Piper Cuts Virtus (VRTS) Target but Stays Positive on Credit Fundamentals

Virtus Investment Partners, Inc. (NYSE:VRTS) is included among the 13 Best January Dividend Stocks to Invest in.

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On December 23, Piper Sandler analyst Crispin Love lowered his price target on Virtus Investment Partners, Inc. (NYSE:VRTS) to $218 from $225 and kept an Overweight rating. The call came as part of Piper’s Q4 preview for the asset management group.

Deal activity has started to pick up. At the same time, private credit has taken over the conversation, with investors focused on the risk of rising defaults. Love said those fears look overdone. He pointed to fundamentals he described as “solid,” with loan-to-value ratios in the 30%–40% range, which he said offer “substantial cushion against losses.”

Earlier, on December 5, Virtus Investment Partners, Inc. (NYSE:VRTS) said it reached a definitive agreement to acquire a majority stake in Keystone National Group. Keystone specializes in asset-centric private credit and was an early mover in bringing those strategies to the wealth channel. The deal expands Virtus’ footprint in private markets and adds an asset-backed lending platform to its lineup.

Under the agreement, Virtus will pay $200 million at closing, with up to $170 million more in deferred consideration. That includes earnout payments tied to future revenue targets. The company plans to fund the transaction using existing balance sheet resources. George R. Aylward, president and chief executive officer of Virtus, made the following comment:

“Partnering with Keystone allows us to offer strategies of an innovative asset-centric private credit manager that has delivered attractive, uncorrelated returns to meet the needs of clients who are increasingly looking for alternative sources of income as well as to diversify their private credit exposure beyond direct lending. John Earl and Brandon Nielson, Keystone’s co-founders, and their team have built a high quality, client-focused business and we welcome them to our family of investment managers.”

Keystone’s management team will keep a meaningful equity stake, and its managing partners will sign long-term employment agreements. As part of Virtus, Keystone will continue to run its own investment process and daily operations, while maintaining its culture and brand.

The transaction is expected to close in the first quarter of 2026. RBC Capital Markets served as financial advisor to Virtus, with Goodwin Procter LLP acting as legal counsel. BofA Securities advised Keystone, alongside legal counsel Willkie Farr & Gallagher LLP.

Virtus Investment Partners, Inc. (NYSE:VRTS) provides investment management and related services to both institutional and individual clients. Its strategies span multiple asset classes and are distributed across a range of channels.

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