Bradley Hays's questions to Virtus Investment Partners Inc (VRTS) leadership • Q4 2024
Question
Bradley Hays from TD Cowen asked if Virtus would consider adjusting its non-GAAP EPS to include its tax shield asset. He also followed up on M&A, inquiring about deal opportunities and valuation multiple expectations, particularly in the illiquid alternatives space.
Answer
President and CEO George Aylward and CFO Michael Angerthal responded that while they believe the tax asset has real economic value and some peers include it in non-GAAP results, they currently prefer to disclose it separately for transparency but will continue to evaluate their reporting. On M&A, Aylward identified private market capabilities as a high-interest area that would be a good strategic fit, while acknowledging that valuation multiples for these assets are currently higher than for traditional strategies.