Virtus Investment Partners (VRTS) risk factors, FY2025 10-K

Virtus Investment Partners's FY2025 10-K, filed Feb 27, 2026, lists 19 risk factors in 3 groups. Against the prior year's 20: 3 new, 4 dropped, 3 substantially reworded.

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Risk factors listed
193 groups
New this year
3vs 20 last year
Dropped
4since the prior 10-K
Substantially reworded
3of those kept
Section length
5k wordsItem 1A

What the changes say

  • Debt rose to $399.0 million from $236.1 million, while revolving credit capacity increased to $250.0 million.

What changed since the prior 10-K

New

  • NewRISKS RELATED TO OUR INDUSTRY, BUSINESS AND OPERATIONS

    The majority of our revenues are generated from asset-based fees from investment management products and

    Declining assets under management from economic, political, market, regulatory, geopolitical, public-health, or other conditions could reduce fee revenue and profitability.

  • NewRISKS RELATED TO OUR INDUSTRY, BUSINESS AND OPERATIONS

    We incur indebtedness for a variety of business reasons, including in relation to financing acquisitions and transactions. The indebtedness we incur can take many forms including, but not limited to, term loans or revolving lines of credit that customarily contain covenants

    Debt covenants, interest payments, and principal repayments could restrict cash, limit shareholder distributions, or accelerate repayment of Virtus’s $399.0 million debt.

  • NewRISKS RELATED TO OUR INDUSTRY, BUSINESS AND OPERATIONS

    Our technology systems, and those of third-party service providers, are critical to our operations. The ability to

    Failures or inaccuracies in Virtus’s or service providers’ systems could disrupt pricing, transactions, reporting, and client services, causing liabilities or client losses.

Dropped

  • DroppedRISKS RELATED TO OUR INDUSTRY, BUSINESS AND OPERATIONS

    We 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

    Risk that lower assets under management would reduce revenue and profitability.

  • DroppedRISKS RELATED TO OUR INDUSTRY, BUSINESS AND OPERATIONS

    Our debt agreements contain covenants, required principal repayments and other provisions that could adversely affect our financial condition or results of operations

  • DroppedRISKS RELATED TO OUR INDUSTRY, BUSINESS AND OPERATIONS

    credit that customarily contain covenants

  • DroppedRISKS RELATED TO OUR INDUSTRY, BUSINESS AND OPERATIONS

    We 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

Reworded

  • 33% rewrittenRISKS RELATED TO OWNERSHIP OF OUR COMMON STOCK

    We have goodwill and other intangible assets on our balance sheet that could become impaired, which could impact our results of operations and financial condition

    Reported goodwill and intangible assets declined from $775.3 million to $724.5 million, while impairment risk remained otherwise unchanged.

  • 28% rewrittenRISKS RELATED TO OUR INDUSTRY, BUSINESS AND OPERATIONS

    We 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

    Unused revolver capacity rose to $250.0 million from $175.0 million; debt increased to $399.0 million from $236.1 million, and CIP investments rose to $115.9 million from $111.1 million.

  • 22% rewrittenRISKS RELATED TO OUR INDUSTRY, BUSINESS AND OPERATIONS

    We 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

    Investments increased from $282.4 million to $305.3 million, including marketable securities rising to $189.4 million and CLO investments to $115.9 million.

All 19 risk factors

Headings as the filing states them, in filing order.

RISKS RELATED TO OUR INDUSTRY, BUSINESS AND OPERATIONS

  1. 01The majority of our revenues are generated from asset-based fees from investment management products andNew
  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. 05We incur indebtedness for a variety of business reasons, including in relation to financing acquisitions and transactions. The indebtedness we incur can take many forms including, but not limited to, term loans or revolving lines of credit that customarily contain covenantsNew
  6. 06We 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 business28% rewritten
  7. 07Our business relies on the ability to attract and retain key employees, and the loss of such employees could negatively affect our financial performance
  8. 08We 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
  9. 09We 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
  10. 10We distribute our products through intermediaries and changes in key distribution relationships could reduce our revenues, increase our costs and adversely affect our profitability
  11. 11Our technology systems, and those of third-party service providers, are critical to our operations. The ability toNew
  12. 12We 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 loss22% rewritten

LEGAL AND REGULATORY RISKS

  1. 13We 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. 14We 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. 15We could be subject to civil litigation and government investigations or proceedings, which could adversely affect our business
  4. 16We 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. 17We have corporate governance provisions that may make an acquisition of us more difficult
  2. 18Our 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. 19We have goodwill and other intangible assets on our balance sheet that could become impaired, which could impact our results of operations and financial condition33% rewritten

Other Virtus Investment Partners 10-Ks

  • FY2024 10-K risk factors
    20 risks

    Revenue depends heavily on asset-based fees tied to fluctuating assets under management. Balance sheet carries significant debt, marketable securities, and intangible assets. Operations rely heavily on third-party distribution intermediaries and subadvisers.

    Filed Feb 28, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.