Virtus Investment Partners Inc Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ben Budish - Barclays - Analyst : Hi, good morning and thanks for taking the question. Maybe just to kick it off can you talk a little bit? How you're thinking about how the year may unfold. I know, the last couple of years has been very strong S&P performance. I know you guys tend to say you tend to see things shake out a little bit better in your non-correlated strategies when the markets are a little frothier. I know you indicated January, I think flow is looking similar to Q4. Where do you see yourself as sort of best positioned for the year? You kind of gave us some color on ETFs retail SMAs but maybe from a, sort of strategic or asset class perspective. How do you think about the best opportunities in '25?

Question: Ben Budish - Barclays - Analyst : Understood, and maybe just one follow up and how are you thinking about use of capital this year? And clearly, we've seen a pretty fairly steady pace of stock reperches, your dividend increase has been, quite robust. The M&A question is sort of always out there. So I guess the things that are sort of like the knowns, seed capital for new products, things like that and then any color on what may be in the M&A pipeline.

Question: Ben Budish - Barclays - Analyst : I understood. Thanks so much for taking my questions.

Question: Crispin Love - Piper Sandler - Analyst : Thank you, good morning. I heard some of your comments on January flows to date on retail ETS in institutional and I know it's early in the quarter. But can you just put a finer point on your comments excluding the partial redemption in the fourth quarter? Our flows better than January compared to the fourth quarter?

Question: Crispin Love - Piper Sandler - Analyst : Thanks George, appreciate that. On the $3.3 billion partial redemption, institutional, it was partial. So can you provide how much is the whole relationship and your confidence that this is just a one-time redemption here.

Question: Crispin Love - Piper Sandler - Analyst : Thank you, George. I appreciate you taking my questions.

Question: Bradley Hay - TD Cowen - Analyst : Hi, good morning. It's Bradley Hay on for Bill Katz. Has there been any change around your thinking for tax reporting in particular? Is there potential to adjust your non-GAAP ETS to incorporate the tax shield rather than displaying it separately? If so, what are some of the key considerations?

Question: Bradley Hay - TD Cowen - Analyst : Okay, great thank you. And then one follow up following on a prior question, could you perhaps dig in a bit more on the M&A side, particularly for liquid ALTs generally speaking, what are you seeing in the market in terms of deal opportunities and multiple expectations and where that may differ?

Question: Bradley Hay - TD Cowen - Analyst : Okay, great. Thank you.

Question: Michael Cyprys - Morgan Stanley - Analyst : Hey, it's Michael Cyprys. Can you guys hear me? Okay.

Question: Michael Cyprys - Morgan Stanley - Analyst : Great. Thank you so much. Just a question M&A just curious how much time you guys are spending on that now versus say 3 months to 6 months ago, and maybe you can give a little perspective on the pipeline. What that looks like, how you're thinking about acquisitions versus partnership versus JBs. Where you think these strategic opportunities, most be might be most additive to the platform and as you think about the financial flexibility, you guys are under one turn of gross leverage. How comfortable would you be taking that? Above two turns or said another way, how high would you be comfortable taking that in a hypothetical transaction?

Question: Michael Cyprys - Morgan Stanley - Analyst : You did. And I would just ask a follow up if I could on that. Just curious as you think about a sense of likelihood for something to materialize over the next 12 months. And if so, as you think about that, where do you feel more confident on that materializing?

Question: Michael Cyprys - Morgan Stanley - Analyst : Understood. So I'll maybe ask a different follow up instead since we didn't answer that one, just given broader advances in data science and AI was hoping maybe you could talk a little bit about how you're investing in technology to enhance the investment engines across the organization and support Alpha Generation. How do you see that evolving in the near-term versus the long-term and as a sort of multi affiliate boutique firm, how do you sort of best harness that? Is it some sort of shared services at the center or do you think about it at each and every individual franchise? So sort of going about it in their own unique manner?

Question: Michael Cyprys - Morgan Stanley - Analyst : Okay, thanks.