Virtus Investment Partners, Inc. VRTS, entered a definitive agreement to acquire a majority interest in Keystone National Group ("Keystone"), an investment manager specializing in asset-centric private credit and a pioneer in providing such strategies to the wealth channel.
Details of the VRTS Deal
Under the deal, Virtus will acquire a majority interest in Keystone for consideration of $200 million at closing and up to an additional $170 million of deferred consideration, including earnout payments subject to the achievement of future revenue targets. VRTS plans to fund the transaction using existing balance sheet resources.
The deal is anticipated to close in the first quarter of 2026, subject to customary closing conditions, including approvals from the KPIF fund board and shareholders. Virtus expects the acquisition to be accretive to earnings in 2026.
Rationale Behind VRTS Deal
The addition of Keystone’s capabilities is expected to strengthen Virtus’ multi-manager model by introducing a differentiated asset-backed lending capability, positioning the company to meet the rising demand for private markets solutions.
Founded in 2006, Keystone brings more than two decades of experience in managing private credit assets, specializing in diversified asset-backed lending. Its strategies span equipment finance, real estate finance, financial assets and asset-backed corporate loans, offering differentiated exposure across the private credit landscape. As of Oct. 31, 2025, Keystone managed $2.5 billion in assets and has deployed more than $6 billion of capital across over 750 transactions since its inception — a track record that showcases both scale and depth in private market activity.
VRTS’s move to acquire a majority stake in Keystone represents a calculated move as investors shift toward private credit and alternative income sources amid ongoing market volatility. Virtus’s expansion into this space underscores its commitment to providing specialized, institutional-grade strategies to a growing client base.
VRTS Price Performance & Zacks Rank
Shares of VRTS have declined 34.6% in the past year compared with the industry’s 16.1% plunge.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Firms' Efforts to Expand Private Markets Offerings
In November 2025, Charles Schwab SCHW agreed to acquire Forge Global Holdings, Inc. This move aligns with Schwab’s strategy to offer private markets capabilities to retail and advisor clients, leveraging its comprehensive suite of wealth, advisory and investment management solutions, to address the complex needs of investors.
In September 2025, Goldman Sachs GS and T. Rowe Price TROW formed a partnership to expand retirement and wealth solutions across public and private markets. Goldman will invest $1 billion for a 3.5% stake in T. Rowe, gaining access to its retirement-focused clients. The collaboration will roll out private market access, Target-Date Strategies (mid-2026), model portfolios, multi-asset offerings and advisor-managed accounts. The Goldman-T. Rowe initiative marks a significant step in bringing alternatives into mainstream retirement and wealth planning. The partnership will unfold in phases, starting with high-net-worth clients in 2025 and expanding to retirement savers in 2026.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
