February 2, 2018

Virtus: 4Q net falls; Stamford wealth advisor deal pending

Matt Pilon
Matt Pilon
100 Pearl St. houses Virtus' headquarters.

Hartford wealth manager Virtus Investments Inc. posted lower fourth-quarter and full-year profits despite higher revenues.

Virtus also announced Friday plans to acquire a majority stake in Stamford wealth advisor Sustainable Growth Advisors.

For three months ended Dec. 31, Virtus netted generally accepted accounting principles (GAAP) income of $3.4 million, or 36 cents a diluted share, down from $12.4 million, or $1.87 a share, netted the final quarter of 2016.

Fourth-quarter revenues climbed 60 percent to $128 million vs. $79.9 million a year earlier.

For 2017, Virtus posted GAAP net income of $28.7 million, or $1.96 a diluted share, down from 2016 net of $48.5 million, or $6.20 a share.

Full-year revenues were $425.6 million vs. $322.6 a year ago.

Virtus ended 2017 with managed assets of $91 billion vs. $45.4 billion at year-end 2016.

In the pending SGA transaction, Virtus said it has agreed to unspecified terms and conditions to acquire SGA's majority stake currently held by private-equity investor Estancia Capital Management.

As a Virtus affiliate, SGA, which manages $11.6 billion in assets, will continue to oversee its investment process and maintain its independent structure, culture, brand identity, and control over day-to-day activities. Meanwhile, SGA gains access to Virtus' distribution and shared business support capabilities, Virtus said.

The deal, pending all customary regulatory reviews and closing terms, is slated to close by mid-year.

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