Virtus Investment Partners (VRTS) risk factors, FY2024 10-K

RISKS RELATED TO OUR INDUSTRY, BUSINESS AND OPERATIONS

1. 01We earn substantially all of our revenues based on assets under management that fluctuate based on many factors, and any reduction would negatively impact our revenues and profitability
2. 02We may engage in strategic transactions that could pose financial or business risks
3. 03Our investment management agreements are subject to renegotiation or termination on short notice, which could negatively impact our business
4. 04Our business could be harmed by any damage to our reputation and lead to a reduction in our revenues and profitability
5. 05Our debt agreements contain covenants, required principal repayments and other provisions that could adversely affect our financial condition or results of operations
6. 06credit that customarily contain covenants
7. 07We may need to obtain additional capital that may not be available to us in sufficient amounts or on acceptable terms, which could have an adverse impact on our business
8. 08Our business relies on the ability to attract and retain key employees, and the loss of such employees could negatively affect our financial performance
9. 09We operate in a highly competitive industry that may require us to reduce our fees or increase amounts paid to financial intermediaries, which could result in a reduction of our revenues and profitability
10. 10We utilize unaffiliated firms to provide investment management services and any matters that adversely impact them or any change in our relationships with them could adversely affect our revenues and profitability
11. 11We distribute our products through intermediaries and changes in key distribution relationships could reduce our revenues, increase our costs and adversely affect our profitability
12. 12We and our third-party service providers rely on numerous technology systems and any business interruption, security breach, or system failure could negatively impact our business and profitability
13. 13We have significant capital invested in marketable securities, which exposes us to earnings volatility as the value of these investments fluctuate, as well as risk of capital loss

LEGAL AND REGULATORY RISKS

1. 14We are subject to an extensive and complex regulatory environment and changes in regulations or failure to comply with them could adversely affect our revenues and profitability
2. 15We manage assets under agreements that have investment guidelines or other contractual requirements and failure to comply could result in claims, losses, or regulatory sanctions, which could negatively impact our revenues and profitability
3. 16We could be subject to civil litigation and government investigations or proceedings, which could adversely affect our business
4. 17We are subject to multiple tax jurisdictions and any changes in tax laws or unanticipated tax obligations could have an adverse impact on our financial condition, results of operations and cash flow

RISKS RELATED TO OWNERSHIP OF OUR COMMON STOCK

1. 18We have corporate governance provisions that may make an acquisition of us more difficult
2. 19Our insurance policies may not cover all losses and costs to which we may be exposed, which could adversely impact our results of operations and financial condition
3. 20We have goodwill and other intangible assets on our balance sheet that could become impaired, which could impact our results of operations and financial condition