Virtus Investment Partners Raises Fee Rates Amid AUM Decline
Adjusted revenues rose 1% quarter-over-quarter to $183.6 million as higher management fees offset a year-over-year AUM drop of 11%.
Virtus Investment Partners (VRTS), the asset management firm, leveraged pricing power to stabilize top-line growth despite a continuing decline in total assets. Adjusted revenues increased 1% quarter-over-quarter to $183.6 million from $182.3 million.
The growth was driven by an expansion in average management fees for all products, which rose to 43.1 bps in the second quarter of 2026 from 41.9 bps in the first quarter and 41.3 bps in the second quarter of 2025. This pricing lift partially offset the impact of lower average assets under management.
Assets under management ended the quarter at $152.2 billion, a 2% increase from the $149.0 billion reported in the prior quarter. However, the figure remained 11% lower than the $170.7 billion reported in the second quarter of 2025.
Net flows showed signs of stabilization. Net flows improved to ($5.6) billion in the second quarter compared to ($8.4) billion in the first quarter of 2026. Despite the sequential improvement, flows were 43% lower than the ($3.9) billion reported in the same period last year.
Institutional performance provided a tailwind to the flow trend. Institutional net flows improved to ($0.7) billion from ($3.2) billion in the prior quarter. This shift was due to higher sales, including a large inflow into a global listed real estate strategy.
Efficiency metrics shifted as adjusted operating expenses decreased 2% quarter-over-quarter to $135.7 million from $138.5 million. The decline was primarily due to seasonal employment expenses incurred in the previous quarter. Consequently, the adjusted operating margin expanded to 26.1% from 24.0% in the first quarter, though it remained below the 31.3% margin seen in the second quarter of 2025.
Virtus reduced its leverage and returned capital to shareholders during the period. Net debt declined to $250.8 million, or 0.9x EBITDA, from $311.4 million in the first quarter, following a $20 million repayment of the revolving credit facility.
The company repurchased 70,097 shares for $10.0 million and paid quarterly dividends totaling $16.3 million.