Virtus Investment Partners, Inc. reported a solid performance for the third quarter and the nine months ended September 30, 2024, with notable increases in revenue and profitability compared to the same periods in 2023. Total revenues for Q3 2024 reached $227.0 million, reflecting a 3.5% increase from $219.3 million in Q3 2023. For the nine months, total revenues amounted to $673.5 million, up 6.8% from $630.7 million in the prior year. The growth in revenue was primarily driven by an increase in investment management fees, which rose to $193.8 million in Q3 2024 from $184.9 million in Q3 2023, and totaled $573.9 million for the nine months, compared to $529.3 million in the previous year.

Operating income for Q3 2024 was $55.3 million, a significant increase of 23.1% from $44.9 million in Q3 2023. Net income for the quarter also saw a substantial rise, reaching $49.1 million, compared to $38.2 million in the same quarter last year. Net income attributable to Virtus Investment Partners increased to $41.0 million from $30.9 million, resulting in earnings per share (EPS) of $5.71, up from $4.19 in Q3 2023.

Despite the positive performance, net income for the nine months ended September 30, 2024, was $113.0 million, a decrease from $99.0 million in the same period of 2023. This decline was attributed to a significant drop in net cash provided by operating activities, which fell to $104.6 million from $229.8 million year-over-year, primarily due to a decrease in net sales of investments by consolidated investment products (CIP).

The company completed the acquisition of AlphaSimplex Group, LLC on April 1, 2023, for $113.4 million, which contributed to the increase in intangible assets. As of September 30, 2024, total investments rose to $164.7 million, up from $132.7 million at the end of 2023. Total assets under management (AUM) increased to $183.7 billion, a 13.0% rise from $162.5 billion a year earlier, bolstered by positive market performance.

Operating expenses for Q3 2024 decreased slightly to $171.8 million from $174.4 million in Q3 2023, while employment expenses increased to $105.6 million, reflecting a 3.9% rise. The company also reported a decrease in distribution and service fees, which fell by 5.3% for the quarter.

As of September 30, 2024, Virtus Investment Partners had cash and cash equivalents of $195.5 million, down from $239.6 million at the end of 2023, while total equity increased to $892.7 million from $868.3 million. The company continues to maintain a robust financial position, with a term loan outstanding of $241.8 million and compliance with regulatory capital requirements across all subsidiaries.