Ritwik Roy

Ritwik Roy asked for a quantification or description of the impact of the non-equity side of the business on market-making metrics, including cross-asset workflows and volatility in digital assets, precious metals, and commodities. He also inquired about the greatest levels of incremental demand on the non-retail client side, specifically regarding new customer adds versus greater utilization of services, and the forward pipeline for customer additions or product innovation.

Answer

Co-President and Co-COO Joe Molluso reiterated that Virtu's broad market-making business includes a significant global equities presence, fixed income, currencies, commodities, options, and crypto, which thrives in periods of diverse asset flows and price movements. He clarified that the firm does not break out these segments. Regarding client demand, Joe Molluso stated that Virtu Execution Services (VES) is performing exceptionally well due to product improvements in algos, venues, workflow, and analytics, including retooling for non-equities asset classes. He confirmed that the forward pipeline includes 'all of the above' in terms of adding customers and product innovation.

Ritwik Roy inquired about the impact of the non-equity side of the business on market-making metrics, including Virtu Execution Services (VES) and cross-asset workflows, specifically regarding volatility in digital assets, precious metals, and commodities. He also asked about the greatest levels of incremental demand on the non-retail client side, whether from new customer adds or greater utilization, and the forward pipeline for customer additions and product innovation.

Answer

Co-President and Co-COO Joe Molluso clarified that Virtu's broad market-making business includes global equities, fixed income, currencies, commodities, options, and crypto across all geographies, thriving in quarters with diverse asset flows and price movements. He stated that Virtu Execution Services (VES) is performing exceptionally well due to product improvements in algos, venues, workflow, and analytics, with retooling for non-equities continuing. Joe Molluso affirmed that the forward pipeline includes both adding customers and product innovation.

Ritwik Roy from Jefferies asked about the launch timing for the next flagship private equity and infrastructure funds, and for an update on the wealth channel, including demand expectations for new products and the current stage of investment spend.

Answer

President Connor Teskey confirmed the flagship PE fund will launch in 2025, with the infrastructure fund launching late 2025 or early 2026. He stated they are on track to hit their $10 billion retail fundraising target for the year and that the wealth channel is the primary area of investment spend for future growth.

Ritwik Roy, on for Dan Fannon, asked about the CarVal offering post-acquisition, CLO market dynamics, and M&A appetite. He also inquired about the APAC strategy, particularly in Japan and China, and the reason for the updated tax guidance related to CarVal.

Answer

Matthew Bass, Head of Private Alternatives, expressed strong conviction in CarVal's long-term growth. Onur Erzan, Head of Global Client Group and Private Wealth, noted strong Q3 CLO issuance and described Japan as a continued growth driver and China as a long-term play. Bass and CFO Jacqueline Marks clarified the tax guidance change was a one-time event related to a write-down of the contingent consideration liability, not a change in business conviction.