Virtus Investment Partners, Inc. (NASDAQ: VRTS), which operates a multi-boutique asset management business, today announced it has entered into an agreement to acquire AlphaSimplex Group, LLC, a leading manager of liquid alternative investment solutions with $10.9 billion1 of assets under management, from Natixis Investment Managers.
AlphaSimplex is a leading provider of systematic alternative investment solutions for institutional and individual clients. Its offerings are designed to adapt to changing market dynamics and provide the potential for positive, uncorrelated investment returns even through the market’s most challenging periods. Among its strategies is its flagship trend-following managed futures strategy offered via the 5-Star Morningstar Rated™ $3.5 billion2 AlphaSimplex Managed Futures Strategy Fund (ASFYX), which is the third-largest U.S. mutual fund in its category.
“AlphaSimplex brings distinctive alternative investment capabilities that complement our broad offerings of traditional as well as other liquid alternative strategies,” said George R. Aylward, president and chief executive officer of Virtus. “This agreement allows us to partner with an innovative asset manager offering its clients differentiated investment strategies that have delivered strong, uncorrelated returns over market cycles. Chief Executive Officer Duncan B.E. Wilkinson, Chief Investment Officer and Portfolio Manager Alexander D. Healy, Chief Research Strategist and Portfolio Manager Kathryn M. Kaminski, and their team have built a high quality, client-focused business and we welcome the opportunity to add AlphaSimplex as an affiliated manager.”
“We are excited to begin this next chapter in our story and look forward to continuing to deliver positive outcomes for our clients as part of Virtus, another organization that shares our commitment to the long-term success of investors,” said Wilkinson. “Our strong growth and performance are a testament to our team and our process, and to the important role that alternatives like managed futures can play in a diversified portfolio, as today’s market environment clearly demonstrates.”
As a boutique affiliate of Virtus, AlphaSimplex will maintain autonomy over its investment processes, brand, and culture, with no changes to the investment strategies or the management or investing teams, ensuring continuity for its clients and distribution partners. AlphaSimplex will benefit from Virtus’ strong retail and institutional marketing and distribution capabilities to expand its presence in the U.S. retail, institutional and subadvisory channels as well as non-U.S. markets, shared business support services model, and product development capabilities.
Virtus will acquire 100% of AlphaSimplex from Natixis Investment Managers and it will seek to adopt the two U.S. mutual funds and, subject to regulatory approval, a Luxembourg-domiciled UCITS fund, that are managed by AlphaSimplex. The terms of the transaction were not disclosed. Virtus expects to fund the transaction with existing financial resources. The transaction is expected to close near the end of the first quarter of 2023, subject to customary closing conditions, necessary regulatory approvals, and approvals by the mutual fund boards and fund shareholders.
Piper Sandler & Co. acted as financial advisor and Morgan Lewis & Bockius LLP was the legal advisor to Virtus on the transaction. RBC Capital Markets, LLC acted as financial advisor and Ropes & Gray LLP was the legal advisor to Natixis Investment Managers.
AlphaSimplex Group is a registered investment adviser that seeks to expand the way the world invests with the power of diversification. We specialize in researching and analyzing markets and behaviors, including volatility and risk. The firm develops systematic investment strategies that are designed to adapt to changing market dynamics, using primarily liquid futures and forward contracts. Our purpose is to deliver investment success and positively impact clients and colleagues by embracing a thoughtful culture of innovation, collaboration, and excellence.
Virtus Investment Partners (NASDAQ: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. We provide investment management products and services from our affiliated managers, each with a distinct investment style and autonomous investment process, as well as select subadvisers. Investment solutions are available across multiple disciplines and product types to meet a wide array of investor needs. Additional information about our firm, investment partners, and strategies is available at virtus.com.
Natixis Investment Managers’ multi-affiliate approach connects clients to the independent thinking and focused expertise of more than 20 active managers. Ranked among the world’s largest asset managers3 with more than $1.2 trillion (€1.1 trillion) assets under management4, Natixis Investment Managers delivers a diverse range of solutions across asset classes, styles, and vehicles, including innovative environmental, social, and governance (ESG) strategies and products dedicated to advancing sustainable finance. The firm partners with clients in order to understand their unique needs and provide insights and investment solutions tailored to their long-term goals. Headquartered in Paris and Boston, Natixis Investment Managers is part of the Global Financial Services division of Groupe BPCE, the second-largest banking group in France through the Banque Populaire and Caisse d’Epargne retail networks. For additional information, please visit Natixis Investment Managers’ website at im.natixis.com.
