$	(8,001)
Common stock dividends payable	$	11,229	$	6,277

(in thousands)	June 30, 2022		December 31, 2021
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	$	250,530	$	378,921
Cash of CIP	107,674		206,620
Cash pledged or on deposit of CIP	627		604
Cash, cash equivalents and restricted cash at end of period	$	358,831	$	586,145

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

4

Virtus Investment Partners, Inc.

Condensed Consolidated Statements of Changes in Stockholders' Equity

(Unaudited)

	Permanent Equity																		Temporary Equity
	Common Stock			Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Income (Loss)		Treasury Stock			Total Attributed To Virtus Investment Partners, Inc.		Non- controlling Interests		Total Equity		Redeemable Non- controlling Interests
(in thousands, except per share data)	Shares	Par Value								Shares	Amount
Balances at March 31, 2021	7,649,679	$	119	$	1,284,643	$	(98,671)	$	35	4,227,315	$	(456,748)	$	729,378	$	9,317	$	738,695	$	112,482
Net income (loss)	—	—		—		62,967		—		—	—		62,967		270		63,237		12,860
Foreign currency translation adjustments	—	—		—		—		—		—	—		—		—		—		—
Net subscriptions (redemptions) and other	—	—		—		—		—		—	—		—		(619)		(619)		6,183
Cash dividends declared ($0.82 per common share)	—	—		(6,604)		—		—		—	—		(6,604)		—		(6,604)		—
Repurchases of common shares	(26,921)	—		—		—		—		26,921	(7,500)		(7,500)		—		(7,500)		—
Issuance of common shares related to employee stock transactions	28,848	—		—		—		—		—	—		—		—		—		—
Taxes paid on stock-based compensation	—	—		(4,117)		—		—		—	—		(4,117)		—		(4,117)		—
Stock-based compensation	—	—		6,745		—		—		—	—		6,745		—		6,745		—
Balances at June 30, 2021	7,651,606	$	119	$	1,280,667	$	(35,704)	$	35	4,254,236	$	(464,248)	$	780,869	$	8,968	$	789,837	$	131,525
Balances at March 31, 2022	7,472,829	$	120	$	1,273,802	$	81,783	$	(30)	4,526,048	$	(539,248)	$	816,427	$	7,806	$	824,233	$	138,738
Net income (loss)	—	—		—		17,402		—		—	—		17,402		(278)		17,124		(2,865)
Foreign currency translation adjustments	—	—		—		—		(237)		—	—		(237)		—		(237)		—
Net subscriptions (redemptions) and other	—	—		—		—		—		—	—		—		(531)		(531)		3,274
Cash dividends declared ($1.50 per common share)	—	—		—		(10,989)		—		—	—		(10,989)		—		(10,989)		—
Repurchases of common shares	(221,903)	—		—		—		—		221,903	(40,000)		(40,000)		—		(40,000)		—
Issuance of common shares related to employee stock transactions	24,411	—		—		—		—		—	—		—		—		—		—
Taxes paid on stock-based compensation	—	—		(1,870)		—		—		—	—		(1,870)				(1,870)		—
Stock-based compensation	—	—		3,975		—		—		—	—		3,975		—		3,975		—
Balances at June 30, 2022	7,275,337	$	120	$	1,275,907	$	88,196	$	(267)	4,747,951	$	(579,248)	$	784,708	$	6,997	$	791,705	$	139,147

	Permanent Equity																		Temporary Equity
	Common Stock			Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Income (Loss)		Treasury Stock			Total Attributed To Virtus Investment Partners, Inc.		Non- controlling Interests		Total Equity		Redeemable Non- controlling Interests
(in thousands, except per share data)	Shares	Par Value								Shares	Amount
Balances at December 31, 2020	7,583,466	$	118	$	1,298,002	$	(135,259)	$	29	4,207,403	$	(451,749)	$	711,141	$	9,799	$	720,940	$	115,513
Net income (loss)	—	—		—		99,555		—		—	—		99,555		345		99,900		28,411
Foreign currency translation adjustments	—	—		—		—		6		—	—		6		—		6		—
Net subscriptions (redemptions) and other	—	—		—		—		—		—	—		—		(1,176)		(1,176)		(12,399)
Cash dividends declared ($1.64 per common share)	—	—		(13,300)		—		—		—	—		(13,300)		—		(13,300)		—
Repurchases of common shares	(46,833)	—		—		—		—		46,833	(12,499)		(12,499)		—		(12,499)		—
Issuance of common shares related to employee stock transactions	114,973	1		65		—		—		—	—		66		—		66		—
Taxes paid on stock-based compensation	—	—		(19,280)		—		—		—	—		(19,280)		—		(19,280)		—
Stock-based compensation	—	—		15,180		—		—		—	—		15,180		—		15,180		—
Balances at June 30, 2021	7,651,606	$	119	$	1,280,667	$	(35,704)	$	35	4,254,236	$	(464,248)	$	780,869	$	8,968	$	789,837	$	131,525
Balances at December 31, 2021	7,506,151	$	119	$	1,276,424	$	60,962	$	20	4,400,596	$	(509,248)	$	828,277	$	8,350	$	836,627	$	138,965
Net income (loss)	—	—		—		50,461		—		—	—		50,461		(335)		50,126		3,252
Foreign currency translation adjustments	—	—		—		—		(287)		—	—		(287)		—		(287)		—
Net subscriptions (redemptions) and other	—	—		—		—		—		—	—		—		(1,018)		(1,018)		(3,070)
Cash dividends declared ($3.00 per common share)	—	—		—		(23,227)		—		—	—		(23,227)		—		(23,227)		—
Repurchases of common shares	(347,355)	—		—		—		—		347,355	(70,000)		(70,000)		—		(70,000)		—
Issuance of common shares related to employee stock transactions	116,541	1		(1)		—		—		—	—		—		—		—		—
Taxes paid on stock-based compensation	—	—		(15,284)		—		—		—	—		(15,284)				(15,284)		—
Stock-based compensation	—	—		14,768		—		—		—	—		14,768		—		14,768		—
Balances at June 30, 2022	7,275,337	$	120	$	1,275,907	$	88,196	$	(267)	4,747,951	$	(579,248)	$	784,708	$	6,997	$	791,705	$	139,147

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

5

Virtus Investment Partners, Inc.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1. Organization and Business

Virtus Investment Partners, Inc. (the "Company," "we," "us," "our" or "Virtus"), a Delaware corporation, operates in the investment management industry through its subsidiaries.

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

2. Basis of Presentation and Significant Accounting Policies

Basis of Presentation

The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the Company’s financial condition and results of operations. Operating results for the six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 ("2021 Annual Report on Form 10-K") filed with the Securities and Exchange Commission (the "SEC"). The Company’s significant accounting policies, which have been consistently applied, are summarized in its 2021 Annual Report on Form 10-K.

3. Revenues

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

    Investment Management Fees by Source    

The following table summarizes investment management fees by source:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Investment management fees
Open-end funds	$	84,875	$	97,273	$	182,252	$	186,393
Closed-end funds	16,174		16,395		33,114		29,335
Retail separate accounts	45,312		42,475		94,915		79,987
Institutional accounts	38,663		37,367		81,560		71,064
Total investment management fees	$	185,024	$	193,510	$	391,841	$	366,779

6

4. Acquisitions

Stone Harbor Investment Partners

On January 1, 2022, the Company completed the acquisition of Stone Harbor Investment Partners, LLC ("Stone Harbor"), which was accounted for in accordance with ASC 805, Business Combinations ("ASC 805"). The initial transaction consideration of $29.4 million was allocated to the assets acquired and liabilities assumed, based upon their estimated fair values at the date of the acquisition, as well as goodwill of $8.8 million and definite-lived intangible assets of $10.8 million. The Company expects $19.6 million of the purchase price to be tax deductible over 15 years. The transaction consideration allocation is based upon preliminary information and is subject to change if additional information becomes available. The final fair value of the net assets acquired may result in adjustments to certain assets and liabilities, including goodwill. The revenues and operating income of Stone Harbor were not material to the Company's results of operations for the three and six months ended June 30, 2022.

Transaction consideration consisted of $28.2 million in cash paid at closing and $1.2 million in contingent consideration recorded at fair value, which represents future potential earn-out payments based on pre-established performance metrics related to revenue retention and revenue growth rates. Future contingent consideration will be paid, if earned, in 2023, 2026 and 2027. The contingent consideration has been accounted for as a liability within contingent consideration on the Company's Condensed Consolidated Balance Sheet.

The following table summarizes the identified acquired assets and liabilities assumed as of the Stone Harbor acquisition date:

	January 1, 2022
	(in thousands)
Assets:
Cash and cash equivalents	$	8,443
Intangible assets	10,800
Goodwill	8,846
Other assets	55,129
Total Assets	83,218
Liabilities
Accounts payable and accrued liabilities	53,802
Total liabilities	53,802
Total Net Assets Acquired	$	29,416

Identifiable Intangible Assets Acquired

The Company identified and recorded the following intangible assets as a result of the Stone Harbor acquisition:

	January 1, 2022
	Approximate Fair Value (in thousands)		Weighted Average of Useful Life (in years)
Definite-lived intangible assets:
Investment management agreements	$	6,000	7.3
Trade names	1,000		6.0
Software	3,800		4.0
Total definite-lived intangible assets	$	10,800

The fair value of investment management agreements was estimated using a discounted cash flow method, the fair value of the trade names was estimated using a royalty savings method, and the fair value of the software was estimated using a royalty savings method and replacement cost approach. The Stone Harbor fair value estimates were prepared with the assistance of an independent valuation firm.

Westchester Capital Management

On October 1, 2021, the Company completed the acquisition of Westchester Capital Management, LLC ("Westchester"), which was accounted for in accordance with ASC 805. The total transaction consideration of $169.3 million

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was allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of the acquisition. Goodwill of $23.0 million and intangible assets of $144.4 million were recorded as a result of the acquisition. The Company expects $155.6 million of the purchase price to be tax deductible over 15 years. The revenues and operating income of Westchester were not material to the Company's results of operations for the three and six months ended June 30, 2022.

Transaction consideration consisted of $156.8 million in cash and contingent consideration accounted for as a liability on the Company's Condensed Consolidated Balance sheet, which represents future potential earn-out payments based on pre-established performance metrics related to revenue growth rates. Future contingent consideration payments will be made, if earned, in 2025 and 2026. As of June 30, 2022, the contingent consideration balance was $15.4 million.

Fund Adoption and NFJ Investment Group

On February 1, 2021, the Company finalized an agreement with Allianz Global Investors U.S. LLC ("AGI"), pursuant to which the Company became the investment adviser, distributor and/or administrator of certain of AGI's open-end, closed-end and retail separate account assets. This transaction was classified as an asset acquisition and the cost of the acquisition was allocated to the assets acquired on the basis of their relative fair values. Additionally, as part of the transaction, AGI’s Dallas-based Value Equity team joined the Company as a newly established affiliated manager, NFJ Investment Group ("NFJ"). The addition of NFJ was classified as a business combination under ASC 805 and assets acquired were recorded at fair value. Assets acquired primarily consisted of definite-lived intangible assets representing investment contracts as well as indefinite-lived assets consisting of goodwill related to NFJ. The revenues and operating income of NFJ were not material to the Company's results of operations for the three and six months ended June 30, 2022 or 2021.

Transaction consideration consists of variable cash payments based on a percentage of the investment management fees earned on certain open-end, closed-end and retail separate account assets from the transaction. Payments are to be made annually on the anniversary of the closing date of the transactions over seven years. Contingent payment obligations related to the NFJ acquisition, which were accounted for in accordance with ASC 805 are remeasured at fair value as of each reporting period-end, with the change in fair value recorded within the Condensed Consolidated Statement of Operations. An estimate of these future payments has been recorded as a liability and included as contingent consideration on the Company's Condensed Consolidated Balance Sheet. A payment of $33.0 million was made in the first quarter of 2022. The estimated value of future revenue participation payments at June 30, 2022 was $117.0 million.

5. Goodwill and Intangible Assets, Net

Activity in goodwill was as follows:

	(in thousands)
Balance at December 31, 2021	$	338,406
Acquisitions	9,017
Balance at June 30, 2022	$	347,423

Below is a summary of intangible assets, net:

	Definite-Lived						Indefinite-Lived		Total
(in thousands)	Gross Book Value		Accumulated Amortization		Net Book Value		Net Book Value		Net Book Value
Balances at December 31, 2021	$	755,576	$	(297,303)	$	458,273	$	42,298	$	500,571
Additions	10,800		—		10,800		—		10,800
Intangible amortization	—		(29,286)		(29,286)		—		(29,286)
Balances at June 30, 2022	$	766,376	$	(326,589)	$	439,787	$	42,298	$	482,085

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Definite-lived intangible asset amortization for the remainder of fiscal year 2022 and succeeding fiscal years is estimated as follows:

Fiscal Year	Amount (in thousands)
Remainder of 2022	$	29,218
2023	57,835
2024	52,194
2025	47,426
2026	46,446
2027 and thereafter	206,668
Total	$	439,787

6. Investments

Investments consist primarily of investments in the Company's sponsored products. The Company's investments, excluding the assets of consolidated investment products ("CIP") discussed in Note 16, at June 30, 2022 and December 31, 2021 were as follows:

(in thousands)	June 30, 2022		December 31, 2021
Investment securities - fair value	$	77,184	$	80,335
Equity method investments (1)	11,968		13,038
Nonqualified retirement plan assets	11,546		13,321
Other investments	2,142		2,196
Total investments	$	102,840	$	108,890

(1)     The Company's equity method investments are valued on a three-month lag based upon the availability of financial information. 

Investment Securities - fair value

Investment securities - fair value consist of investments in the Company's sponsored funds and separately managed accounts. The composition of the Company’s investment securities - fair value was as follows:

	June 30, 2022				December 31, 2021
(in thousands)	Cost		Fair Value		Cost		Fair Value
Investment Securities - fair value
Sponsored funds	$	71,808	$	65,121	$	63,090	$	66,326
Equity securities	11,702		12,063		10,659		14,009
Total investment securities - fair value	$	83,510	$	77,184	$	73,749	$	80,335

For the three and six months ended June 30, 2022, the Company recognized net realized losses of $0.1 million and $30 thousand, respectively, on the sale of its investment securities - fair value. For the three and six months ended June 30, 2021, the Company recognized net realized gains of $1.0 million and $1.8 million, respectively, on the sale of its investment securities - fair value.

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7. Fair Value Measurements

The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of CIP discussed in Note 16, as of June 30, 2022 and December 31, 2021 by fair value hierarchy level were as follows:

June 30, 2022  

(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	180,574	$	—	$	—	$	180,574
Investment securities - fair value
Sponsored funds	65,121		—		—		65,121
Equity securities	12,063		—		—		12,063
Nonqualified retirement plan assets	11,546		—		—		11,546
Total assets measured at fair value	$	269,304	$	—	$	—	$	269,304
Liabilities
Contingent consideration	$	—	$	—	$	72,980	$	72,980
Total liabilities measured at fair value	$	—	$	—	$	72,980	$	72,980

December 31, 2021  

(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	307,277	$	—	$	—	$	307,277
Investment securities - fair value
Sponsored funds	66,326		—		—		66,326
Equity securities	14,009		—		—		14,009
Nonqualified retirement plan assets	13,321		—		—		13,321
Total assets measured at fair value	$	400,933	$	—	$	—	$	400,933
Liabilities
Contingent consideration	$	—	$	—	$	88,400	$	88,400
Total liabilities measured at fair value	$	—	$	—	$	88,400	$	88,400

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

Cash equivalents represent investments in money market funds. Cash investments in money market funds are valued using published net asset values and are classified as Level 1.

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

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

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

Contingent consideration represents liabilities associated with the Company's business combinations. See Note 4 for a discussion of the transactions. The estimated fair values are measured using a simulation model using unobservable market data inputs prepared with the assistance of an independent valuation firm. These liabilities are categorized as Level 3.

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

The following table presents a reconciliation of beginning and ending balances of recurring fair value measurements classified as Level 3:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Contingent consideration, beginning of period	$	70,080	$	63,500	$	88,400	$	—
Additions for acquisition	—		—		1,200		63,500
Reduction for payments made	—		—		(19,520)		—
Increase (reduction) of liability related to re-measurement of fair value	2,900		—		2,900		—
Contingent consideration, end of period	$	72,980	$	63,500	$	72,980	$	63,500

8. Equity Transactions

Dividends Declared

On May 18, 2022, the Company declared a quarterly cash dividend of $1.50 per common share to be paid on August 15, 2022 to stockholders of record at the close of business on July 29, 2022.

Common Stock Repurchases

During the three and six months ended June 30, 2022, the Company repurchased 221,903 and 347,355 common shares, respectively, at a weighted average price of $180.23 and $201.49 per share, respectively, for a total cost, including fees and expenses, of $40.0 million and $70.0 million, respectively, under its share repurchase program. In May 2022, the Company's Board of Directors authorized an additional 750,000 shares to be repurchased under the share repurchase program. As of June 30, 2022, 932,094 shares remained available for repurchase. Under the terms of the program, the Company may repurchase shares of its common stock from time to time at its discretion through open market repurchases, privately negotiated transactions and/or other mechanisms, depending on price and prevailing market and business conditions. The program, which has no specified term, may be suspended or terminated at any time.

9. Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) by component for the six months ended June 30, 2022 and 2021 were as follows:

	Foreign Currency Translation Adjustments (in thousands)
Balance at December 31, 2021	$	20
Net current-period other comprehensive income (loss) (1)	(287)
Balance at June 30, 2022	$	(267)
	Foreign Currency Translation Adjustments (in thousands)
Balance at December 31, 2020	$	29
Net current-period other comprehensive income (loss) (1)	6
Balance at June 30, 2021	$	35

(1) Consists of foreign currency translation adjustments, net of tax of $249 and $(2) for the six months ended June 30, 2022 and 2021, respectively.

10. Stock-Based Compensation

Pursuant to the Company's Omnibus Incentive and Equity Plan (the "Omnibus Plan"), officers, employees and directors may be granted equity-based awards, including restricted stock units ("RSUs"), performance stock units ("PSUs"),

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stock options and unrestricted shares of common stock. At June 30, 2022, 668,628 shares of common stock remain available for issuance of the 3,370,000 shares that are authorized for issuance under the Omnibus Plan.

Stock-based compensation expense is summarized as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Stock-based compensation expense	$	4,572	$	7,849	$	14,119	$	15,844

Restricted Stock Units

Each RSU entitles the holder to one share of common stock when the restriction expires. RSUs may be time-vested or performance-contingent (PSUs) that convert into RSUs after performance measurement is complete and generally vest in one to three years. Shares that are issued upon vesting are newly issued shares from the Omnibus Plan and are not issued from treasury stock.

RSU activity, inclusive of PSUs, for the six months ended June 30, 2022 is summarized as follows: 

	Number of Shares	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2021	430,730	$	138.01
Granted	175,379	$	193.35
Forfeited	(36,336)	$	116.73
Settled	(183,995)	$	119.53
Outstanding at June 30, 2022	385,778	$	173.99

For the six months ended June 30, 2022 and 2021, a total of 72,043 and 72,324 RSUs, respectively, were withheld by the Company as a result of net share settlements to settle minimum employee tax withholding obligations. The Company paid $15.3 million and $19.3 million for the six months ended June 30, 2022 and 2021, respectively, in minimum employee tax withholding obligations related to RSUs withheld for the net share settlements. These net share settlements had the effect of share repurchases by the Company as they reduced the number of shares that would have otherwise been issued as a result of the vesting.

During the six months ended June 30, 2022, the Company granted 30,516 PSUs that contain performance-based metrics in addition to a service condition. Compensation expense for PSUs is generally recognized over a three-year service period based upon the value determined using a combination of (i) the intrinsic value method, for awards that contain a performance metric that represents a "performance condition" in accordance with ASC 718, and (ii) the Monte Carlo simulation valuation model for awards that contain a "market condition" performance metric under ASC 718. Compensation expense for PSU awards that contain a market condition is fixed at the date of grant and will not be adjusted in future periods based upon the achievement of the market condition. Compensation expense for PSU awards with a performance condition is recorded each period based upon a probability assessment of the expected outcome of the performance metric with a final adjustment upon measurement at the end of the performance period.

As of June 30, 2022, unamortized stock-based compensation expense for unvested RSUs and PSUs was $35.2 million with a weighted-average remaining contractual life of 1.4 years.

11. Earnings (Loss) Per Share

Earnings (loss) per share ("EPS") is calculated in accordance with ASC 260, Earnings per Share. Basic EPS is computed by dividing net income (loss) attributable to Virtus Investment Partners, Inc. by the weighted-average number of common shares outstanding for the period, excluding dilution for potential common stock issuances. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, including shares issuable upon the vesting of RSUs and stock option exercises using the treasury stock method, as determined under the if-converted method.

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The computation of basic and diluted EPS is as follows: 

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share amounts)	2022		2021		2022		2021
Net Income (Loss)	$	14,259	$	76,097	$	53,378	$	128,311
Noncontrolling interests	3,143		(13,130)		(2,917)		(28,756)
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.	$	17,402	$	62,967	$	50,461	$	99,555
Shares (in thousands):
Basic: Weighted-average number of shares outstanding	7,449		7,698		7,496		7,674
Plus: Incremental shares from assumed conversion of dilutive instruments	158		309		225		364
Diluted: Weighted-average number of shares outstanding	7,607		8,007		7,721		8,038
Earnings (Loss) per Share—Basic	$	2.34	$	8.18	$	6.73	$	12.97
Earnings (Loss) per Share—Diluted	$	2.29	$	7.86	$	6.54	$	12.39

The following table details the securities that have been excluded from the above computation of weighted-average number of shares for diluted EPS, because the effect would be anti-dilutive.

	Three Months Ended June 30,		Six Months Ended June 30,
(in thousands)	2022	2021	2022	2021
Restricted stock units	84	5	24	6
Total anti-dilutive securities	84	5	24	6

12. Income Taxes

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

The provision for income taxes reflected U.S. federal, state and local taxes at an estimated effective tax rate of 38.4% and 22.6% for the six months ended June 30, 2022 and 2021, respectively. The higher estimated effective tax rate for the six months ended June 30, 2022 was primarily due to valuation allowances recorded in the current year for the tax effects of unrealized losses on certain Company investments.  

13. Debt

Credit Agreement

The Company's credit agreement, as amended (the "Credit Agreement"), comprises (i) a $275.0 million seven-year term loan (the "Term Loan") expiring in September 2028, and (ii) a $175.0 million revolving credit facility with a five-year term expiring in September 2026. During the six months ended June 30, 2022, the Company repaid $11.4 million outstanding under its Term Loan. At June 30, 2022, $262.9 million was outstanding under the Term Loan, and the Company had no outstanding borrowings under its revolving credit facility. In accordance with ASC 835, Interest, the amounts outstanding under the Company's Term Loan are presented in the Condensed Consolidated Balance Sheet net of related debt issuance costs, which were $7.1 million as of June 30, 2022.

14. Commitments and Contingencies

Legal Matters

The Company is involved from time to time in litigation and arbitration, as well as examinations, inquiries and investigations by various regulatory bodies, including the SEC, involving its compliance with, among other things, securities laws, client investment guidelines, laws governing the activities of broker-dealers and other laws and regulations affecting its products and other activities. Legal and regulatory matters of this nature involve or may involve but are not limited to the

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Company's activities as an employer, issuer of securities, investor, investment adviser, broker-dealer or taxpayer. In addition, in the normal course of business, the Company discusses matters with its regulators raised during regulatory examinations or is otherwise subject to their inquiry. These matters could result in censures, fines, penalties or other sanctions.

The Company records a liability when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. In addition, in the event the Company determines that a loss is not probable, but is reasonably possible, and it becomes possible to develop what the Company believes to be a reasonable range of possible loss, then the Company will include disclosures related to such matter as appropriate and in compliance with ASC 450, Contingencies. The disclosures, accruals or estimates, if any, resulting from the foregoing analysis are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. Based on information currently available, available insurance coverage, indemnities and established reserves, the Company believes that the outcomes of its legal and regulatory proceedings are not likely, either individually or in the aggregate, to have a material adverse effect on the Company's results of operations, cash flows or its consolidated financial condition. However, in the event of unexpected subsequent developments, and given the inherent unpredictability of these legal and regulatory matters, the Company can provide no assurance that its assessment of any claim, dispute, regulatory examination or investigation or other legal matter will reflect the ultimate outcome, and an adverse outcome in certain matters could, from time to time, have a material adverse effect on the Company's results of operations or cash flows in particular quarterly or annual periods.

15. Redeemable Noncontrolling Interests

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

Redeemable noncontrolling interests for the six months ended June 30, 2022 included the following amounts:

(in thousands)	CIP		Affiliate Noncontrolling Interests		Total
Balances at December 31, 2021	$	12,416	$	126,549	$	138,965
Net income (loss) attributable to noncontrolling interests	(1,593)		4,192		2,599
Changes in redemption value (1)	—		653		653
Total net income (loss) attributable to noncontrolling interests	(1,593)		4,845		3,252
Net subscriptions (redemptions) and other	2,227		(5,297)		(3,070)
Balances at June 30, 2022	$	13,050	$	126,097	$	139,147

(1) Relates to noncontrolling interests redeemable at other than fair value.

16. Consolidation

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

The Company evaluates any variable interest entities ("VIEs") in which the Company has a variable interest for consolidation. A VIE is an entity in which either (i) the equity investment at risk is not sufficient to permit the entity to finance its own activities without additional financial support; or (ii) where as a group, the holders of the equity investment at risk do not possess (x) the power through voting or similar rights to direct the activities that most significantly impact the entity's

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economic performance, (y) the obligation to absorb expected losses or the right to receive expected residual returns of the entity, or (z) proportionate voting and economic interests and where substantially all of the entity's activities either involve or are conducted on behalf of an investor with disproportionately fewer voting rights. If an entity has any of these characteristics, it is considered a VIE and is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that has both the power to direct the activities that most significantly impact the VIE's economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE.

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

The following table presents the balances of CIP that, after intercompany eliminations, were reflected on the Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021:

	As of
	June 30, 2022						December 31, 2021
	VOEs		VIEs				VOEs		VIEs
(in thousands)			CLOs		Other				CLOs		Other
Cash and cash equivalents	$	798	$	104,348	$	3,155	$	787	$	205,192	$	1,245
Investments	19,049		1,917,076		54,034		21,544		2,055,107		63,587
Other assets	94		15,920		1,027		64		43,327		819
Notes payable	—		(1,904,444)		—		—		(2,033,617)		—
Securities purchased payable and other liabilities	(417)		(65,314)		(159)		(558)		(184,214)		(296)
Noncontrolling interests	(4,634)		(6,997)		(8,416)		(4,935)		(8,350)		(7,481)
Net interests in CIP	$	14,890	$	60,589	$	49,641	$	16,902	$	77,445	$	57,874

Consolidated CLOs

The majority of the Company's CIP that are VIEs are CLOs. At June 30, 2022, the Company consolidated six CLOs. The financial information of certain CLOs is included on the Company's condensed consolidated financial statements on a one-month lag based upon the availability of their financial information. A majority-owned consolidated private fund, whose primary purpose is to invest in CLOs for which the Company serves as the collateral manager, is also included.

Investments of CLOs

The CLOs held investments of $1.9 billion at June 30, 2022 consisting of bank loan investments, which comprise the majority of the CLOs' portfolio asset collateral and are senior secured corporate loans across a variety of industries. These bank loan investments mature at various dates between 2022 and 2029 and pay interest at LIBOR plus a spread of up to 10.0%. The CLOs may elect to reinvest any prepayments received on bank loan investments up until the periods between October 2019 and October 2026, depending on the CLO. Generally, subsequent prepayments received after the reinvestment period must be used to pay down the note obligations. At June 30, 2022, the fair value of the senior bank loans was less than the unpaid principal balance by $113.6 million. At June 30, 2022, there were no material collateral assets in default.

Notes Payable of CLOs

The CLOs held notes payable with a total value, at par, of $2.2 billion at June 30, 2022, consisting of senior secured floating rate notes payable with a par value of $1.9 billion and subordinated notes with a par value of $233.7 million. These note obligations bear interest at variable rates based on LIBOR plus a pre-defined spread ranging from 0.8% to 8.9%. The principal amounts outstanding of these note obligations mature on dates ranging from October 2027 to October 2034.

The Company's beneficial interests and maximum exposure to loss related to these consolidated CLOs is limited to (i) ownership in the subordinated notes and (ii) accrued management fees. The secured notes of the consolidated CLOs have contractual recourse only to the related assets of the CLO and are classified as financial liabilities. Although these beneficial

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interests are eliminated upon consolidation, the application of the measurement alternative prescribed by ASU 2014-13, Consolidation (Topic 810) ("ASU 2014-13") results in the net assets of the consolidated CLOs shown above to be equivalent to the beneficial interests retained by the Company at June 30, 2022, as shown in the table below:

	(in thousands)
Subordinated notes	$	59,446
Accrued investment management fees	1,143
Total Beneficial Interests	$	60,589

The following table represents income and expenses of the consolidated CLOs included on the Company’s Condensed Consolidated Statements of Operations for the period indicated:

	Six Months Ended June 30, 2022
	(in thousands)
Income:
Realized and unrealized gain (loss), net	$	(21,668)
Interest income	40,633
Total Income	18,965
Expenses:
Other operating expenses	1,126
Interest expense	26,504
Total Expense	27,630
Noncontrolling interests	335
Net Income (Loss) Attributable to CIP	$	(8,330)

As summarized in the table below, the application of the measurement alternative as prescribed by ASU 2014-13 results in the consolidated net income summarized above to be equivalent to the Company’s own economic interests in the consolidated CLOs, which are eliminated upon consolidation:

	Six Months Ended June 30, 2022
	(in thousands)
Distributions received and unrealized gains (losses) on the subordinated notes held by the Company	$	(12,458)
Investment management fees	4,128
Total Economic Interests	$	(8,330)

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Fair Value Measurements of CIP

The assets and liabilities of CIP measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 by fair value hierarchy level were as follows:

As of June 30, 2022

(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	104,348	$	—	$	—	$	104,348
Debt investments	197		1,932,308		30,396		1,962,901
Equity investments	22,767		3,130		1,361		27,258
Total assets measured at fair value	$	127,312	$	1,935,438	$	31,757	$	2,094,507
Liabilities
Notes payable	$	—	$	1,904,444	$	—	$	1,904,444
Short sales	345		—		—		345
Total liabilities measured at fair value	$	345	$	1,904,444	$	—	$	1,904,789

As of December 31, 2021

(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	205,192	$	—	$	—	$	205,192
Debt investments	273		2,107,736		2,695		2,110,704
Equity investments	26,111		2,961		462		29,534
Total assets measured at fair value	$	231,576	$	2,110,697	$	3,157	$	2,345,430
Liabilities
Notes payable	$	—	$	2,033,617	$	—	$	2,033,617
Short sales	515		—		—		515
Total liabilities measured at fair value	$	515	$	2,033,617	$	—	$	2,034,132

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

Cash equivalents represent investments in money market funds. Cash investments in money market funds are valued using published net asset values and are classified as Level 1.

Debt and equity investments represent the underlying debt, equity and other securities held in CIP. Equity investments are valued at the official closing price on the exchange on which the securities are traded and are generally categorized within Level 1. Level 2 investments represent most debt securities, including bank loans and certain equity securities (including non-U.S. securities), for which closing prices are not readily available or are deemed to not reflect readily available market prices, and are valued using an independent pricing service. Debt investments are valued based on quotations received from independent pricing services or from dealers who make markets in such securities. Bank loan investments, which are included as debt investments, are generally priced at the average mid-point of bid and ask quotations obtained from a third-party pricing service. Fair value may also be based upon valuations obtained from independent third-party brokers or dealers utilizing matrix pricing models that consider information regarding securities with similar characteristics. In certain instances, fair value has been determined utilizing discounted cash flow analyses or single broker non-binding quotes. Depending on the nature of the inputs, these assets are classified as Level 1, 2 or 3 within the fair value measurement hierarchy. Level 3 investments include debt and equity securities that are not widely traded, are illiquid or are priced by dealers based on pricing models used by market makers in the security.

Notes payable represent notes issued by CIP CLOs and are measured using the measurement alternative in ASU 2014-13. Accordingly, the fair value of CLO liabilities was measured as the fair value of CLO assets less the sum of (i) the fair value of the beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that represent

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compensation for services. The fair value of the beneficial interests held by the Company is based on third-party pricing information without adjustment.

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

The securities purchase payable at June 30, 2022 and December 31, 2021 approximated fair value due to the short-term nature of the instruments.

The following table is a reconciliation of assets of CIP for Level 3 investments for which significant unobservable inputs were used to determine fair value:

	Six Months Ended June 30,
(in thousands)	2022		2021
Balance at beginning of period	$	3,157	$	54,182
Realized gains (losses), net	27		(214)
Change in unrealized gains (losses), net	(930)		3,281
Purchases	—		4,395
Amortization	(9)		60
Sales	(2,135)		(27,309)
Transfers to Level 2	(36,833)		(44,578)
Transfers from Level 2	68,480		62,264
Balance at end of period (1)	$	31,757	$	52,081

(1)The investments that are categorized as Level 3 were valued utilizing third-party pricing information without adjustment. Transfers between Level 2 and Level 3 were due to trading activities at period end.

Nonconsolidated VIEs

The Company serves as the collateral manager for other collateralized loan and collateralized bond obligations (collectively, "CDOs") that are not consolidated. The assets and liabilities of these CDOs reside in bankruptcy remote, special purpose entities in which the Company has no ownership of, nor holds any notes issued by, the CDOs, and provides neither recourse nor guarantees. The Company has determined that the investment management fees it receives for serving as collateral manager for these CDOs did not represent a variable interest since (i) the fees the Company earns are compensation for services provided and are commensurate with the level of effort required to provide the investment management services, (ii) the Company does not hold other interests in the CDOs that individually, or in the aggregate, would absorb more than an insignificant amount of the CDOs' expected losses or receive more than an insignificant amount of the CDOs' expected residual return, and (iii) the investment management arrangement only includes terms, conditions and amounts that are customarily present in arrangements for similar services negotiated at arm's length.

The Company has interests in certain other VIEs that the Company does not consolidate as it is not the primary beneficiary since its interest in these entities does not provide the Company with the power to direct the activities that most significantly impact the entities' economic performance. At June 30, 2022, the carrying value and maximum risk of loss related to the Company's interest in these VIEs was $27.8 million.

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Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Statement Regarding Forward Looking Statements

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

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

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

Our business and our forward-looking statements involve substantial known and unknown risks and uncertainties, including those discussed under "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our 2021 Annual Report on Form 10-K and this Quarterly Report on Form 10-Q, resulting from: (i) any reduction in our assets under management; (ii) general domestic and global economic and political conditions (including war, acts of terrorism and civil unrest); (iii) inability to achieve the expected benefits of our strategic transactions; (iv) the ongoing effects of the COVID-19 pandemic and associated global economic disruption; (v) withdrawal, renegotiation or termination of investment advisory agreements; (vi) damage to our reputation; (vii) inability to satisfy financial covenants and payments related to our indebtedness; (viii) inability to attract and retain key personnel; (ix) challenges from the competition we face in our business; (x) adverse developments related to unaffiliated subadvisers; (xi) negative changes in key distribution relationships; (xii) interruptions in or failure to provide critical technological service by us or third parties; (xiii) loss on our investments; (xiv) lack of sufficient capital on satisfactory terms; (xv) adverse regulatory and legal developments; (xvi) failure to comply with investment guidelines or other contractual requirements; (xvii) adverse civil litigation and government investigations or proceedings; (xviii) unfavorable changes in tax laws or limitations; (xix) volatility associated with our common stock; (xx) inability to make quarterly common stock dividends; (xxi) certain corporate governance provisions in our charter and bylaws; (xxii) losses or costs not covered by insurance; (xxiii) impairment of goodwill or intangible assets; and other risks and uncertainties. Any occurrence of, or any material adverse change in, one or more risk factors or risks and uncertainties referred to above, in our 2021 Annual Report on Form 10-K, this Quarterly Report on Form 10-Q and our other periodic reports filed with the Securities and Exchange Commission (the "SEC") could materially and adversely affect our operations, financial results, cash flows, prospects and liquidity.

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

Overview

    Our Business

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

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

We distribute our open-end funds principally through financial intermediaries. We have broad distribution access in the US retail market, with distribution partners that include national and regional broker-dealers, independent broker-dealers and registered investment advisers, banks and insurance companies. In many of these firms, we have a number of products that are on preferred "recommended" lists and on fee-based advisory programs. Our sales efforts are supported by regional sales professionals, a national account relationship group, and separate teams for ETFs and the retirement and insurance channels. Our retail separate accounts are distributed through financial intermediaries and directly to private clients by teams at an affiliated manager.

Our institutional services are marketed through relationships with consultants as well as directly to clients. We target key market segments, including foundations and endowments, corporate, public and private pension plans, and subadvisory relationships.

Financial Highlights 

▪Net income per diluted share was $2.29 in the second quarter of 2022, a decrease of $5.57, or 70.9%, as compared to net income per diluted share of $7.86 in the second quarter of 2021.

▪Total sales were $7.9 billion in the second quarter of 2022, a decrease of $1.7 billion, or 17.4%, from $9.6 billion in the second quarter of 2021. Net flows were $(4.8) billion in the second quarter of 2022 compared to $1.5 billion in the second quarter of 2021.

▪Assets under management were $155.4 billion at June 30, 2022, a decrease of $23.2 billion, or 13.0%, from June 30, 2021.

Stone Harbor Investment Partners

On January 1, 2022, the Company completed its acquisition of Stone Harbor Investment Partners LLC ("Stone Harbor"), a premier manager of emerging markets debt, multi-asset credit, global corporate, and other strategies with $14.7 billion of assets under management at December 31, 2021.

Westchester Capital Management

On October 1, 2021, the Company completed its acquisition of Westchester Capital Management ("Westchester"), a recognized leader in global event-driven strategies with $5.1 billion of assets under management.

Fund Adoption and NFJ Investment Group

On February 1, 2021, the Company finalized an agreement with Allianz Global Investors U.S. LLC ("AGI"), pursuant to which NFJ Investment Group ("NFJ") was established as a new affiliated investment manager, and the Company became the investment adviser, distributor and/or administrator for $29.5 billion of AGI's open-end, closed-end, institutional and retail separate account assets (together with Westchester and Stone Harbor, the "Transactions").

Assets Under Management

At June 30, 2022, total assets under management were $155.4 billion, representing a decrease of $23.2 billion, or 13.0%, from June 30, 2021, and a decrease of $31.8 billion, or 17.0%, from December 31, 2021. The decrease from June 30, 2021 was due to $33.4 billion of negative market performance and $7.2 billion of net outflows partially offset by an increase of $19.8 billion in assets under management from the addition of Stone Harbor and Westchester. The decrease from December 31, 2021 was due to $39.3 billion in negative market performance and $6.7 billion of net outflows, partially offset by an increase of $14.7 billion in assets under management from the addition of Stone Harbor.

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Other Fee Earning Assets

Other fee earning assets include assets for which we provide services for an asset-based fee but do not serve as the investment adviser. Other fee earning assets are not included in our assets under management. At June 30, 2021, we had $3.0 billion of other fee earning assets.

Operating Results

In the second quarter of 2022, total revenues decreased 7.7% to $225.3 million from $244.0 million in the second quarter of 2021, primarily as a result of lower average assets under management due to negative market performance and net outflows partially offset by an increase in assets under management from Stone Harbor and Westchester. Operating income decreased $29.7 million to $56.7 million in the second quarter of 2022 compared to $86.4 million in the second quarter of 2021, due primarily to the previously mentioned factors.

Assets Under Management by Product

The following table summarizes our assets under management by product:

	As of June 30,				Change
(in millions)	2022		2021		$		%
Open-End Funds (1)	$	59,479	$	76,593	$	(17,114)	(22.3)	%
Closed-End Funds	10,645		11,993		(1,348)		(11.2)	%
Retail Separate Accounts	35,248		40,578		(5,330)		(13.1)	%
Institutional Accounts (2)	50,048		49,474		574		1.2	%
Total	$	155,420	$	178,638	$	(23,218)	(13.0)	%
Average Assets Under Management (3)	$	180,743	$	163,611	$	17,132	10.5	%

(1)Represents assets under management of U.S. retail funds, global funds, ETFs and variable insurance funds.

(2)Represents assets under management of institutional separate and commingled accounts including structured products.

(3)Averages are calculated as follows:

–Funds - average daily or weekly balances

–Retail Separate Accounts - prior-quarter ending balance

–Institutional Accounts - average of month-end balances

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Asset Flows by Product    

The following table summarizes asset flows by product:

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2022		2021		2022		2021
Open-End Funds (1)
Beginning balance	$	73,149	$	73,185	$	78,706	$	51,608
Inflows	3,120		4,975		8,076		11,003
Outflows	(7,643)		(5,079)		(16,021)		(10,414)
Net flows	(4,523)		(104)		(7,945)		589
Market performance	(9,000)		3,573		(15,907)		4,801
Other (2)	(147)		(61)		4,625		19,595
Ending balance	$	59,479	$	76,593	$	59,479	$	76,593
Closed-End Funds
Beginning balance	$	12,060	$	11,664	$	12,068	$	5,914
Inflows	24		—		32		—
Outflows	—		—		—		—
Net flows	24		—		32		—
Market performance	(1,250)		514		(1,446)		619
Other (2)	(189)		(185)		(9)		5,460
Ending balance	$	10,645	$	11,993	$	10,645	$	11,993
Retail Separate Accounts
Beginning balance	$	40,824	$	37,244	$	44,538	$	29,751
Inflows	1,288		2,273		3,310		4,972
Outflows	(1,977)		(833)		(3,371)		(1,729)
Net flows	(689)		1,440		(61)		3,243
Market performance	(4,887)		1,910		(9,229)		4,051
Other (2)	—		(16)		—		3,533
Ending balance	$	35,248	$	40,578	$	35,248	$	40,578
Institutional Accounts (3)
Beginning balance	$	57,309	$	46,787	$	51,874	$	44,921
Inflows	3,452		2,302		5,901		4,186
Outflows	(3,032)		(2,184)		(4,655)		(4,052)
Net flows	420		118		1,246		134
Market performance	(7,657)		2,785		(12,669)		4,001
Other (2)	(24)		(216)		9,597		418
Ending balance	$	50,048	$	49,474	$	50,048	$	49,474
Total
Beginning balance	$	183,342	$	168,880	$	187,186	$	132,194
Inflows	7,884		9,550		17,319		20,161
Outflows	(12,652)		(8,096)		(24,047)		(16,195)
Net flows	(4,768)		1,454		(6,728)		3,966
Market performance	(22,794)		8,782		(39,251)		13,472
Other (2)	(360)		(478)		14,213		29,006
Ending balance	$	155,420	$	178,638	$	155,420	$	178,638

(1)Represents assets under management of U.S. retail funds, global funds, ETFs and variable insurance funds.

(2)Represents open-end and closed-end fund distributions net of reinvestments, the net change in assets from cash management strategies, and the impact of non-sales related activities such as asset acquisitions/(dispositions), seed capital investments/(withdrawals), current income or capital returned by structured products and the use of leverage.

(3)Represents assets under management of institutional separate and commingled accounts including structured products.

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Assets Under Management by Asset Class

The following table summarizes assets under management by asset class:

	As of June 30,				Change				% of Total
(in millions)	2022		2021		$		%		2022		2021
Asset Class
Equity	$	84,754	$	113,751	$	(28,997)	(25.5)	%	54.6	%	63.8	%
Fixed income	39,322		35,426		3,896		11.0	%	25.3	%	19.8	%
Multi-asset (1)	20,261		23,668		(3,407)		(14.4)	%	13.0	%	13.2	%
Alternatives (2)	11,083		5,793		5,290		91.3	%	7.1	%	3.2	%
Total	$	155,420	$	178,638	$	(23,218)	(13.0)	%	100.0	%	100.0	%

 

(1) Includes strategies with substantial holdings in at least two of the following asset classes: equity, fixed income, and alternatives.

(2) Consists of event-driven, real estate securities, infrastructure, long/short and other strategies.

Average Assets Under Management and Average Fees Earned

The following table summarizes the average management fees earned in basis points and average assets under management:

	Three Months Ended June 30,
	Average Fee Earned (expressed in basis points)		Average Assets Under  Management  (in millions) (3)
	2022	2021	2022		2021
Products
Open-End Funds (1)	46.2	45.9	$	65,592	$	75,285
Closed-End Funds	56.9	55.1	11,405		11,936
Retail Separate Accounts	42.9	44.2	40,824		37,244
Institutional Accounts (2)	30.6	32.8	53,560		48,413
All Products	41.2	42.5	$	171,381	$	172,878
	Six Months Ended June 30,
	Average Fee Earned (expressed in basis points)		Average Assets Under  Management  (in millions) (3)
	2022	2021	2022		2021
Products
Open-End Funds (1)	46.3	46.6	$	70,564	$	71,211
Closed-End Funds	57.6	55.6	$	11,583	$	10,638
Retail Separate Accounts	43.2	44.9	$	42,681	$	34,681
Institutional Accounts (2)	31.1	32.5	$	55,915	$	47,081
All Products	41.6	42.8	$	180,743	$	163,611

 

(1)Represents assets under management of U.S. retail funds, global funds, ETFs and variable insurance funds.

(2)Represents assets under management of institutional separate and commingled accounts including structured products.

(3)Averages are calculated as follows:

–Funds - average daily or weekly balances

–Retail Separate Accounts - prior-quarter ending balance

–Institutional Accounts - average of month-end balances

Average fees earned represent investment management fees, net of revenue-related adjustments, divided by average net assets, excluding the impact of consolidation of investment products ("CIP"). Revenue-related adjustments are based on specific agreements and reflect the portion of investment management fees passed-through to third-party client intermediaries for services to investors in sponsored investment products. Fund fees are calculated based on average daily or weekly net

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assets. Retail separate account fees are calculated based on the end of the preceding or current quarter’s asset values or on an average of month-end balances. Institutional account fees are calculated based on an average of month-end balances, an average of current quarter’s asset values or on a combination of the underlying cash flows and the principal value of the product. Average fees earned will vary based on several factors, including the asset mix and expense reimbursements to the funds.

The average fee rate earned on all products for the three and six months ended June 30, 2022 decreased by 1.3 basis points and 1.2 basis points, respectively, compared to the same periods in the prior year primarily due to lower fee rates earned on the assets under management acquired from Stone Harbor and a lower proportion of assets under management in equity products as a result of negative equity markets in the current year periods.

Results of Operations

Summary Financial Data

	Three Months Ended June 30,								Six Months Ended June 30,
(in thousands)	2022		2021		2022 vs. 2021		%		2022		2021		2022 vs. 2021		%
Investment management fees	$	185,024	$	193,510	$	(8,486)	(4.4)	%	$	391,841	$	366,779	$	25,062	6.8	%
Other revenue	40,283		50,501		(10,218)		(20.2)	%	85,906		94,129		(8,223)		(8.7)	%
Total revenues	225,307		244,011		(18,704)		(7.7)	%	477,747		460,908		16,839		3.7	%
Total operating expenses	168,637		157,600		11,037		7.0	%	355,525		312,355		43,170		13.8	%
Operating income (loss)	56,670		86,411		(29,741)		(34.4)	%	122,222		148,553		(26,331)		(17.7)	%
Other income (expense), net	(31,631)		6,067		(37,698)		(621.4)	%	(47,670)		4,042		(51,712)		(1,279.4)	%
Interest income (expense), net	5,700		6,020		(320)		(5.3)	%	12,041		13,270		(1,229)		(9.3)	%
Income (loss) before income taxes	30,739		98,498		(67,759)		(68.8)	%	86,593		165,865		(79,272)		(47.8)	%
Income tax expense (benefit)	16,480		22,401		(5,921)		(26.4)	%	33,215		37,554		(4,339)		(11.6)	%
Net income (loss)	14,259		76,097		(61,838)		(81.3)	%	53,378		128,311		(74,933)		(58.4)	%
Noncontrolling interests	3,143		(13,130)		16,273		(123.9)	%	(2,917)		(28,756)		25,839		(89.9)	%
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.	$	17,402	$	62,967	$	(45,565)	(72.4)	%	$	50,461	$	99,555	$	(49,094)	(49.3)	%
Earnings (loss) per share-diluted	$	2.29	$	7.86	$	(5.57)	(70.9)	%	$	6.54	$	12.39	$	(5.85)	(47.2)	%

Revenues

Revenues by source were as follows:

	Three Months Ended June 30,								Six Months Ended June 30,
(in thousands)	2022		2021		2022 vs. 2021		%		2022		2021		2022 vs. 2021		%
Investment management fees
Open-end funds	$	84,875	$	97,273	$	(12,398)	(12.7)	%	$	182,252	$	186,393	$	(4,141)	(2.2)	%
Closed-end funds	16,174		16,395		(221)		(1.3)	%	33,114		29,335		3,779		12.9	%
Retail separate accounts	45,312		42,475		2,837		6.7	%	94,915		79,987		14,928		18.7	%
Institutional accounts	38,663		37,367		1,296		3.5	%	81,560		71,064		10,496		14.8	%
Total investment management fees	185,024		193,510		(8,486)		(4.4)	%	391,841		366,779		25,062		6.8	%
Distribution and service fees	17,159		23,450		(6,291)		(26.8)	%	37,166		43,798		(6,632)		(15.1)	%
Administration and shareholder service fees	21,982		25,877		(3,895)		(15.1)	%	46,326		48,437		(2,111)		(4.4)	%
Other income and fees	1,142		1,174		(32)		(2.7)	%	2,414		1,894		520		27.5	%
Total revenues	$	225,307	$	244,011	$	(18,704)	(7.7)	%	$	477,747	$	460,908	$	16,839	3.7	%

Investment Management Fees

Investment management fees are earned based on a percentage of assets under management and are paid pursuant to the terms of the respective investment management contracts, which generally require monthly or quarterly payments. Investment management fees decreased by $8.5 million, or 4.4%, for the three months ended June 30, 2022, and increased $25.1 million, or 6.8%, for the six months ended June 30, 2022, compared to the same periods in the prior year. The decrease during the three-month period in investment management fees was due to a decrease in average assets under management of $1.5 billion, or 0.9%, as well as a lower blended fee rate, partially offset by the addition of Stone Harbor and Westchester assets under management. The increase during the six-month period in investment management fees was due to an increase in

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average assets under management of $17.1 billion, or 10.5%, as a result of the Transactions, partially offset by a lower blended fee rate.

Distribution and Service Fees

Distribution and service fees are sales- and asset-based fees earned from open-end funds for marketing and distribution services. Distribution and service fees decreased by $6.3 million, or 26.8%, and $6.6 million, or 15.1%, for the three and six months ended June 30, 2022, respectively, compared to the same periods in the prior year, due primarily to lower sales for open-end funds in share classes that have sales-based distribution and service fees.

Administration and Shareholder Service Fees

Administration and shareholder service fees represent fees earned for fund administration and shareholder services from our U.S. retail funds, ETFs, and certain of our closed-end funds. Fund administration and shareholder service fees decreased by $3.9 million, or 15.1%, and $2.1 million, or 4.4%, for the three and six months ended June 30, 2022, respectively, compared to the same periods in the prior year primarily due to the decrease in average assets under management for our open-end and closed-end funds during the periods as a result of market performance and net outflows.

Other Income and Fees

Other income and fees primarily represent fees related to other fee-earning assets and contingent sales charges earned from investor redemptions of certain shares sold without a front-end sales charge. Other income and fees increased by $0.5 million, or 27.5%, for the six months ended June 30, 2022, compared to the same period in the prior year. The increase for the six months ended June 30, 2022 was primarily due to higher redemption income in the period.

Operating Expenses

Operating expenses by category were as follows:

	Three Months Ended June 30,								Six Months Ended June 30,
(in thousands)	2022		2021		2022 vs. 2021		%		2022		2021		2022 vs. 2021		%
Operating expenses
Employment expenses	$	89,360	$	87,630	$	1,730	2.0	%	$	195,353	$	179,389	$	15,964	8.9	%
Distribution and other asset-based expenses	28,583		36,021		(7,438)		(20.6)	%	61,429		68,315		(6,886)		(10.1)	%
Other operating expenses	31,559		21,946		9,613		43.8	%	63,271		41,526		21,745		52.4	%
Other operating expenses of CIP	649		659		(10)		(1.5)	%	1,389		1,218		171		14.0	%
Change in fair value of contingent consideration	2,900		—		2,900		N/M		2,900		—		2,900		N/M
Depreciation expense	962		981		(19)		(1.9)	%	1,897		2,079		(182)		(8.8)	%
Amortization expense	14,624		10,363		4,261		41.1	%	29,286		19,828		9,458		47.7	%
Total operating expenses	$	168,637	$	157,600	$	11,037	7.0	%	$	355,525	$	312,355	$	43,170	12.9	%

N/M = Not Meaningful

Employment Expenses

Employment expenses consist of fixed and variable compensation and related employee benefit costs. Employment expenses for the three and six months ended June 30, 2022 were $89.4 million and $195.4 million, which represented an increase of $1.7 million, or 2.0%, and $16.0 million, or 8.9%, respectively, compared to the same periods in the prior year. The increases in both periods were primarily due to the addition of Stone Harbor and Westchester.

Distribution and Other Asset-Based Expenses

Distribution and other asset-based expenses consist primarily of payments to third-party client intermediaries for providing services to investors in sponsored investment products. These payments are primarily based on assets under management or on a percentage of sales. Distribution and other asset-based expenses also include the amortization of deferred sales commissions related to up-front commissions on shares sold without a front-end sales charge to shareholders. The deferred sales commissions are amortized on a straight-line basis over the period commissions are recovered from distribution fee revenues and contingent sales charges received upon redemption of shares. During the three and six months ended June 30, 2022, distribution and other asset-based expenses decreased $7.4 million, or 20.6%, and $6.9 million, or 10.1%, respectively, as

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compared to the same periods in the prior year primarily due to lower sales and a decrease in assets under management in share classes that have sales- and asset-based distribution and other asset-based expenses.

Other Operating Expenses

Other operating expenses primarily consist of investment research and technology costs, professional fees, travel and distribution related costs, rent and occupancy expenses, and other business costs. For the three and six months ended June 30, 2022, other operating expenses increased by $9.6 million, or 43.8%, and $21.7 million, or 52.4%, respectively, as compared to the same periods in the prior year primarily due the addition of Stone Harbor and Westchester, as well as higher travel and related expenses.

Other Operating Expenses of CIP

Other operating expenses of CIP remained consistent during the three and six months ended June 30, 2022, compared to the same periods in the prior year.

Change in Fair Value of Contingent Consideration

Our contingent consideration related to our NFJ, Westchester and Stone Harbor transactions are recorded at fair value each reporting date taking into consideration changes in various estimates, including probability of success, discount rates and amount of time until the conditions of the contingent payments are achieved. The change in fair value is recorded in the current period as a gain or loss. The change in value of continent consideration of $2.9 million during the three and six months ended June 30, 2022 was primarily attributable to higher future revenue projections and the time value of money.

Depreciation Expense

Depreciation expense consists primarily of the straight-line depreciation of furniture, equipment and leasehold improvements. Depreciation expense remained consistent during three and six months ended June 30, 2022, compared to the same periods in the prior year.

Amortization Expense

Amortization expense consists of the amortization of definite-lived intangible assets over their estimated useful lives. Amortization expense increased $4.3 million, or 41.1%, and $9.5 million, or 47.7%, for the three and six months ended June 30, 2022, respectively, compared to the same periods in the prior year. The increase during the three-month period was due to the additional amortization associated with the acquisitions of Stone Harbor and Westchester. The increase during the six-month period was due to the additional amortization associated with the Transactions.

Other Income (Expense)

Other Income (Expense), net by category were as follows:

	Three Months Ended June 30,								Six Months Ended June 30,
(in thousands)	2022		2021		2022 vs. 2021		%		2022		2021		2022 vs. 2021		%
Other Income (Expense)
Realized and unrealized gain (loss) on investments, net	$	(10,543)	$	2,494	$	(13,037)	(522.7)	%	$	(13,525)	$	3,385	$	(16,910)	(499.6)	%
Realized and unrealized gain (loss) of CIP, net	(21,659)		2,747		(24,406)		(888.5)	%	(35,003)		(1,940)		(33,063)		N/M
Other income (expense), net	571		826		(255)		(30.9)	%	858		2,597		(1,739)		(67.0)	%
Total Other Income (Expense), net	$	(31,631)	$	6,067	$	(37,698)	(621.4)	%	$	(47,670)	$	4,042	$	(51,712)	(1,279.4)	%

Realized and unrealized gain (loss) on investments, net

Realized and unrealized gain (loss) on investments, net changed during the three and six months ended June 30, 2022 by $(13.0) million and $(16.9) million, respectively, as compared to the same periods in the prior year. The realized and unrealized gains and losses during the periods reflected changes in overall market conditions experienced during the periods.

Realized and unrealized gain (loss) of CIP, net

Realized and unrealized gain (loss) of CIP, net changed $(24.4) million and $(33.1) million during the three and six months ended June 30, 2022, respectively, compared to the same periods in the prior year. The changes for the three and six months ended June 30, 2022 consisted primarily of an increase in unrealized losses of $70.4 million and $124.8 million,

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respectively, due to changes in market values of leveraged loans, partially offset by changes in unrealized gains of

$46.0 million and $91.7 million, respectively, related to the value of the notes payable.

Other income (expense), net    

Other income (expense), net decreased $0.3 million and $1.7 million during the three and six months ended June 30, 2022, respectively, compared to the same periods in the prior year. The decreases during the three- and six-month periods were primarily due to decreased earnings from equity method investments during the current year periods.

Interest Income (Expense)

Interest Income (Expense), net by category were as follows:

	Three Months Ended June 30,								Six Months Ended June 30,
(in thousands)	2022		2021		2022 vs. 2021		%		2022		2021		2022 vs. 2021		%
Interest Income (Expense)
Interest expense	$	(2,825)	$	(2,256)	$	(569)	25.2	%	$	(5,104)	$	(4,570)	$	(534)	11.7	%
Interest and dividend income	529		166		363		218.7	%	857		302		555		183.8	%
Interest and dividend income of investments of CIP	22,412		22,562		(150)		(0.7)	%	42,792		46,438		(3,646)		(7.9)	%
Interest expense of CIP	(14,416)		(14,452)		36		(0.2)	%	(26,504)		(28,900)		2,396		(8.3)	%
Total Interest Income (Expense), net	$	5,700	$	6,020	$	(320)	(5.3)	%	$	12,041	$	13,270	$	(1,229)	(9.3)	%

Interest Expense

Interest expense increased $0.6 million, or 25.2%, and $0.5 million, or 11.7%, during the three and six months ended June 30, 2022, respectively, compared to the same periods in the prior year. The increases were attributable to higher average debt balances outstanding in the current year periods.

Interest and Dividend Income

Interest and dividend income increased $0.4 million, or 218.7%, and $0.6 million, or 183.8%, during the three and six months ended June 30, 2022, respectively, compared to the same periods in the prior year. The increases were attributable to higher average investment balances during the current year periods compared to prior year periods.

Interest and Dividend Income of Investments of CIP    

Interest and dividend income of investments of CIP decreased $0.2 million, or 0.7%, and $3.6 million, or 7.9%, for the three and six months ended June 30, 2022, respectively, compared to the same periods in the prior year. The decreases were primarily due to lower average investment balances partially offset by higher average interest rates.

Interest Expense of CIP    

Interest expense of CIP represents interest expense on the notes payable of CIP. Interest expense of CIP decreased $36 thousand, or 0.2%, and $2.4 million, or 8.3%, for the three and six months ended June 30, 2022, respectively, compared to the same periods in the prior year. The decreases during the three and six months ended June 30, 2022 were primarily due to lower average debt balances of CIP during the current year periods.

Income Tax Expense (Benefit)

The provision for income taxes reflected U.S. federal, state and local taxes at an estimated effective tax rate of 38.4% and 22.6% for the six months ended June 30, 2022 and 2021, respectively. The higher estimated effective tax rate for the six months ended June 30, 2022 was primarily due to valuation allowances recorded in the current year for the tax effects of unrealized losses on certain Company investments.  

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Liquidity and Capital Resources

Certain Financial Data

The following table summarizes certain financial data relating to our liquidity and capital resources:

	June 30, 2022		December 31, 2021		Change
(in thousands)					2022 vs. 2021		%
Balance Sheet Data
Cash and cash equivalents	$	250,530	$	378,921	$	(128,391)	(33.9)	%
Investments	102,840		108,890		(6,050)		(5.6)	%
Contingent consideration	133,628		162,564		(28,936)		(17.8)	%
Debt	255,832		266,346		(10,514)		(3.9)	%
Redeemable noncontrolling interests	139,147		138,965		182		0.1	%
Total equity	791,705		836,627		(44,922)		(5.4)	%

	Six Months Ended June 30,				Change
(in thousands)	2022		2021		2022 vs. 2021		%
Cash Flow Data
Provided by (Used in):
Operating activities	$	37,611	$	239,180	$	(201,569)	(84.3)	%
Investing activities	(24,442)		(5,527)		(18,915)		342.2	%
Financing activities	(240,177)		(167,645)		(72,532)		43.3	%

Overview

At June 30, 2022, we had $250.5 million of cash and cash equivalents and $102.8 million of investments, which included $77.2 million of investment securities, compared to $378.9 million of cash and cash equivalents and $108.9 million of investments, which included $80.3 million of investment securities, at December 31, 2021.

Uses of Capital

Our main uses of capital related to operating activities comprise employee compensation and related benefit costs, which include annual incentive compensation, other operating expenses, which primarily consist of investment research, technology costs, professional fees, distribution and occupancy costs; interest on our indebtedness; and income taxes. Annual incentive compensation, which is one of the largest annual operating cash expenditures, is typically paid in the first quarter of the year. In the first quarters of 2022 and 2021, we paid $151.6 million and $96.9 million, respectively, in incentive compensation earned during the years ended December 31, 2021 and 2020, respectively.

In addition to operating activities, other uses of cash could include: (i) investments in organic growth, including seeding or launching new products and expanding distribution; (ii) debt principal payments through scheduled amortization, excess cash flow payment requirements or additional paydowns; (iii) dividend payments to common stockholders; (iv) repurchases of our common stock, or withholding obligations for the net settlement of employee share transactions; (v) investments in our infrastructure; (vi) investments in inorganic growth opportunities that may require upfront and/or future payments; (vii) integration costs, including restructuring and severance, related to acquisitions, if any; and (viii) purchases of affiliate noncontrolling interests.

Capital and Reserve Requirements

We operate an SEC registered broker-dealer subsidiary that is subject to certain rules regarding minimum net capital. The broker-dealer is required to maintain a ratio of "aggregate indebtedness" to "net capital," as defined, which may not exceed 15 to 1 and must also maintain a minimum amount of net capital. Failure to meet these requirements could result in adverse consequences to us, including additional reporting requirements, a lower required ratio of aggregate indebtedness to net capital, or interruption of our business. At June 30, 2022, the ratio of aggregate indebtedness to net capital of our broker-dealer was below the maximum allowed, and net capital was significantly greater than the required minimum.

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Balance Sheet

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

Operating Cash Flow

Net cash provided by operating activities of $37.6 million for the six months ended June 30, 2022 changed by $201.6 million from net cash provided by operating activities of $239.2 million for the same period in the prior year primarily due to a $164.2 million reduction in sales of investments by CIP and increased compensation and benefit payments during the current year period compared to the prior-year period.

Investing Cash Flow

Cash flows from investing activities consist primarily of capital expenditures and other investing activities related to our business operations. Net cash used in investing activities was $24.4 million for the six months ended June 30, 2022 compared to net cash used in investing activities of $5.5 million in the same period for the prior year. The increase in cash used in investing activities during the six months ended June 30, 2022 compared to the prior year period related to cash paid for the Stone Harbor acquisition in the six months ended June 30, 2022.

Financing Cash Flow

Cash flows from financing activities consist primarily of transactions related to our common shares, issuance and repayment of debt by us and our CIP, payments of contingent consideration and changes to noncontrolling interests. Net cash used in financing activities increased by $72.5 million to $240.2 million for the six months ended June 30, 2022 from $167.6 million for the six months ended June 30, 2021. The net change was primarily due to an increase in repurchases of common shares of $57.5 million and contingent consideration payments of $33.0 million during the current year period that did not occur in the prior year period, partially offset by a decrease of $21.0 million in net borrowings of CIP during the six months ended June 30, 2022 compared to the prior year period.

Credit Agreement

The Company's credit agreement, as amended (the "Credit Agreement"), comprises (i) a $275.0 million term loan with a seven-year term (the "Term Loan") expiring in September 2028, and (ii) a $175.0 million revolving credit facility with a five-year term expiring in September 2026. During the six months ended June 30, 2022, the Company repaid $11.4 million outstanding under its Term Loan. At June 30, 2022, $262.9 million was outstanding under the Term Loan, and the Company had no outstanding borrowings under its revolving credit facility. In accordance with ASC 835, Interest, the amounts outstanding under the Company's Term Loan are presented in the Condensed Consolidated Balance Sheet net of related debt issuance costs, which were $7.1 million as of June 30, 2022.

Critical Accounting Policies and Estimates

Our financial statements and the accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America, which require the use of estimates. Actual results will vary from these estimates. A discussion of our critical accounting policies and estimates is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2021 Annual Report on Form 10-K. A complete description of our significant accounting policies is included in our 2021 Annual Report on Form 10-K. There were no material changes in our critical accounting policies and estimates in the three months ended June 30, 2022.

Recently Issued Accounting Pronouncements

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

Item 3.    Quantitative and Qualitative Disclosures About Market Risk

The Company is primarily exposed to market risk associated with unfavorable movements in interest rates and securities prices. During the three and six months ended June 30, 2022, there were no material changes to the information contained in Part II, Item 7A of the Company's 2020 Annual Report on Form 10-K.

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Item 4.    Controls and Procedures

Evaluation of Disclosure Controls and Procedures

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

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on their evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2022, the end of the period covered by this Quarterly Report on Form 10-Q.

Changes in Internal Control over Financial Reporting

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

PART II – OTHER INFORMATION

Item 1.        Legal Proceedings

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

Item 1A.    Risk Factors    

There have been no material changes to the Company’s risk factors from those previously reported in our 2021 Annual Report on Form 10-K.

Item 2.        Unregistered Sales of Equity Securities and Use of Proceeds

An aggregate of 5,680,045 shares of our common stock have been authorized to be repurchased under the share repurchase program since it was originally approved by our Board of Directors in 2010. As of June 30, 2022, 932,094 shares remained available for repurchase. Under the terms of the program, we may repurchase shares of our common stock from time to time at our discretion through open market repurchases, privately negotiated transactions and/or other mechanisms, depending on price and prevailing market and business conditions. The program, which has no specified term, may be suspended or terminated at any time.

The following table sets forth information regarding our share repurchases in each month during the quarter ended June 30, 2022:    

Period	Total number of shares purchased	Average price paid per share (1)		Total number of shares purchased as part of publicly announced plans or programs (2)	Maximum number of shares that may yet be purchased under the plans or programs (2)
April 1-30, 2022	—	$	—	—	403,997
May 1-31, 2022	121,857	$	177.94	121,857	1,032,140
June 1-30, 2022	100,046	$	183.01	100,046	932,094
Total	221,903			221,903

(1)Average price paid per share is calculated on a settlement basis and excludes commissions.    

(2)The share repurchases above were completed pursuant to a program announced in the fourth quarter of 2010 and most recently expanded in May 2022. This repurchase program is not subject to an expiration date.

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There were no unregistered sales of equity securities during the period covered by this Quarterly Report. Shares of our common stock purchased by participants in our Employee Stock Purchase Plan were delivered to participant accounts via open market purchases at fair value by the third-party administrator under the plan. We do not reserve shares for this plan or discount the purchase price of the shares.

Item 6.        Exhibits

Exhibit Number	Description
31.1	Certification of the Registrant’s Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of the Registrant’s Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of the Registrant’s Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following information is formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets (Unaudited) as of June 30, 2022 and December 31, 2021, (ii) Condensed Consolidated Statements of Operations (Unaudited) for the three and six months ended June 30, 2022 and 2021, (iii) Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the three and six months ended June 30, 2022 and 2021, (iv) Condensed Consolidated Statements of Cash Flows (Unaudited) for the six months ended June 30, 2022 and 2021, (v) Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended June 30, 2022 and 2021 and (vi) Notes to Condensed Consolidated Financial Statements (Unaudited).
104	Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101)

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SIGNATURES

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

Dated: August 9, 2022

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

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EX-31.1

Exhibit 31.1

CERTIFICATION UNDER SECTION 302

I, George R. Aylward, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Virtus Investment Partners, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 9, 2022

/S/     GEORGE R. AYLWARD

George R. Aylward

President, Chief Executive Officer and Director

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION UNDER SECTION 302

I, Michael A. Angerthal, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Virtus Investment Partners, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 9, 2022

/S/     MICHAEL A. ANGERTHAL

Michael A. Angerthal

Executive Vice President, Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATIONS OF CEO AND CFO PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report on Form 10-Q of Virtus Investment Partners, Inc. (the “Company”) for the period ended June 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

(1)the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 9, 2022

/S/    GEORGE R. AYLWARD

George R. Aylward

President, Chief Executive Officer and Director

(Principal Executive Officer)

/S/    MICHAEL A. ANGERTHAL

Michael A. Angerthal

Executive Vice President, Chief Financial Officer

(Principal Financial Officer and
Principal Accounting Officer)

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Cover - shares	6 Months Ended
	Jun. 30, 2022	Jul. 29, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	001-10994
Entity Registrant Name	VIRTUS INVESTMENT PARTNERS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-3962811
Entity Address, Address Line One	One Financial Plaza
Entity Address, City or Town	Hartford
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06103
City Area Code	800
Local Phone Number	248-7971
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	VRTS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		7,275,337
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000883237
Current Fiscal Year End Date	--12-31

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Assets:
Accounts receivable, net	$ 108,248	$ 123,873
Furniture, equipment and leasehold improvements, net	19,016	12,542
Intangible assets, net	482,085	500,571
Goodwill	347,423	338,406
Deferred taxes, net	21,721	19,204
Total assets	3,543,915	3,934,181
Liabilities:
Accrued compensation and benefits	105,106	187,449
Accounts payable and accrued liabilities	40,800	48,496
Dividends payable	13,861	14,824
Contingent consideration (Note 4)	133,628	162,564
Debt	255,832	266,346
Other liabilities	93,502	60,225
Total liabilities	2,613,063	2,958,589
Commitments and Contingencies (Note 14)
Redeemable noncontrolling interests	139,147	138,965
Equity attributable to Virtus Investment Partners, Inc.:
Common stock, $0.01 par value, 1,000,000,000 shares authorized; 12,023,288 shares issued and 7,275,337 shares outstanding at June 30, 2022; and 11,906,747 shares issued and 7,506,151 shares outstanding at December 31, 2021	120	119
Additional paid-in capital	1,275,907	1,276,424
Retained earnings (accumulated deficit)	88,196	60,962
Accumulated other comprehensive income (loss)	(267)	20
Treasury stock, at cost, 4,747,951 and 4,400,596 shares at June 30, 2022 and December 31, 2021, respectively	(579,248)	(509,248)
Total equity attributable to Virtus Investment Partners, Inc.	784,708	828,277
Total equity	791,705	836,627
Total liabilities and equity	3,543,915	3,934,181
Consolidated entity excluding consolidated investment products
Assets:
Cash and cash equivalents	250,530	378,921
Investments	102,840	108,890
Other assets	96,551	60,102
Consolidated Investment Products
Assets:
Cash and cash equivalents	107,674	206,620
Investments	1,990,159	2,140,238
Cash pledged or on deposit of CIP	627	604
Other assets	17,041	44,210
Liabilities:
Notes payable of CIP	1,904,444	2,033,617
Securities purchased payable and other liabilities of CIP	65,890	185,068
Equity attributable to Virtus Investment Partners, Inc.:
Noncontrolling interests	$ 6,997	$ 8,350

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Common stock, par value (in $ per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	12,023,288	11,906,747
Common stock, shares outstanding (in shares)	7,275,337	7,506,151
Treasury stock, shares (in shares)	4,747,951	4,400,596

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Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenues
Revenues	$ 225,307	$ 244,011	$ 477,747	$ 460,908
Operating Expenses
Employment expenses	89,360	87,630	195,353	179,389
Distribution and other asset-based expenses	28,583	36,021	61,429	68,315
Change in fair value of contingent consideration	2,900	0	2,900	0
Depreciation expense	962	981	1,897	2,079
Amortization expense	14,624	10,363	29,286	19,828
Total operating expenses	168,637	157,600	355,525	312,355
Operating Income (Loss)	56,670	86,411	122,222	148,553
Other Income (Expense)
Other income (expense), net	571	826	858	2,597
Total other income (expense), net	(31,631)	6,067	(47,670)	4,042
Interest Income (Expense)
Total interest income (expense), net	5,700	6,020	12,041	13,270
Income (Loss) Before Income Taxes	30,739	98,498	86,593	165,865
Income tax expense (benefit)	16,480	22,401	33,215	37,554
Net Income (Loss)	14,259	76,097	53,378	128,311
Noncontrolling interests	3,143	(13,130)	(2,917)	(28,756)
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.	$ 17,402	$ 62,967	$ 50,461	$ 99,555
Earnings (Loss) Per share—Basic (in dollars per share)	$ 2.34	$ 8.18	$ 6.73	$ 12.97
Earnings (Loss) Per Share—Diluted (in dollars per share)	$ 2.29	$ 7.86	$ 6.54	$ 12.39
Weighted Average Shares Outstanding—Basic (in shares)	7,449	7,698	7,496	7,674
Weighted Average Shares Outstanding—Diluted (in shares)	7,607	8,007	7,721	8,038
Consolidated entity excluding consolidated investment products
Operating Expenses
Other operating expenses	$ 31,559	$ 21,946	$ 63,271	$ 41,526
Other Income (Expense)
Realized and unrealized gain (loss) on investments, net	(10,543)	2,494	(13,525)	3,385
Interest Income (Expense)
Interest expense	(2,825)	(2,256)	(5,104)	(4,570)
Interest and dividend income	529	166	857	302
Consolidated Investment Products
Operating Expenses
Other operating expenses	649	659	1,389	1,218
Other Income (Expense)
Realized and unrealized gain (loss) on investments, net	(21,659)	2,747	(35,003)	(1,940)
Interest Income (Expense)
Interest expense	(14,416)	(14,452)	(26,504)	(28,900)
Interest and dividend income	22,412	22,562	42,792	46,438
Investment management fees
Revenues
Revenues	185,024	193,510	391,841	366,779
Distribution and service fees
Revenues
Revenues	17,159	23,450	37,166	43,798
Administration and shareholder service fees
Revenues
Revenues	21,982	25,877	46,326	48,437
Other income and fees
Revenues
Revenues	$ 1,142	$ 1,174	$ 2,414	$ 1,894

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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net Income (Loss)	$ 14,259	$ 76,097	$ 53,378	$ 128,311
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of tax of $176 and $(2) for the three months ended June 30, 2022 and 2021, respectively, and $249 and $(2) for the six months ended June 30, 2022 and 2021, respectively.	(237)	0	(287)	6
Other comprehensive income (loss)	(237)	0	(287)	6
Comprehensive income (loss)	14,022	76,097	53,091	128,317
Comprehensive (income) loss attributable to noncontrolling interests	3,143	(13,130)	(2,917)	(28,756)
Comprehensive Income (Loss) Attributable to Virtus Investment Partners, Inc.	$ 17,165	$ 62,967	$ 50,174	$ 99,561

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Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustment, tax	$ 176	$ (2)	$ 249	$ (2)

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash Flows from Operating Activities:
Net income (loss)	$ 53,378	$ 128,311
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation expense, intangible asset and other amortization	32,223	23,196
Stock-based compensation	14,119	15,844
Amortization of deferred commissions	2,700	1,462
Payments of deferred commissions	(1,962)	(3,241)
Equity in earnings of equity method investments	(977)	(2,561)
Distributions from equity method investments	2,102	1,908
Sales (purchases) of investments, net	(9,952)	(3,395)
Change in fair value of contingent consideration	2,900	0
Deferred taxes, net	(2,271)	(1,518)
Changes in operating assets and liabilities:
Accounts receivable, net and other assets	31,069	(43,203)
Accrued compensation and benefits, accounts payable, accrued liabilities and other liabilities	(110,581)	(12,651)
Operating activities of consolidated investment products ("CIP"):
Net cash provided by (used in) operating activities	37,611	239,180
Cash Flows from Investing Activities:
Capital expenditures and other asset purchases	(4,361)	(4,336)
Acquisition of businesses, net of cash acquired of $8,443	(19,773)	0
Net cash provided by (used in) investing activities	(24,442)	(5,527)
Cash Flows from Financing Activities:
Payment of long-term debt	(11,375)	(11,826)
Common stock dividends paid	(24,190)	(13,748)
Repurchase of common shares	(70,000)	(12,499)
Payment of contingent consideration	(33,036)	0
Taxes paid related to net share settlement of restricted stock units	(15,284)	(19,214)
Net contributions from (distributions to) noncontrolling interests	(3,598)	(6,636)
Net cash provided by (used in) financing activities	(240,177)	(167,645)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(306)	0
Net increase (decrease) in cash, cash equivalents and restricted cash	(227,314)	66,008
Cash, cash equivalents and restricted cash, beginning of period	586,145	339,849
Cash, cash equivalents and restricted cash, end of period	358,831	405,857
Non-Cash Investing Activities:
Contingent consideration	1,200	137,664
Non-Cash Financing Activities:
Increase (decrease) to noncontrolling interests due to consolidation (deconsolidation) of CIP, net	(338)	(8,001)
Common stock dividends payable	11,229	6,277
Reconciliation of cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash at end of period	358,831	405,857
Consolidated entity excluding consolidated investment products
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Realized and unrealized (gains) losses on investments, net	13,562	(3,381)
Operating activities of consolidated investment products ("CIP"):
Realized and unrealized (gains) losses on investments of CIP, net	13,562	(3,381)
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	250,530
Consolidated Investment Products
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Realized and unrealized (gains) losses on investments, net	33,715	(1,961)
Operating activities of consolidated investment products ("CIP"):
Realized and unrealized (gains) losses on investments of CIP, net	33,715	(1,961)
Purchases of investments by CIP	(441,042)	(664,837)
Sales of investments by CIP	417,706	790,575
Net proceeds (purchases) of short-term investments and securities sold short by CIP	(45)	15,103
Change in other assets and liabilities of CIP	967	(471)
Cash Flows from Investing Activities:
Change in cash and cash equivalents of CIP due to consolidation (deconsolidation), net	(308)	(1,191)
Cash Flows from Financing Activities:
Payments on borrowings by CIP	(82,694)	$ (103,722)
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	107,674
Cash pledged or on deposit of CIP	$ 627

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Condensed Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Statement of Cash Flows [Abstract]
Cash acquired from acquisition	$ 8,443

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Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Total Attributed To Virtus Investment Partners, Inc.	Common Stock	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Non- controlling Interests
Balance at beginning of period, common stock (in shares) at Dec. 31, 2020			7,583,466
Balance at beginning of period at Dec. 31, 2020	$ 720,940	$ 711,141	$ 118	$ 1,298,002	$ (135,259)	$ 29	$ (451,749)	$ 9,799
Balance at beginning of period, treasury stock (in shares) at Dec. 31, 2020							4,207,403
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	99,900	99,555			99,555			345
Foreign currency translation adjustments	6	6				6
Net subscriptions (redemptions) and other	(1,176)							(1,176)
Cash dividends declared	(13,300)	(13,300)		(13,300)
Repurchases of common shares (in shares)			(46,833)				46,833
Repurchases of common shares	(12,499)	(12,499)					$ (12,499)
Issuance of common shares related to employee stock transactions (in shares)			114,973
Issuance of common shares related to employee stock transactions	66	66	$ 1	65
Taxes paid on stock-based compensation	(19,280)	(19,280)		(19,280)
Stock-based compensation	15,180	15,180		15,180
Balance at end of period, common stock (in shares) at Jun. 30, 2021			7,651,606
Balance at end of period at Jun. 30, 2021	789,837	780,869	$ 119	1,280,667	(35,704)	35	$ (464,248)	8,968
Balance at end of period, treasury stock (in shares) at Jun. 30, 2021							4,254,236
Balance at beginning of period at Dec. 31, 2020	115,513
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]
Total net income (loss) attributable to noncontrolling interests	28,411
Net subscriptions (redemptions) and other	(12,399)
Balance at end of period at Jun. 30, 2021	131,525
Balance at beginning of period, common stock (in shares) at Mar. 31, 2021			7,649,679
Balance at beginning of period at Mar. 31, 2021	738,695	729,378	$ 119	1,284,643	(98,671)	35	$ (456,748)	9,317
Balance at beginning of period, treasury stock (in shares) at Mar. 31, 2021							4,227,315
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	63,237	62,967			62,967			270
Foreign currency translation adjustments	0	0
Net subscriptions (redemptions) and other	(619)	0						(619)
Cash dividends declared	(6,604)	(6,604)		(6,604)
Repurchases of common shares (in shares)			(26,921)				26,921
Repurchases of common shares	(7,500)	(7,500)					$ (7,500)
Issuance of common shares related to employee stock transactions (in shares)			28,848
Issuance of common shares related to employee stock transactions	0	0
Taxes paid on stock-based compensation	(4,117)	(4,117)		(4,117)
Stock-based compensation	6,745	6,745		6,745
Balance at end of period, common stock (in shares) at Jun. 30, 2021			7,651,606
Balance at end of period at Jun. 30, 2021	789,837	780,869	$ 119	1,280,667	(35,704)	35	$ (464,248)	8,968
Balance at end of period, treasury stock (in shares) at Jun. 30, 2021							4,254,236
Balance at beginning of period at Mar. 31, 2021	112,482
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]
Total net income (loss) attributable to noncontrolling interests	12,860
Net subscriptions (redemptions) and other	6,183
Balance at end of period at Jun. 30, 2021	$ 131,525
Balance at beginning of period, common stock (in shares) at Dec. 31, 2021	11,906,747		7,506,151
Balance at beginning of period at Dec. 31, 2021	$ 836,627	828,277	$ 119	1,276,424	60,962	20	$ (509,248)	8,350
Balance at beginning of period, treasury stock (in shares) at Dec. 31, 2021	4,400,596						4,400,596
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 50,126	50,461			50,461			(335)
Foreign currency translation adjustments	(287)	(287)				(287)
Net subscriptions (redemptions) and other	(1,018)							(1,018)
Cash dividends declared	$ (23,227)	(23,227)			(23,227)
Repurchases of common shares (in shares)	(347,355)		(347,355)				347,355
Repurchases of common shares	$ (70,000)	(70,000)					$ (70,000)
Issuance of common shares related to employee stock transactions (in shares)			116,541
Issuance of common shares related to employee stock transactions	0	0	$ 1	(1)
Taxes paid on stock-based compensation	(15,284)	(15,284)		(15,284)
Stock-based compensation	$ 14,768	14,768		14,768
Balance at end of period, common stock (in shares) at Jun. 30, 2022	12,023,288		7,275,337
Balance at end of period at Jun. 30, 2022	$ 791,705	784,708	$ 120	1,275,907	88,196	(267)	$ (579,248)	6,997
Balance at end of period, treasury stock (in shares) at Jun. 30, 2022	4,747,951						4,747,951
Balance at beginning of period at Dec. 31, 2021	$ 138,965
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]
Total net income (loss) attributable to noncontrolling interests	3,252
Net subscriptions (redemptions) and other	(3,070)
Balance at end of period at Jun. 30, 2022	139,147
Balance at beginning of period, common stock (in shares) at Mar. 31, 2022			7,472,829
Balance at beginning of period at Mar. 31, 2022	824,233	816,427	$ 120	1,273,802	81,783	(30)	$ (539,248)	7,806
Balance at beginning of period, treasury stock (in shares) at Mar. 31, 2022							4,526,048
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	17,124	17,402			17,402			(278)
Foreign currency translation adjustments	(237)	(237)				(237)
Net subscriptions (redemptions) and other	(531)	0						(531)
Cash dividends declared	$ (10,989)	(10,989)			(10,989)
Repurchases of common shares (in shares)	(221,903)		(221,903)				221,903
Repurchases of common shares	$ (40,000)	(40,000)					$ (40,000)
Issuance of common shares related to employee stock transactions (in shares)			24,411
Issuance of common shares related to employee stock transactions	0	0
Taxes paid on stock-based compensation	(1,870)	(1,870)		(1,870)
Stock-based compensation	$ 3,975	3,975		3,975
Balance at end of period, common stock (in shares) at Jun. 30, 2022	12,023,288		7,275,337
Balance at end of period at Jun. 30, 2022	$ 791,705	$ 784,708	$ 120	$ 1,275,907	$ 88,196	$ (267)	$ (579,248)	$ 6,997
Balance at end of period, treasury stock (in shares) at Jun. 30, 2022	4,747,951						4,747,951
Balance at beginning of period at Mar. 31, 2022	$ 138,738
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]
Total net income (loss) attributable to noncontrolling interests	(2,865)
Net subscriptions (redemptions) and other	3,274
Balance at end of period at Jun. 30, 2022	$ 139,147

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Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares		3 Months Ended		6 Months Ended
	May 18, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Stockholders' Equity [Abstract]
Cash dividends declared per common share (in dollars per share)	$ 1.50	$ 1.50	$ 0.82	$ 3.00	$ 1.64

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Organization and Business

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Business

Organization and Business

Virtus Investment Partners, Inc. (the "Company," "we," "us," "our" or "Virtus"), a Delaware corporation, operates in the investment management industry through its subsidiaries.

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

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Basis of Presentation and Significant Accounting Policies

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies

Basis of Presentation and Significant Accounting Policies

Basis of Presentation

The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the Company’s financial condition and results of operations. Operating results for the six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 ("2021 Annual Report on Form 10-K") filed with the Securities and Exchange Commission (the "SEC"). The Company’s significant accounting policies, which have been consistently applied, are summarized in its 2021 Annual Report on Form 10-K.

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Revenues

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenues

Revenues

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

    Investment Management Fees by Source    

The following table summarizes investment management fees by source:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Investment management fees
Open-end funds	$	84,875	$	97,273	$	182,252	$	186,393
Closed-end funds	16,174		16,395		33,114		29,335
Retail separate accounts	45,312		42,475		94,915		79,987
Institutional accounts	38,663		37,367		81,560		71,064
Total investment management fees	$	185,024	$	193,510	$	391,841	$	366,779

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Acquisitions

6 Months Ended

Jun. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisitions

Acquisitions

Stone Harbor Investment Partners

On January 1, 2022, the Company completed the acquisition of Stone Harbor Investment Partners, LLC ("Stone Harbor"), which was accounted for in accordance with ASC 805, Business Combinations ("ASC 805"). The initial transaction consideration of $29.4 million was allocated to the assets acquired and liabilities assumed, based upon their estimated fair values at the date of the acquisition, as well as goodwill of $8.8 million and definite-lived intangible assets of $10.8 million. The Company expects $19.6 million of the purchase price to be tax deductible over 15 years. The transaction consideration allocation is based upon preliminary information and is subject to change if additional information becomes available. The final fair value of the net assets acquired may result in adjustments to certain assets and liabilities, including goodwill. The revenues and operating income of Stone Harbor were not material to the Company's results of operations for the three and six months ended June 30, 2022.

Transaction consideration consisted of $28.2 million in cash paid at closing and $1.2 million in contingent consideration recorded at fair value, which represents future potential earn-out payments based on pre-established performance metrics related to revenue retention and revenue growth rates. Future contingent consideration will be paid, if earned, in 2023, 2026 and 2027. The contingent consideration has been accounted for as a liability within contingent consideration on the Company's Condensed Consolidated Balance Sheet.

The following table summarizes the identified acquired assets and liabilities assumed as of the Stone Harbor acquisition date:

	January 1, 2022
	(in thousands)
Assets:
Cash and cash equivalents	$	8,443
Intangible assets	10,800
Goodwill	8,846
Other assets	55,129
Total Assets	83,218
Liabilities
Accounts payable and accrued liabilities	53,802
Total liabilities	53,802
Total Net Assets Acquired	$	29,416

Identifiable Intangible Assets Acquired

The Company identified and recorded the following intangible assets as a result of the Stone Harbor acquisition:

	January 1, 2022
	Approximate Fair Value (in thousands)		Weighted Average of Useful Life (in years)
Definite-lived intangible assets:
Investment management agreements	$	6,000	7.3
Trade names	1,000		6.0
Software	3,800		4.0
Total definite-lived intangible assets	$	10,800

The fair value of investment management agreements was estimated using a discounted cash flow method, the fair value of the trade names was estimated using a royalty savings method, and the fair value of the software was estimated using a royalty savings method and replacement cost approach. The Stone Harbor fair value estimates were prepared with the assistance of an independent valuation firm.

Westchester Capital Management

On October 1, 2021, the Company completed the acquisition of Westchester Capital Management, LLC ("Westchester"), which was accounted for in accordance with ASC 805. The total transaction consideration of $169.3 million

was allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of the acquisition. Goodwill of $23.0 million and intangible assets of $144.4 million were recorded as a result of the acquisition. The Company expects $155.6 million of the purchase price to be tax deductible over 15 years. The revenues and operating income of Westchester were not material to the Company's results of operations for the three and six months ended June 30, 2022.

Transaction consideration consisted of $156.8 million in cash and contingent consideration accounted for as a liability on the Company's Condensed Consolidated Balance sheet, which represents future potential earn-out payments based on pre-established performance metrics related to revenue growth rates. Future contingent consideration payments will be made, if earned, in 2025 and 2026. As of June 30, 2022, the contingent consideration balance was $15.4 million.

Fund Adoption and NFJ Investment Group

On February 1, 2021, the Company finalized an agreement with Allianz Global Investors U.S. LLC ("AGI"), pursuant to which the Company became the investment adviser, distributor and/or administrator of certain of AGI's open-end, closed-end and retail separate account assets. This transaction was classified as an asset acquisition and the cost of the acquisition was allocated to the assets acquired on the basis of their relative fair values. Additionally, as part of the transaction, AGI’s Dallas-based Value Equity team joined the Company as a newly established affiliated manager, NFJ Investment Group ("NFJ"). The addition of NFJ was classified as a business combination under ASC 805 and assets acquired were recorded at fair value. Assets acquired primarily consisted of definite-lived intangible assets representing investment contracts as well as indefinite-lived assets consisting of goodwill related to NFJ. The revenues and operating income of NFJ were not material to the Company's results of operations for the three and six months ended June 30, 2022 or 2021.

Transaction consideration consists of variable cash payments based on a percentage of the investment management fees earned on certain open-end, closed-end and retail separate account assets from the transaction. Payments are to be made annually on the anniversary of the closing date of the transactions over seven years. Contingent payment obligations related to the NFJ acquisition, which were accounted for in accordance with ASC 805 are remeasured at fair value as of each reporting period-end, with the change in fair value recorded within the Condensed Consolidated Statement of Operations. An estimate of these future payments has been recorded as a liability and included as contingent consideration on the Company's Condensed Consolidated Balance Sheet. A payment of $33.0 million was made in the first quarter of 2022. The estimated value of future revenue participation payments at June 30, 2022 was $117.0 million.

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Goodwill and Intangible Assets, Net

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

Goodwill and Intangible Assets, Net

Activity in goodwill was as follows:

	(in thousands)
Balance at December 31, 2021	$	338,406
Acquisitions	9,017
Balance at June 30, 2022	$	347,423

Below is a summary of intangible assets, net:

	Definite-Lived						Indefinite-Lived		Total
(in thousands)	Gross Book Value		Accumulated Amortization		Net Book Value		Net Book Value		Net Book Value
Balances at December 31, 2021	$	755,576	$	(297,303)	$	458,273	$	42,298	$	500,571
Additions	10,800		—		10,800		—		10,800
Intangible amortization	—		(29,286)		(29,286)		—		(29,286)
Balances at June 30, 2022	$	766,376	$	(326,589)	$	439,787	$	42,298	$	482,085

Definite-lived intangible asset amortization for the remainder of fiscal year 2022 and succeeding fiscal years is estimated as follows:

Fiscal Year	Amount (in thousands)
Remainder of 2022	$	29,218
2023	57,835
2024	52,194
2025	47,426
2026	46,446
2027 and thereafter	206,668
Total	$	439,787

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Investments

6 Months Ended

Jun. 30, 2022

Schedule of Investments [Abstract]

Investments

Investments

Investments consist primarily of investments in the Company's sponsored products. The Company's investments, excluding the assets of consolidated investment products ("CIP") discussed in Note 16, at June 30, 2022 and December 31, 2021 were as follows:

(in thousands)	June 30, 2022		December 31, 2021
Investment securities - fair value	$	77,184	$	80,335
Equity method investments (1)	11,968		13,038
Nonqualified retirement plan assets	11,546		13,321
Other investments	2,142		2,196
Total investments	$	102,840	$	108,890

(1)     The Company's equity method investments are valued on a three-month lag based upon the availability of financial information. 

Investment Securities - fair value

Investment securities - fair value consist of investments in the Company's sponsored funds and separately managed accounts. The composition of the Company’s investment securities - fair value was as follows:

	June 30, 2022				December 31, 2021
(in thousands)	Cost		Fair Value		Cost		Fair Value
Investment Securities - fair value
Sponsored funds	$	71,808	$	65,121	$	63,090	$	66,326
Equity securities	11,702		12,063		10,659		14,009
Total investment securities - fair value	$	83,510	$	77,184	$	73,749	$	80,335

For the three and six months ended June 30, 2022, the Company recognized net realized losses of $0.1 million and $30 thousand, respectively, on the sale of its investment securities - fair value. For the three and six months ended June 30, 2021, the Company recognized net realized gains of $1.0 million and $1.8 million, respectively, on the sale of its investment securities - fair value.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of CIP discussed in Note 16, as of June 30, 2022 and December 31, 2021 by fair value hierarchy level were as follows:

June 30, 2022  

(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	180,574	$	—	$	—	$	180,574
Investment securities - fair value
Sponsored funds	65,121		—		—		65,121
Equity securities	12,063		—		—		12,063
Nonqualified retirement plan assets	11,546		—		—		11,546
Total assets measured at fair value	$	269,304	$	—	$	—	$	269,304
Liabilities
Contingent consideration	$	—	$	—	$	72,980	$	72,980
Total liabilities measured at fair value	$	—	$	—	$	72,980	$	72,980

December 31, 2021  

(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	307,277	$	—	$	—	$	307,277
Investment securities - fair value
Sponsored funds	66,326		—		—		66,326
Equity securities	14,009		—		—		14,009
Nonqualified retirement plan assets	13,321		—		—		13,321
Total assets measured at fair value	$	400,933	$	—	$	—	$	400,933
Liabilities
Contingent consideration	$	—	$	—	$	88,400	$	88,400
Total liabilities measured at fair value	$	—	$	—	$	88,400	$	88,400

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

Cash equivalents represent investments in money market funds. Cash investments in money market funds are valued using published net asset values and are classified as Level 1.

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

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

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

Contingent consideration represents liabilities associated with the Company's business combinations. See Note 4 for a discussion of the transactions. The estimated fair values are measured using a simulation model using unobservable market data inputs prepared with the assistance of an independent valuation firm. These liabilities are categorized as Level 3.

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

The following table presents a reconciliation of beginning and ending balances of recurring fair value measurements classified as Level 3:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Contingent consideration, beginning of period	$	70,080	$	63,500	$	88,400	$	—
Additions for acquisition	—		—		1,200		63,500
Reduction for payments made	—		—		(19,520)		—
Increase (reduction) of liability related to re-measurement of fair value	2,900		—		2,900		—
Contingent consideration, end of period	$	72,980	$	63,500	$	72,980	$	63,500

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Equity Transactions

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Equity Transactions

Equity Transactions

Dividends Declared

On May 18, 2022, the Company declared a quarterly cash dividend of $1.50 per common share to be paid on August 15, 2022 to stockholders of record at the close of business on July 29, 2022.

Common Stock Repurchases

During the three and six months ended June 30, 2022, the Company repurchased 221,903 and 347,355 common shares, respectively, at a weighted average price of $180.23 and $201.49 per share, respectively, for a total cost, including fees and expenses, of $40.0 million and $70.0 million, respectively, under its share repurchase program. In May 2022, the Company's Board of Directors authorized an additional 750,000 shares to be repurchased under the share repurchase program. As of June 30, 2022, 932,094 shares remained available for repurchase. Under the terms of the program, the Company may repurchase shares of its common stock from time to time at its discretion through open market repurchases, privately negotiated transactions and/or other mechanisms, depending on price and prevailing market and business conditions. The program, which has no specified term, may be suspended or terminated at any time.

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) by component for the six months ended June 30, 2022 and 2021 were as follows:

	Foreign Currency Translation Adjustments (in thousands)
Balance at December 31, 2021	$	20
Net current-period other comprehensive income (loss) (1)	(287)
Balance at June 30, 2022	$	(267)
	Foreign Currency Translation Adjustments (in thousands)
Balance at December 31, 2020	$	29
Net current-period other comprehensive income (loss) (1)	6
Balance at June 30, 2021	$	35

(1) Consists of foreign currency translation adjustments, net of tax of $249 and $(2) for the six months ended June 30, 2022 and 2021, respectively.

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based CompensationPursuant to the Company's Omnibus Incentive and Equity Plan (the "Omnibus Plan"), officers, employees and directors may be granted equity-based awards, including restricted stock units ("RSUs"), performance stock units ("PSUs"),

stock options and unrestricted shares of common stock. At June 30, 2022, 668,628 shares of common stock remain available for issuance of the 3,370,000 shares that are authorized for issuance under the Omnibus Plan.

Stock-based compensation expense is summarized as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Stock-based compensation expense	$	4,572	$	7,849	$	14,119	$	15,844

Restricted Stock Units

Each RSU entitles the holder to one share of common stock when the restriction expires. RSUs may be time-vested or performance-contingent (PSUs) that convert into RSUs after performance measurement is complete and generally vest in one to three years. Shares that are issued upon vesting are newly issued shares from the Omnibus Plan and are not issued from treasury stock.

RSU activity, inclusive of PSUs, for the six months ended June 30, 2022 is summarized as follows: 

	Number of Shares	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2021	430,730	$	138.01
Granted	175,379	$	193.35
Forfeited	(36,336)	$	116.73
Settled	(183,995)	$	119.53
Outstanding at June 30, 2022	385,778	$	173.99

For the six months ended June 30, 2022 and 2021, a total of 72,043 and 72,324 RSUs, respectively, were withheld by the Company as a result of net share settlements to settle minimum employee tax withholding obligations. The Company paid $15.3 million and $19.3 million for the six months ended June 30, 2022 and 2021, respectively, in minimum employee tax withholding obligations related to RSUs withheld for the net share settlements. These net share settlements had the effect of share repurchases by the Company as they reduced the number of shares that would have otherwise been issued as a result of the vesting.

During the six months ended June 30, 2022, the Company granted 30,516 PSUs that contain performance-based metrics in addition to a service condition. Compensation expense for PSUs is generally recognized over a three-year service period based upon the value determined using a combination of (i) the intrinsic value method, for awards that contain a performance metric that represents a "performance condition" in accordance with ASC 718, and (ii) the Monte Carlo simulation valuation model for awards that contain a "market condition" performance metric under ASC 718. Compensation expense for PSU awards that contain a market condition is fixed at the date of grant and will not be adjusted in future periods based upon the achievement of the market condition. Compensation expense for PSU awards with a performance condition is recorded each period based upon a probability assessment of the expected outcome of the performance metric with a final adjustment upon measurement at the end of the performance period.

As of June 30, 2022, unamortized stock-based compensation expense for unvested RSUs and PSUs was $35.2 million with a weighted-average remaining contractual life of 1.4 years.

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Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

Earnings (Loss) Per ShareEarnings (loss) per share ("EPS") is calculated in accordance with ASC 260, Earnings per Share. Basic EPS is computed by dividing net income (loss) attributable to Virtus Investment Partners, Inc. by the weighted-average number of common shares outstanding for the period, excluding dilution for potential common stock issuances. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, including shares issuable upon the vesting of RSUs and stock option exercises using the treasury stock method, as determined under the if-converted method.

The computation of basic and diluted EPS is as follows: 

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share amounts)	2022		2021		2022		2021
Net Income (Loss)	$	14,259	$	76,097	$	53,378	$	128,311
Noncontrolling interests	3,143		(13,130)		(2,917)		(28,756)
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.	$	17,402	$	62,967	$	50,461	$	99,555
Shares (in thousands):
Basic: Weighted-average number of shares outstanding	7,449		7,698		7,496		7,674
Plus: Incremental shares from assumed conversion of dilutive instruments	158		309		225		364
Diluted: Weighted-average number of shares outstanding	7,607		8,007		7,721		8,038
Earnings (Loss) per Share—Basic	$	2.34	$	8.18	$	6.73	$	12.97
Earnings (Loss) per Share—Diluted	$	2.29	$	7.86	$	6.54	$	12.39

The following table details the securities that have been excluded from the above computation of weighted-average number of shares for diluted EPS, because the effect would be anti-dilutive.

	Three Months Ended June 30,		Six Months Ended June 30,
(in thousands)	2022	2021	2022	2021
Restricted stock units	84	5	24	6
Total anti-dilutive securities	84	5	24	6

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Income Taxes	6 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesIn calculating the provision for income taxes, the Company uses an estimate of the annual effective tax rate based upon the facts and circumstances at each interim period. On a quarterly basis, the estimated annual effective tax rate is adjusted, as appropriate, based upon changes in facts and circumstances, if any, as compared to those forecasted at the beginning of the fiscal year and at each interim period thereafter.The provision for income taxes reflected U.S. federal, state and local taxes at an estimated effective tax rate of 38.4% and 22.6% for the six months ended June 30, 2022 and 2021, respectively. The higher estimated effective tax rate for the six months ended June 30, 2022 was primarily due to valuation allowances recorded in the current year for the tax effects of unrealized losses on certain Company investments.

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Debt	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Debt	DebtCredit Agreement The Company's credit agreement, as amended (the "Credit Agreement"), comprises (i) a $275.0 million seven-year term loan (the "Term Loan") expiring in September 2028, and (ii) a $175.0 million revolving credit facility with a five-year term expiring in September 2026. During the six months ended June 30, 2022, the Company repaid $11.4 million outstanding under its Term Loan. At June 30, 2022, $262.9 million was outstanding under the Term Loan, and the Company had no outstanding borrowings under its revolving credit facility. In accordance with ASC 835, Interest, the amounts outstanding under the Company's Term Loan are presented in the Condensed Consolidated Balance Sheet net of related debt issuance costs, which were $7.1 million as of June 30, 2022.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Legal Matters

The Company is involved from time to time in litigation and arbitration, as well as examinations, inquiries and investigations by various regulatory bodies, including the SEC, involving its compliance with, among other things, securities laws, client investment guidelines, laws governing the activities of broker-dealers and other laws and regulations affecting its products and other activities. Legal and regulatory matters of this nature involve or may involve but are not limited to the

Company's activities as an employer, issuer of securities, investor, investment adviser, broker-dealer or taxpayer. In addition, in the normal course of business, the Company discusses matters with its regulators raised during regulatory examinations or is otherwise subject to their inquiry. These matters could result in censures, fines, penalties or other sanctions.

The Company records a liability when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. In addition, in the event the Company determines that a loss is not probable, but is reasonably possible, and it becomes possible to develop what the Company believes to be a reasonable range of possible loss, then the Company will include disclosures related to such matter as appropriate and in compliance with ASC 450, Contingencies. The disclosures, accruals or estimates, if any, resulting from the foregoing analysis are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. Based on information currently available, available insurance coverage, indemnities and established reserves, the Company believes that the outcomes of its legal and regulatory proceedings are not likely, either individually or in the aggregate, to have a material adverse effect on the Company's results of operations, cash flows or its consolidated financial condition. However, in the event of unexpected subsequent developments, and given the inherent unpredictability of these legal and regulatory matters, the Company can provide no assurance that its assessment of any claim, dispute, regulatory examination or investigation or other legal matter will reflect the ultimate outcome, and an adverse outcome in certain matters could, from time to time, have a material adverse effect on the Company's results of operations or cash flows in particular quarterly or annual periods.

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Redeemable Noncontrolling Interests

6 Months Ended

Jun. 30, 2022

Noncontrolling Interest [Abstract]

Redeemable Noncontrolling Interests

Redeemable Noncontrolling Interests

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

Redeemable noncontrolling interests for the six months ended June 30, 2022 included the following amounts:

(in thousands)	CIP		Affiliate Noncontrolling Interests		Total
Balances at December 31, 2021	$	12,416	$	126,549	$	138,965
Net income (loss) attributable to noncontrolling interests	(1,593)		4,192		2,599
Changes in redemption value (1)	—		653		653
Total net income (loss) attributable to noncontrolling interests	(1,593)		4,845		3,252
Net subscriptions (redemptions) and other	2,227		(5,297)		(3,070)
Balances at June 30, 2022	$	13,050	$	126,097	$	139,147

(1) Relates to noncontrolling interests redeemable at other than fair value.

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Consolidation

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidation

Consolidation

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

The Company evaluates any variable interest entities ("VIEs") in which the Company has a variable interest for consolidation. A VIE is an entity in which either (i) the equity investment at risk is not sufficient to permit the entity to finance its own activities without additional financial support; or (ii) where as a group, the holders of the equity investment at risk do not possess (x) the power through voting or similar rights to direct the activities that most significantly impact the entity's

economic performance, (y) the obligation to absorb expected losses or the right to receive expected residual returns of the entity, or (z) proportionate voting and economic interests and where substantially all of the entity's activities either involve or are conducted on behalf of an investor with disproportionately fewer voting rights. If an entity has any of these characteristics, it is considered a VIE and is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that has both the power to direct the activities that most significantly impact the VIE's economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE.

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

The following table presents the balances of CIP that, after intercompany eliminations, were reflected on the Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021:

	As of
	June 30, 2022						December 31, 2021
	VOEs		VIEs				VOEs		VIEs
(in thousands)			CLOs		Other				CLOs		Other
Cash and cash equivalents	$	798	$	104,348	$	3,155	$	787	$	205,192	$	1,245
Investments	19,049		1,917,076		54,034		21,544		2,055,107		63,587
Other assets	94		15,920		1,027		64		43,327		819
Notes payable	—		(1,904,444)		—		—		(2,033,617)		—
Securities purchased payable and other liabilities	(417)		(65,314)		(159)		(558)		(184,214)		(296)
Noncontrolling interests	(4,634)		(6,997)		(8,416)		(4,935)		(8,350)		(7,481)
Net interests in CIP	$	14,890	$	60,589	$	49,641	$	16,902	$	77,445	$	57,874

Consolidated CLOs

The majority of the Company's CIP that are VIEs are CLOs. At June 30, 2022, the Company consolidated six CLOs. The financial information of certain CLOs is included on the Company's condensed consolidated financial statements on a one-month lag based upon the availability of their financial information. A majority-owned consolidated private fund, whose primary purpose is to invest in CLOs for which the Company serves as the collateral manager, is also included.

Investments of CLOs

The CLOs held investments of $1.9 billion at June 30, 2022 consisting of bank loan investments, which comprise the majority of the CLOs' portfolio asset collateral and are senior secured corporate loans across a variety of industries. These bank loan investments mature at various dates between 2022 and 2029 and pay interest at LIBOR plus a spread of up to 10.0%. The CLOs may elect to reinvest any prepayments received on bank loan investments up until the periods between October 2019 and October 2026, depending on the CLO. Generally, subsequent prepayments received after the reinvestment period must be used to pay down the note obligations. At June 30, 2022, the fair value of the senior bank loans was less than the unpaid principal balance by $113.6 million. At June 30, 2022, there were no material collateral assets in default.

Notes Payable of CLOs

The CLOs held notes payable with a total value, at par, of $2.2 billion at June 30, 2022, consisting of senior secured floating rate notes payable with a par value of $1.9 billion and subordinated notes with a par value of $233.7 million. These note obligations bear interest at variable rates based on LIBOR plus a pre-defined spread ranging from 0.8% to 8.9%. The principal amounts outstanding of these note obligations mature on dates ranging from October 2027 to October 2034.

The Company's beneficial interests and maximum exposure to loss related to these consolidated CLOs is limited to (i) ownership in the subordinated notes and (ii) accrued management fees. The secured notes of the consolidated CLOs have contractual recourse only to the related assets of the CLO and are classified as financial liabilities. Although these beneficial

interests are eliminated upon consolidation, the application of the measurement alternative prescribed by ASU 2014-13, Consolidation (Topic 810) ("ASU 2014-13") results in the net assets of the consolidated CLOs shown above to be equivalent to the beneficial interests retained by the Company at June 30, 2022, as shown in the table below:

	(in thousands)
Subordinated notes	$	59,446
Accrued investment management fees	1,143
Total Beneficial Interests	$	60,589

The following table represents income and expenses of the consolidated CLOs included on the Company’s Condensed Consolidated Statements of Operations for the period indicated:

	Six Months Ended June 30, 2022
	(in thousands)
Income:
Realized and unrealized gain (loss), net	$	(21,668)
Interest income	40,633
Total Income	18,965
Expenses:
Other operating expenses	1,126
Interest expense	26,504
Total Expense	27,630
Noncontrolling interests	335
Net Income (Loss) Attributable to CIP	$	(8,330)

As summarized in the table below, the application of the measurement alternative as prescribed by ASU 2014-13 results in the consolidated net income summarized above to be equivalent to the Company’s own economic interests in the consolidated CLOs, which are eliminated upon consolidation:

	Six Months Ended June 30, 2022
	(in thousands)
Distributions received and unrealized gains (losses) on the subordinated notes held by the Company	$	(12,458)
Investment management fees	4,128
Total Economic Interests	$	(8,330)

Fair Value Measurements of CIP

The assets and liabilities of CIP measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 by fair value hierarchy level were as follows:

As of June 30, 2022

(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	104,348	$	—	$	—	$	104,348
Debt investments	197		1,932,308		30,396		1,962,901
Equity investments	22,767		3,130		1,361		27,258
Total assets measured at fair value	$	127,312	$	1,935,438	$	31,757	$	2,094,507
Liabilities
Notes payable	$	—	$	1,904,444	$	—	$	1,904,444
Short sales	345		—		—		345
Total liabilities measured at fair value	$	345	$	1,904,444	$	—	$	1,904,789

As of December 31, 2021

(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	205,192	$	—	$	—	$	205,192
Debt investments	273		2,107,736		2,695		2,110,704
Equity investments	26,111		2,961		462		29,534
Total assets measured at fair value	$	231,576	$	2,110,697	$	3,157	$	2,345,430
Liabilities
Notes payable	$	—	$	2,033,617	$	—	$	2,033,617
Short sales	515		—		—		515
Total liabilities measured at fair value	$	515	$	2,033,617	$	—	$	2,034,132

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

Cash equivalents represent investments in money market funds. Cash investments in money market funds are valued using published net asset values and are classified as Level 1.

Debt and equity investments represent the underlying debt, equity and other securities held in CIP. Equity investments are valued at the official closing price on the exchange on which the securities are traded and are generally categorized within Level 1. Level 2 investments represent most debt securities, including bank loans and certain equity securities (including non-U.S. securities), for which closing prices are not readily available or are deemed to not reflect readily available market prices, and are valued using an independent pricing service. Debt investments are valued based on quotations received from independent pricing services or from dealers who make markets in such securities. Bank loan investments, which are included as debt investments, are generally priced at the average mid-point of bid and ask quotations obtained from a third-party pricing service. Fair value may also be based upon valuations obtained from independent third-party brokers or dealers utilizing matrix pricing models that consider information regarding securities with similar characteristics. In certain instances, fair value has been determined utilizing discounted cash flow analyses or single broker non-binding quotes. Depending on the nature of the inputs, these assets are classified as Level 1, 2 or 3 within the fair value measurement hierarchy. Level 3 investments include debt and equity securities that are not widely traded, are illiquid or are priced by dealers based on pricing models used by market makers in the security.

Notes payable represent notes issued by CIP CLOs and are measured using the measurement alternative in ASU 2014-13. Accordingly, the fair value of CLO liabilities was measured as the fair value of CLO assets less the sum of (i) the fair value of the beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that represent

compensation for services. The fair value of the beneficial interests held by the Company is based on third-party pricing information without adjustment.

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

The securities purchase payable at June 30, 2022 and December 31, 2021 approximated fair value due to the short-term nature of the instruments.

The following table is a reconciliation of assets of CIP for Level 3 investments for which significant unobservable inputs were used to determine fair value:

	Six Months Ended June 30,
(in thousands)	2022		2021
Balance at beginning of period	$	3,157	$	54,182
Realized gains (losses), net	27		(214)
Change in unrealized gains (losses), net	(930)		3,281
Purchases	—		4,395
Amortization	(9)		60
Sales	(2,135)		(27,309)
Transfers to Level 2	(36,833)		(44,578)
Transfers from Level 2	68,480		62,264
Balance at end of period (1)	$	31,757	$	52,081

(1)The investments that are categorized as Level 3 were valued utilizing third-party pricing information without adjustment. Transfers between Level 2 and Level 3 were due to trading activities at period end.

Nonconsolidated VIEs

The Company serves as the collateral manager for other collateralized loan and collateralized bond obligations (collectively, "CDOs") that are not consolidated. The assets and liabilities of these CDOs reside in bankruptcy remote, special purpose entities in which the Company has no ownership of, nor holds any notes issued by, the CDOs, and provides neither recourse nor guarantees. The Company has determined that the investment management fees it receives for serving as collateral manager for these CDOs did not represent a variable interest since (i) the fees the Company earns are compensation for services provided and are commensurate with the level of effort required to provide the investment management services, (ii) the Company does not hold other interests in the CDOs that individually, or in the aggregate, would absorb more than an insignificant amount of the CDOs' expected losses or receive more than an insignificant amount of the CDOs' expected residual return, and (iii) the investment management arrangement only includes terms, conditions and amounts that are customarily present in arrangements for similar services negotiated at arm's length.

The Company has interests in certain other VIEs that the Company does not consolidate as it is not the primary beneficiary since its interest in these entities does not provide the Company with the power to direct the activities that most significantly impact the entities' economic performance. At June 30, 2022, the carrying value and maximum risk of loss related to the Company's interest in these VIEs was $27.8 million.

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Basis of Presentation and Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the Company’s financial condition and results of operations. Operating results for the six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 ("2021 Annual Report on Form 10-K") filed with the Securities and Exchange Commission (the "SEC"). The Company’s significant accounting policies, which have been consistently applied, are summarized in its 2021 Annual Report on Form 10-K.

Fair Value Measurements

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

Cash equivalents represent investments in money market funds. Cash investments in money market funds are valued using published net asset values and are classified as Level 1.

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

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

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

Contingent consideration represents liabilities associated with the Company's business combinations. See Note 4 for a discussion of the transactions. The estimated fair values are measured using a simulation model using unobservable market data inputs prepared with the assistance of an independent valuation firm. These liabilities are categorized as Level 3.

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

Cash equivalents represent investments in money market funds. Cash investments in money market funds are valued using published net asset values and are classified as Level 1.

Debt and equity investments represent the underlying debt, equity and other securities held in CIP. Equity investments are valued at the official closing price on the exchange on which the securities are traded and are generally categorized within Level 1. Level 2 investments represent most debt securities, including bank loans and certain equity securities (including non-U.S. securities), for which closing prices are not readily available or are deemed to not reflect readily available market prices, and are valued using an independent pricing service. Debt investments are valued based on quotations received from independent pricing services or from dealers who make markets in such securities. Bank loan investments, which are included as debt investments, are generally priced at the average mid-point of bid and ask quotations obtained from a third-party pricing service. Fair value may also be based upon valuations obtained from independent third-party brokers or dealers utilizing matrix pricing models that consider information regarding securities with similar characteristics. In certain instances, fair value has been determined utilizing discounted cash flow analyses or single broker non-binding quotes. Depending on the nature of the inputs, these assets are classified as Level 1, 2 or 3 within the fair value measurement hierarchy. Level 3 investments include debt and equity securities that are not widely traded, are illiquid or are priced by dealers based on pricing models used by market makers in the security.

Notes payable represent notes issued by CIP CLOs and are measured using the measurement alternative in ASU 2014-13. Accordingly, the fair value of CLO liabilities was measured as the fair value of CLO assets less the sum of (i) the fair value of the beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that represent

compensation for services. The fair value of the beneficial interests held by the Company is based on third-party pricing information without adjustment.

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

Nonconsolidated VIEs

Nonconsolidated VIEs

The Company serves as the collateral manager for other collateralized loan and collateralized bond obligations (collectively, "CDOs") that are not consolidated. The assets and liabilities of these CDOs reside in bankruptcy remote, special purpose entities in which the Company has no ownership of, nor holds any notes issued by, the CDOs, and provides neither recourse nor guarantees. The Company has determined that the investment management fees it receives for serving as collateral manager for these CDOs did not represent a variable interest since (i) the fees the Company earns are compensation for services provided and are commensurate with the level of effort required to provide the investment management services, (ii) the Company does not hold other interests in the CDOs that individually, or in the aggregate, would absorb more than an insignificant amount of the CDOs' expected losses or receive more than an insignificant amount of the CDOs' expected residual return, and (iii) the investment management arrangement only includes terms, conditions and amounts that are customarily present in arrangements for similar services negotiated at arm's length.

The Company has interests in certain other VIEs that the Company does not consolidate as it is not the primary beneficiary since its interest in these entities does not provide the Company with the power to direct the activities that most significantly impact the entities' economic performance. At June 30, 2022, the carrying value and maximum risk of loss related to the Company's interest in these VIEs was $27.8 million

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Revenues (Tables)

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Investment Management Fees by Source

The following table summarizes investment management fees by source:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Investment management fees
Open-end funds	$	84,875	$	97,273	$	182,252	$	186,393
Closed-end funds	16,174		16,395		33,114		29,335
Retail separate accounts	45,312		42,475		94,915		79,987
Institutional accounts	38,663		37,367		81,560		71,064
Total investment management fees	$	185,024	$	193,510	$	391,841	$	366,779

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Acquisitions (Tables)

6 Months Ended

Jun. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the identified acquired assets and liabilities assumed as of the Stone Harbor acquisition date:

	January 1, 2022
	(in thousands)
Assets:
Cash and cash equivalents	$	8,443
Intangible assets	10,800
Goodwill	8,846
Other assets	55,129
Total Assets	83,218
Liabilities
Accounts payable and accrued liabilities	53,802
Total liabilities	53,802
Total Net Assets Acquired	$	29,416

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

The Company identified and recorded the following intangible assets as a result of the Stone Harbor acquisition:

	January 1, 2022
	Approximate Fair Value (in thousands)		Weighted Average of Useful Life (in years)
Definite-lived intangible assets:
Investment management agreements	$	6,000	7.3
Trade names	1,000		6.0
Software	3,800		4.0
Total definite-lived intangible assets	$	10,800

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Goodwill and Intangible Assets, Net (Tables)

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill and Intangible Assets, Net

Activity in goodwill was as follows:

	(in thousands)
Balance at December 31, 2021	$	338,406
Acquisitions	9,017
Balance at June 30, 2022	$	347,423

Below is a summary of intangible assets, net:

	Definite-Lived						Indefinite-Lived		Total
(in thousands)	Gross Book Value		Accumulated Amortization		Net Book Value		Net Book Value		Net Book Value
Balances at December 31, 2021	$	755,576	$	(297,303)	$	458,273	$	42,298	$	500,571
Additions	10,800		—		10,800		—		10,800
Intangible amortization	—		(29,286)		(29,286)		—		(29,286)
Balances at June 30, 2022	$	766,376	$	(326,589)	$	439,787	$	42,298	$	482,085

Schedule of Estimated Amortization Expense of Intangible Assets Succeeding Years

Definite-lived intangible asset amortization for the remainder of fiscal year 2022 and succeeding fiscal years is estimated as follows:

Fiscal Year	Amount (in thousands)
Remainder of 2022	$	29,218
2023	57,835
2024	52,194
2025	47,426
2026	46,446
2027 and thereafter	206,668
Total	$	439,787

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Investments (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of Investments [Abstract]

Schedule of Investments

The Company's investments, excluding the assets of consolidated investment products ("CIP") discussed in Note 16, at June 30, 2022 and December 31, 2021 were as follows:

(in thousands)	June 30, 2022		December 31, 2021
Investment securities - fair value	$	77,184	$	80,335
Equity method investments (1)	11,968		13,038
Nonqualified retirement plan assets	11,546		13,321
Other investments	2,142		2,196
Total investments	$	102,840	$	108,890

(1)     The Company's equity method investments are valued on a three-month lag based upon the availability of financial information.

Schedule of Marketable Securities

The composition of the Company’s investment securities - fair value was as follows:

	June 30, 2022				December 31, 2021
(in thousands)	Cost		Fair Value		Cost		Fair Value
Investment Securities - fair value
Sponsored funds	$	71,808	$	65,121	$	63,090	$	66,326
Equity securities	11,702		12,063		10,659		14,009
Total investment securities - fair value	$	83,510	$	77,184	$	73,749	$	80,335

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of CIP discussed in Note 16, as of June 30, 2022 and December 31, 2021 by fair value hierarchy level were as follows:

June 30, 2022  

(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	180,574	$	—	$	—	$	180,574
Investment securities - fair value
Sponsored funds	65,121		—		—		65,121
Equity securities	12,063		—		—		12,063
Nonqualified retirement plan assets	11,546		—		—		11,546
Total assets measured at fair value	$	269,304	$	—	$	—	$	269,304
Liabilities
Contingent consideration	$	—	$	—	$	72,980	$	72,980
Total liabilities measured at fair value	$	—	$	—	$	72,980	$	72,980

December 31, 2021  

(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	307,277	$	—	$	—	$	307,277
Investment securities - fair value
Sponsored funds	66,326		—		—		66,326
Equity securities	14,009		—		—		14,009
Nonqualified retirement plan assets	13,321		—		—		13,321
Total assets measured at fair value	$	400,933	$	—	$	—	$	400,933
Liabilities
Contingent consideration	$	—	$	—	$	88,400	$	88,400
Total liabilities measured at fair value	$	—	$	—	$	88,400	$	88,400

The assets and liabilities of CIP measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 by fair value hierarchy level were as follows:

As of June 30, 2022

(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	104,348	$	—	$	—	$	104,348
Debt investments	197		1,932,308		30,396		1,962,901
Equity investments	22,767		3,130		1,361		27,258
Total assets measured at fair value	$	127,312	$	1,935,438	$	31,757	$	2,094,507
Liabilities
Notes payable	$	—	$	1,904,444	$	—	$	1,904,444
Short sales	345		—		—		345
Total liabilities measured at fair value	$	345	$	1,904,444	$	—	$	1,904,789

As of December 31, 2021

(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	205,192	$	—	$	—	$	205,192
Debt investments	273		2,107,736		2,695		2,110,704
Equity investments	26,111		2,961		462		29,534
Total assets measured at fair value	$	231,576	$	2,110,697	$	3,157	$	2,345,430
Liabilities
Notes payable	$	—	$	2,033,617	$	—	$	2,033,617
Short sales	515		—		—		515
Total liabilities measured at fair value	$	515	$	2,033,617	$	—	$	2,034,132

Schedule of Liabilities of Consolidated Sponsored Investment Products For Level 3 Investments, Unobservable Inputs Used to Determine Fair Value

The following table presents a reconciliation of beginning and ending balances of recurring fair value measurements classified as Level 3:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Contingent consideration, beginning of period	$	70,080	$	63,500	$	88,400	$	—
Additions for acquisition	—		—		1,200		63,500
Reduction for payments made	—		—		(19,520)		—
Increase (reduction) of liability related to re-measurement of fair value	2,900		—		2,900		—
Contingent consideration, end of period	$	72,980	$	63,500	$	72,980	$	63,500

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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Changes in Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) by component for the six months ended June 30, 2022 and 2021 were as follows:

	Foreign Currency Translation Adjustments (in thousands)
Balance at December 31, 2021	$	20
Net current-period other comprehensive income (loss) (1)	(287)
Balance at June 30, 2022	$	(267)
	Foreign Currency Translation Adjustments (in thousands)
Balance at December 31, 2020	$	29
Net current-period other comprehensive income (loss) (1)	6
Balance at June 30, 2021	$	35

(1) Consists of foreign currency translation adjustments, net of tax of $249 and $(2) for the six months ended June 30, 2022 and 2021, respectively.

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Summary of Stock Based Compensation Expense

Stock-based compensation expense is summarized as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Stock-based compensation expense	$	4,572	$	7,849	$	14,119	$	15,844

Summary of Restricted Stock Units Activity

RSU activity, inclusive of PSUs, for the six months ended June 30, 2022 is summarized as follows: 

	Number of Shares	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2021	430,730	$	138.01
Granted	175,379	$	193.35
Forfeited	(36,336)	$	116.73
Settled	(183,995)	$	119.53
Outstanding at June 30, 2022	385,778	$	173.99

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Earnings (Loss) Per Share (Tables)

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Earnings Per Share

The computation of basic and diluted EPS is as follows: 

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share amounts)	2022		2021		2022		2021
Net Income (Loss)	$	14,259	$	76,097	$	53,378	$	128,311
Noncontrolling interests	3,143		(13,130)		(2,917)		(28,756)
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.	$	17,402	$	62,967	$	50,461	$	99,555
Shares (in thousands):
Basic: Weighted-average number of shares outstanding	7,449		7,698		7,496		7,674
Plus: Incremental shares from assumed conversion of dilutive instruments	158		309		225		364
Diluted: Weighted-average number of shares outstanding	7,607		8,007		7,721		8,038
Earnings (Loss) per Share—Basic	$	2.34	$	8.18	$	6.73	$	12.97
Earnings (Loss) per Share—Diluted	$	2.29	$	7.86	$	6.54	$	12.39

Securities Excluded from Computation of Diluted EPS

The following table details the securities that have been excluded from the above computation of weighted-average number of shares for diluted EPS, because the effect would be anti-dilutive.

	Three Months Ended June 30,		Six Months Ended June 30,
(in thousands)	2022	2021	2022	2021
Restricted stock units	84	5	24	6
Total anti-dilutive securities	84	5	24	6

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Redeemable Noncontrolling Interests (Tables)

6 Months Ended

Jun. 30, 2022

Noncontrolling Interest [Abstract]

Schedule of Redeemable Noncontrolling Interest

Redeemable noncontrolling interests for the six months ended June 30, 2022 included the following amounts:

(in thousands)	CIP		Affiliate Noncontrolling Interests		Total
Balances at December 31, 2021	$	12,416	$	126,549	$	138,965
Net income (loss) attributable to noncontrolling interests	(1,593)		4,192		2,599
Changes in redemption value (1)	—		653		653
Total net income (loss) attributable to noncontrolling interests	(1,593)		4,845		3,252
Net subscriptions (redemptions) and other	2,227		(5,297)		(3,070)
Balances at June 30, 2022	$	13,050	$	126,097	$	139,147

(1) Relates to noncontrolling interests redeemable at other than fair value.

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Consolidation (Tables)

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidated Balance Sheets

The following table presents the balances of CIP that, after intercompany eliminations, were reflected on the Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021:

	As of
	June 30, 2022						December 31, 2021
	VOEs		VIEs				VOEs		VIEs
(in thousands)			CLOs		Other				CLOs		Other
Cash and cash equivalents	$	798	$	104,348	$	3,155	$	787	$	205,192	$	1,245
Investments	19,049		1,917,076		54,034		21,544		2,055,107		63,587
Other assets	94		15,920		1,027		64		43,327		819
Notes payable	—		(1,904,444)		—		—		(2,033,617)		—
Securities purchased payable and other liabilities	(417)		(65,314)		(159)		(558)		(184,214)		(296)
Noncontrolling interests	(4,634)		(6,997)		(8,416)		(4,935)		(8,350)		(7,481)
Net interests in CIP	$	14,890	$	60,589	$	49,641	$	16,902	$	77,445	$	57,874

Schedule of Consolidated Collateralized Loan Obligations

June 30, 2022, as shown in the table below:

	(in thousands)
Subordinated notes	$	59,446
Accrued investment management fees	1,143
Total Beneficial Interests	$	60,589

The following table represents income and expenses of the consolidated CLOs included on the Company’s Condensed Consolidated Statements of Operations for the period indicated:

	Six Months Ended June 30, 2022
	(in thousands)
Income:
Realized and unrealized gain (loss), net	$	(21,668)
Interest income	40,633
Total Income	18,965
Expenses:
Other operating expenses	1,126
Interest expense	26,504
Total Expense	27,630
Noncontrolling interests	335
Net Income (Loss) Attributable to CIP	$	(8,330)

As summarized in the table below, the application of the measurement alternative as prescribed by ASU 2014-13 results in the consolidated net income summarized above to be equivalent to the Company’s own economic interests in the consolidated CLOs, which are eliminated upon consolidation:

	Six Months Ended June 30, 2022
	(in thousands)
Distributions received and unrealized gains (losses) on the subordinated notes held by the Company	$	(12,458)
Investment management fees	4,128
Total Economic Interests	$	(8,330)

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of CIP discussed in Note 16, as of June 30, 2022 and December 31, 2021 by fair value hierarchy level were as follows:

June 30, 2022  

(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	180,574	$	—	$	—	$	180,574
Investment securities - fair value
Sponsored funds	65,121		—		—		65,121
Equity securities	12,063		—		—		12,063
Nonqualified retirement plan assets	11,546		—		—		11,546
Total assets measured at fair value	$	269,304	$	—	$	—	$	269,304
Liabilities
Contingent consideration	$	—	$	—	$	72,980	$	72,980
Total liabilities measured at fair value	$	—	$	—	$	72,980	$	72,980

December 31, 2021  

(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	307,277	$	—	$	—	$	307,277
Investment securities - fair value
Sponsored funds	66,326		—		—		66,326
Equity securities	14,009		—		—		14,009
Nonqualified retirement plan assets	13,321		—		—		13,321
Total assets measured at fair value	$	400,933	$	—	$	—	$	400,933
Liabilities
Contingent consideration	$	—	$	—	$	88,400	$	88,400
Total liabilities measured at fair value	$	—	$	—	$	88,400	$	88,400

The assets and liabilities of CIP measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 by fair value hierarchy level were as follows:

As of June 30, 2022

(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	104,348	$	—	$	—	$	104,348
Debt investments	197		1,932,308		30,396		1,962,901
Equity investments	22,767		3,130		1,361		27,258
Total assets measured at fair value	$	127,312	$	1,935,438	$	31,757	$	2,094,507
Liabilities
Notes payable	$	—	$	1,904,444	$	—	$	1,904,444
Short sales	345		—		—		345
Total liabilities measured at fair value	$	345	$	1,904,444	$	—	$	1,904,789

As of December 31, 2021

(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	205,192	$	—	$	—	$	205,192
Debt investments	273		2,107,736		2,695		2,110,704
Equity investments	26,111		2,961		462		29,534
Total assets measured at fair value	$	231,576	$	2,110,697	$	3,157	$	2,345,430
Liabilities
Notes payable	$	—	$	2,033,617	$	—	$	2,033,617
Short sales	515		—		—		515
Total liabilities measured at fair value	$	515	$	2,033,617	$	—	$	2,034,132

Reconciliation of Assets of Consolidated Sponsored Investment Products For Level 3 Investments, Unobservable Inputs Used to Determine Fair Value

The following table is a reconciliation of assets of CIP for Level 3 investments for which significant unobservable inputs were used to determine fair value:

	Six Months Ended June 30,
(in thousands)	2022		2021
Balance at beginning of period	$	3,157	$	54,182
Realized gains (losses), net	27		(214)
Change in unrealized gains (losses), net	(930)		3,281
Purchases	—		4,395
Amortization	(9)		60
Sales	(2,135)		(27,309)
Transfers to Level 2	(36,833)		(44,578)
Transfers from Level 2	68,480		62,264
Balance at end of period (1)	$	31,757	$	52,081

(1)The investments that are categorized as Level 3 were valued utilizing third-party pricing information without adjustment. Transfers between Level 2 and Level 3 were due to trading activities at period end.

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Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Revenues	$ 225,307	$ 244,011	$ 477,747	$ 460,908
Investment management fees
Disaggregation of Revenue [Line Items]
Revenues	185,024	193,510	391,841	366,779
Open-end funds
Disaggregation of Revenue [Line Items]
Revenues	84,875	97,273	182,252	186,393
Closed-end funds
Disaggregation of Revenue [Line Items]
Revenues	16,174	16,395	33,114	29,335
Retail separate accounts
Disaggregation of Revenue [Line Items]
Revenues	45,312	42,475	94,915	79,987
Institutional accounts
Disaggregation of Revenue [Line Items]
Revenues	$ 38,663	$ 37,367	$ 81,560	$ 71,064

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Acquisitions - Narrative (Details) - USD ($) $ in Thousands				3 Months Ended
	Jan. 01, 2022	Oct. 01, 2021	Feb. 01, 2021	Mar. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Goodwill					$ 347,423	$ 338,406
Contingent consideration on business acquisition					133,628	$ 162,564
AGI
Business Acquisition [Line Items]
Annual payment term			7 years
Contingent consideration paid for an asset acquisition				$ 33,000
Contingent consideration on asset acquisition					117,000
Stone Harbor Investment Partners, LLC
Business Acquisition [Line Items]
Purchase price	$ 29,400
Goodwill	8,846
Definite-lived intangible assets acquired	10,800
Expected tax deductible amount of goodwill acquired	$ 19,600
Period for expected tax deductible amount of goodwill	15 years
Payments to acquire businesses, gross	$ 28,200
Contingent consideration on business acquisition	$ 1,200
Westchester
Business Acquisition [Line Items]
Purchase price		$ 169,300
Goodwill		23,000
Expected tax deductible amount of goodwill acquired		$ 155,600
Period for expected tax deductible amount of goodwill		15 years
Payments to acquire businesses, gross		$ 156,800
Contingent consideration on business acquisition					$ 15,400
Intangible assets		$ 144,400

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Acquisitions - Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jan. 01, 2022	Dec. 31, 2021
Assets:
Goodwill	$ 347,423		$ 338,406
Stone Harbor Investment Partners, LLC
Assets:
Cash and cash equivalents		$ 8,443
Intangible assets		10,800
Goodwill		8,846
Other assets		55,129
Total Assets		83,218
Liabilities
Accounts payable and accrued liabilities		53,802
Total liabilities		53,802
Total Net Assets Acquired		$ 29,416

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Acquisitions - Intangible Assets Acquired (Details) - Stone Harbor Investment Partners, LLC $ in Thousands	Jan. 01, 2022 USD ($)
Definite-lived intangible assets:
Approximate Fair Value (in thousands)	$ 10,800
Investment management agreements
Definite-lived intangible assets:
Approximate Fair Value (in thousands)	$ 6,000
Weighted Average of Useful Life (in years)	7 years 3 months 18 days
Trade names
Definite-lived intangible assets:
Approximate Fair Value (in thousands)	$ 1,000
Weighted Average of Useful Life (in years)	6 years
Software
Definite-lived intangible assets:
Approximate Fair Value (in thousands)	$ 3,800
Weighted Average of Useful Life (in years)	4 years

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Goodwill and Intangible Assets, Net - Activity (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Goodwill
Balance, beginning of period	$ 338,406
Acquisitions	9,017
Balance, ending of period	347,423
Definite-Lived
Gross book value, beginning of period	755,576
Accumulated amortization, beginning of period	(297,303)
Net book value, beginning of period	458,273
Additions	10,800
Intangible amortization	(29,286)
Gross book value, end of period	766,376
Accumulated amortization, end of period	(326,589)
Net book value, end of period	439,787
Indefinite-Lived
Net book value, beginning of period	42,298
Net book value, end of period	42,298
Total
Net book value, beginning of period	500,571
Additions	10,800
Intangible amortization	(29,286)
Net book value, end of period	$ 482,085

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Goodwill and Intangible Assets, Net - Estimated Amortization Expense of Intangible Assets Succeeding Years (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2022	$ 29,218
2023	57,835
2024	52,194
2025	47,426
2026	46,446
2027 and thereafter	206,668
Total	$ 439,787	$ 458,273

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Investments - Summary (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Schedule of Investments [Line Items]
Investment securities - fair value	$ 77,184	$ 80,335
Parent
Schedule of Investments [Line Items]
Investment securities - fair value	77,184	80,335
Equity method investments	11,968	13,038
Nonqualified retirement plan assets	11,546	13,321
Other investments	2,142	2,196
Total investments	$ 102,840	$ 108,890

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Investments - Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Investment Securities - fair value
Cost	$ 83,510	$ 73,749
Fair Value	77,184	80,335
Sponsored funds
Investment Securities - fair value
Cost	71,808	63,090
Fair Value	65,121	66,326
Equity securities
Investment Securities - fair value
Cost	11,702	10,659
Fair Value	$ 12,063	$ 14,009

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Investments - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Schedule of Investments [Abstract]
Realized (loss) gain on marketable securities	$ (100)	$ 1,000	$ (30)	$ 1,800

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Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Assets
Cash equivalents	$ 180,574	$ 307,277
Investment securities - fair value
Fair Value	77,184	80,335
Total assets measured at fair value	269,304	400,933
Liabilities
Total liabilities measured at fair value	72,980	88,400
Contingent Consideration Liability
Liabilities
Total liabilities measured at fair value	72,980	88,400
Sponsored funds
Investment securities - fair value
Fair Value	65,121	66,326
Equity securities
Investment securities - fair value
Fair Value	12,063	14,009
Nonqualified retirement plan assets
Investment securities - fair value
Nonqualified retirement plan assets	11,546	13,321
Level 1
Assets
Cash equivalents	180,574	307,277
Investment securities - fair value
Total assets measured at fair value	269,304	400,933
Liabilities
Total liabilities measured at fair value	0	0
Level 1 | Contingent Consideration Liability
Liabilities
Total liabilities measured at fair value	0	0
Level 1 | Sponsored funds
Investment securities - fair value
Fair Value	65,121	66,326
Level 1 | Equity securities
Investment securities - fair value
Fair Value	12,063	14,009
Level 1 | Nonqualified retirement plan assets
Investment securities - fair value
Nonqualified retirement plan assets	11,546	13,321
Level 2
Assets
Cash equivalents	0	0
Investment securities - fair value
Total assets measured at fair value	0	0
Liabilities
Total liabilities measured at fair value	0	0
Level 2 | Contingent Consideration Liability
Liabilities
Total liabilities measured at fair value	0	0
Level 2 | Sponsored funds
Investment securities - fair value
Fair Value	0	0
Level 2 | Equity securities
Investment securities - fair value
Fair Value	0	0
Level 2 | Nonqualified retirement plan assets
Investment securities - fair value
Nonqualified retirement plan assets	0	0
Level 3
Assets
Cash equivalents	0	0
Investment securities - fair value
Total assets measured at fair value	0	0
Liabilities
Total liabilities measured at fair value	72,980	88,400
Level 3 | Contingent Consideration Liability
Liabilities
Total liabilities measured at fair value	72,980	88,400
Level 3 | Sponsored funds
Investment securities - fair value
Fair Value	0	0
Level 3 | Equity securities
Investment securities - fair value
Fair Value	0	0
Level 3 | Nonqualified retirement plan assets
Investment securities - fair value
Nonqualified retirement plan assets	$ 0	$ 0

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Fair Value Measurements - Rollforward of the Contingent Consideration Liabilities Valued using Level 3 Inputs (Details) - Level 3 - Contingent Consideration Liability - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Contingent consideration, beginning of period	$ 70,080	$ 63,500	$ 88,400	$ 0
Additions for acquisition	0	0	1,200	63,500
Reduction for payments made	0	0	(19,520)	0
Increase (reduction) of liability related to re-measurement of fair value	2,900	0	2,900	0
Contingent consideration, end of period	$ 72,980	$ 63,500	$ 72,980	$ 63,500

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Equity Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended		6 Months Ended
	May 18, 2022	May 31, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Equity [Abstract]
Cash dividends declared per common share (in dollars per share)	$ 1.50		$ 1.50	$ 0.82	$ 3.00	$ 1.64
Repurchases of common shares (in shares)			221,903		347,355
Weighted average price (in dollars per share)			$ 180.23		$ 201.49
Total cost of shares repurchased			$ 40,000	$ 7,500	$ 70,000	$ 12,499
Addition to the total number of shares authorized to be repurchased (in shares)		750,000
Shares available for repurchase (in shares)			932,094		932,094

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Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 824,233	$ 738,695	$ 836,627	$ 720,940
Other comprehensive income (loss)	(237)	0	(287)	6
Balance at end of period	791,705	789,837	791,705	789,837
Foreign Currency Translation Adjustments (in thousands)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period			20	29
Other comprehensive income (loss)			(287)	6
Balance at end of period	$ (267)	$ 35	(267)	35
Other comprehensive income (loss), before reclassifications, tax			$ 249	$ (2)

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Stock-Based Compensation - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($) shares	Jun. 30, 2021 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for issuance (in shares)	668,628
Shares of common stock reserved for issuance (in shares)	3,370,000
RSUs and PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized stock-based compensation expense | $	$ 35.2
Weighted-average remaining amortization period	1 year 4 months 24 days
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Conversion ratio	1
Share settlement under RSUs (in shares)	72,043	72,324
Cash used for employee withholding tax payments | $	$ 15.3	$ 19.3
Performance Share Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)	30,516
Period for recognition of compensation expense	3 years
Minimum | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Maximum | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years

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Stock-Based Compensation - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share-Based Payment Arrangement [Abstract]
Stock-based compensation expense	$ 4,572	$ 7,849	$ 14,119	$ 15,844

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Stock-Based Compensation - Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs)	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Number of Shares
Number of shares, beginning balance (in shares) | shares	430,730
Number of shares, granted (in shares) | shares	175,379
Number of shares, forfeited (in shares) | shares	(36,336)
Number of shares, settled (in shares) | shares	(183,995)
Number of shares, ending balance (in shares) | shares	385,778
Weighted Average Grant Date Fair Value
Weighted average grant date fair value, beginning balance (in dollars per share) | $ / shares	$ 138.01
Weighted-average grant-date fair value (in dollars per share) | $ / shares	193.35
Weighted average grant date fair value, forfeited (in dollars per share) | $ / shares	116.73
Weighted average grant date fair value, settled (in dollars per share) | $ / shares	119.53
Weighted average grant date fair value, ending balance (in dollars per share) | $ / shares	$ 173.99

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Earnings (Loss) Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share [Abstract]
Net Income (Loss)	$ 14,259	$ 76,097	$ 53,378	$ 128,311
Noncontrolling interests	3,143	(13,130)	(2,917)	(28,756)
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.	$ 17,402	$ 62,967	$ 50,461	$ 99,555
Shares (in thousands):
Basic: Weighted-average number of common shares outstanding (in shares)	7,449	7,698	7,496	7,674
Plus: Incremental shares from assumed conversion of dilutive instruments (in shares)	158	309	225	364
Diluted: Weighted-average number of common shares outstanding (in shares)	7,607	8,007	7,721	8,038
Earnings (Loss) Per share—Basic (in dollars per share)	$ 2.34	$ 8.18	$ 6.73	$ 12.97
Earnings (Loss) Per Share—Diluted (in dollars per share)	$ 2.29	$ 7.86	$ 6.54	$ 12.39

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Earnings (Loss) Per Share - Securities Excluded from Computation of Diluted EPS (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive securities (in shares)	84	5	24	6
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive securities (in shares)	84	5	24	6

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Income Taxes (Details)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Estimated effective income tax rate (as percent)	38.40%	22.60%

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Debt - Narrative (Details) - USD ($) $ in Millions		6 Months Ended
	Sep. 28, 2021	Jun. 30, 2022
Revolving credit facility
Line of Credit Facility [Line Items]
Outstanding borrowings		$ 0.0
Credit Agreement | Term loan
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 275.0
Term of debt	7 years
Debt repayments		11.4
Credit Agreement | Revolving credit facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 175.0
Term of debt	5 years
Credit Facility 2017 | Term loan
Line of Credit Facility [Line Items]
Outstanding borrowings		262.9
Debt issuance costs		$ 7.1

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Redeemable Noncontrolling Interests - Narrative (Details)	6 Months Ended
	Jun. 30, 2022
Minimum
Noncontrolling Interest [Line Items]
Exercise period	4 years
Maximum
Noncontrolling Interest [Line Items]
Exercise period	7 years

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Redeemable Noncontrolling Interests - Summary (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]
Beginning balance			$ 138,965
Net income (loss) attributable to noncontrolling interests			2,599
Changes in redemption value			(338)	$ (8,001)
Total net income (loss) attributable to noncontrolling interests	$ (2,865)	$ 12,860	3,252	28,411
Net subscriptions (redemptions) and other	3,274	$ 6,183	(3,070)	$ (12,399)
Ending balance	139,147		139,147
CIP
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]
Beginning balance			12,416
Net income (loss) attributable to noncontrolling interests			(1,593)
Total net income (loss) attributable to noncontrolling interests			(1,593)
Net subscriptions (redemptions) and other			2,227
Ending balance	13,050		13,050
Affiliate Noncontrolling Interests
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]
Beginning balance			126,549
Net income (loss) attributable to noncontrolling interests			4,192
Total net income (loss) attributable to noncontrolling interests			4,845
Net subscriptions (redemptions) and other			(5,297)
Ending balance	$ 126,097		126,097
Portion at Other than Fair Value Measurement
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]
Changes in redemption value			653
Portion at Other than Fair Value Measurement | CIP
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]
Changes in redemption value			0
Portion at Other than Fair Value Measurement | Affiliate Noncontrolling Interests
Increase (Decrease) in Redeemable Non-controlling Interests [Roll Forward]
Changes in redemption value			$ 653

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Consolidation - Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Variable Interest Entity [Line Items]
Noncontrolling interests	$ (139,147)	$ (138,738)	$ (138,965)	$ (131,525)	$ (112,482)	$ (115,513)
VOEs
Variable Interest Entity [Line Items]
Cash and cash equivalents	798		787
Investments	19,049		21,544
Other assets	94		64
Notes payable	0		0
Securities purchased payable and other liabilities	(417)		(558)
Noncontrolling interests	(4,634)		(4,935)
Net interests in CIP	14,890		16,902
CLOs
Variable Interest Entity [Line Items]
Cash and cash equivalents	104,348		205,192
Investments	1,917,076		2,055,107
Other assets	15,920		43,327
Notes payable	(1,904,444)		(2,033,617)
Securities purchased payable and other liabilities	(65,314)		(184,214)
Noncontrolling interests	(6,997)		(8,350)
Net interests in CIP	60,589		77,445
Other
Variable Interest Entity [Line Items]
Cash and cash equivalents	3,155		1,245
Investments	54,034		63,587
Other assets	1,027		819
Notes payable	0		0
Securities purchased payable and other liabilities	(159)		(296)
Noncontrolling interests	(8,416)		(7,481)
Net interests in CIP	$ 49,641		$ 57,874

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Consolidation - Narrative (Details)	6 Months Ended
	Jun. 30, 2022 USD ($) collateralized_loan_obligation	Dec. 31, 2021 USD ($)
Variable Interest Entity [Line Items]
Derivative liabilities	$ 0
CLOs
Variable Interest Entity [Line Items]
Number of CLOs consolidated | collateralized_loan_obligation	6
Investments	$ 1,917,076,000	$ 2,055,107,000
Nonconsolidated
Variable Interest Entity [Line Items]
Carrying value and maximum risk of loss	$ 27,800,000
LIBOR | CLOs
Variable Interest Entity [Line Items]
Investments, basis spread on variable interest rate (as percent)	10.00%
Senior Notes | CLOs
Variable Interest Entity [Line Items]
Unpaid principal balance exceeds fair value	$ 113,600,000
Subordinated Notes - Newfleet CLO 2016-1 | CLOs
Variable Interest Entity [Line Items]
Debt par value	2,200,000,000
Subordinated Notes - Newfleet CLO 2016-1 | Subordinated Debt | CLOs
Variable Interest Entity [Line Items]
Debt par value	233,700,000
Senior Secured Floating Rate Notes - Newfleet CLO 2016-1 | Senior Notes | CLOs
Variable Interest Entity [Line Items]
Debt par value	$ 1,900,000,000
Minimum | Senior Secured Floating Rate Notes - Newfleet CLO 2016-1 | LIBOR | CLOs
Variable Interest Entity [Line Items]
Basis spread on variable rate (as percent)	0.80%
Maximum | Senior Secured Floating Rate Notes - Newfleet CLO 2016-1 | LIBOR | CLOs
Variable Interest Entity [Line Items]
Basis spread on variable rate (as percent)	8.90%

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Consolidation - Beneficial Interests of Consolidated Investment Product (Details) - CLOs $ in Thousands	Jun. 30, 2022 USD ($)
Variable Interest Entity [Line Items]
Subordinated notes	$ 59,446
Accrued investment management fees	1,143
Total Beneficial Interests	$ 60,589

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Consolidation - Revenue and Expenses of Consolidated Investment Product (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Expenses:
Noncontrolling interests	$ 3,143	$ (13,130)	$ (2,917)	$ (28,756)
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.	$ 17,402	$ 62,967	50,461	$ 99,555
CLOs
Income:
Realized and unrealized gain (loss), net			(21,668)
Interest income			40,633
Total Income			18,965
Expenses:
Other operating expenses			1,126
Interest expense			26,504
Total Expense			27,630
Noncontrolling interests			335
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.			$ (8,330)

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Consolidation - Economic Interests of Consolidated Investment Product (Details) - CLOs $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Variable Interest Entity [Line Items]
Distributions received and unrealized gains (losses) on the subordinated notes held by the Company	$ (12,458)
Investment management fees	4,128
Total Economic Interests	$ (8,330)

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Consolidation - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Assets
Cash equivalents	$ 180,574	$ 307,277
Total assets measured at fair value	269,304	400,933
Liabilities
Total liabilities measured at fair value	72,980	88,400
Level 1
Assets
Cash equivalents	180,574	307,277
Total assets measured at fair value	269,304	400,933
Liabilities
Total liabilities measured at fair value	0	0
Level 2
Assets
Cash equivalents	0	0
Total assets measured at fair value	0	0
Liabilities
Total liabilities measured at fair value	0	0
Level 3
Assets
Cash equivalents	0	0
Total assets measured at fair value	0	0
Liabilities
Total liabilities measured at fair value	72,980	88,400
Fair Value, Measurements, Recurring | Consolidated Investment Products
Assets
Cash equivalents	104,348	205,192
Total assets measured at fair value	2,094,507	2,345,430
Liabilities
Notes payable	1,904,444	2,033,617
Short sales	345	515
Total liabilities measured at fair value	1,904,789	2,034,132
Fair Value, Measurements, Recurring | Debt investments | Consolidated Investment Products
Assets
Investments	1,962,901	2,110,704
Fair Value, Measurements, Recurring | Equity investments | Consolidated Investment Products
Assets
Investments	27,258	29,534
Fair Value, Measurements, Recurring | Level 1 | Consolidated Investment Products
Assets
Cash equivalents	104,348	205,192
Total assets measured at fair value	127,312	231,576
Liabilities
Notes payable	0	0
Short sales	345	515
Total liabilities measured at fair value	345	515
Fair Value, Measurements, Recurring | Level 1 | Debt investments | Consolidated Investment Products
Assets
Investments	197	273
Fair Value, Measurements, Recurring | Level 1 | Equity investments | Consolidated Investment Products
Assets
Investments	22,767	26,111
Fair Value, Measurements, Recurring | Level 2 | Consolidated Investment Products
Assets
Cash equivalents	0	0
Total assets measured at fair value	1,935,438	2,110,697
Liabilities
Notes payable	1,904,444	2,033,617
Short sales	0	0
Total liabilities measured at fair value	1,904,444	2,033,617
Fair Value, Measurements, Recurring | Level 2 | Debt investments | Consolidated Investment Products
Assets
Investments	1,932,308	2,107,736
Fair Value, Measurements, Recurring | Level 2 | Equity investments | Consolidated Investment Products
Assets
Investments	3,130	2,961
Fair Value, Measurements, Recurring | Level 3 | Consolidated Investment Products
Assets
Cash equivalents	0	0
Total assets measured at fair value	31,757	3,157
Liabilities
Notes payable	0	0
Short sales	0	0
Total liabilities measured at fair value	0	0
Fair Value, Measurements, Recurring | Level 3 | Debt investments | Consolidated Investment Products
Assets
Investments	30,396	2,695
Fair Value, Measurements, Recurring | Level 3 | Equity investments | Consolidated Investment Products
Assets
Investments	$ 1,361	$ 462

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Consolidation - Assets Related to Consolidated Sponsored Investment Products, Unobservable Input Reconciliation (Details) - Debt investments - Consolidated Investment Products - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	$ 3,157	$ 54,182
Realized gains (losses), net	27	(214)
Change in unrealized gains (losses), net	(930)	3,281
Purchases	0	4,395
Amortization	(9)	60
Sales	(2,135)	(27,309)
Transfers to Level 2	(36,833)	(44,578)
Transfers from Level 2	68,480	62,264
Balance at end of period	$ 31,757	$ 52,081