In a strategic move to enhance its multi-manager asset management capabilities, Virtus Investment Partners, Inc. (NYSE: VRTS) has announced a definitive agreement to acquire a majority interest in Keystone National Group. This acquisition marks a significant step for Virtus as it seeks to diversify its investment offerings into private markets, particularly through innovative asset-backed lending strategies.

1. A New Chapter in Private Credit

Founded in 2006, Keystone National Group has established itself as a leader in asset-centric private credit, managing approximately $2.5 billion in assets as of October 31, 2025. With a robust track record of over $6 billion deployed across more than 750 transactions, Keystone specializes in diversified asset-backed lending strategies that encompass equipment finance, real estate finance, financial assets, and asset-backed corporate loans. Its flagship product, the Keystone Private Income Fund (KPIF), which manages $2.0 billion, has garnered strong support from wealth managers for its stable and consistent performance.

George R. Aylward, President and CEO of Virtus, expressed enthusiasm about the partnership, stating, “Partnering with Keystone allows us to offer strategies of an innovative asset-centric private credit manager that has delivered attractive, uncorrelated returns.” He emphasized the growing demand from clients for alternative income sources and the importance of diversifying private credit exposure beyond traditional direct lending.

2. Transaction Details

Under the terms of the agreement, Virtus will acquire the majority stake in Keystone for $200 million at closing, with an additional contingent consideration of up to $170 million based on future revenue targets. This acquisition is expected to be financed through Virtus’ existing balance sheet resources. Keystone’s management team will retain a significant equity stake and will enter into long-term employment agreements, ensuring continuity and alignment with Virtus’ strategic objectives.

John Earl, co-founder and managing partner of Keystone, expressed his excitement about the partnership, highlighting Virtus as an ideal strategic partner to support the firm’s growth. He noted, “We look forward to continuing to deliver outstanding service for our clients as part of the Virtus platform.” The partnership is expected to leverage Virtus’ extensive distribution network to capitalize on emerging investment opportunities within asset-backed credit.

3. Looking Ahead

The acquisition is anticipated to close in the first quarter of 2026, contingent upon customary closing conditions, including approval by the KPIF fund board and shareholders. It is projected to be accretive to Virtus’ earnings in 2026, underscoring the anticipated benefits of this strategic expansion into private markets.

Virtus will host an investor conference call and webcast today at 10:00 a.m. Eastern to discuss the announcement in detail, providing further insights into the implications of this acquisition for investors and stakeholders alike.

4. Conclusion

The acquisition of Keystone National Group signifies Virtus Investment Partners’ commitment to enhancing its investment offerings and meeting the evolving needs of clients in a competitive financial landscape. By integrating Keystone’s innovative private credit strategies, Virtus is poised to strengthen its position in the asset management industry while providing valuable solutions for income-seeking investors. The coming months will be critical as the transaction progresses towards finalization, with expectations set on the potential for growth and increased value creation for stakeholders.

Original press release