Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Is Virtus Taking an M&A Break? Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, May 2, 2018

Is Virtus Taking an M&A Break?

Reported by Neil Anderson, Managing Editor

As a publicly traded, multiboutique asset manager prepares to digest one acquisition, its chief is keeping his eyes open for more deals. Yet more M&A isn't a necessity, he says.

"Our plan for long-term growth is not dependent upon M&A," George Aylward, CEO of Virtus Investments Partners [profile], told analysts on Virtus' Q1 2018 earnings call on Friday, as transcribed by Seeking Alpha. "[We] haven't been [building] our long-term strategy on the premise that we need to continually do M&A and expand the business that way."

Aylward was responding to a question from Michael Cyprys, executive director of equity research at Morgan Stanley, about Virtus' M&A plans after digesting Sustainable Growth Advisers (SGA). In February Virtus unveiled a deal to buy a majority stake in Stamford, Connecticut-based SGA, buying out private equity firm Estancia Capital Partners' three-year-old stake and partly buying out SGA's partners. On the call on Friday Aylward said that the deal is still on track to close mid-year.

Later on in the earnings call, Jefferies equity research analyst Surinder Thind returned to the M&A subject, wondering if Aylward should reverse his priorities and put M&A ahead of organic growth as the primary focus for Hartford, Connecticut-based Virtus (VRTS on the Nasdaq).

"Obviously, you want to invest as much you can to get organic growth, but if the industry is — there's a lot of headwinds out there, why not be more aggressive with M&A?" Thind asked.

"We absolutely participate and look for any opportunities that are out there ... So we're not saying we wouldn't look at those," Aylward responded. "If the right thing comes along, we certainly will always consider it."

On Friday, Virtus reported Q1 2018 adjusted earnings per share of $2.59 and revenue of $129.03 million, beating analysts' estimates by $0.12 per share and $780,000, respectively. As of March 31, 2018, Virtus had $89.1 billion in AUM, up 86 percent year-over-year (in part thanks to buying RidgeWorth last June) but down two percent from Q4 2017. Virtus suffered $700,000 in net outflows in Q1 2018, down from $800,000 net outflows in Q4 2017 and $500,000 in net inflows in Q1 2017.

Jordan Friedlander, Ari Ghosh, and Craig Siegenthaler of Credit Suisse reiterated their "outperform" rating for Virtus, calling the firm one of their "top traditional longs," an "undervalued puzzle." Thind, Daniel Fannon, Gerald O'Hara, and James Steele of Jefferies rated Virtus a "hold" in response to its Q1 results. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q4Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly


  1. MFDF webinar - BDC Board Service 101, December 10
  2. WE Boston - Give Back Event, December 10
  3. IMEA Distribution Council webinar - Unlocking Your Competitive Edge: Driving Results Through Net Promoter Excellence, December 10
  4. WE New York - End of Year Celebration, December 11
  5. MFDF webinar - ETF Product Trends: Board Implications, December 11
  6. Nicsa webinar - The Virtues of Corporate Culture, December 11
  7. MFDF webinar - Visually Mapping Board Composition: Skills Matrices in Fund Board Rooms, December 18
  8. IMEA webinar - Driving Equity: The FARE Journey and Its Impact on Financial Services, December 19
  9. MFDF webinar - 2024 Fair Valuation Pricing Survey: Building and Strengthening the Valuation Operating Model, January 7, 2025
  10. MFDF webinar - 15(c) White Paper Webinar Series: Part 2 – Board Processes, January 9, 2025
  11. MFDF webinar - AI and Fund Compliance, January 21, 2025
  12. MFDF In Focus - In Focus: Small Boards' Use of Skills Matrices, January 22, 2025
  13. MFDF 2025 Directors' Institute, January 27 - 29, 2025
  14. FSI OneVoice 2025, January 27 - 29, 2025
  15. 2025 ICI Innovate, February 3 - 5, 2025
  16. MFDF Director Discussion Series - Open Forum, February 10, 2025
  17. MFDF Director Discussion Series - Open Forum, February 11, 2025
  18. MFDF 2025 Fund Governance & Regulatory Insights Conference, March 6 - 7, 2025
  19. MFDF Director Discussion Series - Open Forum, April 2, 2025
  20. Envestnet Elevate 2025, April 9 - 10, 2025
  21. MFDF Director Discussion Series - Open Forum, April 15, 2025
  22. The 36th Sub-Advised Funds Forum, April 29 - 30, 2025
  23. Morningstar Investment Conference 2025, June 25 - 26, 2025
  24. MFDF Director Discussion Series - Open Forum, July 9, 2025




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use