Road Show Notes: Normalizing Flow Profile Meets Compelling Valuation

研报英文原文证据摘录

Road Show Notes: Normalizing Flow Profile Meets Compelling Valuation

C O M PA N Y N O T E

M a y 1 3 , 2 0 2 6

Alts platform at 12% of AUM and Virtus continues to increase its business mix toward alternatives, which currently

growing represents 12% of AUM. A cornerstone of this evolution has been the recent Keystone

acquisition, which differentiates itself from the direct lending space by focusing on real assets,

asset-based lending (ABL), and real estate. While Keystone’s tender offer fund experienced

5.4% redemptions in 1Q26, management commented that these were partly driven by one-

time liquidity mandates specifically from investors unable to hold assets managed by principal

majority owned firms rather than from performance issues. Excluding these technical outflows,

redemption levels in the product remain fairly normalized. Virtus has been successfully building

a diversified alternatives suite, which also includes the firm’s AlphaSimplex managed futures

platform. We expect continued growth for Virtus' alts platform through both organic growth and

inorganic expansion.

Balanced capital allocation Balanced capital allocation strategy. Virtus maintains a disciplined and balanced capital

strategy allocation strategy, prioritizing shareholder returns while preserving the flexibility to pursue

strategic growth. The firm has been a consistent buyer of its own shares, effectively utilizing

buybacks to drive down the share count and offset dilution, all while supporting a compelling ~7%

dividend yield. With a conservative balance sheet—net debt to EBITDA sits at a modest 1.1x—

Virtus retains dry powder for future M&A, where the firm continues to see an active pipeline. While

management has the capacity to lever up if the right opportunity arises, they remain focused on