10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2015

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-10994

VIRTUS INVESTMENT PARTNERS, INC.

(Exact name of registrant as specified in its charter)

Delaware	95-4191764
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

100 Pearl St., Hartford, CT 06103

(Address of principal executive offices) (Zip Code)

(800) 248-7971

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES x NO  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    YES  x    NO  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨ (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES  ¨    NO  x

The number of shares outstanding of the registrant’s common stock was 8,667,666 as of October 22, 2015.

VIRTUS INVESTMENT PARTNERS, INC.

INDEX

		Page
Part I. FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets (Unaudited) as of September 30, 2015 and December 31, 2014	2
	Condensed Consolidated Statements of Operations (Unaudited) for the Three and Nine Months Ended September 30, 2015 and 2014	3
	Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Nine Months Ended September 30, 2015 and 2014	4
	Condensed Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 2015 and 2014	5
	Condensed Consolidated Statements of Changes in Equity (Unaudited) for the Nine Months Ended September 30, 2015 and 2014	6
	Notes to Condensed Consolidated Financial Statements (Unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	38
Item 4.	Controls and Procedures	39
Part II. OTHER INFORMATION
Item 1.	Legal Proceedings	39
Item 1A.	Risk Factors	41
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	41
Item 6.	Exhibits	42
	Signatures	43

“We,” “us,” “our,” the “Company” and “Virtus” as used in this Quarterly Report on Form 10-Q, refer to Virtus Investment Partners, Inc., a Delaware corporation, and its subsidiaries.

PART I – FINANCIAL INFORMATION

Item 1.    Financial Statements

1

Virtus Investment Partners, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

	September 30, 2015			December 31, 2014
($ in thousands, except share data)
Assets:
Cash and cash equivalents	$	126,470		$	202,847
Investments	55,225			63,448
Accounts receivable, net	40,107			49,721
Assets of consolidated sponsored investment products
Cash of consolidated sponsored investment products	2,257			457
Cash pledged or on deposit of consolidated sponsored investment products	14,475			8,230
Investments of consolidated sponsored investment products	311,429			236,652
Other assets of consolidated sponsored investment products	10,494			6,960
Assets of consolidated investment product
Cash equivalents of consolidated investment product	120			—
Investments and other assets of consolidated investment product	131,882			—
Furniture, equipment, and leasehold improvements, net	9,042			7,193
Intangible assets, net	41,672			41,783
Goodwill	6,649			5,260
Deferred taxes, net	59,700			60,162
Other assets	17,241			16,060
Total assets	$	826,763		$	698,773
Liabilities and Equity
Liabilities:
Accrued compensation and benefits	$	38,206		$	54,815
Accounts payable and accrued liabilities	39,739			31,627
Dividends payable	4,258			4,270
Other liabilities	12,805			9,082
Liabilities of consolidated sponsored investment products	29,849			12,556
Liabilities of consolidated investment product
Debt of consolidated investment product	9,140			—
Securities purchased payable of consolidated investment product	103,541			—
Total liabilities	237,538			112,350
Commitments and Contingencies (Note 12)
Redeemable noncontrolling interests	49,895			23,071
Equity:
Equity attributable to stockholders:
Common stock, $0.01 par value, 1,000,000,000 shares authorized; 9,611,575 shares issued and 8,667,666 shares outstanding at September 30, 2015 and 9,551,274 shares issued and 8,975,833 shares outstanding at December 31, 2014	96			96
Additional paid-in capital	1,142,182			1,148,908
Accumulated deficit	(479,051		)	(507,521		)
Accumulated other comprehensive loss	(902		)	(242		)
Treasury stock, at cost, 943,909 and 575,441 shares at September 30, 2015 and December 31, 2014, respectively	(122,699		)	(77,699		)
Total equity attributable to stockholders	539,626			563,542
Noncontrolling interests	(296		)	(190		)
Total equity	539,330			563,352
Total liabilities and equity	$	826,763		$	698,773

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

Virtus Investment Partners, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
($ in thousands, except per share data)
Revenues
Investment management fees	$	64,891		$	78,960		$	204,254		$	225,289
Distribution and service fees	15,587			23,671			52,820			70,049
Administration and transfer agent fees	11,614			14,804			37,233			41,819
Other income and fees	283			406			1,555			1,304
Total revenues	92,375			117,841			295,862			338,461
Operating Expenses
Employment expenses	33,504			35,246			102,719			105,756
Distribution and other asset-based expenses	21,717			29,180			69,900			96,139
Other operating expenses	11,165			11,288			51,403			34,952
Other operating expenses of consolidated sponsored investment products	1,120			1,246			2,895			2,374
Restructuring and severance	—			294			—			294
Depreciation and other amortization	910			713			2,562			2,040
Amortization expense	837			947			2,511			2,851
Total operating expenses	69,253			78,914			231,990			244,406
Operating Income	23,122			38,927			63,872			94,055
Other Income (Expense)
Realized and unrealized (loss) gain on investments, net	(2,082		)	(1,039		)	(1,194		)	1,712
Realized and unrealized (loss) gain on investments of consolidated sponsored investment products, net	(17,619		)	(5,330		)	(18,271		)	1,150
Realized and unrealized loss on investments of consolidated investment product, net	(764		)	—			(764		)	—
Other income of consolidated investment product, net	43			—			43			—
Other income, net	141			233			823			573
Total other (expense) income, net	(20,281		)	(6,136		)	(19,363		)	3,435
Interest Income (Expense)
Interest expense	(138		)	(149		)	(382		)	(412		)
Interest and dividend income	324			326			906			1,053
Interest and dividend income of investments of consolidated sponsored investment products	2,898			2,222			8,320			4,734
Interest income of investments of consolidated investment product	41			—			41			—
Total interest income, net	3,125			2,399			8,885			5,375
Income Before Income Taxes	5,966			35,190			53,394			102,865
Income tax expense (benefit)	9,669			(1,805		)	28,360			24,311
Net (Loss) Income	(3,703		)	36,995			25,034			78,554
Noncontrolling interests	3,054			345			3,436			267
Net (Loss) Income Attributable to Common Stockholders	$	(649	)	$	37,340		$	28,470		$	78,821
(Loss) Earnings per Share—Basic	$	(0.07	)	$	4.10		$	3.21		$	8.65
(Loss) Earnings per Share—Diluted	$	(0.07	)	$	4.02		$	3.15		$	8.46
Cash Dividends Declared per Share	$	0.45		$	0.45		$	1.35		$	0.90
Weighted Average Shares Outstanding—Basic (in thousands)	8,775			9,096			8,876			9,115
Weighted Average Shares Outstanding—Diluted (in thousands)	8,775			9,279			9,039			9,322

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

Virtus Investment Partners, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
($ in thousands)
Net (Loss) Income	$	(3,703	)	$	36,995		$	25,034		$	78,554
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of tax of ($28) and $56 for the three months ended September 30, 2015 and 2014, respectively and $167 and $49 for the nine months ended September 30, 2015 and 2014, respectively	49			(93		)	(271		)	(80		)
Unrealized (loss) gain on available-for-sale securities, net of tax of ($35) and $60 for the three months ended September 30, 2015 and 2014, respectively and $26 and $(55) for the nine months ended September 30, 2015 and 2014, respectively	(290		)	(95		)	(389		)	90
Other comprehensive (loss) income	(241		)	(188		)	(660		)	10
Comprehensive (loss) income	(3,944		)	36,807			24,374			78,564
Comprehensive loss attributable to noncontrolling interests	3,054			345			3,436			267
Comprehensive (Loss) Income Attributable to Common Stockholders	$	(890	)	$	37,152		$	27,810		$	78,831

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

Virtus Investment Partners, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Nine Months Ended September 30,
	2015			2014
($ in thousands)
Cash Flows from Operating Activities:
Net income	$	25,034		$	78,554
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation expense, intangible asset and other amortization	5,241			5,055
Stock-based compensation	9,166			7,021
Excess tax benefits from stock-based compensation	(1,515		)	(25,089		)
Amortization of deferred commissions	6,903			14,032
Payments of deferred commissions	(2,585		)	(11,761		)
Equity in earnings of equity method investments, net	(804		)	(295		)
Realized and unrealized losses (gains) on trading securities, net	1,490			(1,712		)
Realized and unrealized losses (gains) on investments of consolidated sponsored investment products, net	21,611			(1,247		)
Realized and unrealized losses on investments of consolidated investment product, net	764			—
Sales of trading securities, net	9,945			24,996
Purchases of investments by consolidated sponsored investment products, net	(96,222		)	(184,584		)
Sales of securities sold short by consolidated sponsored investment products, net	3,534			10,461
Purchases of investments by consolidated investment product, net	(29,085		)	—
Deferred taxes, net	655			4,826
Changes in operating assets and liabilities:
Cash pledged or on deposit of consolidated sponsored investment products	(6,912		)	(12,492		)
Accounts receivable, net and other assets	4,101			(17,776		)
Other assets of consolidated sponsored investment products	(1,649		)	(1,502		)
Accrued compensation and benefits, accounts payable, accrued liabilities and other liabilities	(8,102		)	8,424
Liabilities of consolidated sponsored investment products	1,499			801
Liabilities and other assets of consolidated investment product, net	(20		)	—
Net cash used in operating activities	(56,951		)	(102,288		)
Cash Flows from Investing Activities:
Capital expenditures	(3,723		)	(1,814		)
Change in cash and cash equivalents of consolidated sponsored investment products due to deconsolidation	—			(366		)
Asset acquisitions and purchases of other investments	(1,617		)	(5,000		)
Cash acquired in business combination	89			—
Purchases of available-for-sale securities	(168		)	(260		)
Net cash used in investing activities	(5,419		)	(7,440		)
Cash Flows from Financing Activities:
Borrowings of proceeds from short sales by consolidated sponsored investment products	831			1,200
Payments on borrowings by consolidated sponsored investment products	(164		)	—
Borrowings of debt of consolidated investment product	9,140			—
Dividends paid	(12,146		)	(4,104		)
Repurchases of common shares	(45,000		)	(26,257		)
Proceeds from exercise of stock options	70			660
Taxes paid related to net share settlement of restricted stock units	(5,080		)	(9,512		)
Excess tax benefits from stock-based compensation	1,515			25,089
Contributions of noncontrolling interests, net	38,747			24,871
Net cash (used in) provided by financing activities	(12,087		)	11,947
Net decrease in cash and cash equivalents	(74,457		)	(97,781		)
Cash and cash equivalents, beginning of period	203,304			271,545
Cash and Cash Equivalents, End of Period	$	128,847		$	173,764
Non-Cash Investing Activities:
Change in accrual for capital expenditures	$	(313	)	$	97
Investment in acquired business	$	4,800		$	—
Non-Cash Financing Activities:
Decrease to noncontrolling interest due to consolidation (deconsolidation) of consolidated sponsored investment products, net	$	(8,640	)	$	(44,613	)
Dividends payable	$	4,258		$	4,229

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

Virtus Investment Partners, Inc.

Condensed Consolidated Statements of Changes in Equity

(Unaudited)

	Common Stock				Additional Paid-in Capital			Accumulated Deficit			Accumulated Other Comprehensive Income (Loss)			Treasury Stock				Total Attributed To Stockholders			Non- controlling Interests			Total Equity			Redeemable Non- controlling Interests
($ in thousands except per share data)	Shares		Par Value											Shares	Amount
Balances at December 31, 2013	9,105,521		$	95	$	1,135,644		$	(605,221	)	$	(150	)	350,000	$	(37,438	)	$	492,930		$	(62	)	$	492,868		$	42,186
Net income (loss)	—		—		—			78,821			—			—	—			78,821			(84		)	78,737			(183		)
Net unrealized gain on securities available-for-sale	—		—		—			—			90			—	—			90			—			90			—
Foreign currency translation adjustments	—		—		—			—			(80		)	—	—			(80		)	—			(80		)	—
Activity of noncontrolling interests, net	—		—		—			—			—			—	—			—			—			—			(19,738		)
Cash dividends declared ($0.90 per common share)	—		—		(8,333		)	—			—			—	—			(8,333		)				(8,333		)	—
Repurchases of common shares	(136,874	)	—		—			—			—			136,874	(26,257		)	(26,257		)	—			(26,257		)	—
Issuance of common shares related to employee stock transactions	90,731		—		1,224			—			—			—	—			1,224			—			1,224			—
Taxes paid on stock-based compensation	—		—		(9,512		)	—			—			—	—			(9,512		)	—			(9,512		)	—
Stock-based compensation	—		—		6,604			—			—			—	—			6,604			—			6,604			—
Excess tax benefits from stock-based compensation	—		—		25,089			—			—			—	—			25,089			—			25,089			—
Balances at September 30, 2014	9,059,378		$	95	$	1,150,716		$	(526,400	)	$	(140	)	486,874	$	(63,695	)	$	560,576		$	(146	)	$	560,430		$	22,265
Balances at December 31, 2014	8,975,833		$	96	$	1,148,908		$	(507,521	)	$	(242	)	575,441	$	(77,699	)	$	563,542		$	(190	)	$	563,352		$	23,071
Net income (loss)	—		—		—			28,470			—			—	—			28,470			(106		)	28,364			(3,330		)
Net unrealized loss on securities available-for-sale	—		—		—			—			(389		)	—	—			(389		)	—			(389		)	—
Foreign currency translation adjustments	—		—		—			—			(271		)	—	—			(271		)	—			(271		)	—
Activity of noncontrolling interests, net	—		—		—			—			—			—	—			—			—			—			30,154
Cash dividends declared ($1.35 per common share)	—		—		(12,136		)	—			—			—	—			(12,136		)	—			(12,136		)	—
Repurchases of common shares	(368,468	)	—		—			—			—			368,468	(45,000		)	(45,000		)	—			(45,000		)	—
Issuance of common shares related to employee stock transactions	60,301		—		796			—			—			—	—			796			—			796			—
Taxes paid on stock-based compensation	—		—		(5,080		)	—			—			—	—			(5,080		)				(5,080		)	—
Stock-based compensation	—		—		8,656			—			—			—	—			8,656			—			8,656			—
Excess tax benefits from stock-based compensation	—		—		1,038			—			—			—	—			1,038			—			1,038			—
Balances at September 30, 2015	8,667,666		$	96	$	1,142,182		$	(479,051	)	$	(902	)	943,909	$	(122,699	)	$	539,626		$	(296	)	$	539,330		$	49,895

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

Virtus Investment Partners, Inc.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1. Organization and Business

Virtus Investment Partners, Inc. (the “Company,” “we,” “us,” “our” or “Virtus”), a Delaware corporation, operates in the investment management industry through its subsidiaries.

The Company provides investment management and related services to individuals and institutions throughout the United States of America. The Company’s retail investment management services are provided to individuals through products consisting of open-end mutual funds, closed-end funds, variable insurance funds, exchange traded funds (“ETFs”) and separately managed accounts. Institutional investment management services are provided primarily to corporations, multi-employer retirement funds, employee retirement systems, foundations, endowments and subadvisory accounts.

2. Basis of Presentation and Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the Company’s financial condition and results of operations. Operating results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. We have reclassified certain amounts in prior-period financial statements to conform to the current period's presentation.

The condensed consolidated financial statements include the accounts of the Company, its subsidiaries and sponsored investment products in which it has a controlling financial interest, referred to as consolidated sponsored investment products or consolidated investment product. The Company is generally considered to have a controlling financial interest when it owns a majority of the voting interest in an entity or otherwise has the power to govern the financial and operating policies of the subsidiary. See Notes 13, 14 and 15 for additional information related to the consolidation of sponsored investment products and the investment product. Intercompany accounts and transactions have been eliminated.

The Company also evaluates any variable interest entities (“VIEs”) in which the Company has a variable interest for consolidation. A VIE is an entity in which either (a) the equity investment at risk is not sufficient to permit the entity to finance its own activities without additional financial support or (b) where as a group, the holders of the equity investment at risk do not possess: (i) the power to direct the activities that most significantly impact the entity’s performance; (ii) the obligation to absorb expected losses or the right to receive expected residual returns of the entity; or (iii) proportionate voting and economic interests and where substantially all of the entity’s activities either involve or are conducted on behalf of the equity holders. If any entity has any of these characteristics, it is considered a VIE and is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that has both the power to direct the activities that most significantly impact the VIE’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the Securities and Exchange Commission. The Company’s significant accounting policies, which have been consistently applied, are summarized in the 2014 Annual Report on Form 10-K.

New Accounting Standards

In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU2015-3"), which changes the presentation of debt issuance costs in the balance sheet. The new guidance requires that debt issuance costs be presented as a deduction from the carrying amount of the related debt rather than being presented as an asset. Amortization of debt issuance costs will continue to be reported as interest expense. In August 2015, the FASB issued ASU 2015-15 to amend ASU 2015-03 to address line-of-credit agreements. ASU 2015-15 allows entities to present debt issuance costs related to line-of-credit agreements as an asset and amortize deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any

7

outstanding borrowings. The new guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015 and requires retrospective application for each prior period presented. Early adoption is permitted for financial statements that have not been previously issued. This standard is not expected to have a material impact on the Company's financial statements.

In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). This standard modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 is effective for fiscal years and interim periods within those years beginning after December 15, 2015 and requires either a retrospective or a modified retrospective approach to adoption. Early adoption is permitted. The Company is currently evaluating the potential impact of this standard on its financial statements, as well as the available transition methods.

In August 2014, the FASB issued ASU No. 2014-13, Measuring the Financial Assets and Financial Liabilities of a Consolidated Collateralized Financing Entity (“CFE”) (“ASU 2014-13”). This new guidance requires reporting entities to use the more observable of the fair value of the financial assets or the financial liabilities to measure the financial assets and the financial liabilities of a CFE when a CFE is initially consolidated. It permits entities to make an accounting policy election to apply this same measurement approach after initial consolidation or to apply other GAAP to account for the consolidated CFE’s financial assets and financial liabilities. It also prohibits all entities from electing to use the fair value option in ASC 825, Financial Instruments, to measure either the financial assets or financial liabilities of a consolidated CFE that is within the scope of this issue. This guidance is effective for fiscal years beginning after December 15, 2015 and interim periods therein. Early adoption is permitted using a modified retrospective transition approach as described in the pronouncement. The Company has not yet adopted ASU 2014-13 and is currently evaluating the impact ASU 2014-13 is expected to have on its consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 provides a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. Companies may use either a full retrospective or a modified retrospective approach. In July 2015, the FASB confirmed a deferral of the effective date by one year, with early adoption on the original effective date permitted. As deferred, ASU 2014-09 is effective for the first interim period within annual reporting periods beginning after December 15, 2017 with early adoption permitted. The Company has not yet adopted ASU 2014-09 and is currently evaluating the impact ASU 2014-09 is expected to have on its consolidated financial statements.

3. Intangible Assets, Net

Intangible assets, net are summarized as follows:

	September 30, 2015			December 31, 2014
($ in thousands)
Definite-lived intangible assets:
Investment contracts	$	158,747		$	158,747
Accumulated amortization	(151,891		)	(149,380		)
Definite-lived intangible assets, net	6,856			9,367
Indefinite-lived intangible assets	34,816			32,416
Total intangible assets, net	$	41,672		$	41,783

8

Activity in intangible assets, net is as follows:

	Nine Months Ended September 30,
	2015			2014
($ in thousands)
Intangible assets, net
Balance, beginning of period	$	41,783		$	44,633
Additions	2,400			1,075
Amortization	(2,511		)	(2,998		)
Balance, end of period	$	41,672		$	42,710

4. Investments

Investments consist primarily of investments in our sponsored mutual funds. The Company’s investments, excluding the assets of consolidated sponsored investment products discussed in Note 13 and the assets of the consolidated investment product discussed in Note 14, at September 30, 2015 and December 31, 2014 were as follows:

	September 30, 2015		December 31, 2014
($ in thousands)
Marketable securities	$	40,136	$	50,251
Equity method investments	9,194		7,209
Nonqualified retirement plan assets	4,970		5,063
Other investments	925		925
Total investments	$	55,225	$	63,448

Marketable Securities

The Company’s marketable securities consist of both trading (including securities held by a broker-dealer affiliate) and available-for-sale securities. The composition of the Company’s marketable securities is summarized as follows:

September 30, 2015

	Cost		Unrealized Loss			Unrealized Gain		Fair Value
($ in thousands)
Trading:
Sponsored funds	$	32,079	$	(1,829	)	$	288	$	30,538
Equity securities	7,236		(648		)	57		6,645
Available-for-sale:
Sponsored closed-end funds	3,297		(344		)	—		2,953
Total marketable securities	$	42,612	$	(2,821	)	$	345	$	40,136

9

December 31, 2014

	Cost		Unrealized Loss			Unrealized Gain		Fair Value
($ in thousands)
Trading:
Sponsored funds	$	39,079	$	(1,190	)	$	423	$	38,312
Equity securities	8,421		—			319		8,740
Available-for-sale:
Sponsored closed-end funds	3,129		(163		)	233		3,199
Total marketable securities	$	50,629	$	(1,353	)	$	975	$	50,251

For the three and nine months ended September 30, 2015, the Company recognized a net realized loss of $0.5 million and a net realized gain of $0.4 million, respectively, on trading securities, and for the three and nine months ended September 30, 2014, the Company recognized a net realized gain of $1.7 million and $6.2 million, respectively.

5. Fair Value Measurements

The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of consolidated sponsored investment products and the consolidated investment product discussed in Notes 13 and 14, respectively as of September 30, 2015 and December 31, 2014 by fair value hierarchy level were as follows:

September 30, 2015

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	80,950	$	—	$	—	$	80,950
Marketable securities trading:
Sponsored funds	30,538		—		—		30,538
Equity securities	6,645		—		—		6,645
Marketable securities available-for-sale:
Sponsored closed-end funds	2,953		—		—		2,953
Other investments:
Nonqualified retirement plan assets	4,970		—		—		4,970
Total assets measured at fair value	$	126,056	$	—	$	—	$	126,056

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December 31, 2014

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	202,054	$	—	$	—	$	202,054
Marketable securities trading:
Sponsored funds	38,312		—		—		38,312
Equity securities	8,740		—		—		8,740
Marketable securities available-for-sale:
Sponsored closed-end funds	3,199		—		—		3,199
Other investments
Nonqualified retirement plan assets	5,063		—		—		5,063
Total assets measured at fair value	$	257,368	$	—	$	—	$	257,368

The following is a discussion of the valuation methodologies used for the Company’s assets measured at fair value.

Cash equivalents represent investments in money market funds. Cash investments in actively traded money market funds are valued using published net asset values and are classified as Level 1.

Sponsored funds represent investments in open-end mutual funds, variable insurance funds and closed-end funds for which the Company acts as the investment manager. The fair value of open-end mutual funds and variable insurance funds is determined based on their published net asset values and are categorized as Level 1. The fair value of closed-end funds is determined based on the official closing price on the exchange they are traded on and are categorized as Level 1.

Equity securities include securities traded on active markets and are valued at the official closing price (typically last sale or bid) on the exchange on which the securities are primarily traded and are categorized as Level 1.

Nonqualified retirement plan assets represent mutual funds within a nonqualified retirement plan whose fair value is determined based on their published net asset value and are categorized as Level 1.

Cash, accounts receivable, accounts payable and accrued liabilities equal or approximate fair value based on the short-term nature of these instruments.

Transfers into and out of levels are reflected when significant inputs used for the fair value measurement, including market inputs or performance attributes, become observable or unobservable or when the Company determines it has the ability, or no longer has the ability, to redeem, in the near term, certain investments that the Company values using a net asset value, or if the book value no longer represents fair value. There were no transfers between Level 1 and Level 2 during the three and nine months ended September 30, 2015 and 2014.

6. Equity Transactions

During the nine months ended September 30, 2015 and 2014, the Company repurchased 368,468 and 136,874 common shares, respectively, at a weighted average price of $122.09 and $191.79 per share, respectively, plus transaction costs for a total cost of approximately $45.0 million and $26.3 million, respectively. The Company has repurchased a total of 943,909 shares of common stock at a weighted average price of $129.95 per share plus transaction costs for a total cost of $122.7 million under its share repurchase program. At September 30, 2015, there were 256,091 shares of common stock available to repurchase under the Company’s current share repurchase program.

The Board of Directors declared cash dividends of $0.45 per share in each of the first three quarters of 2015 and the second and third quarters of 2014. Total dividends declared were $12.1 million and $8.3 million for the nine months ended September 30, 2015 and 2014, respectively. At September 30, 2015, dividends payable of $4.3 million represented the third quarter dividend to be paid on November 13, 2015 to all shareholders of record on October 30, 2015.

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7. Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2015 and 2014 were as follows:

	Unrealized  Gains and (Losses) on Securities Available-for- Sale			Foreign  Currency Translation Adjustments
($ in thousands)
Balance December 31, 2014	$	(107	)	$	(135	)
Unrealized net losses on securities available-for-sale, net of tax of $26	(389		)	—
Foreign currency translation adjustments, net of tax of $167	—			(271		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			—
Net current-period other comprehensive loss	(389		)	(271		)
Balance September 30, 2015	$	(496	)	$	(406	)
	Unrealized Gains and (Losses) on Securities Available-for- Sale			Foreign  Currency Translation Adjustments
($ in thousands)
Balance December 31, 2013	$	(231	)	$	81
Unrealized net gains on securities available-for-sale, net of tax of ($55)	90			—
Foreign currency translation adjustments, net of tax of $49	—			(80		)
Amounts reclassified from accumulated other comprehensive income	—			—
Net current-period other comprehensive income (loss)	90			(80		)
Balance September 30, 2014	$	(141	)	$	1

8. Stock-based Compensation

The Company has an Omnibus Incentive and Equity Plan (the “Plan”) under which officers, employees and directors may be granted equity-based awards, including restricted stock units (“RSUs”), stock options and unrestricted shares of common stock. At September 30, 2015, 306,275 shares of common stock remained available for issuance of the 1,800,000 shares that were reserved for issuance under the Plan. Each RSU entitles the holder to one share of common stock when the restriction expires. RSUs generally have a term of one to three years and may be time-vested or performance-contingent. Stock options generally cliff vest after three years and have a contractual life of ten years. Stock options are granted with an exercise price equal to the fair market value of the shares at the date of grant. The fair value of each RSU is estimated using the intrinsic value method, which is based on the fair market value price on the date of grant unless it contains a performance metric that is considered a market condition. RSUs that contain a market condition are valued using a simulation valuation model. Shares that are issued upon exercise of stock options and vesting of RSUs are newly issued shares from the Plan and are not issued from treasury stock.

Restricted Stock Units

RSU activity for the nine months ended September 30, 2015 is summarized as follows:

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	Number of Shares		Weighted Average Grant Date Fair Value
Outstanding at December 31, 2014	179,936		$	143.25
Granted	116,295		$	134.46
Forfeited	(493	)	$	175.16
Settled	(87,410	)	$	102.00
Outstanding at September 30, 2015	208,328		$	155.57

For the nine months ended September 30, 2015 and 2014, a total of 37,488 and 50,952 RSUs, respectively, were withheld by the Company as a result of net share settlements to settle minimum employee tax withholding obligations. The Company paid $5.1 million and $9.5 million for the nine months ended September 30, 2015 and 2014, respectively, in minimum employee tax withholding obligations related to RSUs withheld. These net share settlements had the effect of share repurchases by the Company as they reduced the number of shares that would have been otherwise issued as a result of the vesting.

During the nine months ended September 30, 2015 and 2014, the Company granted 33,632 and 30,101 RSUs, respectively, each of which contains two performance based metrics in addition to a service condition. The two performance metrics are based on the Company’s growth in operating income, as adjusted, relative to peers, over a one-year period and total shareholder return (“TSR”) relative to peers over a three-year period. For the nine months ended September 30, 2015 and 2014, total stock-based compensation expense included $1.8 million and $0.9 million for these performance contingent RSUs, respectively.

The Company recognized total stock compensation expense of $2.7 million and $2.5 million, respectively, and $9.2 million and $7.0 million, respectively, for the three and nine months ended September 30, 2015 and 2014. As of September 30, 2015, unamortized stock-based compensation expense for unvested RSUs was $19.3 million, with a weighted-average remaining amortization period of 1.9 years.

Stock Options

Stock option activity for the nine months ended September 30, 2015 is summarized as follows:

	Number of Shares		Weighted Average Exercise Price
Outstanding at December 31, 2014	162,824		$	18.79
Granted	—		$	—
Exercised	(4,675	)	$	15.27
Forfeited	—		$	—
Outstanding at September 30, 2015	158,149		$	18.89

9. Earnings per Share

Basic earnings per share (“EPS”) excludes dilution for potential common stock issuances and is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted EPS, the basic weighted-average number of shares is increased by the dilutive effect of RSUs and common stock options using the treasury stock method.

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The computation of basic and diluted EPS is as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2015			2014		2015		2014
($ in thousands, except per share amounts)
Net (Loss) Income	$	(3,703	)	$	36,995	$	25,034	$	78,554
Noncontrolling interests	3,054			345		3,436		267
Net (Loss) Income Attributable to Common Stockholders	$	(649	)	$	37,340	$	28,470	$	78,821
Shares(in thousands):
Basic: Weighted-average number of shares outstanding	8,775			9,096		8,876		9,115
Plus: Incremental shares from assumed conversion of dilutive instruments	—			183		163		207
Diluted: Weighted-average number of shares outstanding	8,775			9,279		9,039		9,322
(Loss) Earnings per Share—Basic	$	(0.07	)	$	4.10	$	3.21	$	8.65
(Loss) Earnings per Share—Diluted	$	(0.07	)	$	4.02	$	3.15	$	8.46

For the three and nine months ended September 30, 2015, there were 323,570 and 2,028 instruments, respectively, excluded from the above computations of weighted-average shares for diluted EPS, because the effect would be anti-dilutive. For each of the three and nine months ended September 30, 2014, there were zero instruments excluded from the above computation of weighted-average shares for diluted EPS.

10. Business Combination

On April 10, 2015, the Company made an investment of approximately $4.8 million for a majority ownership position in Virtus ETF Solutions (“VES”), formerly known as ETF Issuer Solutions. VES is a New York City-based company that operates a platform for listing, operating, and distributing exchange-traded funds. The transaction was accounted for under Accounting Standards Codification (“ASC”) 805 “Business Combinations.” Goodwill of $1.4 million and other intangible assets of $2.4 million were recorded as a result of this transaction. The impact of this transaction was not material to the Company’s condensed consolidated financial statements.

11. Income Taxes

In calculating the provision for income taxes, the Company uses an estimate of the annual effective tax rate based upon the facts and circumstances at each interim period. On a quarterly basis, the estimated annual effective tax rate is adjusted, as appropriate, based upon changes in facts and circumstances, if any, as compared to those forecasted at the beginning of the fiscal year and each interim period thereafter.

The provision for income taxes reflected U.S. federal, state and local taxes at an estimated effective tax rate of 53.1% and 23.6% for the nine months ended September 30, 2015 and 2014, respectively. The year-over-year increase in the estimated effective tax rate was primarily due to changes in the valuation allowance related to the unrealized loss position on the Company’s marketable securities, as well as a tax benefit recognized during the period ended September 30, 2014 related to the settlement of an audit of the Company's 2011 federal corporate income tax return.

12. Commitments and Contingencies

Legal Matters

The Company is regularly involved in litigation and arbitration as well as examinations, inquiries and investigations by various regulatory bodies, including the SEC, involving its compliance with, among other things, securities laws, client investment guidelines, laws governing the activities of broker-dealers and other laws and regulations affecting its products and other activities. Legal and regulatory matters of this nature involve or may involve the Company’s activities as an employer, issuer of securities, investor, investment adviser, broker-dealer or taxpayer. In addition, in the normal course of business, the

14

Company discusses matters with its regulators raised during regulatory examinations or is otherwise subject to their inquiry. These matters could result in censures, fines, penalties or other sanctions.

The Company accrues for a liability when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. In addition, in the event the Company determines that a loss is not probable, but is reasonably possible, and it becomes possible to develop what the Company believes to be a reasonable range of possible loss, then the Company will include disclosures related to such matter as appropriate and in compliance with ASC 450, Loss Contingencies. The disclosures, accruals or estimates, if any, resulting from the foregoing analysis are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. Other than as described herein, based on information currently available, available insurance coverage and established reserves, the Company believes that the outcomes of its legal and regulatory proceedings are not likely, either individually or in the aggregate, to have a material adverse effect on the Company’s results of operations, cash flows or its consolidated financial condition. However, in the event of unexpected subsequent developments and given the inherent unpredictability of these legal and regulatory matters, the Company can provide no assurance that its assessment of any claim, dispute, regulatory examination or investigation or other legal matter will reflect the ultimate outcome and an adverse outcome in certain matters could, from time to time, have a material adverse effect on the Company’s results of operations or cash flows in particular quarterly or annual periods.

Regulatory Matter

As previously disclosed, in December 2014 the SEC announced a settlement with F-Squared Investments (“F-Squared”), an unaffiliated former subadviser, which settled charges that F-Squared had violated the federal securities laws as described in Investment Advisers Act Release No. 3988. The settlement related to F-Squared’s inaccurate performance information for the period of April 2001 through September 2008, including indices that certain Virtus mutual funds tracked beginning in September 2009 and January 2011. As part of the SEC’s non-public, confidential investigation of this matter, the SEC staff informed the Company that it was inquiring into whether the Company had violated securities laws or regulations with respect to F-Squared’s historical performance information. Although the Company has not received a Wells Notice in connection with the investigation, the Company has been in active discussions with the SEC staff and has reached an agreement in principle with the SEC staff to settle this matter. Under the terms of the proposed settlement, the Company would pay a total of $16.5 million, which is consistent with the loss contingency previously recorded and disclosed by the Company. This agreement in principle is subject to review and approval by the Commission.

As referenced above, pursuant to ASC 450 - Loss Contingencies, the Company had previously recorded a total pre-tax loss contingency of $16.5 million and a related potential income tax benefit of $5.5 million for a net impact of $11.0 million related to this matter; however, the Company cannot assure you that the Commission will approve the proposed settlement agreement, that any final settlement will not have different or additional material terms, that any associated loss will not exceed the aggregate loss contingency recorded or that a final resolution of this matter will be reached.

In re Virtus Investment Partners, Inc. Securities Litigation; formerly styled as Tom Cummins v. Virtus Investment Partners Inc. et al

On February 20, 2015, a putative class action complaint alleging violation of the federal securities laws was filed by an individual shareholder against the Company and certain of the Company’s current officers (the “defendants”) in the United States District Court for the Southern District of New York.   On April 21, 2015, three plaintiffs, including the original plaintiff, filed motions to be appointed lead plaintiff. On June 9, 2015, the court entered an order appointing Arkansas Teachers Retirement System lead plaintiff. On August 21, 2015, plaintiff filed a Consolidated Class Action Complaint (the “Consolidated Complaint”) amending the originally filed complaint. The Consolidated Complaint was purportedly filed on behalf of all purchasers of the Company’s common stock between January 25, 2013 and May 11, 2015 (the “Class Period”). The Consolidated Complaint alleges that during the Class Period, the defendants disseminated materially false and misleading statements and concealed material adverse facts relating to certain funds subadvised by F-Squared. The Consolidated Complaint alleges claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5. The plaintiff seeks to recover unspecified damages. The Company believes that the suit is without merit and intends to defend it vigorously. A motion to dismiss the Consolidated Complaint was filed on behalf of the Company and the other defendants on October 21, 2015. The Company believes that there is not a material loss that is probable and reasonably estimable related to this claim.

15

Mark Youngers v. Virtus Investment Partners, Inc. et al

On May 8, 2015, a putative class action complaint alleging violations of certain provisions of the federal securities laws was filed in the United States District Court for the Central District of California by an individual who alleges he is a former shareholder of one of the Virtus mutual funds formerly subadvised by F-Squared and formerly known as the AlphaSector Funds. The complaint purports to allege claims against the Company, certain of the Company’s officers and affiliates, and certain other parties (the “defendants”). The complaint was purportedly filed on behalf of purchasers of the AlphaSector Funds between May 8, 2010 and December 22, 2014, inclusive (the “Class Period”). The complaint alleges that during the Class Period the defendants disseminated materially false and misleading statements and concealed or omitted material facts necessary to make the statements made not misleading. On June 7, 2015, a group of three individuals, including the original plaintiff, filed a motion to be appointed lead plaintiff. No other motions to be appointed lead plaintiff were filed. On July 27, 2015, the court granted the motion, appointing movants as lead plaintiff. Also, on July 27, 2015, the court issued an order to show cause requiring lead plaintiff to explain no later than July 31, 2015, why his claims should not be transferred and consolidated with the In re Virtus Investment Partners, Inc. Securities Litigation action discussed above. On October 1, 2015, plaintiff filed a First Amended Class Action Complaint which, among other things, added a derivative claim for breach of fiduciary duty on behalf of Virtus Opportunities Trust. On October 19, 2015, The United States District Court for the Central District of California entered an order transferring the action to the Southern District of New York. The Company believes the plaintiff’s claims asserted in the complaint are frivolous and intends to defend it vigorously. The Company believes that there is not a material loss that is probable and reasonably estimable related to this claim.

13. Consolidated Sponsored Investment Products

In the normal course of its business, the Company sponsors various investment products. The Company consolidates an investment product when it owns a majority of the voting interest in the entity or it is the primary beneficiary of an investment product that is a VIE, as a consolidated sponsored investment product. The consolidation and deconsolidation of these investment products has no impact on net income attributable to stockholders. The Company’s risk with respect to these investments is limited to its investment in these products. The Company has no right to the benefits from, and does not bear the risks associated with these investment products, beyond the Company’s investments in, and fees generated from these products. The Company does not consider cash and investments held by consolidated sponsored investment products or any other VIE to be assets of the Company other than its direct investment in these products.

As of September 30, 2015 and December 31, 2014, the Company consolidated 14 and 12 sponsored investment products, respectively. During the nine months ended September 30, 2015, the Company consolidated three additional sponsored investment products and deconsolidated one sponsored investment product because it no longer had a majority voting interest.

The following table presents the balances of the consolidated sponsored investment products that were reflected in the Condensed Consolidated Balance Sheets as of September 30, 2015 and December 31, 2014:

	As of
	September 30, 2015			December 31, 2014
($ in thousands)
Total cash and cash equivalents	$	16,732		$	8,687
Total investments	311,429			236,652
All other assets	10,494			6,960
Total liabilities	(29,849		)	(12,556		)
Redeemable noncontrolling interests	(49,895		)	(23,071		)
The Company’s net interests in consolidated sponsored investment products	$	258,911		$	216,672
The Company's net interest as a percentage of total investments of consolidated sponsored investment products	83.1		%	91.6		%

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Fair Value Measurements

The assets and liabilities of the consolidated sponsored investment products measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 by fair value hierarchy level were as follows:

As of September 30, 2015

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Debt securities	$	—	$	147,663	$	926	$	148,589
Equity securities	155,763		7,077		—		162,840
Derivatives	125		633		—		758
Total assets measured at fair value	$	155,888	$	155,373	$	926	$	312,187
Liabilities
Derivatives	$	403	$	917	$	—	$	1,320
Short sales	9,432		423		—		9,855
Total liabilities measured at fair value	$	9,835	$	1,340	$	—	$	11,175

As of December 31, 2014

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Debt securities	$	—	$	135,050	$	1,065	$	136,115
Equity securities	82,417		18,120		—		100,537
Derivatives	154		227		—		381
Total assets measured at fair value	$	82,571	$	153,397	$	1,065	$	237,033
Liabilities
Derivatives	$	191	$	—	$	—	$	191
Short sales	7,491		674		—		8,165
Total liabilities measured at fair value	$	7,682	$	674	$	—	$	8,356

The following is a discussion of the valuation methodologies used for the assets and liabilities of the Company’s consolidated sponsored investment products measured at fair value.

Investments of consolidated sponsored investment products represent the underlying debt, equity and other securities held in sponsored products which are consolidated by the Company. Equity securities are valued at the official closing price on the exchange on which the securities are traded and are categorized within Level 1. Level 2 investments include most debt securities, which are valued based on quotations received from independent pricing services or from dealers who make markets in such securities and certain equity securities, including non-US securities, for which closing prices are not readily available or are deemed to not reflect readily available market prices and are valued using an independent pricing service. Pricing services do not provide pricing for all securities, and therefore indicative bids from dealers are utilized, which are based on pricing models used by market makers in the security and are also included within Level 2. Level 3 investments include debt securities that are not widely traded, are illiquid or are priced by dealers based on pricing models used by market makers in the security.

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The following table is a reconciliation of assets of consolidated sponsored investment products for Level 3 investments for which significant unobservable inputs were used to determine fair value.

	Nine Months Ended September 30,
($ in thousands)	2015			2014
Level 3 Debt securities (a)
Balance at beginning of period	$	1,065		$	—
Purchases	135			450
Paydowns	(14		)	(2		)
Sales	(13		)	—
Transferred to Level 2	(126		)	—
Change in unrealized gain/(loss), net	(121		)	(1		)
Balance at end of period	$	926		$	447

(a) None of the securities reflected in the above table were internally fair valued at September 30, 2015.

For the nine months ended September 30, 2015, securities held by consolidated sponsored investment products with an end of period value of $8.9 million were transferred from Level 2 to Level 1 because certain non-US securities quoted market prices were no longer adjusted based on third-party factors derived from model-based valuation techniques for which the significant assumptions were observable in the market. For the nine months ended September 30, 2015, securities held by consolidated sponsored investment products with an end of period value of $0.3 million were transferred from Level 1 to Level 2 because certain non-US securities quoted market prices were adjusted based on third-party factors derived from model-based valuation techniques for which the significant assumptions were observable in the market. There were no transfers between Level 1, Level 2, or Level 3 during the nine months ended September 30, 2014.

Derivatives

The Company has certain consolidated sponsored investment products which include derivative instruments as part of their investment strategies to contribute to the achievement of defined investment objectives. These derivatives may include futures contracts, options contracts and forward contracts. Derivative instruments in an asset position are classified as other assets of consolidated sponsored investment products in the Condensed Consolidated Balance Sheets. Derivative instruments in a liability position are classified as liabilities of consolidated sponsored investment products within the Condensed Consolidated Balance Sheets. The change in fair value of such derivatives is recorded in realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net, in the Condensed Consolidated Statements of Operations. In connection with entering into these derivative contracts, these funds may be required to pledge to the broker an amount of cash equal to the “initial margin” requirements that varies based on the type of derivative. The cash pledged or on deposit is recorded in the Condensed Consolidated Balance Sheets of the Company as Cash pledged or on deposit of consolidated sponsored investment products. The fair value of such derivatives at September 30, 2014 and December 31, 2014 was immaterial.

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The Company's consolidated sponsored investment products were party to the following derivative instruments for the period ended September 30, 2015:

($ in thousands)
	Volume
Purchased options	$	3,527	(a)
Written options	2,499		(b)
Futures contracts long/short	109,286		(c)
Forward foreign currency exchange purchase contracts	2,294		(d)
Forward foreign currency exchange sale contracts	26,565		(e)
Interest rate swaps	31,603		(a)
Other swaps	27,956		(f)

(a)    Represents cost of holdings as of the end of the period.

(b)    Represents aggregate premiums received for the period.

(c)    Represents cost at trade date for holdings as of the end of the period.

(d)    Represents value of trade date payable for holdings as of the end of the period.

(e)    Represents value at settlement date receivable for holdings as of the end of the period.

(f) Includes credit default, total return, inflation and variance swaps. Represents notional value of holdings as of the end of the period.

The following is a summary of the consolidated sponsored investment products' derivative instruments as of September 30, 2015. For financial reporting purposes the Company does not offset derivative assets and derivative liabilities that are subject to netting arrangements in its Condensed Consolidated Balance Sheet.

	Fair Value
($ in thousands)	Assets			Liabilities
Futures contracts	$	119		$	33
Forward foreign currency exchange contracts	228			117
Swaps	1,226			1,002
Purchased options	1,005			—
Purchased swaptions	701			—
Written options	—			691
Total derivative assets and liabilities in the Condensed Consolidated Balance Sheets	3,279			1,843
Derivatives not subject to a master netting agreement	(654		)	(207		)
Total assets and liabilities subject to a master netting agreement	2,625			1,636

The Company's consolidated sponsored investment products have counterparty risk associated with these derivative assets and liabilities. Multiple counterparties are utilized to mitigate this risk, and the maximum exposure to a single bank does not exceed 34.4% of the total derivative assets or 40.9% of the total derivative liabilities.

The following is a summary of the net gains (losses) recognized in income by primary risk exposure, for the three and nine months ended September 30, 2015:

19

($ in thousands)	Three Months Ended September 30, 2015			Nine Months Ended September 30, 2015
Interest rate contracts	$	(217	)	$	(75	)
Foreign currency exchange contracts	263			666
Equity contracts	633			1,414
Commodity contracts	212			126
Credit contracts	(13		)	(100		)
Total	$	878		$	2,031

Short Sales

Some of the Company’s consolidated sponsored investment products may engage in short sales, which are transactions in which a security is sold which is not owned or is owned but there is no intention to deliver, in anticipation that the price of the security will decline. Short sales are recorded in the Condensed Consolidated Balance Sheets within other liabilities of consolidated sponsored investment products.

Borrowings

One of the Company’s consolidated sponsored investment products employs leverage in the form of using proceeds from short sales, which allows it to use its long positions as collateral in order to purchase additional securities. The use of these proceeds from short sales is secured by the assets of the consolidated sponsored investment product, which are held with the custodian in a separate account. This consolidated sponsored investment product is permitted to borrow up to 33.33% of its total assets.

14. Consolidated Investment Product

During the third quarter of 2015, the Company contributed $20.0 million to a special purpose entity ("SPE") that was created specifically to accumulate bank loan assets for securitization as a potential CLO that will be managed by its Newfleet affiliate. The special purpose entity is a VIE and the Company consolidates the SPE's assets and liabilities within its financial statements as it is the primary beneficiary of the VIE.

The following table presents the balances of the consolidated investment product that were reflected in the Condensed Consolidated Balance Sheets as of September 30, 2015. There was no consolidated investment product at December 31, 2014.

	As of September 30, 2015
($ in thousands)
Total cash equivalents	$	120
Total investments	131,862
Other assets	20
Debt	(9,140		)
Securities purchased payable	(103,541		)
The Company’s net interests in consolidated investment product	$	19,321
The Company’s net interests as a percentage of total investments of consolidated investment product	14.7		%

Fair Value Measurements of Consolidated Investment Product

The assets and liabilities of the consolidated investment product measured at fair value on a recurring basis as of September 30, 2015 by fair value hierarchy level were as follows:

20

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	120	$	—	$	—	$	120
Bank loans	—		131,862		—		131,862
Total Assets Measured at Fair Value	$	120	$	131,862	$	—	$	131,982

The following is a discussion of the valuation methodologies used for the assets and liabilities of the Company’s consolidated investment product measured at fair value.

Cash equivalents represent investments in money market funds. Cash investments in actively traded money market funds are valued using published net asset values and are classified as Level 1.

Bank loans represent the underlying debt securities held in the sponsored product which are consolidated by the Company. Bank loan investments include debt securities, which are valued based on quotations received from an independent pricing service.  Pricing services do not provide pricing for all securities, and therefore indicative bids from dealers are utilized, which are based on pricing models used by market makers in the security and are also included within Level 2.

The estimated fair value of debt at September 30, 2015, which has a variable interest rate, approximates its carrying value and is classified as Level 2. The securities purchase payable at September 30, 2015 approximates fair value due to the short-term nature of the instruments.

Debt of Consolidated Investment Product

On August 17, 2015, the SPE, entered into a three-year term $160.0 million financing transaction with a bank lending counterparty (the “Financing Facility”).  The proceeds of the Financing Facility are intended to be used to purchase and warehouse commercial bank loan assets pending the securitization of such assets as a CLO.   The size of the Financing Facility may be increased subject to the occurrence of certain events and the mutual consent of the parties.  The Financing Facility is secured by all the assets of the SPV and initially bears interest at a rate of three-month LIBOR plus 1.25% per annum (with such interest rate, upon completion of the initial nine-month ramp-up period, increasing to three-month LIBOR plus 2.0% per annum).  The Financing Facility contains standard covenant and event of default provisions (including loan-to-value ratio triggers) and foreclosure remedies upon such default in favor of the lender thereunder.  The $20.0 million the Company contributed to the SPE serves as first loss protection for the bank lending counterparty under the Financing Facility. In the event of default, the recourse to the Company is limited to its investment. At September 30, 2015$9.1 million was outstanding under the Financing Facility.

15. Consolidation

As of September 30, 2015, 15 products were consolidated by the Company including 14 consolidated sponsored investment products and one consolidated investment product. As of December 31, 2014, 12 products were consolidated by the Company, comprised entirely of sponsored investment products.

The following tables reflect the impact of the consolidated sponsored investment products and consolidated investment product in the Condensed Consolidated Balance Sheets as of September 30, 2015 and December 31, 2014, respectively:

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As of September 30, 2015

	Balance Before Consolidation of Investment  Products			Consolidated Sponsored Investment Products		Consolidated Investment Product		Eliminations and Adjustments (a)			Balances as Reported in Condensed Consolidated Balance Sheet
($ in thousands)
Total cash	$	126,470		$	16,732	$	120	$	—		$	143,322
Total investments	333,307			311,429		131,862		(278,082		)	498,516
All other assets	174,563			10,494		20		(152		)	184,925
Total assets	$	634,340		$	338,655	$	132,002	$	(278,234	)	$	826,763
Total liabilities	$	95,010		$	29,999	$	112,681	$	(152	)	$	237,538
Redeemable noncontrolling interest	—			—		—		49,895			49,895
Equity attributable to stockholders of the Company	539,626			308,656		19,321		(327,977		)	539,626
Non-redeemable noncontrolling interest	(296		)	—		—		—			(296		)
Total liabilities and equity	$	634,340		$	338,655	$	132,002	$	(278,234	)	$	826,763

As of December 31, 2014

	Balance Before Consolidation of Investment  Products			Consolidated Sponsored Investment Products		Consolidated Investment Product		Eliminations and Adjustments (a)			Balances as Reported in Condensed Consolidated Balance Sheet
($ in thousands)
Total cash	$	202,847		$	8,687	$	—	$	—		$	211,534
Total investments	279,863			236,652		—		(216,415		)	300,100
All other assets	180,436			6,960		—		(257		)	187,139
Total assets	$	663,146		$	252,299	$	—	$	(216,672	)	$	698,773
Total liabilities	$	99,794		$	12,813	$	—	$	(257	)	$	112,350
Redeemable noncontrolling interest	—			—		—		23,071			23,071
Equity attributable to stockholders of the Company	563,542			239,486		—		(239,486		)	563,542
Non-redeemable noncontrolling interest	(190		)	—		—		—			(190		)
Total liabilities and equity	$	663,146		$	252,299	$	—	$	(216,672	)	$	698,773

(a) Adjustments include the elimination of intercompany transactions between the Company, its consolidated sponsored investment products and consolidated investment product, primarily the elimination of the investments, consolidated sponsored investment product equity, consolidated investment product equity and recording of any noncontrolling interest.

The following table reflects the impact of the consolidated sponsored investment products and consolidated investment products in the Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2015 and 2014:

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For the Three Months Ended September 30, 2015

	Balance Before Consolidation of Investment  Products			Consolidated Sponsored Investment Products			Consolidated Investment Product			Eliminations and Adjustments (a)			Balances as Reported in Condensed Consolidated Statement of Operations
($ in thousands)
Total operating revenues	$	92,804		$	—		$	—		$	(429	)	$	92,375
Total operating expenses	68,134			1,548			—			(429		)	69,253
Operating income (loss)	24,670			(1,548		)	—			—			23,122
Total other non-operating expense	(15,557		)	(14,723		)	(679		)	13,803			(17,156		)
Income (loss) before income taxes	9,113			(16,271		)	(679		)	13,803			5,966
Income taxes	9,669			—			—			—			9,669
Net loss	(556		)	(16,271		)	(679		)	13,803			(3,703		)
Noncontrolling interests	(93		)				—			3,147			3,054
Net loss attributable to common stockholders	$	(649	)	$	(16,271	)	$	(679	)	$	16,950		$	(649	)

For the Three Months Ended September 30, 2014

	Balance Before Consolidation of Investment  Products			Consolidated Sponsored Investment Products			Consolidated Investment Product		Eliminations and Adjustments (a)		Balances as Reported in Condensed Consolidated Statement of Operations
($ in thousands)
Total operating revenues	$	117,808		$	—		$	—	$	33	$	117,841
Total operating expenses	77,668			1,213			—		33		78,914
Operating income (loss)	40,140			(1,213		)	—		—		38,927
Total other non-operating loss	(4,649		)	(3,109		)	—		4,021		(3,737		)
Income (loss) before income taxes	35,491			(4,322		)	—		4,021		35,190
Income taxes	(1,805		)	—			—		—		(1,805		)
Net income (loss)	37,296			(4,322		)	—		4,021		36,995
Noncontrolling interests	44			—			—		301		345
Net income (loss) attributable to common stockholders	$	37,340		$	(4,322	)	$	—	$	4,322	$	37,340

23

For the Nine Months Ended September 30, 2015

	Balance Before Consolidation of Investment  Products			Consolidated Sponsored Investment Products			Consolidated Investment Product			Eliminations and Adjustments (a)			Balances as Reported in Condensed Consolidated Statement of Operations
($ in thousands)
Total operating revenues	$	297,089		$	—		$	—		$	(1,227	)	$	295,862
Total operating expenses	229,096			4,121			—			(1,227		)	231,990
Operating income (loss)	67,993			(4,121		)	—			—			63,872
Total other non-operating expense	(11,269		)	(9,951		)	(680		)	11,422			(10,478		)
Income (loss) before income taxes	56,724			(14,072		)	(680		)	11,422			53,394
Income taxes	28,360			—			—			—			28,360
Net income (loss)	28,364			(14,072		)	(680		)	11,422			25,034
Noncontrolling interests	106			—			—			3,330			3,436
Net income (loss) attributable to common stockholders	$	28,470		$	(14,072	)	$	(680	)	$	14,752		$	28,470

For the Nine Months Ended September 30, 2014

	Balance Before Consolidation of Investment  Products		Consolidated Sponsored Investment Products			Consolidated Investment Product		Eliminations and Adjustments (a)			Balances as Reported in Condensed Consolidated Statement of Operations
($ in thousands)
Total operating revenues	$	338,534	$	—		$	—	$	(73	)	$	338,461
Total operating expenses	242,032		2,447			—		(73		)	244,406
Operating income (loss)	96,502		(2,447		)	—		—			94,055
Total other non-operating income	6,545		5,883			—		(3,618		)	8,810
Income before income taxes	103,047		3,436			—		(3,618		)	102,865
Income taxes	24,311		—			—		—			24,311
Net income	78,736		3,436			—		(3,618		)	78,554
Noncontrolling interests	85		—			—		182			267
Net income attributable to common stockholders	$	78,821	$	3,436		$	—	$	(3,436	)	$	78,821

(a) Adjustments include the elimination of intercompany transactions between the Company, its consolidated sponsored investment products and consolidated investment product, primarily the elimination of the investments, consolidated sponsored investment product equity, consolidated investment product equity and recording of any noncontrolling interest.

16. Subsequent Event

On October 21, 2015, the Company's board of directors authorized an additional 1,500,000 shares of common stock under the current share repurchase program. Upon authorization, total shares remaining available for repurchase were 1,756,091. Under terms of the program, the Company may repurchase shares of its common stock from time to time at its discretion through open market repurchases and/or privately negotiated transactions, depending on price and prevailing market and business conditions. The program, which has no specified term, may be suspended or terminated at any time.

24

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Statement Regarding Forward Looking Statements

This Quarterly Report on Form 10-Q contains statements that are, or may be considered to be, forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, as amended, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. All statements that are not historical facts, including statements about our beliefs or expectations, are forward-looking statements. These statements may be identified by such forward-looking terminology as “expect,” “estimate,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “could,” “anticipate,” “forecast,” “project,” “opportunity,” “predict,” “would,” “potential,” “future,” “guarantee,” “assume,” “likely,” "continue," “target” or similar statements or variations of such terms.

Our forward-looking statements are based on a series of expectations, assumptions and projections about our Company and the markets in which we operate, are not guarantees of future results or performance and involve substantial risks and uncertainty, including assumptions and projections concerning our assets under management, net cash inflows and outflows, operating cash flows and future credit facilities, for all future periods. All of our forward-looking statements contained in this Quarterly Report on Form 10-Q are as of the date of this Quarterly Report on Form 10-Q only.

We can give no assurance that such expectations or forward-looking statements will prove to be correct. Actual results may differ materially. We do not undertake or plan to update or revise any such forward-looking statements to reflect actual results, changes in plans, assumptions, estimates or projections, or other circumstances occurring after the date of this Quarterly Report on Form 10-Q, even if such results, changes or circumstances make it clear that any forward-looking information will not be realized. If there are any future public statements or disclosures by us which modify or impact any of the forward-looking statements contained in or accompanying this Quarterly Report on Form 10-Q, such statements or disclosures will be deemed to modify or supersede such statements in this Quarterly Report.

Our business and our forward-looking statements involve substantial known and unknown risks and uncertainties, including those discussed under “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2014, and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Quarterly Report on Form 10-Q, as well as the following risks and uncertainties: (a) any reduction in our assets under management, including due to market conditions, investment performance and client withdrawals; (b) the withdrawal, renegotiation or termination of our investment advisory agreements on short notice; (c) damage to our reputation; (d) failure to comply with agreements that have established investment guidelines or other contractual requirements; (e) our inability to attract and retain key personnel; (f) the competition we face in our business, including competition related to investment products and fees; (g) adverse regulatory and legal developments; (h) limitations on our deferred tax assets; (i) adverse developments with respect to, or changes in our relationships with, unaffiliated subadvisers; (j) changes in key distribution relationships; (k) interruptions in service or failure to provide service by third-party service providers for services critical to our business; (l) volatility associated with the concentrated ownership of our common stock; (m) civil litigation and government investigations or proceedings; (n) the significant portion of our assets invested in marketable securities that are primarily comprised of our seed capital program; (o) our inability to make intended quarterly distributions; (p) lack of availability of required and necessary capital on satisfactory terms; (q) corporate governance provisions that may make an acquisition of us more difficult; and (r) liabilities and losses not covered by our insurance policies, along with certain other risks and uncertainties described in our 2014 Annual Report on Form 10-K or in any of our filings with the Securities and Exchange Commission (“SEC”). Any occurrence of, or any material adverse change in, one or more risk factors or risks and uncertainties referred to in this Quarterly Report or included in our 2014 Annual Report on Form 10-K or our other periodic reports filed with the SEC could materially and adversely affect our operations, financial results, cash flows, prospects and liquidity.

Certain other factors which may impact our continuing operations, prospects, financial results and liquidity or which may cause actual results to differ from such forward-looking statements are discussed or included in the Company’s periodic reports filed with the SEC and are available on our website at www.virtus.com under “Investor Relations.” You are urged to carefully consider all such factors.

25

Overview

We are a provider of investment management and related services to individuals and institutions. We use a multi-manager, multi-style approach, offering investment strategies from affiliated managers and unaffiliated subadvisers, each having its own distinct investment style, autonomous investment process and individual brand. By offering a broad array of products, we believe we can appeal to a greater number of investors, which allows us to have offerings across market cycles through changes in investor preferences. Our earnings are primarily driven by asset-based fees charged for services relating to these various products including investment management, fund administration, distribution and shareholder services.

We offer investment strategies for individual and institutional investors in different product structures and through multiple distribution channels. Our investment strategies are available in a diverse range of styles and disciplines, managed by a collection of boutique investment managers, both affiliated and unaffiliated. We have offerings in various asset classes (domestic and international equity, fixed income and alternative), in all market capitalizations (large, mid and small), in different styles (growth, blend and value) and with various investment approaches (fundamental, quantitative and thematic). Our retail products include open-end mutual funds, closed-end funds, variable insurance funds, exchange traded funds (“ETFs”) and separately managed accounts. We also offer certain of our investment strategies to institutional clients.

We distribute our open-end mutual funds through financial intermediaries. We have broad access in the retail market, with distribution partners that include national and regional broker-dealers, independent broker-dealers and independent financial advisory firms. In many of these firms, we have a number of products that are on firms’ preferred “recommended” lists and on fee-based advisory programs. Our sales efforts are supported by regional sales professionals, a national account relationship group and separate teams for the retirement and insurance markets.

Our separately managed accounts are distributed through financial intermediaries and directly by teams at our affiliated managers. Our institutional distribution strategy is an affiliate-centric and coordinated model. Through relationships with consultants, our affiliates target key market segments, including foundations and endowments, corporate, public and private pension plans and unaffiliated mutual funds.

Financial Highlights

• Net loss per diluted share was ($0.07) in the third quarter of 2015 compared to earnings per share of $4.02 in the third quarter of 2014. Third quarter 2015 results include ($1.89) per share of unrealized mark to market adjustments.

• Total sales were $2.5 billion in the third quarter of 2015 compared to $3.5 billion in the third quarter of 2014. Net flows were ($1.6) billion in the third quarter of 2015 compared to $0.5 billion in the third quarter of 2014.

• Assets under management were $47.9 billion at September 30, 2015 compared to $59.6 billion at September 30, 2014 excluding money market assets.

Assets Under Management

At September 30, 2015, we managed $47.9 billion in total assets, representing a decrease of $11.7 billion, or 19.6% excluding money market assets from September 30, 2014 (or a decrease of $12.9 billion, or 21.3% including money market assets) and a decrease of $8.8 billion or 15.5% from December 31, 2014. The decrease in assets under management from December 31, 2014 was primarily due to net outflows of $5.2 billion and market depreciation of $3.1 billion. The $5.2 billion in net outflows during the nine months of 2015 was primarily attributable to $5.9 billion in net outflows in the former AlphaSector funds. At September 30, 2015, assets under management in the former AlphaSector funds represented $3.3 billion, or 7.0% of total assets under management. On May 11, 2015, the Company served notice of termination to an unaffiliated subadviser to five Virtus open-end mutual funds previously known as the AlphaSector funds. Excluding the former AlphaSector funds, net inflows were $0.7 billion during the first nine months of 2015.

Average assets under management, which generally correspond to our fee-earning asset levels, were $50.6 billion for the three months ended September 30, 2015, a decrease of $11.2 billion, or 18.1%, from $61.8 billion for the three months ended September 30, 2014. Average assets under management were $52.8 billion for the nine months ended September 30, 2015, a decrease of $6.5 billion, or 10.9%, from $59.3 billion for the nine months ended September 30, 2014.

26

Operating Results

In the third quarter of 2015, total revenues decreased 21.6% to $92.4 million from $117.8 million in the third quarter of 2014. This decrease was primarily the result of a decrease in average assets under management. Operating income decreased by 40.6% from $38.9 million in the third quarter of 2014 to $23.1 million in the third quarter of 2015, primarily due to decreased revenues driven by lower levels of average assets under management offset by lower operating expenses associated with the decreased revenues discussed above.

Assets Under Management by Product

The following table summarizes our assets under management by product:

	As of September 30,				Change
	2015		2014		2015 vs. 2014			%
($ in millions)
Fund assets
Open-end mutual funds (1)	$	29,716.4	$	41,076.3	$	(11,359.9	)	(27.7	)%
Closed-end funds	6,349.8		7,568.1		(1,218.3		)	(16.1	)%
Exchange traded funds	306.9		—		306.9			100.0	%
Money market funds (2)	—		1,231.9		(1,231.9		)	(100.0	)%
Total fund assets	36,373.1		49,876.3		(13,503.2		)	(27.1	)%
Separately managed accounts (3)	6,539.6		6,653.0		(113.4		)	(1.7	)%
Total retail assets	42,912.7		56,529.3		(13,616.6		)	(24.1	)%
Total institutional assets (3)	5,025.0		4,348.3		676.7			15.6	%
Total Assets Under Management	$	47,937.7	$	60,877.6	$	(12,939.9	)	(21.3	)%
Average Assets Under Management for the Nine Months Ended	$	52,843.7	$	59,329.0	$	(6,485.3	)	(10.9	)%

(1) Includes assets under management of open-end and variable insurance funds.

(2) On October 20, 2014, our money market funds were liquidated. This liquidation had no impact on our operating results.

(3) Includes assets under management related to option strategies.

Asset Flows by Product

The following table summarizes our asset flows by product:

27

	Three Months Ended September 30,						Nine Months Ended September 30,
($ in millions)	2015			2014			2015			2014
Open-End Funds (1)
Beginning balance	$	33,345.3		$	41,124.6		$	37,514.2		$	37,679.5
Inflows	1,866.2			3,055.2			7,499.9			9,877.5
Outflows	(3,736.0		)	(2,442.2		)	(13,308.5		)	(8,337.9		)
Net flows	(1,869.8		)	613.0			(5,808.6		)	1,539.6
Market performance	(1,780.9		)	(727.3		)	(1,936.7		)	1,645.3
Other (2)	21.8			66.0			(52.5		)	211.9
Ending balance	$	29,716.4		$	41,076.3		$	29,716.4		$	41,076.3
Closed-End Funds
Beginning balance	$	6,901.0		$	7,530.6		$	7,581.4		$	6,499.6
Inflows	—			30.5			—			493.8
Outflows	—			—			—			—
Net flows	—			30.5			—			493.8
Market performance	(380.4		)	(98.4		)	(830.6		)	676.1
Other (2)	(170.8		)	105.4			(401.0		)	(101.4		)
Ending balance	$	6,349.8		$	7,568.1		$	6,349.8		$	7,568.1
Exchange Traded Funds
Beginning balance	$	132.6		$	—		$	—		$	—
Inflows	217.7			—			285.1			—
Outflows	(13.8		)	—			(26.0		)	—
Net flows	203.9			—			259.1			—
Market performance	(29.1		)	—			(29.5		)	—
Other (2)	(0.5		)	—			77.3			—
Ending balance	$	306.9		$	—		$	306.9		$	—
Money Market Funds
Beginning balance	$	—		$	1,311.7		$	—		$	1,556.6
Other (2)	—			(79.8		)	—			(324.7		)
Ending balance	$	—		$	1,231.9		$	—		$	1,231.9
Separately Managed Accounts (3)
Beginning balance	$	6,952.1		$	6,862.4		$	6,884.8		$	7,433.1
Inflows	263.8			319.2			959.1			1,069.9
Outflows	(334.5		)	(343.3		)	(1,032.0		)	(1,832.3		)
Net flows	(70.7		)	(24.1		)	(72.9		)	(762.4		)
Market performance	(353.2		)	(180.5		)	(241.3		)	(42.1		)
Other (2)	11.4			(4.8		)	(31.0		)	24.4
Ending balance	$	6,539.6		$	6,653.0		$	6,539.6		$	6,653.0
Institutional Accounts (3)
Beginning balance	$	5,070.0		$	4,565.0		$	4,722.0		$	4,570.8
Inflows	199.5			109.4			781.7			340.6
Outflows	(110.3		)	(236.5		)	(344.8		)	(610.9		)
Net flows	89.2			(127.1		)	436.9			(270.3		)
Market performance	(109.9		)	(45.6		)	(74.2		)	172.4
Other (2)	(24.3		)	(44.0		)	(59.7		)	(124.6		)
Ending balance	$	5,025.0		$	4,348.3		$	5,025.0		$	4,348.3
Total
Beginning balance	$	52,401.0		$	61,394.3		$	56,702.4		$	57,739.6
Inflows	2,547.2			3,514.3			9,525.8			11,781.8
Outflows	(4,194.6		)	(3,022.0		)	(14,711.3		)	(10,781.1		)
Net flows	(1,647.4		)	492.3			(5,185.5		)	1,000.7
Market performance	(2,653.5		)	(1,051.8		)	(3,112.3		)	2,451.7
Other (2)	(162.4		)	42.8			(466.9		)	(314.4		)
Ending balance	$	47,937.7		$	60,877.6		$	47,937.7		$	60,877.6

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(1) Includes assets under management of open-end and variable insurance funds.

(2) Represents open-end and closed-end mutual fund distributions, net of reinvestments, net flows of cash management strategies, net flows and market performance on structured products, which are a component of institutional accounts, and net flows from non-sales related activities such as asset acquisitions/(dispositions), marketable securities investments/(withdrawals) and the impact on assets from the use of leverage.

(3) Includes assets under management related to option strategies.

The following table summarizes our assets under management by asset class:

	As of September 30,				Change					% of Total
	2015		2014		2015 vs. 2014			%		2015		2014
($ in millions)
Asset Class
Equity	$	28,231.0	$	35,573.6	$	(7,342.6	)	(20.6	)%	58.9	%	58.4	%
Fixed income	15,580.6		16,671.0		(1,090.4		)	(6.5	)%	32.5	%	27.4	%
Alternatives (1)	3,681.7		6,769.5		(3,087.8		)	(45.6	)%	7.7	%	11.1	%
Other (2)	444.4		1,863.5		(1,419.1		)	(76.2	)%	0.9	%	3.1	%
Total	$	47,937.7	$	60,877.6	$	(12,939.9	)	(21.3	)%	100.0	%	100.0	%

(1) Consists of long/short equity, real estate securities, master-limited partnerships and other.

(2) Consists of cash management and option strategies; as of December 31, 2014 only reflects option strategies. Cash management strategies were $1,340.7 million as of September 30, 2014.

Average Assets Under Management and Average Basis Points

The following table summarizes the average assets under management and the average management fees earned in basis points:

	Three Months Ended September 30,
	Average Fees Earned (expressed in basis points)		Average Assets Under Management ($ in millions)
	2015	2014	2015		2014
Products
Open-End Funds (1)	47.3	50.8	$	31,627.1	$	41,639.6
Closed-End Funds	66.9	67.1	6,714.5		7,571.4
Exchange Traded Funds	21.9	—	269.9		—
Money Market Funds	—	—	—		1,310.1
Separately Managed Accounts (2)	54.5	51.3	6,930.9		6,793.5
Institutional Accounts (2)	34.2	34.8	5,082.4		4,483.6
All Products	49.4	50.6	$	50,624.8	$	61,798.2
	Nine Months Ended September 30,
	Average Fees Earned (expressed in basis points)		Average Assets Under Management ($ in millions)
	2015	2014	2015		2014
Products
Open-End Funds (1)	49.8	51.5	$	33,692.5	$	39,643.6
Closed-End Funds	67.8	65.0	7,030.4		6,966.6
Exchange Traded Funds	14.3	—	160.9		—
Money Market Funds	—	—	—		1,354.7
Separately Managed Accounts (2)	54.1	51.9	6,958.3		6,825.5
Institutional Accounts (2)	34.9	35.6	5,001.6		4,538.6
All Products	51.3	50.7	$	52,843.7	$	59,329.0

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(1) Includes assets under management of open-end and variable insurance funds.

(2) Includes assets under management related to option strategies.

Average fees earned represent investment management fees paid net of fees to third party service providers for investment management related services and less the impact of consolidated sponsored investment products divided by average net assets. Mutual funds and exchange traded fund fees are calculated based on average daily or weekly net assets. Separately managed account fees are calculated based on the end of the preceding or current quarter’s asset values or on an average of month-end balances. Institutional account fees are calculated based on an average of month-end balances or current quarter’s asset values. Average fees earned will vary based on several factors, including the asset mix and reimbursements to funds.

The average fee rate earned for the three months ended September 30, 2015 decreased by 1.2 basis points compared to the same period in the prior year primarily due to a decrease in the open-end mutual fund fee rate. The 3.5 basis point decline in the open-end fund fee rate was primarily attributable to a negative $4.6 million variable incentive fee from one mutual fund in the third quarter of 2015. Excluding the variable incentive fee, the open-end fund fee rate would have been 53.1 basis points. The average fee rate earned for the nine months ended September 30, 2015 increased by 0.6 basis points compared to the same period in the prior year primarily due to an increase in the closed-end fund fee rate related to a fund launch during the second quarter of 2014, combined with the liquidation of the low fee money market assets in October 2014, partially offset by the decrease mentioned above. For the three months ended September 30, 2015, average fees earned excluded $1.2 million of subadvisory fees paid to an unaffiliated former subadvisor during the termination period. The average fee rate earned on separately managed accounts increased in the three and nine months ended September 30, 2015 as compared to the same periods in 2014 primarily due to net flows into high net worth accounts.

Results of Operations

Summary Financial Data

	Three Months Ended September 30,											Nine Months Ended September 30,
	2015			2014			2015 vs. 2014			%		2015			2014		2015 vs. 2014			%
($ in thousands)
Results of Operations
Investment management fees	$	64,891		$	78,960		$	(14,069	)	(17.8	)%	$	204,254		$	225,289	$	(21,035	)	(9.3	)%
Other revenue	27,484			38,881			(11,397		)	(29.3	)%	91,608			113,172		(21,564		)	(19.1	)%
Total revenues	92,375			117,841			(25,466		)	(21.6	)%	295,862			338,461		(42,599		)	(12.6	)%
Total operating expenses	69,253			78,914			(9,661		)	(12.2	)%	231,990			244,406		(12,416		)	(5.1	)%
Operating income	23,122			38,927			(15,805		)	(40.6	)%	63,872			94,055		(30,183		)	(32.1	)%
Other (expense) income, net	(20,281		)	(6,136		)	(14,145		)	230.5	%	(19,363		)	3,435		(22,798		)	(663.7	)%
Interest income, net	3,125			2,399			726			30.3	%	8,885			5,375		3,510			65.3	%
Income before income taxes	5,966			35,190			(29,224		)	(83.0	)%	53,394			102,865		(49,471		)	(48.1	)%
Income tax expense (benefit)	9,669			(1,805		)	11,474			(635.7	)%	28,360			24,311		4,049			16.7	%
Net (loss) income	(3,703		)	36,995			(40,698		)	(110.0	)%	25,034			78,554		(53,520		)	(68.1	)%
Noncontrolling interests	3,054			345			2,709			785.2	%	3,436			267		3,169			1,186.9	%
Net (loss) income attributable to common stockholders	$	(649	)	$	37,340		$	(37,989	)	(101.7	)%	$	28,470		$	78,821	$	(50,351	)	(63.9	)%

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Revenues

Revenues by source are as follows:

	Three Months Ended September 30,									Nine Months Ended September 30,
	2015		2014		2015 vs. 2014			%		2015		2014		2015 vs. 2014			%
($ in thousands)
Investment management fees
Funds	$	50,935	$	66,246	$	(15,311	)	(23.1	)%	$	162,913	$	186,696	$	(23,783	)	(12.7	)%
Separately managed accounts	9,572		8,776		796			9.1	%	28,275		26,517		1,758			6.6	%
Institutional accounts	4,384		3,938		446			11.3	%	13,066		12,076		990			8.2	%
Total investment management fees	64,891		78,960		(14,069		)	(17.8	)%	204,254		225,289		(21,035		)	(9.3	)%
Distribution and service fees	15,587		23,671		(8,084		)	(34.2	)%	52,820		70,049		(17,229		)	(24.6	)%
Administration and transfer agent fees	11,614		14,804		(3,190		)	(21.5	)%	37,233		41,819		(4,586		)	(11.0	)%
Other income and fees	283		406		(123		)	(30.3	)%	1,555		1,304		251			19.2	%
Total revenues	$	92,375	$	117,841	$	(25,466	)	(21.6	)%	$	295,862	$	338,461	$	(42,599	)	(12.6	)%

Investment Management Fees

Investment management fees are earned based on a percentage of assets under management and are paid pursuant to the terms of the respective investment management contracts, which generally require monthly or quarterly payments. Investment management fees decreased by $14.1 million, or 17.8%, for the three months ended September 30, 2015 compared to the same period in the prior year primarily due to a $11.2 billion, or 18.1%, decrease in average assets under management. The decrease in average assets under management for the three months ended September 30, 2015 compared to the same period in the prior year was due primarily to net outflows and market depreciation related to our open-end funds. For the three months ended September 30, 2015, investment management fees include a negative $4.6 million variable incentive fee from one mutual fund.

Investment management fees decreased by $21.0 million, or 9.3%, for the nine months ended September 30, 2015 compared to the same period in the prior year due to a $6.4 billion, or 10.9%, decrease in average assets under management. The decrease in average assets under management for the nine months ended September 30, 2015 compared to the same period in the prior year was due primarily to net outflows and market depreciation related to our open-end funds.

Distribution and Service Fees

Distribution and service fees, which are asset based fees earned from open-end mutual funds and variable insurance funds for distribution services, decreased by $8.1 million or 34.2%, and $17.2 million or 24.6%, for the three and nine months ended September 30, 2015, respectively, compared to the same periods in the prior year due to lower average open-end assets under management.

Administration and Transfer Agent Fees

Administration and transfer agent fees represent fees earned for fund administration and shareholder services from our open-end mutual funds, variable insurance funds and certain of our closed-end funds. Fund administration and transfer agent fees decreased by $3.2 million or 21.5%, and $4.6 million or 11.0%, for the three and nine months ended September 30, 2015, respectively, compared to the same periods in the prior year due to lower average assets under management for which the Company provides fund administration and shareholder services.

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Other Income and Fees

Other income and fees primarily represent contingent sales charges earned from investor redemptions of certain shares sold without a front-end sales charge and fees earned for the distribution of unaffiliated products. Other income and fees decreased $0.1 million or 30.3% for the three months ended September 30, 2015 compared to the same period in the prior year primarily due to a decrease in contingent sales charges as a result of lower current quarter redemptions. Other income and fees increased $0.3 million, or 19.2%, for the nine months ended September 30, 2015 compared to the same period in the prior year primarily due to an increase in contingent sales charges earned as a result of higher current year redemptions.

Operating Expenses

Operating expenses by category were as follows:

	Three Months Ended September 30,									Nine Months Ended September 30,
	2015		2014		2015 vs. 2014			%		2015		2014		2015 vs. 2014			%
($ in thousands)
Operating expenses
Employment expenses	$	33,504	$	35,246	$	(1,742	)	(4.9	)%	$	102,719	$	105,756	$	(3,037	)	(2.9	)%
Distribution and other asset-based expenses	21,717		29,180		(7,463		)	(25.6	)%	69,900		96,139		(26,239		)	(27.3	)%
Other operating expenses	12,285		12,534		(249		)	(2.0	)%	54,298		37,326		16,972			45.5	%
Restructuring and severance	—		294		(294		)	(100.0	)%	—		294		(294		)	(100.0	)%
Depreciation and amortization expense	1,747		1,660		87			5.2	%	5,073		4,891		182			3.7	%
Total operating expenses	$	69,253	$	78,914	$	(9,661	)	(12.2	)%	$	231,990	$	244,406	$	(12,416	)	(5.1	)%

Employment Expenses

Employment expenses primarily consist of fixed and variable compensation and related employee benefit costs. Employment expenses for the three and nine months ended September 30, 2015 were $33.5 million and $102.7 million, respectively, which represented a decrease of $1.7 million or 4.9%, and $3.0 million or 2.9%, respectively, compared to the same periods in the prior year. The decrease was primarily due a reduction in profit and sales based variable compensation resulting from lower profits offset by an increase in fixed employment expenses related to higher staffing levels primarily at our affiliates, including Virtus ETF Solutions.

Distribution and Other Asset-Based Expenses

Distribution and other asset-based expenses consist primarily of payments to third-party distribution partners for providing services to investors in our sponsored funds and payments to third party service providers for investment management related services. These payments are primarily based on percentages of assets under management or percentages of revenues. These expenses also include the amortization of deferred sales commissions related to up-front commissions on shares sold without a front-end sales charge to shareholders. The deferred sales commissions are amortized on a straight line basis over the periods in which commissions are generally recovered from distribution fee revenues and contingent sales charges received from shareholders of the funds upon redemption of their shares. Distribution and other asset-based expenses decreased by $7.5 million, or 25.6%, in the three months ended September 30, 2015 compared to the same period in the prior year primarily due to lower average open-end assets under management. Distributions and other asset-based expenses decreased by $26.2 million, or 27.3%, in the nine months ended September 30, 2015 compared to the same period in the prior year primarily due to (1) lower average open-end assets under management and (2) closed-end fund structuring costs of $9.6 million incurred in connection with the launch of a new closed-end fund during the second quarter of 2014. No such costs were incurred in 2015. For both the three and nine months ended September 30, 2015, the reduction in expense was partially offset by an increase in payments to third party service providers for investment management related services.

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Other Operating Expenses

Other operating expenses primarily consist of investment research and technology costs, professional fees, travel and distribution related costs, rent and occupancy expenses and other miscellaneous costs and includes other operating expenses of the Company's consolidated sponsored investment products. Other operating expenses for the three months ended September 30, 2015 decreased $0.2 million, or 2.0%, to $12.3 million as compared to $12.5 million for the same period in the prior year. Other operating expenses of consolidated sponsored investment products for the three months ended September 30, 2015 decreased by $0.1 million over the prior year.

Other operating expenses for the nine months ended September 30, 2015 increased $17.0 million, or 45.5%, to $54.3 million as compared to $37.3 million for the same period in the prior year primarily due to the impact of a $16.5 million loss contingency related to a previously disclosed regulatory matter. Other operating expenses of consolidated sponsored investment products increased by $0.5 million over the prior year, reflecting the consolidation of one additional fund.

Depreciation and Amortization Expense

Depreciation and amortization expense consists primarily of the straight-line depreciation of furniture, equipment, and leasehold improvements as well as the amortization of acquired investment advisory contracts, recorded as definite-lived intangible assets, both over their estimated useful lives. Depreciation and amortization expense increased by $0.1 million and $0.2 million for the three and nine months ended September 30, 2015, respectively, compared to the same periods in the prior year due to higher depreciation on fixed assets offset by lower amortization of intangible assets.

Other (Expense) Income, net

Other (expense) income, net consists primarily of realized and unrealized gains and losses recorded on investments, investments of consolidated sponsored investment products and our consolidated investment product as well as other income including earnings from equity method investments.

Other (expense) income, net decreased during the three months ended September 30, 2015 by $14.1 million compared to the same period in the prior year. Realized and unrealized gains on investments of consolidated sponsored investment products and the consolidated investment product were ($18.4) million during the three months ended September 30, 2015, compared to ($5.3) million during the same period in the prior year. Excluding investments of consolidated sponsored investment products and the consolidated investment product, other (expense) income, net increased during the three months ended September 30, 2015 by $1.1 million compared to the same period in the prior year, primarily due to an increase in realized and unrealized losses on investments and a decrease in earnings on equity method investments.

Other (expense) income, net decreased during the nine months ended September 30, 2015 by $22.8 million compared to the same period in the prior prior year. Realized and unrealized gains on investments of consolidated sponsored investment products and the consolidated investment product were ($19.0) million during the nine months ended September 30, 2015, compared to $1.2 million during the same period in the prior year. Excluding investments of consolidated sponsored investment products and the consolidated investment product, other (expense) income, net decreased during the nine months ended September 30, 2015 by $2.6 million, compared to the same period in the prior year, primarily due to a decrease in realized and unrealized gains on investments partially offset by an increase in earnings on equity method investments.

Interest Income, net

Interest income, net consists of interest and dividend income earned on cash equivalents, investments and the investments of our consolidated sponsored investment products and our consolidated investment product. Interest income, net, increased $0.7 million and $3.5 million, or 30.3% and 65.3%, for the three and nine months ended September 30, 2015, respectively, compared to the same periods in the prior year. The increase in interest income, net, was primarily due to higher interest and dividend income earned on the investments of our consolidated sponsored investment products. The investments of the consolidated investment product were $131.9 million at September 30, 2015. Investments of consolidated sponsored investment products grew $70.3 million, or 29.2%, to $311.4 million at September 30, 2015, from $241.1 million at September 30, 2014.

Income Tax Expense

The provision for income taxes reflects U.S. federal, state and local taxes at an estimated effective tax rate of 53.1% and 23.6% for the nine months ended September 30, 2015 and 2014, respectively. The increase in the estimated effective tax rate was primarily due to valuation allowances related to the unrealized loss position on our marketable securities as well as a

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tax benefit recognized during the period ended September 30, 2014 related to the settlement of an audit of our 2011 federal corporate income tax return.

Liquidity and Capital Resources

Certain Financial Data

The following table summarizes certain key financial data relating to our liquidity and capital resources:

	September 30, 2015		December 31, 2014		Change
					2015 vs. 2014			%
($ in thousands)
Balance Sheet Data
Cash and cash equivalents	$	126,470	$	202,847	$	(76,377	)	(37.7	)%
Investments	55,225		63,448		(8,223		)	(13.0	)%
Deferred taxes, net	59,700		60,162		(462		)	(0.8	)%
Dividends payable	4,258		4,270		(12		)	(0.3	)%
Total equity	539,330		563,352		(24,022		)	(4.3	)%

	Nine Months Ended September 30,						Change
	2015			2014			2015 vs. 2014			%
($ in thousands)
Cash Flow Data:
Provided by (Used In):
Operating Activities	$	(56,951	)	$	(102,288	)	$	45,337		(44.3	)%
Investing Activities	(5,419		)	(7,440		)	2,021			(27.2	)%
Financing Activities	(12,087		)	11,947			(24,034		)	(201.2	)%

Overview

We maintained significant liquidity and capital during the nine months ended September 30, 2015. At September 30, 2015, we had $126.5 million of cash and cash equivalents and $40.1 million of investments in marketable securities compared to $202.8 million of cash and cash equivalents and $50.3 million of investments in marketable securities at December 31, 2014. We have additional liquidity available through a credit facility (“the Credit Facility”) that provides borrowing capacity of up to $75.0 million and can be increased to $125.0 million upon satisfaction of certain approval requirements by the lending group. At September 30, 2015, we had no outstanding borrowings under the Credit Facility.

Short-Term Capital Requirements

Our short-term capital requirements, which we consider to be those capital requirements due within one year, include payment of annual incentive compensation, income tax payments and other operating expenses, primarily consisting of investment research and technology costs, professional fees, distribution and occupancy costs. Incentive compensation, which is one of the largest annual operating cash expenditures, is paid in the first quarter of the year. In the first quarter of 2015 and 2014, we paid approximately $45.9 million and $45.0 million, respectively, in incentive compensation earned during the years ended December 31, 2014 and 2013, respectively. Short-term capital requirements may also be affected by employee tax withholding payments related to the net share settlement of equity awards. The Company paid $5.1 million and $9.5 million in minimum employee tax withholding obligations related to net share settlements in the first nine months of 2015 and 2014, respectively. These net share settlements had the effect of share repurchases by the Company as they reduced the number of shares that otherwise would have been issued as a result of the vesting or exercise. The amount of employee tax withholdings we pay in future periods will vary based on our stock price, the number of equity awards net settled during the period and whether we and our employees elect to satisfy withholding taxes through net share settlement. Our liquidity could also be impacted by certain contingencies, including any legal or regulatory settlements, described more fully in Note 12, Commitments and Contingencies within our condensed consolidated financial statements.

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Other Uses of Capital

We expect that our main uses of cash will be to (i) invest in our organic growth, including our distribution efforts and closed-end fund launches; (ii) seed new investment strategies and make new investments to introduce new products or to enhance distribution access; (iii) return capital to stockholders through acquisition of shares of our common stock, payment of cash dividends on our common stock or other means; (iv) fund ongoing and potential investments in our infrastructure; and (v) invest in inorganic growth opportunities as they arise.

In February, May and August 2015, we paid cash dividends on our common stock in the amount of $0.45 per share, totaling $12.1 million. On August 16, 2015, our Board of Directors declared a quarterly cash dividend of $0.45 per common share to be paid on November 13, 2015 to shareholders of record at the close of business on October 30, 2015. In addition, during the first nine months of 2015, we paid approximately $45.0 million to repurchase a total of 368,468 common shares under the board authorized share repurchase program. During the first nine months of 2014, we paid approximately $26.3 million to repurchase a total of 136,874 common shares.

In the third quarter of 2015, we seeded $55.0 million into two new mutual funds and invested $20.0 million in an entity that was created specifically to accumulate bank loan assets for securitization as a potential CLO that will be managed by our Newfleet affiliate. At September 30, 2015, we had total seed capital and CLO investments of $276.8 million and $19.3 million, respectively.

On October 21, 2015, the our board of directors authorized an additional 1,500,000 shares of common stock under the current share repurchase program. Upon authorization, total shares remaining available for repurchase were 1,756,091. Under the terms of the program, the Company may repurchase shares of its common stock from time to time at its discretion through open market repurchases and/or privately negotiated transactions, depending on price and prevailing market and business conditions. The program, which has no specified term, may be suspended or terminated at any time.

Capital and Reserve Requirements

VP Distributors, LLC (“VPD”), a wholly-owned subsidiary of the Company, is a broker-dealer registered with the SEC and is therefore subject to certain rules regarding minimum net capital, as defined by those rules. VPD is required to maintain a ratio of “aggregate indebtedness” to “net capital,” as defined, which may not exceed 15 to 1 and must also maintain a minimum amount of net capital. Failure to meet these requirements could result in adverse consequences to us including additional reporting requirements, a lower required ratio of aggregate indebtedness to net capital or interruption of our business. At both September 30, 2015 and December 31, 2014, the ratio of aggregate indebtedness to net capital of our broker-dealer was below the maximum allowed, and its net capital was significantly greater than the required minimum.

Balance Sheet

Cash and cash equivalents consist of cash and money market fund investments. Investments consist primarily of investments in our affiliated mutual funds. Consolidated sponsored investment products primarily represent investment products we sponsor and where we own a majority of the voting interest in the entity or we are the primary beneficiary of an investment product that is a variable interest entity. At September 30, 2015 and December 31, 2014, we had no debt outstanding that was a general obligation of the Company.

Operating Cash Flow

Net cash used in operating activities of $57.0 million for the nine months ended September 30, 2015 decreased by $45.3 million from net cash used in operating activities of $102.3 million in the same period in the prior year. The decrease was due primarily to lower net income, decreased excess tax benefits from stock-based compensation, decreased realized and unrealized gains on investments of consolidated sponsored investment products, decreased sales of trading securities, decreased purchases of investments of consolidated sponsored investment products, decreased accounts receivable, net and other assets and decreased accrued compensation and benefits, accounts payable, accrued liabilities and other liabilities. The decreases were partially offset by increased purchases of investments by the consolidated investment product, net.

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Investing Cash Flow

Net cash used in investing activities consists primarily of capital expenditures for our business operations. Net cash used in investing activities of $5.4 million for the nine months ended September 30, 2015 decreased by $2.0 million from net cash used in investing activities of $7.4 million in the same period for the prior year due to the decrease of $3.4 million in the amount paid for asset acquisitions of equity method and other investments and the decrease in cash and cash equivalents as a result of the deconsolidation of certain consolidated sponsored investment products of $0.4 million partially offset by increased capital expenditures of $1.9 million.

Financing Cash Flow

Cash flows used in financing activities consist primarily of return of capital through repurchases and dividends, withholding obligations for the net share settlement of employee share transactions and contributions to noncontrolling interests related to our consolidated sponsored investment products. Net cash used in financing activities decreased $24.0 million to $12.1 million for the nine months ended September 30, 2015 as compared to net cash provided by financing activities of $11.9 million for the nine months ended September 30, 2015. The primary reason for the decrease was due to decreased payments made to settle minimum tax withholding obligations for the net share settlement of RSUs of $4.4 million as well as decreased excess tax benefits from stock-based compensation of $23.6 million. These decreases were partially offset by increased repurchases of our common stock of $18.7 million, increased third-party contributions of $13.9 million to the noncontrolling interests related to our consolidated sponsored investment products, increased borrowings of proceeds by the consolidated investment product of $9.1 million and increased dividends paid of $8.0 million during the first nine months of 2015 compared to the first nine months of 2014.

Debt

Our Credit Facility, as amended and restated, has a five-year term and provides borrowing capacity of up to $75.0 million with a $7.5 million sub-limit for the issuance of standby letters of credit. In addition, the Credit Facility provides for a $50.0 million increase provision conditioned on approval by the lending group. The Credit Facility is secured by substantially all of our assets. At September 30, 2015 and December 31, 2014, no amount was outstanding under the Credit Facility. As of September 30, 2015, we had the capacity to draw on the entire $75.0 million available under the Credit Facility. The Credit Facility contains financial covenants with respect to leverage and interest coverage and requires us to pay an annual commitment fee on any unused portion. We were in compliance with all debt covenants as of September 30, 2015.

On August 17, 2015, the SPE, entered into a three-year term $160.0 million financing transaction with a bank lending counterparty (the “Financing Facility”).  The proceeds of the Financing Facility are intended to be used to purchase and warehouse commercial bank loan assets pending the securitization of such assets as a CLO.   The size of the Financing Facility may be increased subject to the occurrence of certain events and the mutual consent of the parties.  The Financing Facility is secured by all the assets of the SPV and initially bears interest at a rate of three-month LIBOR plus 1.25% per annum (with such interest rate, upon completion of the initial nine-month ramp-up period, increasing to three-month LIBOR plus 2.0% per annum).  The Financing Facility contains standard covenant and event of default provisions (including loan-to-value ratio triggers) and foreclosure remedies upon such default in favor of the lender thereunder.  The $20.0 million the Company contributed to the SPE serves as first loss protection for the bank lending counterparty under the Financing Facility. In the event of default, the recourse to the Company is limited to its investment. At September 30, 2015$9.1 million was outstanding under the Financing Facility.

Contractual Obligations

Our contractual obligations are summarized in our 2014 Annual Report on Form 10-K. As of September 30, 2015, there have been no material changes outside of the ordinary course in our contractual obligations since December 31, 2014.

Critical Accounting Policies and Estimates

Our financial statements and the accompanying notes are prepared in accordance with Generally Accepted Accounting Principles, which require the use of estimates. Actual results will vary from these estimates. A discussion of our critical accounting policies and estimates is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2014 Annual Report on Form 10-K. A complete description of our significant accounting policies is included in our 2014 Annual Report on Form 10-K. There were no changes in our critical accounting policies in the nine months ended September 30, 2015.

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Recently Issued Accounting Pronouncements

For a discussion of accounting standards, see Note 2 within our condensed consolidated financial statements.

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Item 3.    Quantitative and Qualitative Disclosures About Market Risk

Market Risk

Substantially all of our revenues are derived from investment management, distribution and service and administration and transfer agent fees, which are based on the market value of assets under management. Accordingly, a decline in the prices of securities would cause our revenues and income to decline due to a decrease in the value of the assets under management. In addition, a decline in security prices could cause our clients to withdraw their investments in favor of other investments offering higher returns or lower risk, which would cause our revenues and income to decline.

We are also subject to market risk due to a decline in the market value of our investments, consisting primarily of marketable securities. At September 30, 2015, the fair value of marketable securities was $298.9 million. Assuming a 10.0% increase or decrease in the fair value of marketable securities at September 30, 2015, our net income attributable to common stockholders would change by approximately $29.6 million, and our total comprehensive income would change by approximately $29.8 million, in each case for the nine months ended September 30, 2015.

Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. At September 30, 2015, we were exposed to interest rate risk as a result of holding investments in fixed-income sponsored funds. Assuming a 1.0% increase or decrease in interest rates, the fair value of our fixed income investments could change by an estimated $4.7 million for the nine months ended September 30, 2015.

At September 30, 2015, we had no amounts outstanding under our Credit Facility. Amounts outstanding under the Credit Facility bear interest at an annual rate equal to, at our option, either LIBOR for interest periods of one, two, three or six months or an alternate base rate (as defined in the Credit Facility agreement), plus, in each case, an applicable margin, that ranges from 0.75% to 2.50%.

At September 30, 2015, we had $9.1 million outstanding under the loan and security agreement of our consolidated investment product. Amounts outstanding under the loan and security agreement bear interest at an annual rate equal to LIBOR for interest periods of three months plus, in each case, an applicable margin, that ranges from 1.25% to 2.00%.

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Item 4.    Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on their evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective at the reasonable assurance level as of September 30, 2015, the end of the period covered by this Quarterly Report on Form 10-Q.

Changes in Internal Controls over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) or 15d-15(f) under the Exchange Act) that occurred during the period covered by this Quarterly Report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1.        Legal Proceedings

Legal Matters

The Company is regularly involved in litigation and arbitration as well as examinations, inquiries and investigations by various regulatory bodies, including the SEC, involving its compliance with, among other things, securities laws, client investment guidelines, laws governing the activities of broker-dealers and other laws and regulations affecting its products and other activities. Legal and regulatory matters of this nature involve or may involve the Company’s activities as an employer, issuer of securities, investor, investment adviser, broker-dealer or taxpayer. In addition, in the normal course of business, the Company discusses matters with its regulators raised during regulatory examinations or is otherwise subject to their inquiry. These matters could result in censures, fines, penalties or other sanctions.

The Company accrues for a liability when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. In addition, in the event the Company determines that a loss is not probable, but is reasonably possible, and it becomes possible to develop what the Company believes to be a reasonable range of possible loss, then the Company will include disclosures related to such matter as appropriate and in compliance with ASC 450, Loss Contingencies. The disclosures, accruals or estimates, if any, resulting from the foregoing analysis are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. Other than as described herein, based on information currently available, available insurance coverage and established reserves, the Company believes that the outcomes of its legal and regulatory proceedings are not likely, either individually or in the aggregate, to have a material adverse effect on the Company’s results of operations, cash flows or consolidated financial condition. However, in the event of unexpected subsequent developments and given the inherent unpredictability of these legal and regulatory matters, the Company can provide no assurance that its assessment of any claim, dispute, regulatory examination or investigation or other legal matter will reflect the ultimate outcome and an adverse outcome in certain matters could, from time to time, have a material adverse effect on the Company’s results of operations or cash flows in particular quarterly or annual periods.

Regulatory Matter

As previously disclosed, in December 2014 the SEC announced a settlement with F-Squared Investments (“F-Squared”), an unaffiliated former subadviser, which settled charges that F-Squared had violated the federal securities laws as described in Investment Advisers Act Release No. 3988. The settlement related to F-Squared’s inaccurate performance information for the period of April 2001 through September 2008, including indices that certain Virtus mutual funds tracked

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beginning in September 2009 and January 2011. As part of the SEC’s non-public, confidential investigation of this matter, the SEC staff informed the Company that it was inquiring into whether the Company had violated securities laws or regulations with respect to F-Squared’s historical performance information. Although the Company has not received a Wells Notice in connection with the investigation, the Company has been in active discussions with the SEC staff and has reached an agreement in principle with the SEC staff to settle this matter. Under the terms of the proposed settlement, the Company would pay a total of $16.5 million, which is consistent with the loss contingency previously recorded and disclosed by the Company. This agreement in principle is subject to review and approval by the Commission.

As referenced above, pursuant to ASC 450 - Loss Contingencies, the Company had previously recorded a total pre-tax loss contingency of $16.5 million and a related potential income tax benefit of $5.5 million for a net impact of $11.0 million related to this matter; however, the Company cannot assure you that the Commission will approve the proposed settlement agreement, that any final settlement will not have different or additional material terms, that any associated loss will not exceed the aggregate loss contingency recorded or that a final resolution of this matter will be reached.

In re Virtus Investment Partners, Inc. Securities Litigation; formerly styled as Tom Cummins v. Virtus Investment Partners Inc. et al

On February 20, 2015, a putative class action complaint alleging violation of the federal securities laws was filed by an individual shareholder against the Company and certain of the Company’s current officers (the “defendants”) in the United States District Court for the Southern District of New York.   On April 21, 2015, three plaintiffs, including the original plaintiff, filed motions to be appointed lead plaintiff. On June 9, 2015, the court entered an order appointing Arkansas Teachers Retirement System lead plaintiff. On August 21, 2015, plaintiff filed a Consolidated Class Action Complaint (the “Consolidated Complaint”) amending the originally filed complaint. The Consolidated Complaint was purportedly filed on behalf of all purchasers of the Company’s common stock between January 25, 2013 and May 11, 2015 (the “Class Period”). The Consolidated Complaint alleges that during the Class Period, the defendants disseminated materially false and misleading statements and concealed material adverse facts relating to certain funds subadvised by F-Squared. The Consolidated Complaint alleges claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5. The plaintiff seeks to recover unspecified damages. The Company believes that the suit is without merit and intends to defend it vigorously. A motion to dismiss the Consolidated Complaint was filed on behalf of the Company and the other defendants on October 21, 2015. The Company believes that there is not a material loss that is probable and reasonably estimable related to this claim.

Mark Youngers v. Virtus Investment Partners, Inc. et al

On May 8, 2015, a putative class action complaint alleging violations of certain provisions of the federal securities laws was filed in the United States District Court for the Central District of California by an individual who alleges he is a former shareholder of one of the Virtus mutual funds formerly subadvised by F-Squared and formerly known as the AlphaSector Funds. The complaint purports to allege claims against the Company, certain of the Company’s officers and affiliates, and certain other parties (the “defendants”). The complaint was purportedly filed on behalf of purchasers of the AlphaSector Funds between May 8, 2010 and December 22, 2014, inclusive (the “Class Period”). The complaint alleges that during the Class Period the defendants disseminated materially false and misleading statements and concealed or omitted material facts necessary to make the statements made not misleading. On June 7, 2015, a group of three individuals, including the original plaintiff, filed a motion to be appointed lead plaintiff. No other motions to be appointed lead plaintiff were filed. On July 27, 2015, the court granted the motion, appointing movants as lead plaintiff. Also, on July 27, 2015, the court issued an order to show cause requiring lead plaintiff to explain no later than July 31, 2015, why his claims should not be transferred and consolidated with the In re Virtus Investment Partners, Inc. Securities Litigation action discussed above. On October 1, 2015, plaintiff filed a First Amended Class Action Complaint which, among other things, added a derivative claim for breach of fiduciary duty on behalf of Virtus Opportunities Trust. On October 19, 2015, the United States District Court for the Central District of California entered an order transferring the action to the Southern District of New York. The Company believes the plaintiff’s claims asserted in the complaint are frivolous and intends to defend it vigorously. The Company believes that there is not a material loss that is probable and reasonably estimable related to this claim.

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Item 1A.        Risk Factors

There have been no material changes to our risk factors previously reported in our 2014 Annual Report on Form 10-K.

Item 2.        Unregistered Sales of Equity Securities and Use of Proceeds

During the first nine months of 2015, we repurchased a total of 368,468 shares of our common stock pursuant to the Board of Director’s fourth quarter 2010 authorization. On December 10, 2014, our Board of Directors authorized an additional 500,000 shares of our common stock to be repurchased under the share repurchase program. As of September 30, 2015, 1.2 million shares of our common stock have been authorized to be repurchased under the program, and 256,091 shares remain available for repurchase. Under the terms of the program, we may repurchase shares of our common stock from time to time at our discretion through open market repurchases and/or privately negotiated transactions, depending on price and prevailing market and business conditions. The program is intended to generally offset dilution caused by shares issued under equity-based plans. The program, which has no specified term, may be suspended or terminated at any time.

The following table sets forth information regarding our share repurchases in each month during the quarter ended September 30, 2015:

Month	Total number of shares  repurchased	Average price paid per share  (1)		Total number of shares  repurchased as part of  publicly announced plans or  programs (2)	Maximum  number of shares that may yet be  repurchased under the plans or programs (2)
July 1—31, 2015	—	$	—	—	411,971
August 1—31, 2015	82,663	$	116.29	82,663	329,308
September 1—30, 2015	73,217	$	101.83	73,217	256,091
Total	155,880			155,880

(1) Average price paid per share is calculated on a settlement basis and excludes commissions.

(2) The share repurchases above were completed pursuant to a program announced in the fourth quarter of 2010 and expanded in December 2014.

There were no unregistered sales of equity securities during the period covered by this Quarterly Report. Shares of our common stock purchased by participants in our Employee Stock Purchase Plan were delivered to participant accounts via open market purchases at fair value by the third-party administrator under the plan. We do not reserve shares for this plan or discount the purchase price of the shares.

For the nine months ended September 30, 2015, we paid $5.1 million in minimum employee tax withholding obligations related to employee share transactions.

On October 21, 2015, the Company's board of directors authorized an additional 1,500,000 shares of common stock under the current share repurchase program. Upon authorization, total shares remaining available for repurchase were 1,756,091. Under terms of the program, the Company may repurchase shares of its common stock from time to time at its discretion through open market repurchases and/or privately negotiated transactions, depending on price and prevailing market and business conditions. The program, which has no specified term, may be suspended or terminated at any time.

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Item 6.        Exhibits

Exhibit Number	Description
10.1	Amendment No. 4, dated as of August 12, 2015 to the Credit Agreement, dated as of September 10, 2012, among the Registrant, as Borrower, the lenders party thereto, PNC Bank, National Association, as Syndication Agent, and The Bank of New York Mellon, as Administrative Agent , the Swingline Lender, and as Issuing Bank
31.1	Certification of the Registrant’s Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of the Registrant’s Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of the Registrant’s Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following information formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets (Unaudited) as of September 30, 2015 and December 31, 2014, (ii) Condensed Consolidated Statements of Operations (Unaudited) for the three and nine months ended September 30, 2015 and 2014, (iii) Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the three and nine months ended September 30, 2015 and 2014, (iv) Condensed Consolidated Statements of Cash Flows (Unaudited) for the nine months ended September 30, 2015 and 2014, (v) Condensed Consolidated Statements of Changes in Stockholders’ Equity for the nine months ended September 30, 2015 and 2014 and (vi) Notes to Condensed Consolidated Financial Statements (Unaudited).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: October 30, 2015

VIRTUS INVESTMENT PARTNERS, INC.
(Registrant)
By:	/s/ Michael A. Angerthal
	Michael A. Angerthal
	Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

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EX-10.1

Exhibit 10.1

AMENDMENT NO. 4

TO

AMENDED AND RESTATED CREDIT AGREEMENT

AMENDMENT NO. 4, dated as of August 12, 2015 (this “Amendment”), to the Amended and Restated Credit Agreement, dated as of September 10, 2012, among Virtus Investment Partners, Inc. (the “Borrower”), the Lenders party thereto, PNC Bank, National Association, as Syndication Agent, and The Bank of New York Mellon, as Administrative Agent (in such capacity, the “Agent”), the Swingline Lender, and as Issuing Bank, as amended by Amendment No. 1, dated as of July 2, 2013, Amendment No. 2, dated as of September 18, 2013, and Amendment No. 3, dated as of December 4, 2013 (as the same may be further amended, supplemented or otherwise modified from time to time, the “Credit Agreement”).

RECITALS

I.    Capitalized terms used herein and not herein defined shall have the meanings set forth in the Credit Agreement.

II.    The Borrower desires to amend the Credit Agreement upon the terms and conditions herein contained, and the Agent and Required Lenders have agreed thereto upon the terms and conditions herein contained.

Accordingly, in consideration of the Recitals and the covenants, conditions and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

1.Section 1.1 of the Credit Agreement is hereby amended by adding the following new defined terms, each in its appropriate alphabetical order:

“Affected Person” means the Borrower, any subsidiary thereof, or any officer, director, trustee or employee of the Borrower or any such subsidiary, or any agent of the Borrower or any such subsidiary that will act in any capacity with respect to this Credit Agreement.

“Anti‑Corruption Law” means, with respect to any Affected Person, the FCPA and any law, rule or regulation of any jurisdiction concerning or relating to bribery or corruption that is applicable to such Affected Person.

“Anti‑Terrorism Law” means, with respect to any Person, any applicable law, rule or regulation related to financing terrorism including (1) the Patriot Act, (1) The Currency and Foreign Transactions Reporting Act (31 U.S.C. §§ 5311-5330) (also known as the “Bank Secrecy Act”), (1) the Trading With the Enemy Act (50 U.S.C. § 1 et seq.), (d) the International Economic Emergency Powers Act (15 U.S.C. § 1701 et seq.) and (e) Executive Order 13224 (effective September 24, 2001).

“Bank Loan” means (1) a debt obligation, other than a security (as defined in the Securities Act of 1933) customarily referred to as a “bank loan”, and (1) any participation or sub‑participation in a debt obligation referred to in clause (a) hereof.

“CLO” means any corporation, statutory trust or limited liability company that (a) is a subsidiary of the Borrower, (b) invests 75% or more of its assets in Bank Loans and (c) issues securities in separate classes or tranches all but one of which has priority of payment over one or more of the other classes or tranches.

“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreement entered into pursuant to Section 1471(b)(1) of the Code.

“FCPA” means the Foreign Corrupt Practices Act, 15 U.S.C. §§ 78dd‑1, et seq.

“Mortgages” means the mortgages, deeds of trust, assignments of leases and rents and other security documents (if any) delivered pursuant to this Agreement with respect to Real Property, each in form and substance reasonably satisfactory to the Administrative Agent.

“OFAC” means the U.S. Department of Treasury’s Office of Foreign Assets Control.

“Real Estate Collateral Requirement” means the requirement that, with respect to each owned Real Property required to be subject to a Mortgage hereunder, the Administrative Agent shall have received (each in form and substance satisfactory to the Administrative Agent):

(a) a Mortgage duly executed and delivered by the relevant Loan Party that is the record owner of such Real Property, in form for recording in the recording office of the jurisdiction where such Real Property to be encumbered thereby is situated, in favor of the Administrative Agent for the benefit of the Secured Parties (in such number of copies as the Administrative Agent shall have requested), together with such other instruments as shall be necessary or appropriate (in the reasonable judgment of the Administrative Agent) to create a Lien under applicable law, all of which shall be in form and substance reasonably satisfactory to Administrative Agent, which Mortgage and other instruments shall be effective to create and/or maintain a Lien on such Real Property, subject to no Liens other than Liens permitted under Section 7.2 applicable to such Real Property;

(b) to the extent that Lenders would be required by federal law and regulations regarding flood insurance (including the National Flood Insurance Reform Act of 1994) to obtain the same in connection with obtaining such Mortgage: (i) a ‘life of

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loan’ flood hazard determination, and (ii) as applicable, evidence of flood insurance and an acknowledged borrower notice, for such Real Property;

(c) a fully paid policy of title insurance (or marked binding pro forma having the same effect of a title insurance policy) in the form reasonably approved by the Administrative Agent insuring the Lien of the Mortgage encumbering such Real Property as a valid Lien (subject to this clause (c)) on such Real Property and fixtures described therein, which policy of title insurance (or marked binding pro forma having the same effect of a title insurance policy) shall be in an amount reasonably satisfactory to the Administrative Agent and shall (i) be issued by a title insurance company selected by the Borrower and reasonably satisfactory to the Administrative Agent, (ii) include such coinsurance and reinsurance arrangements (with provisions for direct access) as shall be reasonably acceptable to the Administrative Agent, (iii) have been supplemented by such endorsements or affirmative insurance, if available, as shall be reasonably requested by the Administrative Agent, and (iv) contain no exceptions to title other than exceptions for Liens permitted under Section 7.2 and other exceptions reasonably acceptable to the Administrative Agent;

(d) evidence reasonably acceptable to the Administrative Agent of payment by the Borrower of all title insurance premiums, search and examination charges, mortgage, filing and recording taxes, fees and related charges required for the recording of such Mortgage;

(e) if the Administrative Agent or Required Lenders reasonably determine that they are required by law or regulation to have appraisals prepared in respect of any such Real Property, the Borrower will cooperate with the Administrative Agent in obtaining appraisals which satisfy the applicable requirements of the Real Estate Appraisal Reform Amendments of the Financial Institution Reform, Recovery and Enforcement Act of 1989, as amended, or any other law or regulation and which shall otherwise be in form and substance reasonably satisfactory to the Administrative Agent, and the Borrower shall pay all reasonable fees and expenses incurred by the Administrative Agent in connection therewith;

(f) all such other documents, instruments or items (including UCC fixture filings) as shall be reasonably necessary in the opinion of the Administrative Agent (or its counsel) to create a valid and perfected mortgage Lien on such Real Property subject only to Liens permitted under Section 7.2, including such affidavits and instruments of indemnifications by the Borrower and the relevant Subsidiary as shall be reasonably required to induce such title company to issue the policy or policies (or commitment) and endorsements contemplated in clause (c) above; and

(g) customary opinions (addressed to the Administrative Agent and the Lenders) of local counsel for the relevant Loan Party (i) in the state in which such Real Property is located, with respect to the enforceability and perfection of the Mortgage covering such Real Property and any related fixture filings in form and substance reasonably satisfactory to the Administrative Agent and (ii) if requested

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by the Administrative Agent, in the state in which such Loan Party is organized and formed, with respect to, among other matters, the valid existence, corporate power and authority of such Loan Party in the granting of such Mortgage.

“Real Property” means, collectively, all right, title and interest of the Borrower or any Subsidiary Guarantor in and to any and all parcels of real property owned by the Borrower or any Subsidiary Guarantor together with all improvements and appurtenant fixtures, easements and other property and rights incidental to the ownership, lease or operation thereof.

“Sanctions” has the meaning set forth in Section 4.21(a).

“Sanctioned Country” means, at any time, a country or territory which is the subject to country-based (not individual- or entity-based) Sanctions.

“Sanctioned Person” means, at any time, any Person that is subject to any Sanction.

1.The defined term “Borrower Group Net Worth” contained in Section 1.1 of the Credit Agreement is hereby amended by deleting the phrase “other than VPD” contained therein.

2.The defined term “Cash Distributions Received” contained in Section 1.1 of the Credit Agreement is hereby amended by inserting “, CLOs” immediately after the word “Subsidiaries” appearing therein.

3.The defined term “Excluded Taxes” contained in Section 1.1 of the Credit Agreement is hereby amended by replacing the phrase “the Borrower” in the first instance it appears therein with the phrase “any Loan Party”.

4.The defined term “Federal Funds Effective Rate” contained in Section 1.1 of the Credit Agreement is hereby amended by inserting the phrase “the higher of (a) 0.00% and (b)” immediately after the phrase “for any day,” contained therein.

5.The defined term “Indemnified Taxes” contained in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

“Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of any Loan Party under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.

6.The defined term “LIBO Rate” contained in Section 1.1 of the Credit Agreement is hereby amended by inserting the phrase “the higher of (a) 0.00% and (b)” immediately after the phrase “for any Interest Period,” contained therein.

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7.The defined term “Non—Guarantor Subsidiary” contained in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

“Non—Guarantor Subsidiary” means, as of any date, each Subsidiary (other than VPD) that is not a Subsidiary Guarantor.

8.The defined term “Other Taxes” contained in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

“Other Taxes” means all present or future stamp or documentary Taxes or any other excise or property Taxes, charges or similar levies arising from any payment made hereunder or under any other Loan Document or from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, this Credit Agreement or any other Loan Document.

9.The defined term “Subsidiary” contained in Section 1.1 of the Credit Agreement is hereby amended and restated as follows:

“Subsidiary” means any Person (other than a Virtus Fund and other than a CLO) that is a subsidiary of the Borrower.

10.The defined term “Taxes” contained in Section 1.1 of the Credit Agreement is hereby amended by adding the phrase “(including backup withholding)” immediately after the word “withholdings” contained therein.

11.Section 3.5(b) of the Credit Agreement is hereby amended by (a) inserting the phrase “liquidity or” immediately before the phrase “capital requirements” contained therein and (b) inserting the phrase “liquidity and” immediately before the phrase “capital adequacy” contained therein.

12.Section 3.7(a) of the Credit Agreement is hereby amended replacing the phrase “any Indemnified Taxes or Other Taxes,” contained therein with the phrase “any Indemnified Taxes (including any Other Taxes),”.

13.Section 3.7(c) of the Credit Agreement is hereby amended and restated in its entirety as follows:

(c)    Indemnification by the Borrower. Without limiting the provisions of paragraphs (a) and (b) above, the Borrower shall indemnify each Credit Party, within 10 days after demand therefor, for the full amount of any Indemnified Taxes (including any Other Taxes, and including any Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) paid by such Credit Party and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A

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certificate as to the amount of such payment or liability delivered to the Borrower by a Credit Party (with a copy to the Agent), or by the Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

14.Section 3.7(d) of the Credit Agreement is hereby amended replacing the phrase “any Indemnified Taxes or Other Taxes” contained therein with the phrase “any Indemnified Taxes (including any Other Taxes)”.

15.Section 3.7 of the Credit Agreement is hereby amended by (i) changing paragraph (f) to paragraph (g), (ii) changing paragraph (e) to paragraph (f) (“New Paragraph (f)”), and (iii) inserting a new paragraph (e) as follows:

(e)    Indemnification by the Lenders. Each Lender shall severally indemnify the Agent, within 10 days after demand therefor, for (i) any Indemnified Taxes (including Other Taxes) attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Agent for such Indemnified Taxes and without limiting the obligation of the Borrower to do so) and (ii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Agent to the Lender from any other source against any amount due to the Agent under this paragraph (e).

16.New Paragraph (f) is hereby amended and restated in its entirety as follows:

(f)    Status of Lenders.

(i)Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax under the law of the jurisdiction in which the Borrower is resident for tax purposes, or any treaty to which such jurisdiction is a party, with respect to payments hereunder or under any other Loan Document shall deliver to the Borrower (with a copy to the Agent), at the time or times prescribed by applicable law or reasonably requested by the Borrower or the Agent, such properly completed and executed documentation prescribed by applicable law as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if requested by the Borrower or the Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Agent as will enable the Borrower or the Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements.

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(ii)Without limiting the generality of the foregoing, any Foreign Lender shall deliver to the Borrower and the Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Credit Agreement (and from time to time thereafter upon the request of the Borrower or the Agent, but only if such Foreign Lender is legally entitled to do so), whichever of the following is applicable:

(A)duly completed copies of Internal Revenue Service Form W-8BEN or W-8BEN-E claiming eligibility for benefits of an income tax treaty to which the United States of America is a party,

(B)duly completed copies of Internal Revenue Service Form W-8ECI,

(C)in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under section 881(c) of the Code, (x) a certificate to the effect that such Foreign Lender is not (A) a “bank” within the meaning of section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Borrower within the meaning of section 881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described in section 881(c)(3)(C) of the Code and (y) duly completed copies of Internal Revenue Service Form W-8BEN or W-8BEN-E, or

(D)any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in United States Federal withholding tax duly completed together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower to determine the withholding or deduction required to be made.

(iii)If a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Agent as may be necessary for the Borrower and the Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this clause (iii), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

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Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Agent in writing of its legal inability to do so.

17.New Section 3.7(g) of the Credit Agreement is hereby amended by replacing (i) the phrase “Taxes or Other Taxes” contained therein with the phrase “Indemnified Taxes or Other Taxes”, and (ii) the phrase “upon the request of a Credit Party” contained therein with the phrase “upon the request of such Credit Party”.

18.Article 4 of the Credit Agreement is hereby amended by inserting a new Section 4.21 as follows:

Section 4.21    Sanctions, Anti-Terrorism, Anti-Money Laundering and Anti‑Corruption

(a)    None of the Borrower, any of its subsidiaries or any director, trustee, officer, employee, agent, or affiliate of the Borrower or any of its subsidiaries is a Person that is, or, to Borrower’s knowledge, is owned or controlled by Persons that are: (i) the subject or target of any sanctions administered or enforced by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority (collectively, “Sanctions”), or (ii) located, organized or resident in a country, region or territory that is, or whose government is, the subject of Sanctions, including, without limitation, Cuba, Iran, North Korea, Sudan, Crimea and Syria.

(b)    No Affected Person or, to Borrower’s knowledge, any Person that owns or controls (directly or indirectly) the Borrower or receives (directly or indirectly) any proceeds of any Loan (1) conducts any business or engages in making or receiving any contribution of goods, services or money to or for the benefit of any Sanctioned Person or in any Sanctioned Country, (1) deals in, or otherwise engages in any transaction related to, any property or interests in property blocked pursuant to any Anti‑Terrorism Law, (iii) engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti‑Terrorism Law, or (iv) has violated any Anti-Terrorism Law.

(c)    No Affected Person or, to Borrower’s knowledge, any Person that owns or controls (directly or indirectly) the Borrower, or receives (directly or indirectly) any proceeds of any Loan (i) has engaged in any transaction, investment, undertaking or activity that conceals the identity, source or destination of the proceeds from any category of prohibited offenses designated by the Organization for Economic Co-operation and Development’s Financial Action Task Force on Money Laundering, or (ii) otherwise violated any applicable law regarding money laundering.

8

(d)    The Borrower and each subsidiary thereof is in compliance with the FCPA, and any foreign counterpart thereof. Neither the Borrower nor any subsidiary thereof has made a payment, offering, or promise to pay, or authorized the payment of, money or anything of value (1) in order to assist in obtaining or retaining business for or with, or directing business to, any foreign official, foreign political party, party official or candidate for foreign political office, (1) to a foreign official, foreign political party or party official or any candidate for foreign political office, and (1) with the intent to induce the recipient to misuse his or her official position to direct business wrongfully to the Borrower or any other Person in violation of the FCPA.

(e)    The Borrower and each subsidiary thereof has implemented and maintains, and is in compliance with, policies and procedures reasonably designed to promote and achieve compliance by each Affected Person with all applicable laws regarding Sanctions and money laundering, Anti‑Terrorism Laws and Anti‑Corruption Laws.

19.Section 6.8(a) of the Credit Agreement is hereby amended and restated in its entirety as follows:

(a)    The proceeds of the Loans and the Letters of Credit will be used only as follows: (i) for working capital requirements, (ii) for general corporate purposes, including capital expenditures, and (iii) for investments in CLOs, Joint Ventures and non-hostile acquisitions to the extent permitted by Section 7.4.

20.Section 6.13(c) of the Credit Agreement is hereby amended and restated in its entirety, as follows:

(c)    If any Real Property with an appraised value greater than $1,000,000 is acquired by the Borrower or any Subsidiary Guarantor after the Agreement Date (other than assets constituting Collateral under the Security Documents that become subject to the perfected Lien of the Security Documents upon acquisition thereof, and other than assets upon which the Administrative Agent has a first perfected Lien), the Borrower will notify the Credit Parties thereof, and, if requested by the Administrative Agent or the Required Lenders, the Borrower will, and will cause each of Subsidiary Guarantor to, grant to the Administrative Agent security interests and Mortgages in such Real Property and satisfy the Real Estate Collateral Requirement with respect to each such Real Property within 90 days after the date such Real Property is so acquired.

21.Section 7.4(i)(vi) is hereby amended and restated in its entirety as follows:

(vi)    if such investment is in a Joint Venture or a CLO, immediately after giving effect to each such investment (the “Test Time”), (x) the aggregate cost of all such investments made during each Calculation Period in each Person that, as of such Test Time, would be a Joint Venture or a CLO would not exceed 50% of Borrower Group Net Worth, and (y) the aggregate cost of all such investments in

9

each Person that, as of such Test Time, would be a Joint Venture or a CLO would not exceed 70% of Borrower Group Net Worth, providedfurther that in determining the cost, for purposes of this clause (vi), of an investment in a Joint Venture that was formerly a Subsidiary, the cost shall be deemed to be the book value of such Joint Venture as set forth on the balance sheet of the Borrower Group on a consolidated basis in accordance with GAAP.

22.Section 7.13 is hereby amended and restated in its entirety as follows:

Section 7.13    Sanctions, Anti-Terrorism, Anti-Money Laundering and Anti‑Corruption

(a)    The Borrower will not directly or, to its knowledge, indirectly use the proceeds of the Loans, or lend, contribute or otherwise make available such proceeds to any subsidiary thereof, joint venture partner or other Person, (i) to fund, finance or facilitate any activities or business of or with any Person, or in any country, region or territory, that, at the time of such funding, is, or whose government is, the subject of Sanctions, or (ii) in any other manner that would result in a violation of Sanctions by any Person (including any Person participating in the Loans, whether as underwriter, lender, advisor, investor, or otherwise).

(b)    The Borrower will not, and will not cause or permit any subsidiary thereof to, violate any applicable law, rule or regulation regarding Sanctions or money laundering, or any Anti‑Terrorism Law or Anti‑Corruption Law.

(c)    The Borrower and each subsidiary thereof shall at all times maintain, and be in compliance with, policies and procedures reasonably designed to promote and achieve compliance by each Affected Person with all applicable laws, rules and regulations regarding Sanctions and money laundering, Anti‑Terrorism Laws and Anti‑Corruption Laws.

23.Paragraphs 1 through 23 of this Amendment shall not be effective unless and until the following conditions precedent shall have been satisfied (the “Amendment Effective Date”):

1.the Agent (or its counsel) shall have received from the Borrower, each Subsidiary Guarantor and Required Lenders either (i) a counterpart of this Amendment signed on behalf of each such Person, or (ii) written evidence satisfactory to the Agent (which may include facsimile or e-mail transmission of a signed signature page of this Amendment) that each such Person has signed a counterpart of this Amendment;

2.the Agent shall have received written opinions from counsel to the Borrower in form and substance reasonably acceptable to the Agent; and

3.the Agent shall have received all fees and other amounts due and payable by the Borrower on or prior to the Amendment Effective Date, including,

10

to the extent invoiced, reimbursement or payment of all out-of-pocket expenses (including attorneys’ fees).

24.The Borrower and each Subsidiary Guarantor hereby (1) reaffirms and admits the validity and enforceability of each Loan Document to which it is a party and all of its obligations thereunder and agrees and admits that (1) it has no defense to any such obligation, (1) it shall not exercise any setoff or offset to any such obligation, and (1) to its knowledge, it does not have any claim against any Credit Party arising out of the transactions contemplated by the Loan Documents, and (1) represents and warrants that (i) no Default or Event of Default has occurred and is continuing and (ii) all of the representations and warranties made by it in the Loan Documents are true and correct in all material respects, both immediately before and after giving effect to this Amendment.

25.By signing below, (1) each Subsidiary Guarantor consents to this Amendment, and (1) Required Lenders hereby authorize and direct the Agent to execute and deliver the Security Amendment.

26.This Amendment may be executed in any number of counterparts, each of which shall be an original and all of which shall constitute one agreement. It shall not be necessary in making proof of this Amendment to produce or account for more than one counterpart signed by the party to be charged.

27.The Credit Agreement and the other Loan Documents shall in all other respects remain in full force and effect, and no amendment herein in respect of any term or condition of any Loan Document shall be deemed to be an amendment or other modification in respect of any other term or condition of any Loan Document.

28.This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York, without regard to conflict of laws principles that would require the application of the laws of another jurisdiction.

[Remainder of page intentionally left blank]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 4 to Amended and Restated Credit Agreement to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above written.

VIRTUS INVESTMENT PARTNERS, INC.

By: /s/ Michael A. Angerthal

Name: Michael A. Angerthal

Title:    Executive Vice President

& Chief Financial Officer

11

THE BANK OF NEW YORK MELLON,

individually, as Swingline Lender, Issuing Bank and as the Administrative Agent

By: /s/ Richard G. Shaw

Name: Richard G. Shaw

Title: Vice President

12

PNC BANK, NATIONAL ASSOCIATION

By: /s/ Alaa Shraim

Name: Alaa Shraim

Title: Vice President

CITBANK, N.A.

By: /s/ Dane Graham

Name: Dane Graham

Title: Director

ROYAL BANK OF CANADA

By: /s/ Tim Stephens

Name: Tim Stephens

Title: Director

Each of the Subsidiary Guarantors, by signing below, hereby acknowledges and agrees to the Amendment:

DUFF & PHELPS INVESTMENT MANAGEMENT CO.

By: /s/ Michael A. Angerthal

Name:    Michael A. Angerthal

Title:    Executive Vice President & Treasurer

EUCLID ADVISORS LLC

By: /s/ Michael A. Angerthal

Name:    Michael A. Angerthal

Title:    Executive Vice President & Treasurer

KAYNE ANDERSON RUDNICK INVESTMENT MANAGEMENT, LLC

By:/s/ Michael A. Angerthal

Name:    Michael A. Angerthal

Title:    Senior Vice President & Chief Financial Officer

16

RUTHERFORD FINANCIAL CORPORATION

By: /s/ David Hanley

Name:    David Hanley

Title:    Vice President & Treasurer

NEWFLEET ASSET MANAGEMENT LLC (f/k/a SCM ADVISORS LLC)

By:/s/ Michael A. Angerthal

Name:    Michael A. Angerthal

Title:    Senior Vice President & Chief Financial Officer

VIRTUS INVESTMENT ADVISERS, INC.

By:/s/ Michael A. Angerthal

Name:    Michael A. Angerthal

Title:    Executive Vice President & Chief Financial Officer

VIRTUS PARTNERS, INC.

By:/s/ Michael A. Angerthal

Name:    Michael A. Angerthal

Title:    Executive Vice President, Chief Financial Officer

ZWEIG ADVISERS, LLC

By:/s/ Michael A. Angerthal

Name:    Michael A. Angerthal

Title:    Executive Vice President & Chief Financial Officer

RAMPART INVESTMENT MANAGEMENT COMPANY, LLC

By:/s/ Michael A. Angerthal

Name:    Michael A. Angerthal

Title:    Executive Vice President & Chief Financial Officer

VIRTUS FUND SERVICES, LLC

By:/s/ Michael A. Angerthal

Name:    Michael A. Angerthal

Title:    Executive Vice President & Chief Financial Officer

VIRTUS ALTERNATIVE INVESTMENT ADVISERS, INC.

By:/s/ Michael A. Angerthal

Name:    Michael A. Angerthal

Title:    Executive Vice President & Treasurer

EX-31.1

Exhibit 31.1

CERTIFICATION UNDER SECTION 302

I, George R. Aylward, certify that:

1	I have reviewed this quarterly report on Form 10-Q of Virtus Investment Partners, Inc.;
2	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 30, 2015

/s/ George R. Aylward

George R. Aylward

President, Chief Executive Officer and Director

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION UNDER SECTION 302

I, Michael A. Angerthal, certify that:

1	I have reviewed this quarterly report on Form 10-Q of Virtus Investment Partners, Inc.;
2	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 30, 2015

/s/ Michael A. Angerthal

Michael A. Angerthal

Executive Vice President, Chief Financial Officer

(Principal Financial Officer and Principal Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATIONS OF CEO AND CFO PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report on Form 10-Q of Virtus Investment Partners, Inc. (the “Company”) for the period ended September 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: October 30, 2015

/s/ George R. Aylward

George R. Aylward

President, Chief Executive Officer and Director

(Principal Executive Officer)

/s/ Michael A. Angerthal

Michael A. Angerthal

Executive Vice President, Chief Financial Officer

(Principal Financial Officer and Principal Accounting Officer)

XML

Investments - Schedule of Marketable Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Available-for-sale:
Cost	$ 42,612	$ 50,629
Unrealized Loss	(2,821)	(1,353)
Unrealized Gain	345	975
Fair Value	40,136	50,251
Sponsored Funds [Member]
Trading:
Cost	32,079	39,079
Unrealized Loss	(1,829)	(1,190)
Unrealized Gain	288	423
Fair Value	30,538	38,312
Equity Securities [Member]
Trading:
Cost	7,236	8,421
Unrealized Loss	(648)	0
Unrealized Gain	57	319
Fair Value	6,645	8,740
Sponsored Closed-End Funds [Member]
Available-for-sale:
Cost	3,297	3,129
Unrealized Loss	(344)	(163)
Unrealized Gain	0	233
Fair Value	$ 2,953	$ 3,199

XML

Consolidated Sponsored Investment Products - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets, Fair Value Disclosure [Abstract]
Total assets measured at fair value	$ 126,056	$ 257,368
Level 1 [Member]
Assets, Fair Value Disclosure [Abstract]
Total assets measured at fair value	126,056	257,368
Level 2 [Member]
Assets, Fair Value Disclosure [Abstract]
Total assets measured at fair value	0	0
Level 3 [Member]
Assets, Fair Value Disclosure [Abstract]
Total assets measured at fair value	0	0
Consolidated Sponsored Investment Products [Member]
Assets, Fair Value Disclosure [Abstract]
Derivatives	3,279
Liabilities, Fair Value Disclosure [Abstract]
Derivatives	1,843
Consolidated Sponsored Investment Products [Member] | Fair Value, Measurements, Recurring [Member]
Assets, Fair Value Disclosure [Abstract]
Derivatives	758	381
Total assets measured at fair value	312,187	237,033
Liabilities, Fair Value Disclosure [Abstract]
Derivatives	1,320	191
Short sales	9,855	8,165
Total liabilities measured at fair value	11,175	8,356
Consolidated Sponsored Investment Products [Member] | Fair Value, Measurements, Recurring [Member] | Debt Securities [Member]
Assets, Fair Value Disclosure [Abstract]
Investments	148,589	136,115
Consolidated Sponsored Investment Products [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member]
Assets, Fair Value Disclosure [Abstract]
Investments	162,840	100,537
Consolidated Sponsored Investment Products [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Assets, Fair Value Disclosure [Abstract]
Derivatives	125	154
Total assets measured at fair value	155,888	82,571
Liabilities, Fair Value Disclosure [Abstract]
Derivatives	403	191
Short sales	9,432	7,491
Total liabilities measured at fair value	9,835	7,682
Consolidated Sponsored Investment Products [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Debt Securities [Member]
Assets, Fair Value Disclosure [Abstract]
Investments	0	0
Consolidated Sponsored Investment Products [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Equity Securities [Member]
Assets, Fair Value Disclosure [Abstract]
Investments	155,763	82,417
Consolidated Sponsored Investment Products [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Assets, Fair Value Disclosure [Abstract]
Derivatives	633	227
Total assets measured at fair value	155,373	153,397
Liabilities, Fair Value Disclosure [Abstract]
Derivatives	917	0
Short sales	423	674
Total liabilities measured at fair value	1,340	674
Consolidated Sponsored Investment Products [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Debt Securities [Member]
Assets, Fair Value Disclosure [Abstract]
Investments	147,663	135,050
Consolidated Sponsored Investment Products [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Equity Securities [Member]
Assets, Fair Value Disclosure [Abstract]
Investments	7,077	18,120
Consolidated Sponsored Investment Products [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Assets, Fair Value Disclosure [Abstract]
Derivatives	0	0
Total assets measured at fair value	926	1,065
Liabilities, Fair Value Disclosure [Abstract]
Derivatives	0	0
Short sales	0	0
Total liabilities measured at fair value	0	0
Consolidated Sponsored Investment Products [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Debt Securities [Member]
Assets, Fair Value Disclosure [Abstract]
Investments	926	1,065
Consolidated Sponsored Investment Products [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Equity Securities [Member]
Assets, Fair Value Disclosure [Abstract]
Investments	$ 0	$ 0

XML

Earnings per Share - Schedule of Computation of Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Net (Loss) Income	$ (3,703)	$ 36,995	$ 25,034	$ 78,554
Noncontrolling interests	3,054	345	3,436	267
Net (Loss) Income Attributable to Common Stockholders	$ (649)	$ 37,340	$ 28,470	$ 78,821
Shares:
Basic: Weighted-average number of shares outstanding (in shares)	8,775	9,096	8,876	9,115
Plus: Incremental shares from assumed conversion of dilutive instruments (in shares)	0	183	163	207
Diluted: Weighted-average number of shares outstanding (in shares)	8,775	9,279	9,039	9,322
(Loss) Earnings per share—Basic (in $ per share)	$ (0.07)	$ 4.10	$ 3.21	$ 8.65
(Loss) Earnings per Share—Diluted (in $ per share)	$ (0.07)	$ 4.02	$ 3.15	$ 8.46

XML

Consolidated Sponsored Investment Products - Assets Related to Consolidated Sponsored Investment Products, Unobservable Input Reconciliation (Detail) - Consolidated Sponsored Investment Products [Member] - Debt Securities [Member] - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	$ 1,065	$ 0
Purchases	135	450
Paydowns	(14)	(2)
Sales	(13)	0
Transferred to Level 2	(126)	0
Change in unrealized gain/(loss), net	(121)	(1)
Balance at end of period	$ 926	$ 447

XML

Stock-based Compensation - Summary of Restricted Stock Units Activity (Detail) - Restricted Stock Units [Member]	9 Months Ended
	Sep. 30, 2015 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of shares, Beginning Balance | shares	179,936
Number of shares, Granted | shares	116,295
Number of shares, Forfeited | shares	(493)
Number of shares, Settled | shares	(87,410)
Number of shares, Ending Balance | shares	208,328
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted Average Grant Date Fair Value, Beginning Balance (in $ per share)	$ 143.25
Weighted Average Grant Date Fair Value, Granted (in $ per share)	134.46
Weighted Average Grant Date Fair Value, Forfeited (in $ per share)	175.16
Weighted Average Grant Date Fair Value, Settled (in $ per share)	102.00
Weighted Average Grant Date Fair Value, Ending Balance (in $ per share)	$ 155.57

XML

Consolidated Sponsored Investment Products (Tables)

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balances of Consolidated Sponsored Investment Products

The following table presents the balances of the consolidated sponsored investment products that were reflected in the Condensed Consolidated Balance Sheets as of September 30, 2015 and December 31, 2014:

	As of
	September 30, 2015			December 31, 2014
($ in thousands)
Total cash and cash equivalents	$	16,732		$	8,687
Total investments	311,429			236,652
All other assets	10,494			6,960
Total liabilities	(29,849		)	(12,556		)
Redeemable noncontrolling interests	(49,895		)	(23,071		)
The Company’s net interests in consolidated sponsored investment products	$	258,911		$	216,672
The Company's net interest as a percentage of total investments of consolidated sponsored investment products	83.1		%	91.6		%

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of consolidated sponsored investment products and the consolidated investment product discussed in Notes 13 and 14, respectively as of September 30, 2015 and December 31, 2014 by fair value hierarchy level were as follows:

September 30, 2015

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	80,950	$	—	$	—	$	80,950
Marketable securities trading:
Sponsored funds	30,538		—		—		30,538
Equity securities	6,645		—		—		6,645
Marketable securities available-for-sale:
Sponsored closed-end funds	2,953		—		—		2,953
Other investments:
Nonqualified retirement plan assets	4,970		—		—		4,970
Total assets measured at fair value	$	126,056	$	—	$	—	$	126,056

December 31, 2014

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	202,054	$	—	$	—	$	202,054
Marketable securities trading:
Sponsored funds	38,312		—		—		38,312
Equity securities	8,740		—		—		8,740
Marketable securities available-for-sale:
Sponsored closed-end funds	3,199		—		—		3,199
Other investments
Nonqualified retirement plan assets	5,063		—		—		5,063
Total assets measured at fair value	$	257,368	$	—	$	—	$	257,368

The assets and liabilities of the consolidated sponsored investment products measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 by fair value hierarchy level were as follows:

As of September 30, 2015

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Debt securities	$	—	$	147,663	$	926	$	148,589
Equity securities	155,763		7,077		—		162,840
Derivatives	125		633		—		758
Total assets measured at fair value	$	155,888	$	155,373	$	926	$	312,187
Liabilities
Derivatives	$	403	$	917	$	—	$	1,320
Short sales	9,432		423		—		9,855
Total liabilities measured at fair value	$	9,835	$	1,340	$	—	$	11,175

As of December 31, 2014

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Debt securities	$	—	$	135,050	$	1,065	$	136,115
Equity securities	82,417		18,120		—		100,537
Derivatives	154		227		—		381
Total assets measured at fair value	$	82,571	$	153,397	$	1,065	$	237,033
Liabilities
Derivatives	$	191	$	—	$	—	$	191
Short sales	7,491		674		—		8,165
Total liabilities measured at fair value	$	7,682	$	674	$	—	$	8,356

The assets and liabilities of the consolidated investment product measured at fair value on a recurring basis as of September 30, 2015 by fair value hierarchy level were as follows:

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	120	$	—	$	—	$	120
Bank loans	—		131,862		—		131,862
Total Assets Measured at Fair Value	$	120	$	131,862	$	—	$	131,982

Assets Related to Consolidated Sponsored Investment Products, Unobservable Input Reconciliation

The following table is a reconciliation of assets of consolidated sponsored investment products for Level 3 investments for which significant unobservable inputs were used to determine fair value.

	Nine Months Ended September 30,
($ in thousands)	2015			2014
Level 3 Debt securities (a)
Balance at beginning of period	$	1,065		$	—
Purchases	135			450
Paydowns	(14		)	(2		)
Sales	(13		)	—
Transferred to Level 2	(126		)	—
Change in unrealized gain/(loss), net	(121		)	(1		)
Balance at end of period	$	926		$	447

(a) None of the securities reflected in the above table were internally fair valued at September 30, 2015.

Derivative Instruments

The Company's consolidated sponsored investment products were party to the following derivative instruments for the period ended September 30, 2015:

($ in thousands)
	Volume
Purchased options	$	3,527	(a)
Written options	2,499		(b)
Futures contracts long/short	109,286		(c)
Forward foreign currency exchange purchase contracts	2,294		(d)
Forward foreign currency exchange sale contracts	26,565		(e)
Interest rate swaps	31,603		(a)
Other swaps	27,956		(f)

(a)    Represents cost of holdings as of the end of the period.

(b)    Represents aggregate premiums received for the period.

(c)    Represents cost at trade date for holdings as of the end of the period.

(d)    Represents value of trade date payable for holdings as of the end of the period.

(e)    Represents value at settlement date receivable for holdings as of the end of the period.

(f) Includes credit default, total return, inflation and variance swaps. Represents notional value of holdings as of the end of the period.

Derivatives, Offsetting Assets

The following is a summary of the consolidated sponsored investment products' derivative instruments as of September 30, 2015. For financial reporting purposes the Company does not offset derivative assets and derivative liabilities that are subject to netting arrangements in its Condensed Consolidated Balance Sheet.

	Fair Value
($ in thousands)	Assets			Liabilities
Futures contracts	$	119		$	33
Forward foreign currency exchange contracts	228			117
Swaps	1,226			1,002
Purchased options	1,005			—
Purchased swaptions	701			—
Written options	—			691
Total derivative assets and liabilities in the Condensed Consolidated Balance Sheets	3,279			1,843
Derivatives not subject to a master netting agreement	(654		)	(207		)
Total assets and liabilities subject to a master netting agreement	2,625			1,636

Derivatives, Offsetting Liabilities

The following is a summary of the consolidated sponsored investment products' derivative instruments as of September 30, 2015. For financial reporting purposes the Company does not offset derivative assets and derivative liabilities that are subject to netting arrangements in its Condensed Consolidated Balance Sheet.

	Fair Value
($ in thousands)	Assets			Liabilities
Futures contracts	$	119		$	33
Forward foreign currency exchange contracts	228			117
Swaps	1,226			1,002
Purchased options	1,005			—
Purchased swaptions	701			—
Written options	—			691
Total derivative assets and liabilities in the Condensed Consolidated Balance Sheets	3,279			1,843
Derivatives not subject to a master netting agreement	(654		)	(207		)
Total assets and liabilities subject to a master netting agreement	2,625			1,636

Derivatives, Net Gains (Losses)

The following is a summary of the net gains (losses) recognized in income by primary risk exposure, for the three and nine months ended September 30, 2015:

($ in thousands)	Three Months Ended September 30, 2015			Nine Months Ended September 30, 2015
Interest rate contracts	$	(217	)	$	(75	)
Foreign currency exchange contracts	263			666
Equity contracts	633			1,414
Commodity contracts	212			126
Credit contracts	(13		)	(100		)
Total	$	878		$	2,031

XML

Consolidated Sponsored Investment Products - Derivatives Offsetting (Details) - Consolidated Sponsored Investment Products [Member] $ in Thousands	Sep. 30, 2015 USD ($)
Offsetting Assets [Line Items]
Assets	$ 3,279
Liabilities	1,843
Derivative assets not subject to a master netting agreement	(654)
Derivative liabilities not subject to a master netting agreement	(207)
Total assets subject to a master netting agreement	2,625
Total liabilities subject to a master netting agreement	1,636
Futures [Member]
Offsetting Assets [Line Items]
Assets	119
Liabilities	33
Forward foreign currency exchange [Member]
Offsetting Assets [Line Items]
Assets	228
Liabilities	117
Swaps [Member]
Offsetting Assets [Line Items]
Assets	1,226
Liabilities	1,002
Options [Member] | Long [Member]
Offsetting Assets [Line Items]
Assets	1,005
Liabilities	0
Options [Member] | Short [Member]
Offsetting Assets [Line Items]
Assets	0
Liabilities	691
Swaption [Member]
Offsetting Assets [Line Items]
Assets	701
Liabilities	$ 0

XML

Subsequent Event

9 Months Ended

Sep. 30, 2015

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

On October 21, 2015, the Company's board of directors authorized an additional 1,500,000 shares of common stock under the current share repurchase program. Upon authorization, total shares remaining available for repurchase were 1,756,091. Under terms of the program, the Company may repurchase shares of its common stock from time to time at its discretion through open market repurchases and/or privately negotiated transactions, depending on price and prevailing market and business conditions. The program, which has no specified term, may be suspended or terminated at any time.

XML

Business Combination - Additional Information (Detail) - USD ($) $ in Thousands		9 Months Ended
	Apr. 10, 2015	Sep. 30, 2015	Sep. 30, 2014
Business Acquisition [Line Items]
Intangibles acquired in business combination		$ 2,400	$ 1,075
Virtus ETF Solutions [Member]
Business Acquisition [Line Items]
Investment to acquire majority interest	$ 4,800
Goodwill acquired in business combination	1,400
Intangibles acquired in business combination	$ 2,400

XML

Fair Value Measurements - Additional Information (Detail) - USD ($)	Sep. 30, 2015	Sep. 30, 2014
Fair Value Disclosures [Abstract]
Fair value, equity, Level 1 to Level 2 transfers, amount	$ 0	$ 0

XML

Intangible Assets, Net - Schedule of Activity in Intangible Assets, Net (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Intangible assets, net
Balance, beginning of period	$ 41,783	$ 44,633
Additions	2,400	1,075
Amortization	(2,511)	(2,998)
Balance, end of period	$ 41,672	$ 42,710

XML

Commitments and Contingencies - Additional Information (Detail) $ in Thousands			3 Months Ended		9 Months Ended
	Jun. 07, 2015 Plaintiff	Apr. 21, 2015 Plaintiff	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)
Loss Contingencies [Line Items]
Loss contingency, income tax benefit			$ (9,669)	$ 1,805	$ (28,360)	$ (24,311)
Virtus Investment Partners, Inc. Securities Litigation [Member]
Loss Contingencies [Line Items]
Number of plaintiffs | Plaintiff		3
Mark Youngers v. Virtus Investment Partners, Inc. et al [Member]
Loss Contingencies [Line Items]
Number of plaintiffs | Plaintiff	3
Unfavorable Regulatory Action [Member]
Loss Contingencies [Line Items]
Loss contingency, pre-tax					16,500
Loss contingency, income tax benefit					5,500
Loss contingency, net of tax benefit					$ 11,000

XML

Consolidated Investment Product - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 80,950	$ 202,054
Total Assets Measured at Fair Value	126,056	257,368
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	80,950	202,054
Total Assets Measured at Fair Value	126,056	257,368
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Total Assets Measured at Fair Value	0	0
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Total Assets Measured at Fair Value	0	$ 0
Consolidated Investment Product [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	120
Bank loans	131,862
Total Assets Measured at Fair Value	131,982
Consolidated Investment Product [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	120
Bank loans	0
Total Assets Measured at Fair Value	120
Consolidated Investment Product [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0
Bank loans	131,862
Total Assets Measured at Fair Value	131,862
Consolidated Investment Product [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0
Bank loans	0
Total Assets Measured at Fair Value	$ 0

XML

Stock-based Compensation - Summary of Stock Option Activity (Detail)	9 Months Ended
	Sep. 30, 2015 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number of Shares, Beginning Balance | shares	162,824
Number of Shares, Granted | shares	0
Number of Shares, Exercised | shares	(4,675)
Number of Shares, Forfeited | shares	0
Number of Shares, Ending Balance | shares	158,149
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Weighted Average Exercise Price, Beginning Balance (in $ per share)	$ 18.79
Weighted Average Exercise Price, Granted (in $ per share)	0.00
Weighted Average Exercise Price, Exercised (in $ per share)	15.27
Weighted Average Exercise Price, Forfeited (in $ per share)	0.00
Weighted Average Exercise Price, Ending Balance (in $ per share)	$ 18.89

XML

Condensed Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares	3 Months Ended					9 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Stockholders' Equity [Abstract]
Cash dividends declared per share (in $ per share)	$ 0.45	$ 0.45	$ 0.45	$ 0.45	$ 0.45	$ 1.35	$ 0.90

XML

Consolidated Investment Product - Additional Information (Details)		3 Months Ended
	Aug. 17, 2015 USD ($)	Sep. 30, 2015 USD ($) Product	Dec. 31, 2014 USD ($) Product
Variable Interest Entity [Line Items]
Investment of capital		$ 20,000,000
Number of consolidated investment products | Product		1	0
Consolidated Investment Product [Member]
Variable Interest Entity [Line Items]
Debt outstanding		$ 9,140,000	$ 0
Consolidated Investment Product [Member] | Secured Debt [Member] | Financing Facility [Member]
Variable Interest Entity [Line Items]
Debt term	3 years
Maximum borrowing capacity	$ 160,000,000.0
Debt outstanding		$ 9,100,000
Consolidated Investment Product [Member] | Secured Debt [Member] | Financing Facility [Member] | LIBOR [Member]
Variable Interest Entity [Line Items]
Basis spread on variable interest rate	1.25%
Term of initial ramp-up period	9 months
Basis spread on variable interest rate upon completion of initial ramp-up period	2.00%

XML

Equity Transactions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended					9 Months Ended		58 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Dec. 31, 2014
Equity [Abstract]
Repurchases of common shares (in shares)						368,468	136,874	943,909
Weighted average purchase price per share (in $ per share)						$ 122.09	$ 191.79	$ 129.95
Total cost of treasury shares acquired						$ 45,000	$ 26,300	$ 122,700
Common stock available to repurchase (in shares)	256,091					256,091		256,091
Cash dividends declared per share (in $ per share)	$ 0.45	$ 0.45	$ 0.45	$ 0.45	$ 0.45	$ 1.35	$ 0.90
Total cash dividends						$ 12,136	$ 8,333
Dividends payable	$ 4,258					$ 4,258		$ 4,258	$ 4,270
Dividend, to be paid date						Nov. 13, 2015
Dividend, record date						Oct. 30, 2015

XML

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of consolidated sponsored investment products and the consolidated investment product discussed in Notes 13 and 14, respectively as of September 30, 2015 and December 31, 2014 by fair value hierarchy level were as follows:

September 30, 2015

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	80,950	$	—	$	—	$	80,950
Marketable securities trading:
Sponsored funds	30,538		—		—		30,538
Equity securities	6,645		—		—		6,645
Marketable securities available-for-sale:
Sponsored closed-end funds	2,953		—		—		2,953
Other investments:
Nonqualified retirement plan assets	4,970		—		—		4,970
Total assets measured at fair value	$	126,056	$	—	$	—	$	126,056

December 31, 2014

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	202,054	$	—	$	—	$	202,054
Marketable securities trading:
Sponsored funds	38,312		—		—		38,312
Equity securities	8,740		—		—		8,740
Marketable securities available-for-sale:
Sponsored closed-end funds	3,199		—		—		3,199
Other investments
Nonqualified retirement plan assets	5,063		—		—		5,063
Total assets measured at fair value	$	257,368	$	—	$	—	$	257,368

The assets and liabilities of the consolidated sponsored investment products measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 by fair value hierarchy level were as follows:

As of September 30, 2015

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Debt securities	$	—	$	147,663	$	926	$	148,589
Equity securities	155,763		7,077		—		162,840
Derivatives	125		633		—		758
Total assets measured at fair value	$	155,888	$	155,373	$	926	$	312,187
Liabilities
Derivatives	$	403	$	917	$	—	$	1,320
Short sales	9,432		423		—		9,855
Total liabilities measured at fair value	$	9,835	$	1,340	$	—	$	11,175

As of December 31, 2014

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Debt securities	$	—	$	135,050	$	1,065	$	136,115
Equity securities	82,417		18,120		—		100,537
Derivatives	154		227		—		381
Total assets measured at fair value	$	82,571	$	153,397	$	1,065	$	237,033
Liabilities
Derivatives	$	191	$	—	$	—	$	191
Short sales	7,491		674		—		8,165
Total liabilities measured at fair value	$	7,682	$	674	$	—	$	8,356

The assets and liabilities of the consolidated investment product measured at fair value on a recurring basis as of September 30, 2015 by fair value hierarchy level were as follows:

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	120	$	—	$	—	$	120
Bank loans	—		131,862		—		131,862
Total Assets Measured at Fair Value	$	120	$	131,862	$	—	$	131,982

XML

Investments (Tables)

9 Months Ended

Sep. 30, 2015

Investments Schedule [Abstract]

Summary of Investments

The Company’s investments, excluding the assets of consolidated sponsored investment products discussed in Note 13 and the assets of the consolidated investment product discussed in Note 14, at September 30, 2015 and December 31, 2014 were as follows:

	September 30, 2015		December 31, 2014
($ in thousands)
Marketable securities	$	40,136	$	50,251
Equity method investments	9,194		7,209
Nonqualified retirement plan assets	4,970		5,063
Other investments	925		925
Total investments	$	55,225	$	63,448

Schedule of Marketable Securities

The Company’s marketable securities consist of both trading (including securities held by a broker-dealer affiliate) and available-for-sale securities. The composition of the Company’s marketable securities is summarized as follows:

September 30, 2015

	Cost		Unrealized Loss			Unrealized Gain		Fair Value
($ in thousands)
Trading:
Sponsored funds	$	32,079	$	(1,829	)	$	288	$	30,538
Equity securities	7,236		(648		)	57		6,645
Available-for-sale:
Sponsored closed-end funds	3,297		(344		)	—		2,953
Total marketable securities	$	42,612	$	(2,821	)	$	345	$	40,136

December 31, 2014

	Cost		Unrealized Loss			Unrealized Gain		Fair Value
($ in thousands)
Trading:
Sponsored funds	$	39,079	$	(1,190	)	$	423	$	38,312
Equity securities	8,421		—			319		8,740
Available-for-sale:
Sponsored closed-end funds	3,129		(163		)	233		3,199
Total marketable securities	$	50,629	$	(1,353	)	$	975	$	50,251

XML

Consolidated Sponsored Investment Products - Derivative Instruments (Details) - Consolidated Sponsored Investment Products [Member] $ in Thousands	Sep. 30, 2015 USD ($)
Options [Member] | Long [Member]
Derivative [Line Items]
Volume	$ 3,527
Options [Member] | Short [Member]
Derivative [Line Items]
Volume	2,499
Futures [Member]
Derivative [Line Items]
Volume	109,286
Forward foreign currency exchange [Member] | Long [Member]
Derivative [Line Items]
Volume	2,294
Forward foreign currency exchange [Member] | Short [Member]
Derivative [Line Items]
Volume	26,565
Interest rate swaps [Member]
Derivative [Line Items]
Volume	31,603
Other swaps [Member]
Derivative [Line Items]
Volume	$ 27,956

XML

Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance			$ (242)
Unrealized net gains (losses) on securities available-for-sale, net of tax	$ (290)	$ (95)	(389)	$ 90
Foreign currency translation adjustments, net of tax	49	(93)	(271)	(80)
Other comprehensive (loss) income	(241)	(188)	(660)	10
Ending Balance	(902)		(902)
Unrealized net gains (losses) on investments, tax benefit (expense)	(35)	60	26	(55)
Foreign currency translation adjustments, tax benefit (expense)	(28)	56	167	49
Unrealized Gains and (Losses) on Securities Available-for-Sale [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance			(107)	(231)
Unrealized net gains (losses) on securities available-for-sale, net of tax			(389)	90
Amounts reclassified from accumulated other comprehensive income (loss)			0	0
Other comprehensive (loss) income			(389)	90
Ending Balance	(496)	(141)	(496)	(141)
Unrealized net gains (losses) on investments, tax benefit (expense)			26	(55)
Foreign Currency Translation Adjustments [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance			(135)	81
Foreign currency translation adjustments, net of tax			(271)	(80)
Amounts reclassified from accumulated other comprehensive income (loss)			0	0
Other comprehensive (loss) income			(271)	(80)
Ending Balance	$ (406)	$ 1	(406)	1
Foreign currency translation adjustments, tax benefit (expense)			$ 167	$ 49

XML

Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Changes in Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2015 and 2014 were as follows:

	Unrealized  Gains and (Losses) on Securities Available-for- Sale			Foreign  Currency Translation Adjustments
($ in thousands)
Balance December 31, 2014	$	(107	)	$	(135	)
Unrealized net losses on securities available-for-sale, net of tax of $26	(389		)	—
Foreign currency translation adjustments, net of tax of $167	—			(271		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			—
Net current-period other comprehensive loss	(389		)	(271		)
Balance September 30, 2015	$	(496	)	$	(406	)
	Unrealized Gains and (Losses) on Securities Available-for- Sale			Foreign  Currency Translation Adjustments
($ in thousands)
Balance December 31, 2013	$	(231	)	$	81
Unrealized net gains on securities available-for-sale, net of tax of ($55)	90			—
Foreign currency translation adjustments, net of tax of $49	—			(80		)
Amounts reclassified from accumulated other comprehensive income	—			—
Net current-period other comprehensive income (loss)	90			(80		)
Balance September 30, 2014	$	(141	)	$	1

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Stock-based Compensation (Tables)

9 Months Ended

Sep. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Restricted Stock Units Activity

RSU activity for the nine months ended September 30, 2015 is summarized as follows:

	Number of Shares		Weighted Average Grant Date Fair Value
Outstanding at December 31, 2014	179,936		$	143.25
Granted	116,295		$	134.46
Forfeited	(493	)	$	175.16
Settled	(87,410	)	$	102.00
Outstanding at September 30, 2015	208,328		$	155.57

Summary of Stock Option Activity

Stock option activity for the nine months ended September 30, 2015 is summarized as follows:

	Number of Shares		Weighted Average Exercise Price
Outstanding at December 31, 2014	162,824		$	18.79
Granted	—		$	—
Exercised	(4,675	)	$	15.27
Forfeited	—		$	—
Outstanding at September 30, 2015	158,149		$	18.89

XML

Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]	Total Attributed To Shareholders [Member]	Non-controlling Interests [Member]	Redeemable Non-controlling Interests [Member]
Beginning Balance at Dec. 31, 2013	$ 492,868	$ 95	$ 1,135,644	$ (605,221)	$ (150)	$ (37,438)	$ 492,930	$ (62)	$ 42,186
Beginning Balance (in shares) at Dec. 31, 2013		9,105,521				350,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	78,737			78,821			78,821	(84)	(183)
Net unrealized gain (loss) on securities available-for-sale	90				90		90
Foreign currency translation adjustments	(80)				(80)		(80)
Activity of noncontrolling interests, net									(19,738)
Cash dividends declared	(8,333)		(8,333)				(8,333)
Repurchases of common shares	$ (26,257)					$ (26,257)	(26,257)
Repurchases of common shares (in shares)	136,874	136,874				136,874
Issuance of common shares related to employee stock transactions	$ 1,224		1,224				1,224
Issuance of common shares related to employee stock transactions (in shares)		90,731
Taxes paid on stock-based compensation	(9,512)		(9,512)				(9,512)
Stock-based compensation	6,604		6,604				6,604
Excess tax benefits from stock-based compensation	25,089		25,089				25,089
Ending Balance at Sep. 30, 2014	560,430	$ 95	1,150,716	(526,400)	(140)	$ (63,695)	560,576	(146)	22,265
Ending Balance (in shares) at Sep. 30, 2014		9,059,378				486,874
Beginning Balance at Dec. 31, 2014	563,352	$ 96	1,148,908	(507,521)	(242)	$ (77,699)	563,542	(190)	23,071
Beginning Balance (in shares) at Dec. 31, 2014		8,975,833				575,441
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	28,364			28,470			28,470	(106)	(3,330)
Net unrealized gain (loss) on securities available-for-sale	(389)				(389)		(389)
Foreign currency translation adjustments	(271)				(271)		(271)
Activity of noncontrolling interests, net									30,154
Cash dividends declared	(12,136)		(12,136)				(12,136)
Repurchases of common shares	$ (45,000)					$ (45,000)	(45,000)
Repurchases of common shares (in shares)	368,468	368,468				368,468
Issuance of common shares related to employee stock transactions	$ 796		796				796
Issuance of common shares related to employee stock transactions (in shares)		60,301
Taxes paid on stock-based compensation	(5,080)		(5,080)				(5,080)
Stock-based compensation	8,656		8,656				8,656
Excess tax benefits from stock-based compensation	1,038		1,038				1,038
Ending Balance at Sep. 30, 2015	$ 539,330	$ 96	$ 1,142,182	$ (479,051)	$ (902)	$ (122,699)	$ 539,626	$ (296)	$ 49,895
Ending Balance (in shares) at Sep. 30, 2015		8,667,666				943,909

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Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Earnings per Share

The computation of basic and diluted EPS is as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2015			2014		2015		2014
($ in thousands, except per share amounts)
Net (Loss) Income	$	(3,703	)	$	36,995	$	25,034	$	78,554
Noncontrolling interests	3,054			345		3,436		267
Net (Loss) Income Attributable to Common Stockholders	$	(649	)	$	37,340	$	28,470	$	78,821
Shares(in thousands):
Basic: Weighted-average number of shares outstanding	8,775			9,096		8,876		9,115
Plus: Incremental shares from assumed conversion of dilutive instruments	—			183		163		207
Diluted: Weighted-average number of shares outstanding	8,775			9,279		9,039		9,322
(Loss) Earnings per Share—Basic	$	(0.07	)	$	4.10	$	3.21	$	8.65
(Loss) Earnings per Share—Diluted	$	(0.07	)	$	4.02	$	3.15	$	8.46

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Investments - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Investments Schedule [Abstract]
Realized gain (loss) on trading securities	$ (0.5)	$ 1.7	$ 0.4	$ 6.2

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Consolidated Sponsored Investment Products - Balances of Consolidated Sponsored Investment Products (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Total cash and cash equivalents	$ 128,847	$ 203,304	$ 173,764	$ 271,545
Total investments	55,225	63,448
Total liabilities	(237,538)	(112,350)
Redeemable noncontrolling interests	(49,895)	(23,071)
Consolidated Sponsored Investment Products [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Total cash and cash equivalents	16,732	8,687
Total investments	311,429	236,652
All other assets	10,494	6,960
Total liabilities	(29,849)	(12,556)
Redeemable noncontrolling interests	(49,895)	(23,071)
The Company’s net interests in investment products	$ 258,911	$ 216,672
The Company's net interest as a percentage of total investments of investment products	83.10%	91.60%

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets:
Cash and cash equivalents	$ 128,847	$ 203,304
Investments	55,225	63,448
Accounts receivable, net	40,107	49,721
Furniture, equipment, and leasehold improvements, net	9,042	7,193
Intangible assets, net	41,672	41,783
Goodwill	6,649	5,260
Deferred taxes, net	59,700	60,162
Total assets	826,763	698,773
Liabilities:
Accrued compensation and benefits	38,206	54,815
Accounts payable and accrued liabilities	39,739	31,627
Dividends payable	4,258	4,270
Other liabilities	12,805	9,082
Total liabilities	$ 237,538	$ 112,350
Commitments and Contingencies (Note 12)
Redeemable noncontrolling interests	$ 49,895	$ 23,071
Equity attributable to stockholders:
Common stock, $0.01 par value, 1,000,000,000 shares authorized; 9,611,575 shares issued and 8,667,666 shares outstanding at September 30, 2015 and 9,551,274 shares issued and 8,975,833 shares outstanding at December 31, 2014	96	96
Additional paid-in capital	1,142,182	1,148,908
Accumulated deficit	(479,051)	(507,521)
Accumulated other comprehensive loss	(902)	(242)
Treasury stock, at cost, 943,909 and 575,441 shares at September 30, 2015 and December 31, 2014, respectively	(122,699)	(77,699)
Total equity attributable to stockholders	539,626	563,542
Noncontrolling interests	(296)	(190)
Total equity	539,330	563,352
Total liabilities and equity	826,763	698,773
Parent Company [Member]
Assets:
Cash and cash equivalents	126,470	202,847
Investments	55,225	63,448
Other assets	17,241	16,060
Consolidated Sponsored Investment Products [Member]
Assets:
Cash and cash equivalents	16,732	8,687
Cash	2,257	457
Cash pledged or on deposit	14,475	8,230
Investments	311,429	236,652
Other assets	10,494	6,960
Liabilities:
Total liabilities	29,849	12,556
Redeemable noncontrolling interests	49,895	23,071
Consolidated Investment Product [Member]
Assets:
Cash equivalents	120	0
Investments	131,862
Investments and other assets of consolidated investment product	131,882	0
Other assets	20
Liabilities:
Debt of consolidated investment product	9,140	0
Securities purchased payable of consolidated investment product	$ 103,541	$ 0

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Stock-based Compensation - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for issuance (in shares)	306,275		306,275
Shares of common stock reserved for issuance (in shares)	1,800,000		1,800,000
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share settlement under RSUs (in shares)			37,488	50,952
Cash used for employee withholding tax payments			$ 5.1	$ 9.5
Unamortized stock-based compensation expense	$ 19.3		$ 19.3
Weighted-average remaining amortization period			1 year 10 months 24 days
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual life			10 years
Vesting period			3 years
Stock-based compensation expense	$ 2.7	$ 2.5	$ 9.2	$ 7.0
RSU and Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Company granted performance contingent RSU (in shares)			33,632	30,101
Stock-based compensation expense			$ 1.8	$ 0.9
Minimum [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual life			1 year
Maximum [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual life			3 years

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Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustment, tax benefit (expense)	$ (28)	$ 56	$ 167	$ 49
Unrealized (loss) gain on available-for-sale securities, tax benefit (expense)	$ (35)	$ 60	$ 26	$ (55)

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Consolidated Sponsored Investment Products - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015 USD ($) Product	Dec. 31, 2014 Product	Sep. 30, 2014 USD ($)
Condensed Financial Statements, Captions [Line Items]
Number of consolidated sponsored investment products | Product	14	12
Number of additional consolidated sponsored investment products | Product	3
Number of deconsolidated sponsored investment products | Product	1
Fair value, securities, Level 1 to Level 2 transfers, amount	$ 0		$ 0
Consolidated Sponsored Investment Products [Member]
Condensed Financial Statements, Captions [Line Items]
Fair value, securities, Level 2 to Level 1 transfers, amount	8,900,000		0
Fair value, securities, Level 1 to Level 2 transfers, amount	$ 300,000		$ 0
Consolidated Sponsored Investment Products [Member] | Maximum [Member]
Condensed Financial Statements, Captions [Line Items]
Percentage of permitted borrowings (up to)	33.33%
Consolidated Sponsored Investment Products [Member] | Derivative Assets [Member] | Credit Concentration Risk [Member]
Condensed Financial Statements, Captions [Line Items]
Concentration risk percentage	34.40%
Consolidated Sponsored Investment Products [Member] | Derivative Liabilities [Member] | Credit Concentration Risk [Member]
Condensed Financial Statements, Captions [Line Items]
Concentration risk percentage	40.90%

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Consolidation (Tables)

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidated Balance Sheets

The following tables reflect the impact of the consolidated sponsored investment products and consolidated investment product in the Condensed Consolidated Balance Sheets as of September 30, 2015 and December 31, 2014, respectively:

As of September 30, 2015

	Balance Before Consolidation of Investment  Products			Consolidated Sponsored Investment Products		Consolidated Investment Product		Eliminations and Adjustments (a)			Balances as Reported in Condensed Consolidated Balance Sheet
($ in thousands)
Total cash	$	126,470		$	16,732	$	120	$	—		$	143,322
Total investments	333,307			311,429		131,862		(278,082		)	498,516
All other assets	174,563			10,494		20		(152		)	184,925
Total assets	$	634,340		$	338,655	$	132,002	$	(278,234	)	$	826,763
Total liabilities	$	95,010		$	29,999	$	112,681	$	(152	)	$	237,538
Redeemable noncontrolling interest	—			—		—		49,895			49,895
Equity attributable to stockholders of the Company	539,626			308,656		19,321		(327,977		)	539,626
Non-redeemable noncontrolling interest	(296		)	—		—		—			(296		)
Total liabilities and equity	$	634,340		$	338,655	$	132,002	$	(278,234	)	$	826,763

As of December 31, 2014

	Balance Before Consolidation of Investment  Products			Consolidated Sponsored Investment Products		Consolidated Investment Product		Eliminations and Adjustments (a)			Balances as Reported in Condensed Consolidated Balance Sheet
($ in thousands)
Total cash	$	202,847		$	8,687	$	—	$	—		$	211,534
Total investments	279,863			236,652		—		(216,415		)	300,100
All other assets	180,436			6,960		—		(257		)	187,139
Total assets	$	663,146		$	252,299	$	—	$	(216,672	)	$	698,773
Total liabilities	$	99,794		$	12,813	$	—	$	(257	)	$	112,350
Redeemable noncontrolling interest	—			—		—		23,071			23,071
Equity attributable to stockholders of the Company	563,542			239,486		—		(239,486		)	563,542
Non-redeemable noncontrolling interest	(190		)	—		—		—			(190		)
Total liabilities and equity	$	663,146		$	252,299	$	—	$	(216,672	)	$	698,773

(a) Adjustments include the elimination of intercompany transactions between the Company, its consolidated sponsored investment products and consolidated investment product, primarily the elimination of the investments, consolidated sponsored investment product equity, consolidated investment product equity and recording of any noncontrolling interest.

Condensed Consolidated Statements of Operations

The following table reflects the impact of the consolidated sponsored investment products and consolidated investment products in the Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2015 and 2014:

For the Three Months Ended September 30, 2015

	Balance Before Consolidation of Investment  Products			Consolidated Sponsored Investment Products			Consolidated Investment Product			Eliminations and Adjustments (a)			Balances as Reported in Condensed Consolidated Statement of Operations
($ in thousands)
Total operating revenues	$	92,804		$	—		$	—		$	(429	)	$	92,375
Total operating expenses	68,134			1,548			—			(429		)	69,253
Operating income (loss)	24,670			(1,548		)	—			—			23,122
Total other non-operating expense	(15,557		)	(14,723		)	(679		)	13,803			(17,156		)
Income (loss) before income taxes	9,113			(16,271		)	(679		)	13,803			5,966
Income taxes	9,669			—			—			—			9,669
Net loss	(556		)	(16,271		)	(679		)	13,803			(3,703		)
Noncontrolling interests	(93		)				—			3,147			3,054
Net loss attributable to common stockholders	$	(649	)	$	(16,271	)	$	(679	)	$	16,950		$	(649	)

For the Three Months Ended September 30, 2014

	Balance Before Consolidation of Investment  Products			Consolidated Sponsored Investment Products			Consolidated Investment Product		Eliminations and Adjustments (a)		Balances as Reported in Condensed Consolidated Statement of Operations
($ in thousands)
Total operating revenues	$	117,808		$	—		$	—	$	33	$	117,841
Total operating expenses	77,668			1,213			—		33		78,914
Operating income (loss)	40,140			(1,213		)	—		—		38,927
Total other non-operating loss	(4,649		)	(3,109		)	—		4,021		(3,737		)
Income (loss) before income taxes	35,491			(4,322		)	—		4,021		35,190
Income taxes	(1,805		)	—			—		—		(1,805		)
Net income (loss)	37,296			(4,322		)	—		4,021		36,995
Noncontrolling interests	44			—			—		301		345
Net income (loss) attributable to common stockholders	$	37,340		$	(4,322	)	$	—	$	4,322	$	37,340

For the Nine Months Ended September 30, 2015

	Balance Before Consolidation of Investment  Products			Consolidated Sponsored Investment Products			Consolidated Investment Product			Eliminations and Adjustments (a)			Balances as Reported in Condensed Consolidated Statement of Operations
($ in thousands)
Total operating revenues	$	297,089		$	—		$	—		$	(1,227	)	$	295,862
Total operating expenses	229,096			4,121			—			(1,227		)	231,990
Operating income (loss)	67,993			(4,121		)	—			—			63,872
Total other non-operating expense	(11,269		)	(9,951		)	(680		)	11,422			(10,478		)
Income (loss) before income taxes	56,724			(14,072		)	(680		)	11,422			53,394
Income taxes	28,360			—			—			—			28,360
Net income (loss)	28,364			(14,072		)	(680		)	11,422			25,034
Noncontrolling interests	106			—			—			3,330			3,436
Net income (loss) attributable to common stockholders	$	28,470		$	(14,072	)	$	(680	)	$	14,752		$	28,470

For the Nine Months Ended September 30, 2014

	Balance Before Consolidation of Investment  Products		Consolidated Sponsored Investment Products			Consolidated Investment Product		Eliminations and Adjustments (a)			Balances as Reported in Condensed Consolidated Statement of Operations
($ in thousands)
Total operating revenues	$	338,534	$	—		$	—	$	(73	)	$	338,461
Total operating expenses	242,032		2,447			—		(73		)	244,406
Operating income (loss)	96,502		(2,447		)	—		—			94,055
Total other non-operating income	6,545		5,883			—		(3,618		)	8,810
Income before income taxes	103,047		3,436			—		(3,618		)	102,865
Income taxes	24,311		—			—		—			24,311
Net income	78,736		3,436			—		(3,618		)	78,554
Noncontrolling interests	85		—			—		182			267
Net income attributable to common stockholders	$	78,821	$	3,436		$	—	$	(3,436	)	$	78,821

(a) Adjustments include the elimination of intercompany transactions between the Company, its consolidated sponsored investment products and consolidated investment product, primarily the elimination of the investments, consolidated sponsored investment product equity, consolidated investment product equity and recording of any noncontrolling interest.

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Consolidation - Additional Information (Details) - Product	Sep. 30, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of consolidated products	15	12
Number of consolidated sponsored investment products	14	12
Number of consolidated investment products	1	0

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Consolidated Sponsored Investment Products

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidated Sponsored Investment Products

Consolidated Sponsored Investment Products

In the normal course of its business, the Company sponsors various investment products. The Company consolidates an investment product when it owns a majority of the voting interest in the entity or it is the primary beneficiary of an investment product that is a VIE, as a consolidated sponsored investment product. The consolidation and deconsolidation of these investment products has no impact on net income attributable to stockholders. The Company’s risk with respect to these investments is limited to its investment in these products. The Company has no right to the benefits from, and does not bear the risks associated with these investment products, beyond the Company’s investments in, and fees generated from these products. The Company does not consider cash and investments held by consolidated sponsored investment products or any other VIE to be assets of the Company other than its direct investment in these products.

As of September 30, 2015 and December 31, 2014, the Company consolidated 14 and 12 sponsored investment products, respectively. During the nine months ended September 30, 2015, the Company consolidated three additional sponsored investment products and deconsolidated one sponsored investment product because it no longer had a majority voting interest.

The following table presents the balances of the consolidated sponsored investment products that were reflected in the Condensed Consolidated Balance Sheets as of September 30, 2015 and December 31, 2014:

	As of
	September 30, 2015			December 31, 2014
($ in thousands)
Total cash and cash equivalents	$	16,732		$	8,687
Total investments	311,429			236,652
All other assets	10,494			6,960
Total liabilities	(29,849		)	(12,556		)
Redeemable noncontrolling interests	(49,895		)	(23,071		)
The Company’s net interests in consolidated sponsored investment products	$	258,911		$	216,672
The Company's net interest as a percentage of total investments of consolidated sponsored investment products	83.1		%	91.6		%

Fair Value Measurements

The assets and liabilities of the consolidated sponsored investment products measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 by fair value hierarchy level were as follows:

As of September 30, 2015

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Debt securities	$	—	$	147,663	$	926	$	148,589
Equity securities	155,763		7,077		—		162,840
Derivatives	125		633		—		758
Total assets measured at fair value	$	155,888	$	155,373	$	926	$	312,187
Liabilities
Derivatives	$	403	$	917	$	—	$	1,320
Short sales	9,432		423		—		9,855
Total liabilities measured at fair value	$	9,835	$	1,340	$	—	$	11,175

As of December 31, 2014

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Debt securities	$	—	$	135,050	$	1,065	$	136,115
Equity securities	82,417		18,120		—		100,537
Derivatives	154		227		—		381
Total assets measured at fair value	$	82,571	$	153,397	$	1,065	$	237,033
Liabilities
Derivatives	$	191	$	—	$	—	$	191
Short sales	7,491		674		—		8,165
Total liabilities measured at fair value	$	7,682	$	674	$	—	$	8,356

The following is a discussion of the valuation methodologies used for the assets and liabilities of the Company’s consolidated sponsored investment products measured at fair value.

Investments of consolidated sponsored investment products represent the underlying debt, equity and other securities held in sponsored products which are consolidated by the Company. Equity securities are valued at the official closing price on the exchange on which the securities are traded and are categorized within Level 1. Level 2 investments include most debt securities, which are valued based on quotations received from independent pricing services or from dealers who make markets in such securities and certain equity securities, including non-US securities, for which closing prices are not readily available or are deemed to not reflect readily available market prices and are valued using an independent pricing service. Pricing services do not provide pricing for all securities, and therefore indicative bids from dealers are utilized, which are based on pricing models used by market makers in the security and are also included within Level 2. Level 3 investments include debt securities that are not widely traded, are illiquid or are priced by dealers based on pricing models used by market makers in the security.

The following table is a reconciliation of assets of consolidated sponsored investment products for Level 3 investments for which significant unobservable inputs were used to determine fair value.

	Nine Months Ended September 30,
($ in thousands)	2015			2014
Level 3 Debt securities (a)
Balance at beginning of period	$	1,065		$	—
Purchases	135			450
Paydowns	(14		)	(2		)
Sales	(13		)	—
Transferred to Level 2	(126		)	—
Change in unrealized gain/(loss), net	(121		)	(1		)
Balance at end of period	$	926		$	447

(a) None of the securities reflected in the above table were internally fair valued at September 30, 2015.

For the nine months ended September 30, 2015, securities held by consolidated sponsored investment products with an end of period value of $8.9 million were transferred from Level 2 to Level 1 because certain non-US securities quoted market prices were no longer adjusted based on third-party factors derived from model-based valuation techniques for which the significant assumptions were observable in the market. For the nine months ended September 30, 2015, securities held by consolidated sponsored investment products with an end of period value of $0.3 million were transferred from Level 1 to Level 2 because certain non-US securities quoted market prices were adjusted based on third-party factors derived from model-based valuation techniques for which the significant assumptions were observable in the market. There were no transfers between Level 1, Level 2, or Level 3 during the nine months ended September 30, 2014.

Derivatives

The Company has certain consolidated sponsored investment products which include derivative instruments as part of their investment strategies to contribute to the achievement of defined investment objectives. These derivatives may include futures contracts, options contracts and forward contracts. Derivative instruments in an asset position are classified as other assets of consolidated sponsored investment products in the Condensed Consolidated Balance Sheets. Derivative instruments in a liability position are classified as liabilities of consolidated sponsored investment products within the Condensed Consolidated Balance Sheets. The change in fair value of such derivatives is recorded in realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net, in the Condensed Consolidated Statements of Operations. In connection with entering into these derivative contracts, these funds may be required to pledge to the broker an amount of cash equal to the “initial margin” requirements that varies based on the type of derivative. The cash pledged or on deposit is recorded in the Condensed Consolidated Balance Sheets of the Company as Cash pledged or on deposit of consolidated sponsored investment products. The fair value of such derivatives at September 30, 2014 and December 31, 2014 was immaterial.

The Company's consolidated sponsored investment products were party to the following derivative instruments for the period ended September 30, 2015:

($ in thousands)
	Volume
Purchased options	$	3,527	(a)
Written options	2,499		(b)
Futures contracts long/short	109,286		(c)
Forward foreign currency exchange purchase contracts	2,294		(d)
Forward foreign currency exchange sale contracts	26,565		(e)
Interest rate swaps	31,603		(a)
Other swaps	27,956		(f)

(a)    Represents cost of holdings as of the end of the period.

(b)    Represents aggregate premiums received for the period.

(c)    Represents cost at trade date for holdings as of the end of the period.

(d)    Represents value of trade date payable for holdings as of the end of the period.

(e)    Represents value at settlement date receivable for holdings as of the end of the period.

(f) Includes credit default, total return, inflation and variance swaps. Represents notional value of holdings as of the end of the period.

The following is a summary of the consolidated sponsored investment products' derivative instruments as of September 30, 2015. For financial reporting purposes the Company does not offset derivative assets and derivative liabilities that are subject to netting arrangements in its Condensed Consolidated Balance Sheet.

	Fair Value
($ in thousands)	Assets			Liabilities
Futures contracts	$	119		$	33
Forward foreign currency exchange contracts	228			117
Swaps	1,226			1,002
Purchased options	1,005			—
Purchased swaptions	701			—
Written options	—			691
Total derivative assets and liabilities in the Condensed Consolidated Balance Sheets	3,279			1,843
Derivatives not subject to a master netting agreement	(654		)	(207		)
Total assets and liabilities subject to a master netting agreement	2,625			1,636

The Company's consolidated sponsored investment products have counterparty risk associated with these derivative assets and liabilities. Multiple counterparties are utilized to mitigate this risk, and the maximum exposure to a single bank does not exceed 34.4% of the total derivative assets or 40.9% of the total derivative liabilities.

The following is a summary of the net gains (losses) recognized in income by primary risk exposure, for the three and nine months ended September 30, 2015:

($ in thousands)	Three Months Ended September 30, 2015			Nine Months Ended September 30, 2015
Interest rate contracts	$	(217	)	$	(75	)
Foreign currency exchange contracts	263			666
Equity contracts	633			1,414
Commodity contracts	212			126
Credit contracts	(13		)	(100		)
Total	$	878		$	2,031

Short Sales

Some of the Company’s consolidated sponsored investment products may engage in short sales, which are transactions in which a security is sold which is not owned or is owned but there is no intention to deliver, in anticipation that the price of the security will decline. Short sales are recorded in the Condensed Consolidated Balance Sheets within other liabilities of consolidated sponsored investment products.

Borrowings

One of the Company’s consolidated sponsored investment products employs leverage in the form of using proceeds from short sales, which allows it to use its long positions as collateral in order to purchase additional securities. The use of these proceeds from short sales is secured by the assets of the consolidated sponsored investment product, which are held with the custodian in a separate account. This consolidated sponsored investment product is permitted to borrow up to 33.33% of its total assets.

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Intangible Assets, Net - Summary of Intangible Assets, Net (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Definite-lived intangible assets:
Investment contracts	$ 158,747	$ 158,747
Accumulated amortization	(151,891)	(149,380)
Definite-lived intangible assets, net	6,856	9,367
Indefinite-lived intangible assets	34,816	32,416
Total intangible assets, net	$ 41,672	$ 41,783	$ 42,710	$ 44,633

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Consolidation

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidation

Consolidation

As of September 30, 2015, 15 products were consolidated by the Company including 14 consolidated sponsored investment products and one consolidated investment product. As of December 31, 2014, 12 products were consolidated by the Company, comprised entirely of sponsored investment products.

The following tables reflect the impact of the consolidated sponsored investment products and consolidated investment product in the Condensed Consolidated Balance Sheets as of September 30, 2015 and December 31, 2014, respectively:

As of September 30, 2015

	Balance Before Consolidation of Investment  Products			Consolidated Sponsored Investment Products		Consolidated Investment Product		Eliminations and Adjustments (a)			Balances as Reported in Condensed Consolidated Balance Sheet
($ in thousands)
Total cash	$	126,470		$	16,732	$	120	$	—		$	143,322
Total investments	333,307			311,429		131,862		(278,082		)	498,516
All other assets	174,563			10,494		20		(152		)	184,925
Total assets	$	634,340		$	338,655	$	132,002	$	(278,234	)	$	826,763
Total liabilities	$	95,010		$	29,999	$	112,681	$	(152	)	$	237,538
Redeemable noncontrolling interest	—			—		—		49,895			49,895
Equity attributable to stockholders of the Company	539,626			308,656		19,321		(327,977		)	539,626
Non-redeemable noncontrolling interest	(296		)	—		—		—			(296		)
Total liabilities and equity	$	634,340		$	338,655	$	132,002	$	(278,234	)	$	826,763

As of December 31, 2014

	Balance Before Consolidation of Investment  Products			Consolidated Sponsored Investment Products		Consolidated Investment Product		Eliminations and Adjustments (a)			Balances as Reported in Condensed Consolidated Balance Sheet
($ in thousands)
Total cash	$	202,847		$	8,687	$	—	$	—		$	211,534
Total investments	279,863			236,652		—		(216,415		)	300,100
All other assets	180,436			6,960		—		(257		)	187,139
Total assets	$	663,146		$	252,299	$	—	$	(216,672	)	$	698,773
Total liabilities	$	99,794		$	12,813	$	—	$	(257	)	$	112,350
Redeemable noncontrolling interest	—			—		—		23,071			23,071
Equity attributable to stockholders of the Company	563,542			239,486		—		(239,486		)	563,542
Non-redeemable noncontrolling interest	(190		)	—		—		—			(190		)
Total liabilities and equity	$	663,146		$	252,299	$	—	$	(216,672	)	$	698,773

(a) Adjustments include the elimination of intercompany transactions between the Company, its consolidated sponsored investment products and consolidated investment product, primarily the elimination of the investments, consolidated sponsored investment product equity, consolidated investment product equity and recording of any noncontrolling interest.

The following table reflects the impact of the consolidated sponsored investment products and consolidated investment products in the Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2015 and 2014:

For the Three Months Ended September 30, 2015

	Balance Before Consolidation of Investment  Products			Consolidated Sponsored Investment Products			Consolidated Investment Product			Eliminations and Adjustments (a)			Balances as Reported in Condensed Consolidated Statement of Operations
($ in thousands)
Total operating revenues	$	92,804		$	—		$	—		$	(429	)	$	92,375
Total operating expenses	68,134			1,548			—			(429		)	69,253
Operating income (loss)	24,670			(1,548		)	—			—			23,122
Total other non-operating expense	(15,557		)	(14,723		)	(679		)	13,803			(17,156		)
Income (loss) before income taxes	9,113			(16,271		)	(679		)	13,803			5,966
Income taxes	9,669			—			—			—			9,669
Net loss	(556		)	(16,271		)	(679		)	13,803			(3,703		)
Noncontrolling interests	(93		)				—			3,147			3,054
Net loss attributable to common stockholders	$	(649	)	$	(16,271	)	$	(679	)	$	16,950		$	(649	)

For the Three Months Ended September 30, 2014

	Balance Before Consolidation of Investment  Products			Consolidated Sponsored Investment Products			Consolidated Investment Product		Eliminations and Adjustments (a)		Balances as Reported in Condensed Consolidated Statement of Operations
($ in thousands)
Total operating revenues	$	117,808		$	—		$	—	$	33	$	117,841
Total operating expenses	77,668			1,213			—		33		78,914
Operating income (loss)	40,140			(1,213		)	—		—		38,927
Total other non-operating loss	(4,649		)	(3,109		)	—		4,021		(3,737		)
Income (loss) before income taxes	35,491			(4,322		)	—		4,021		35,190
Income taxes	(1,805		)	—			—		—		(1,805		)
Net income (loss)	37,296			(4,322		)	—		4,021		36,995
Noncontrolling interests	44			—			—		301		345
Net income (loss) attributable to common stockholders	$	37,340		$	(4,322	)	$	—	$	4,322	$	37,340

For the Nine Months Ended September 30, 2015

	Balance Before Consolidation of Investment  Products			Consolidated Sponsored Investment Products			Consolidated Investment Product			Eliminations and Adjustments (a)			Balances as Reported in Condensed Consolidated Statement of Operations
($ in thousands)
Total operating revenues	$	297,089		$	—		$	—		$	(1,227	)	$	295,862
Total operating expenses	229,096			4,121			—			(1,227		)	231,990
Operating income (loss)	67,993			(4,121		)	—			—			63,872
Total other non-operating expense	(11,269		)	(9,951		)	(680		)	11,422			(10,478		)
Income (loss) before income taxes	56,724			(14,072		)	(680		)	11,422			53,394
Income taxes	28,360			—			—			—			28,360
Net income (loss)	28,364			(14,072		)	(680		)	11,422			25,034
Noncontrolling interests	106			—			—			3,330			3,436
Net income (loss) attributable to common stockholders	$	28,470		$	(14,072	)	$	(680	)	$	14,752		$	28,470

For the Nine Months Ended September 30, 2014

	Balance Before Consolidation of Investment  Products		Consolidated Sponsored Investment Products			Consolidated Investment Product		Eliminations and Adjustments (a)			Balances as Reported in Condensed Consolidated Statement of Operations
($ in thousands)
Total operating revenues	$	338,534	$	—		$	—	$	(73	)	$	338,461
Total operating expenses	242,032		2,447			—		(73		)	244,406
Operating income (loss)	96,502		(2,447		)	—		—			94,055
Total other non-operating income	6,545		5,883			—		(3,618		)	8,810
Income before income taxes	103,047		3,436			—		(3,618		)	102,865
Income taxes	24,311		—			—		—			24,311
Net income	78,736		3,436			—		(3,618		)	78,554
Noncontrolling interests	85		—			—		182			267
Net income attributable to common stockholders	$	78,821	$	3,436		$	—	$	(3,436	)	$	78,821

(a) Adjustments include the elimination of intercompany transactions between the Company, its consolidated sponsored investment products and consolidated investment product, primarily the elimination of the investments, consolidated sponsored investment product equity, consolidated investment product equity and recording of any noncontrolling interest.

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash Flows from Operating Activities:
Net income	$ 25,034	$ 78,554
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation expense, intangible asset and other amortization	5,241	5,055
Stock-based compensation	9,166	7,021
Excess tax benefits from stock-based compensation	(1,515)	(25,089)
Amortization of deferred commissions	6,903	14,032
Payments of deferred commissions	(2,585)	(11,761)
Equity in earnings of equity method investments, net	(804)	(295)
Realized and unrealized losses (gains) on trading securities, net	1,490	(1,712)
Sales (purchases) of trading securities, net	9,945	24,996
Deferred taxes, net	655	4,826
Changes in operating assets and liabilities:
Accounts receivable, net and other assets	4,101	(17,776)
Accrued compensation and benefits, accounts payable, accrued liabilities and other liabilities	(8,102)	8,424
Net cash used in operating activities	(56,951)	(102,288)
Cash Flows from Investing Activities:
Capital expenditures	(3,723)	(1,814)
Asset acquisitions and purchases of other investments	(1,617)	(5,000)
Cash acquired in business combination	89	0
Purchases of available-for-sale securities	(168)	(260)
Net cash used in investing activities	(5,419)	(7,440)
Cash Flows from Financing Activities:
Dividends paid	(12,146)	(4,104)
Repurchases of common shares	(45,000)	(26,257)
Proceeds from exercise of stock options	70	660
Taxes paid related to net share settlement of restricted stock units	(5,080)	(9,512)
Excess tax benefits from stock-based compensation	1,515	25,089
Contributions of noncontrolling interests, net	38,747	24,871
Net cash (used in) provided by financing activities	(12,087)	11,947
Net decrease in cash and cash equivalents	(74,457)	(97,781)
Cash and cash equivalents, beginning of period	203,304	271,545
Cash and Cash Equivalents, End of Period	128,847	173,764
Non-Cash Investing Activities:
Change in accrual for capital expenditures	(313)	97
Investment in acquired business	4,800	0
Non-Cash Financing Activities:
Decrease to noncontrolling interest due to consolidation (deconsolidation) of consolidated sponsored investment products, net	(8,640)	(44,613)
Dividends payable	4,258	4,229
Consolidated Sponsored Investment Products [Member]
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Realized and unrealized losses (gains) on trading securities, net	21,611	(1,247)
Sales (purchases) of trading securities, net	(96,222)	(184,584)
Sales of securities sold short by consolidated sponsored investment products, net	3,534	10,461
Changes in operating assets and liabilities:
Cash pledged or on deposit of consolidated sponsored investment products	(6,912)	(12,492)
Other assets of consolidated sponsored investment products	(1,649)	(1,502)
Liabilities of consolidated sponsored investment products	1,499	801
Cash Flows from Investing Activities:
Change in cash and cash equivalents of consolidated sponsored investment products due to deconsolidation	0	(366)
Cash Flows from Financing Activities:
Borrowings of proceeds from short sales by consolidated sponsored investment products	831	1,200
Payments on borrowings by consolidated sponsored investment products	(164)	0
Cash and cash equivalents, beginning of period	8,687
Cash and Cash Equivalents, End of Period	16,732
Consolidated Investment Product [Member]
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Realized and unrealized losses (gains) on trading securities, net	764	0
Sales (purchases) of trading securities, net	(29,085)	0
Changes in operating assets and liabilities:
Liabilities and other assets of consolidated investment product, net	(20)	0
Cash Flows from Financing Activities:
Borrowings of debt of consolidated investment product	$ 9,140	$ 0

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Common stock, par value (in $ per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	9,611,575	9,551,274
Common stock, shares outstanding (in shares)	8,667,666	8,975,833
Treasury stock, shares (in shares)	943,909	575,441

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Stock-based Compensation

9 Months Ended

Sep. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based Compensation

Stock-based Compensation

The Company has an Omnibus Incentive and Equity Plan (the “Plan”) under which officers, employees and directors may be granted equity-based awards, including restricted stock units (“RSUs”), stock options and unrestricted shares of common stock. At September 30, 2015, 306,275 shares of common stock remained available for issuance of the 1,800,000 shares that were reserved for issuance under the Plan. Each RSU entitles the holder to one share of common stock when the restriction expires. RSUs generally have a term of one to three years and may be time-vested or performance-contingent. Stock options generally cliff vest after three years and have a contractual life of ten years. Stock options are granted with an exercise price equal to the fair market value of the shares at the date of grant. The fair value of each RSU is estimated using the intrinsic value method, which is based on the fair market value price on the date of grant unless it contains a performance metric that is considered a market condition. RSUs that contain a market condition are valued using a simulation valuation model. Shares that are issued upon exercise of stock options and vesting of RSUs are newly issued shares from the Plan and are not issued from treasury stock.

Restricted Stock Units

RSU activity for the nine months ended September 30, 2015 is summarized as follows:

	Number of Shares		Weighted Average Grant Date Fair Value
Outstanding at December 31, 2014	179,936		$	143.25
Granted	116,295		$	134.46
Forfeited	(493	)	$	175.16
Settled	(87,410	)	$	102.00
Outstanding at September 30, 2015	208,328		$	155.57

For the nine months ended September 30, 2015 and 2014, a total of 37,488 and 50,952 RSUs, respectively, were withheld by the Company as a result of net share settlements to settle minimum employee tax withholding obligations. The Company paid $5.1 million and $9.5 million for the nine months ended September 30, 2015 and 2014, respectively, in minimum employee tax withholding obligations related to RSUs withheld. These net share settlements had the effect of share repurchases by the Company as they reduced the number of shares that would have been otherwise issued as a result of the vesting.

During the nine months ended September 30, 2015 and 2014, the Company granted 33,632 and 30,101 RSUs, respectively, each of which contains two performance based metrics in addition to a service condition. The two performance metrics are based on the Company’s growth in operating income, as adjusted, relative to peers, over a one-year period and total shareholder return (“TSR”) relative to peers over a three-year period. For the nine months ended September 30, 2015 and 2014, total stock-based compensation expense included $1.8 million and $0.9 million for these performance contingent RSUs, respectively.

The Company recognized total stock compensation expense of $2.7 million and $2.5 million, respectively, and $9.2 million and $7.0 million, respectively, for the three and nine months ended September 30, 2015 and 2014. As of September 30, 2015, unamortized stock-based compensation expense for unvested RSUs was $19.3 million, with a weighted-average remaining amortization period of 1.9 years.

Stock Options

Stock option activity for the nine months ended September 30, 2015 is summarized as follows:

	Number of Shares		Weighted Average Exercise Price
Outstanding at December 31, 2014	162,824		$	18.79
Granted	—		$	—
Exercised	(4,675	)	$	15.27
Forfeited	—		$	—
Outstanding at September 30, 2015	158,149		$	18.89

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 22, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Trading Symbol	VRTS
Entity Registrant Name	VIRTUS INVESTMENT PARTNERS, INC.
Entity Central Index Key	0000883237
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		8,667,666

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Earnings per Share

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Earnings per Share

Earnings per Share

Basic earnings per share (“EPS”) excludes dilution for potential common stock issuances and is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted EPS, the basic weighted-average number of shares is increased by the dilutive effect of RSUs and common stock options using the treasury stock method.

The computation of basic and diluted EPS is as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2015			2014		2015		2014
($ in thousands, except per share amounts)
Net (Loss) Income	$	(3,703	)	$	36,995	$	25,034	$	78,554
Noncontrolling interests	3,054			345		3,436		267
Net (Loss) Income Attributable to Common Stockholders	$	(649	)	$	37,340	$	28,470	$	78,821
Shares(in thousands):
Basic: Weighted-average number of shares outstanding	8,775			9,096		8,876		9,115
Plus: Incremental shares from assumed conversion of dilutive instruments	—			183		163		207
Diluted: Weighted-average number of shares outstanding	8,775			9,279		9,039		9,322
(Loss) Earnings per Share—Basic	$	(0.07	)	$	4.10	$	3.21	$	8.65
(Loss) Earnings per Share—Diluted	$	(0.07	)	$	4.02	$	3.15	$	8.46

For the three and nine months ended September 30, 2015, there were 323,570 and 2,028 instruments, respectively, excluded from the above computations of weighted-average shares for diluted EPS, because the effect would be anti-dilutive. For each of the three and nine months ended September 30, 2014, there were zero instruments excluded from the above computation of weighted-average shares for diluted EPS.

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Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues
Investment management fees	$ 64,891	$ 78,960	$ 204,254	$ 225,289
Distribution and service fees	15,587	23,671	52,820	70,049
Administration and transfer agent fees	11,614	14,804	37,233	41,819
Other income and fees	283	406	1,555	1,304
Total revenues	92,375	117,841	295,862	338,461
Operating Expenses
Employment expenses	33,504	35,246	102,719	105,756
Distribution and other asset-based expenses	21,717	29,180	69,900	96,139
Other operating expenses	11,165	11,288	51,403	34,952
Restructuring and severance	0	294	0	294
Depreciation and other amortization	910	713	2,562	2,040
Amortization expense	837	947	2,511	2,851
Total operating expenses	69,253	78,914	231,990	244,406
Operating Income	23,122	38,927	63,872	94,055
Other Income (Expense)
Realized and unrealized (loss) gain on investments, net	(2,082)	(1,039)	(1,194)	1,712
Other income, net	141	233	823	573
Total other (expense) income, net	(20,281)	(6,136)	(19,363)	3,435
Interest Income (Expense)
Interest expense	(138)	(149)	(382)	(412)
Interest and dividend income	324	326	906	1,053
Total interest income, net	3,125	2,399	8,885	5,375
Income Before Income Taxes	5,966	35,190	53,394	102,865
Income tax expense (benefit)	9,669	(1,805)	28,360	24,311
Net (Loss) Income	(3,703)	36,995	25,034	78,554
Noncontrolling interests	3,054	345	3,436	267
Net (Loss) Income Attributable to Common Stockholders	$ (649)	$ 37,340	$ 28,470	$ 78,821
(Loss) Earnings per share—Basic (in $ per share)	$ (0.07)	$ 4.10	$ 3.21	$ 8.65
(Loss) Earnings per Share—Diluted (in $ per share)	(0.07)	4.02	3.15	8.46
Cash Dividends Declared per Share (in $ per share)	$ 0.45	$ 0.45	$ 1.35	$ 0.90
Weighted Average Shares Outstanding—Basic (in shares)	8,775	9,096	8,876	9,115
Weighted Average Shares Outstanding—Diluted (in shares)	8,775	9,279	9,039	9,322
Consolidated Sponsored Investment Products [Member]
Operating Expenses
Other operating expenses	$ 1,120	$ 1,246	$ 2,895	$ 2,374
Other Income (Expense)
Realized and unrealized (loss) gain on investments, net	(17,619)	(5,330)	(18,271)	1,150
Interest Income (Expense)
Interest and dividend income	2,898	2,222	8,320	4,734
Consolidated Investment Product [Member]
Other Income (Expense)
Realized and unrealized (loss) gain on investments, net	(764)	0	(764)	0
Other income, net	43	0	43	0
Interest Income (Expense)
Interest and dividend income	$ 41	$ 0	$ 41	$ 0

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Intangible Assets, Net

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, Net

Intangible Assets, Net

Intangible assets, net are summarized as follows:

	September 30, 2015			December 31, 2014
($ in thousands)
Definite-lived intangible assets:
Investment contracts	$	158,747		$	158,747
Accumulated amortization	(151,891		)	(149,380		)
Definite-lived intangible assets, net	6,856			9,367
Indefinite-lived intangible assets	34,816			32,416
Total intangible assets, net	$	41,672		$	41,783

Activity in intangible assets, net is as follows:

	Nine Months Ended September 30,
	2015			2014
($ in thousands)
Intangible assets, net
Balance, beginning of period	$	41,783		$	44,633
Additions	2,400			1,075
Amortization	(2,511		)	(2,998		)
Balance, end of period	$	41,672		$	42,710

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Basis of Presentation and Significant Accounting Policies

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies

Basis of Presentation and Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the Company’s financial condition and results of operations. Operating results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. We have reclassified certain amounts in prior-period financial statements to conform to the current period's presentation.

The condensed consolidated financial statements include the accounts of the Company, its subsidiaries and sponsored investment products in which it has a controlling financial interest, referred to as consolidated sponsored investment products or consolidated investment product. The Company is generally considered to have a controlling financial interest when it owns a majority of the voting interest in an entity or otherwise has the power to govern the financial and operating policies of the subsidiary. See Notes 13, 14 and 15 for additional information related to the consolidation of sponsored investment products and the investment product. Intercompany accounts and transactions have been eliminated.

The Company also evaluates any variable interest entities (“VIEs”) in which the Company has a variable interest for consolidation. A VIE is an entity in which either (a) the equity investment at risk is not sufficient to permit the entity to finance its own activities without additional financial support or (b) where as a group, the holders of the equity investment at risk do not possess: (i) the power to direct the activities that most significantly impact the entity’s performance; (ii) the obligation to absorb expected losses or the right to receive expected residual returns of the entity; or (iii) proportionate voting and economic interests and where substantially all of the entity’s activities either involve or are conducted on behalf of the equity holders. If any entity has any of these characteristics, it is considered a VIE and is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that has both the power to direct the activities that most significantly impact the VIE’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the Securities and Exchange Commission. The Company’s significant accounting policies, which have been consistently applied, are summarized in the 2014 Annual Report on Form 10-K.

New Accounting Standards

In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU2015-3"), which changes the presentation of debt issuance costs in the balance sheet. The new guidance requires that debt issuance costs be presented as a deduction from the carrying amount of the related debt rather than being presented as an asset. Amortization of debt issuance costs will continue to be reported as interest expense. In August 2015, the FASB issued ASU 2015-15 to amend ASU 2015-03 to address line-of-credit agreements. ASU 2015-15 allows entities to present debt issuance costs related to line-of-credit agreements as an asset and amortize deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings. The new guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015 and requires retrospective application for each prior period presented. Early adoption is permitted for financial statements that have not been previously issued. This standard is not expected to have a material impact on the Company's financial statements.

In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). This standard modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 is effective for fiscal years and interim periods within those years beginning after December 15, 2015 and requires either a retrospective or a modified retrospective approach to adoption. Early adoption is permitted. The Company is currently evaluating the potential impact of this standard on its financial statements, as well as the available transition methods.

In August 2014, the FASB issued ASU No. 2014-13, Measuring the Financial Assets and Financial Liabilities of a Consolidated Collateralized Financing Entity (“CFE”) (“ASU 2014-13”). This new guidance requires reporting entities to use the more observable of the fair value of the financial assets or the financial liabilities to measure the financial assets and the financial liabilities of a CFE when a CFE is initially consolidated. It permits entities to make an accounting policy election to apply this same measurement approach after initial consolidation or to apply other GAAP to account for the consolidated CFE’s financial assets and financial liabilities. It also prohibits all entities from electing to use the fair value option in ASC 825, Financial Instruments, to measure either the financial assets or financial liabilities of a consolidated CFE that is within the scope of this issue. This guidance is effective for fiscal years beginning after December 15, 2015 and interim periods therein. Early adoption is permitted using a modified retrospective transition approach as described in the pronouncement. The Company has not yet adopted ASU 2014-13 and is currently evaluating the impact ASU 2014-13 is expected to have on its consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 provides a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. Companies may use either a full retrospective or a modified retrospective approach. In July 2015, the FASB confirmed a deferral of the effective date by one year, with early adoption on the original effective date permitted. As deferred, ASU 2014-09 is effective for the first interim period within annual reporting periods beginning after December 15, 2017 with early adoption permitted. The Company has not yet adopted ASU 2014-09 and is currently evaluating the impact ASU 2014-09 is expected to have on its consolidated financial statements.

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Consolidated Investment Product

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidated Investment Product

Consolidated Investment Product

During the third quarter of 2015, the Company contributed $20.0 million to a special purpose entity ("SPE") that was created specifically to accumulate bank loan assets for securitization as a potential CLO that will be managed by its Newfleet affiliate. The special purpose entity is a VIE and the Company consolidates the SPE's assets and liabilities within its financial statements as it is the primary beneficiary of the VIE.

The following table presents the balances of the consolidated investment product that were reflected in the Condensed Consolidated Balance Sheets as of September 30, 2015. There was no consolidated investment product at December 31, 2014.

	As of September 30, 2015
($ in thousands)
Total cash equivalents	$	120
Total investments	131,862
Other assets	20
Debt	(9,140		)
Securities purchased payable	(103,541		)
The Company’s net interests in consolidated investment product	$	19,321
The Company’s net interests as a percentage of total investments of consolidated investment product	14.7		%

Fair Value Measurements of Consolidated Investment Product

The assets and liabilities of the consolidated investment product measured at fair value on a recurring basis as of September 30, 2015 by fair value hierarchy level were as follows:

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	120	$	—	$	—	$	120
Bank loans	—		131,862		—		131,862
Total Assets Measured at Fair Value	$	120	$	131,862	$	—	$	131,982

The following is a discussion of the valuation methodologies used for the assets and liabilities of the Company’s consolidated investment product measured at fair value.

Cash equivalents represent investments in money market funds. Cash investments in actively traded money market funds are valued using published net asset values and are classified as Level 1.

Bank loans represent the underlying debt securities held in the sponsored product which are consolidated by the Company. Bank loan investments include debt securities, which are valued based on quotations received from an independent pricing service.  Pricing services do not provide pricing for all securities, and therefore indicative bids from dealers are utilized, which are based on pricing models used by market makers in the security and are also included within Level 2.

The estimated fair value of debt at September 30, 2015, which has a variable interest rate, approximates its carrying value and is classified as Level 2. The securities purchase payable at September 30, 2015 approximates fair value due to the short-term nature of the instruments.

Debt of Consolidated Investment Product

On August 17, 2015, the SPE, entered into a three-year term $160.0 million financing transaction with a bank lending counterparty (the “Financing Facility”).  The proceeds of the Financing Facility are intended to be used to purchase and warehouse commercial bank loan assets pending the securitization of such assets as a CLO.   The size of the Financing Facility may be increased subject to the occurrence of certain events and the mutual consent of the parties.  The Financing Facility is secured by all the assets of the SPV and initially bears interest at a rate of three-month LIBOR plus 1.25% per annum (with such interest rate, upon completion of the initial nine-month ramp-up period, increasing to three-month LIBOR plus 2.0% per annum).  The Financing Facility contains standard covenant and event of default provisions (including loan-to-value ratio triggers) and foreclosure remedies upon such default in favor of the lender thereunder.  The $20.0 million the Company contributed to the SPE serves as first loss protection for the bank lending counterparty under the Financing Facility. In the event of default, the recourse to the Company is limited to its investment. At September 30, 2015$9.1 million was outstanding under the Financing Facility.

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Business Combination

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

Business Combination

Business Combination

On April 10, 2015, the Company made an investment of approximately $4.8 million for a majority ownership position in Virtus ETF Solutions (“VES”), formerly known as ETF Issuer Solutions. VES is a New York City-based company that operates a platform for listing, operating, and distributing exchange-traded funds. The transaction was accounted for under Accounting Standards Codification (“ASC”) 805 “Business Combinations.” Goodwill of $1.4 million and other intangible assets of $2.4 million were recorded as a result of this transaction. The impact of this transaction was not material to the Company’s condensed consolidated financial statements.

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Equity Transactions

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Equity Transactions

Equity Transactions

During the nine months ended September 30, 2015 and 2014, the Company repurchased 368,468 and 136,874 common shares, respectively, at a weighted average price of $122.09 and $191.79 per share, respectively, plus transaction costs for a total cost of approximately $45.0 million and $26.3 million, respectively. The Company has repurchased a total of 943,909 shares of common stock at a weighted average price of $129.95 per share plus transaction costs for a total cost of $122.7 million under its share repurchase program. At September 30, 2015, there were 256,091 shares of common stock available to repurchase under the Company’s current share repurchase program.

The Board of Directors declared cash dividends of $0.45 per share in each of the first three quarters of 2015 and the second and third quarters of 2014. Total dividends declared were $12.1 million and $8.3 million for the nine months ended September 30, 2015 and 2014, respectively. At September 30, 2015, dividends payable of $4.3 million represented the third quarter dividend to be paid on November 13, 2015 to all shareholders of record on October 30, 2015.

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Consolidated Investment Product - Balances of Consolidated Investment Product (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Variable Interest Entity [Line Items]
Total investments	$ 55,225	$ 63,448
Consolidated Investment Product [Member]
Variable Interest Entity [Line Items]
Total cash equivalents	120	0
Total investments	131,862
Other assets	20
Debt	(9,140)	0
Securities purchased payable	(103,541)	$ 0
The Company’s net interests in investment products	$ 19,321
The Company's net interest as a percentage of total investments of investment products	14.70%

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Investments

9 Months Ended

Sep. 30, 2015

Investments Schedule [Abstract]

Investments

Investments

Investments consist primarily of investments in our sponsored mutual funds. The Company’s investments, excluding the assets of consolidated sponsored investment products discussed in Note 13 and the assets of the consolidated investment product discussed in Note 14, at September 30, 2015 and December 31, 2014 were as follows:

	September 30, 2015		December 31, 2014
($ in thousands)
Marketable securities	$	40,136	$	50,251
Equity method investments	9,194		7,209
Nonqualified retirement plan assets	4,970		5,063
Other investments	925		925
Total investments	$	55,225	$	63,448

Marketable Securities

The Company’s marketable securities consist of both trading (including securities held by a broker-dealer affiliate) and available-for-sale securities. The composition of the Company’s marketable securities is summarized as follows:

September 30, 2015

	Cost		Unrealized Loss			Unrealized Gain		Fair Value
($ in thousands)
Trading:
Sponsored funds	$	32,079	$	(1,829	)	$	288	$	30,538
Equity securities	7,236		(648		)	57		6,645
Available-for-sale:
Sponsored closed-end funds	3,297		(344		)	—		2,953
Total marketable securities	$	42,612	$	(2,821	)	$	345	$	40,136

December 31, 2014

	Cost		Unrealized Loss			Unrealized Gain		Fair Value
($ in thousands)
Trading:
Sponsored funds	$	39,079	$	(1,190	)	$	423	$	38,312
Equity securities	8,421		—			319		8,740
Available-for-sale:
Sponsored closed-end funds	3,129		(163		)	233		3,199
Total marketable securities	$	50,629	$	(1,353	)	$	975	$	50,251

For the three and nine months ended September 30, 2015, the Company recognized a net realized loss of $0.5 million and a net realized gain of $0.4 million, respectively, on trading securities, and for the three and nine months ended September 30, 2014, the Company recognized a net realized gain of $1.7 million and $6.2 million, respectively.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of consolidated sponsored investment products and the consolidated investment product discussed in Notes 13 and 14, respectively as of September 30, 2015 and December 31, 2014 by fair value hierarchy level were as follows:

September 30, 2015

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	80,950	$	—	$	—	$	80,950
Marketable securities trading:
Sponsored funds	30,538		—		—		30,538
Equity securities	6,645		—		—		6,645
Marketable securities available-for-sale:
Sponsored closed-end funds	2,953		—		—		2,953
Other investments:
Nonqualified retirement plan assets	4,970		—		—		4,970
Total assets measured at fair value	$	126,056	$	—	$	—	$	126,056

December 31, 2014

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	202,054	$	—	$	—	$	202,054
Marketable securities trading:
Sponsored funds	38,312		—		—		38,312
Equity securities	8,740		—		—		8,740
Marketable securities available-for-sale:
Sponsored closed-end funds	3,199		—		—		3,199
Other investments
Nonqualified retirement plan assets	5,063		—		—		5,063
Total assets measured at fair value	$	257,368	$	—	$	—	$	257,368

The following is a discussion of the valuation methodologies used for the Company’s assets measured at fair value.

Cash equivalents represent investments in money market funds. Cash investments in actively traded money market funds are valued using published net asset values and are classified as Level 1.

Sponsored funds represent investments in open-end mutual funds, variable insurance funds and closed-end funds for which the Company acts as the investment manager. The fair value of open-end mutual funds and variable insurance funds is determined based on their published net asset values and are categorized as Level 1. The fair value of closed-end funds is determined based on the official closing price on the exchange they are traded on and are categorized as Level 1.

Equity securities include securities traded on active markets and are valued at the official closing price (typically last sale or bid) on the exchange on which the securities are primarily traded and are categorized as Level 1.

Nonqualified retirement plan assets represent mutual funds within a nonqualified retirement plan whose fair value is determined based on their published net asset value and are categorized as Level 1.

Cash, accounts receivable, accounts payable and accrued liabilities equal or approximate fair value based on the short-term nature of these instruments.

Transfers into and out of levels are reflected when significant inputs used for the fair value measurement, including market inputs or performance attributes, become observable or unobservable or when the Company determines it has the ability, or no longer has the ability, to redeem, in the near term, certain investments that the Company values using a net asset value, or if the book value no longer represents fair value. There were no transfers between Level 1 and Level 2 during the three and nine months ended September 30, 2015 and 2014.

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Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2015 and 2014 were as follows:

	Unrealized  Gains and (Losses) on Securities Available-for- Sale			Foreign  Currency Translation Adjustments
($ in thousands)
Balance December 31, 2014	$	(107	)	$	(135	)
Unrealized net losses on securities available-for-sale, net of tax of $26	(389		)	—
Foreign currency translation adjustments, net of tax of $167	—			(271		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			—
Net current-period other comprehensive loss	(389		)	(271		)
Balance September 30, 2015	$	(496	)	$	(406	)
	Unrealized Gains and (Losses) on Securities Available-for- Sale			Foreign  Currency Translation Adjustments
($ in thousands)
Balance December 31, 2013	$	(231	)	$	81
Unrealized net gains on securities available-for-sale, net of tax of ($55)	90			—
Foreign currency translation adjustments, net of tax of $49	—			(80		)
Amounts reclassified from accumulated other comprehensive income	—			—
Net current-period other comprehensive income (loss)	90			(80		)
Balance September 30, 2014	$	(141	)	$	1

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Consolidation - Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Condensed Income Statements, Captions [Line Items]
Total operating revenues	$ 92,375	$ 117,841	$ 295,862	$ 338,461
Total operating expenses	69,253	78,914	231,990	244,406
Operating Income	23,122	38,927	63,872	94,055
Total other non-operating expense	(17,156)	(3,737)	(10,478)	8,810
Income Before Income Taxes	5,966	35,190	53,394	102,865
Income tax expense (benefit)	9,669	(1,805)	28,360	24,311
Net (Loss) Income	(3,703)	36,995	25,034	78,554
Noncontrolling interests	3,054	345	3,436	267
Net (Loss) Income Attributable to Common Stockholders	(649)	37,340	28,470	78,821
Reportable Legal Entities [Member] | Balance Before Consolidation of Investment Products [Member]
Condensed Income Statements, Captions [Line Items]
Total operating revenues	92,804	117,808	297,089	338,534
Total operating expenses	68,134	77,668	229,096	242,032
Operating Income	24,670	40,140	67,993	96,502
Total other non-operating expense	(15,557)	(4,649)	(11,269)	6,545
Income Before Income Taxes	9,113	35,491	56,724	103,047
Income tax expense (benefit)	9,669	(1,805)	28,360	24,311
Net (Loss) Income	(556)	37,296	28,364	78,736
Noncontrolling interests	(93)	44	106	85
Net (Loss) Income Attributable to Common Stockholders	(649)	37,340	28,470	78,821
Reportable Legal Entities [Member] | Consolidated Sponsored Investment Products [Member]
Condensed Income Statements, Captions [Line Items]
Total operating revenues	0	0	0	0
Total operating expenses	1,548	1,213	4,121	2,447
Operating Income	(1,548)	(1,213)	(4,121)	(2,447)
Total other non-operating expense	(14,723)	(3,109)	(9,951)	5,883
Income Before Income Taxes	(16,271)	(4,322)	(14,072)	3,436
Income tax expense (benefit)	0	0	0	0
Net (Loss) Income	$ (16,271)	(4,322)	(14,072)	3,436
Noncontrolling interests		0	0	0
Net (Loss) Income Attributable to Common Stockholders	$ (16,271)	(4,322)	(14,072)	3,436
Reportable Legal Entities [Member] | Consolidated Investment Product [Member]
Condensed Income Statements, Captions [Line Items]
Total operating revenues	0	0	0	0
Total operating expenses	0	0	0	0
Operating Income	0	0	0	0
Total other non-operating expense	(679)	0	(680)	0
Income Before Income Taxes	(679)	0	(680)	0
Income tax expense (benefit)	0	0	0	0
Net (Loss) Income	(679)	0	(680)	0
Noncontrolling interests	0	0	0	0
Net (Loss) Income Attributable to Common Stockholders	(679)	0	(680)	0
Eliminations and Adjustments [Member]
Condensed Income Statements, Captions [Line Items]
Total operating revenues	(429)	33	(1,227)	(73)
Total operating expenses	(429)	33	(1,227)	(73)
Operating Income	0	0	0	0
Total other non-operating expense	13,803	4,021	11,422	(3,618)
Income Before Income Taxes	13,803	4,021	11,422	(3,618)
Income tax expense (benefit)	0	0	0	0
Net (Loss) Income	13,803	4,021	11,422	(3,618)
Noncontrolling interests	3,147	301	3,330	182
Net (Loss) Income Attributable to Common Stockholders	$ 16,950	$ 4,322	$ 14,752	$ (3,436)

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Subsequent Event (Details) - shares	Oct. 21, 2015	Sep. 30, 2015
Subsequent Event [Line Items]
Shares of common stock remaining available for repurchase		256,091
Subsequent Event [Member]
Subsequent Event [Line Items]
Additional shares of common stock authorized under current share repurchase program	1,500,000
Shares of common stock remaining available for repurchase	1,756,091

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Consolidation - Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Condensed Financial Statements, Captions [Line Items]
Total cash	$ 128,847	$ 203,304	$ 173,764	$ 271,545
Total investments	55,225	63,448
Total assets	826,763	698,773
Total liabilities	237,538	112,350
Redeemable noncontrolling interest	49,895	23,071
Equity attributable to stockholders of the Company	539,626	563,542
Non-redeemable noncontrolling interest	(296)	(190)
Total liabilities and equity	826,763	698,773
Balance Before Consolidation of Investment Products [Member]
Condensed Financial Statements, Captions [Line Items]
Total cash	126,470	202,847
Total investments	55,225	63,448
All other assets	17,241	16,060
Consolidated Sponsored Investment Products [Member]
Condensed Financial Statements, Captions [Line Items]
Total cash	16,732	8,687
Total investments	311,429	236,652
All other assets	10,494	6,960
Total liabilities	29,849	12,556
Redeemable noncontrolling interest	49,895	23,071
Consolidated Investment Product [Member]
Condensed Financial Statements, Captions [Line Items]
Total investments	131,862
All other assets	20
Balances as Reported in Condensed Consolidated Balance Sheet [Member]
Condensed Financial Statements, Captions [Line Items]
Total cash	143,322	211,534
Total investments	498,516	300,100
All other assets	184,925	187,139
Total assets	826,763	698,773
Total liabilities	237,538	112,350
Redeemable noncontrolling interest	49,895	23,071
Equity attributable to stockholders of the Company	539,626	563,542
Non-redeemable noncontrolling interest	(296)	(190)
Total liabilities and equity	826,763	698,773
Reportable Legal Entities [Member] | Balance Before Consolidation of Investment Products [Member]
Condensed Financial Statements, Captions [Line Items]
Total cash	126,470	202,847
Total investments	333,307	279,863
All other assets	174,563	180,436
Total assets	634,340	663,146
Total liabilities	95,010	99,794
Redeemable noncontrolling interest	0	0
Equity attributable to stockholders of the Company	539,626	563,542
Non-redeemable noncontrolling interest	(296)	(190)
Total liabilities and equity	634,340	663,146
Reportable Legal Entities [Member] | Consolidated Sponsored Investment Products [Member]
Condensed Financial Statements, Captions [Line Items]
Total cash	16,732	8,687
Total investments	311,429	236,652
All other assets	10,494	6,960
Total assets	338,655	252,299
Total liabilities	29,999	12,813
Redeemable noncontrolling interest	0	0
Equity attributable to stockholders of the Company	308,656	239,486
Non-redeemable noncontrolling interest	0	0
Total liabilities and equity	338,655	252,299
Reportable Legal Entities [Member] | Consolidated Investment Product [Member]
Condensed Financial Statements, Captions [Line Items]
Total cash	120	0
Total investments	131,862	0
All other assets	20	0
Total assets	132,002	0
Total liabilities	112,681	0
Redeemable noncontrolling interest	0	0
Equity attributable to stockholders of the Company	19,321	0
Non-redeemable noncontrolling interest	0	0
Total liabilities and equity	132,002	0
Eliminations and Adjustments [Member]
Condensed Financial Statements, Captions [Line Items]
Total cash	0	0
Total investments	(278,082)	(216,415)
All other assets	(152)	(257)
Total assets	(278,234)	(216,672)
Total liabilities	(152)	(257)
Redeemable noncontrolling interest	49,895	23,071
Equity attributable to stockholders of the Company	(327,977)	(239,486)
Non-redeemable noncontrolling interest	0	0
Total liabilities and equity	$ (278,234)	$ (216,672)

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Consolidated Investment Product (Tables)

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balances of Consolidated Investment Product

The following table presents the balances of the consolidated investment product that were reflected in the Condensed Consolidated Balance Sheets as of September 30, 2015. There was no consolidated investment product at December 31, 2014.

	As of September 30, 2015
($ in thousands)
Total cash equivalents	$	120
Total investments	131,862
Other assets	20
Debt	(9,140		)
Securities purchased payable	(103,541		)
The Company’s net interests in consolidated investment product	$	19,321
The Company’s net interests as a percentage of total investments of consolidated investment product	14.7		%

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of consolidated sponsored investment products and the consolidated investment product discussed in Notes 13 and 14, respectively as of September 30, 2015 and December 31, 2014 by fair value hierarchy level were as follows:

September 30, 2015

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	80,950	$	—	$	—	$	80,950
Marketable securities trading:
Sponsored funds	30,538		—		—		30,538
Equity securities	6,645		—		—		6,645
Marketable securities available-for-sale:
Sponsored closed-end funds	2,953		—		—		2,953
Other investments:
Nonqualified retirement plan assets	4,970		—		—		4,970
Total assets measured at fair value	$	126,056	$	—	$	—	$	126,056

December 31, 2014

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	202,054	$	—	$	—	$	202,054
Marketable securities trading:
Sponsored funds	38,312		—		—		38,312
Equity securities	8,740		—		—		8,740
Marketable securities available-for-sale:
Sponsored closed-end funds	3,199		—		—		3,199
Other investments
Nonqualified retirement plan assets	5,063		—		—		5,063
Total assets measured at fair value	$	257,368	$	—	$	—	$	257,368

The assets and liabilities of the consolidated sponsored investment products measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 by fair value hierarchy level were as follows:

As of September 30, 2015

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Debt securities	$	—	$	147,663	$	926	$	148,589
Equity securities	155,763		7,077		—		162,840
Derivatives	125		633		—		758
Total assets measured at fair value	$	155,888	$	155,373	$	926	$	312,187
Liabilities
Derivatives	$	403	$	917	$	—	$	1,320
Short sales	9,432		423		—		9,855
Total liabilities measured at fair value	$	9,835	$	1,340	$	—	$	11,175

As of December 31, 2014

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Debt securities	$	—	$	135,050	$	1,065	$	136,115
Equity securities	82,417		18,120		—		100,537
Derivatives	154		227		—		381
Total assets measured at fair value	$	82,571	$	153,397	$	1,065	$	237,033
Liabilities
Derivatives	$	191	$	—	$	—	$	191
Short sales	7,491		674		—		8,165
Total liabilities measured at fair value	$	7,682	$	674	$	—	$	8,356

The assets and liabilities of the consolidated investment product measured at fair value on a recurring basis as of September 30, 2015 by fair value hierarchy level were as follows:

	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	120	$	—	$	—	$	120
Bank loans	—		131,862		—		131,862
Total Assets Measured at Fair Value	$	120	$	131,862	$	—	$	131,982

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Income Taxes - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Estimated effective income tax rate	53.10%	23.60%

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Legal Matters

The Company is regularly involved in litigation and arbitration as well as examinations, inquiries and investigations by various regulatory bodies, including the SEC, involving its compliance with, among other things, securities laws, client investment guidelines, laws governing the activities of broker-dealers and other laws and regulations affecting its products and other activities. Legal and regulatory matters of this nature involve or may involve the Company’s activities as an employer, issuer of securities, investor, investment adviser, broker-dealer or taxpayer. In addition, in the normal course of business, the Company discusses matters with its regulators raised during regulatory examinations or is otherwise subject to their inquiry. These matters could result in censures, fines, penalties or other sanctions.

The Company accrues for a liability when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. In addition, in the event the Company determines that a loss is not probable, but is reasonably possible, and it becomes possible to develop what the Company believes to be a reasonable range of possible loss, then the Company will include disclosures related to such matter as appropriate and in compliance with ASC 450, Loss Contingencies. The disclosures, accruals or estimates, if any, resulting from the foregoing analysis are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. Other than as described herein, based on information currently available, available insurance coverage and established reserves, the Company believes that the outcomes of its legal and regulatory proceedings are not likely, either individually or in the aggregate, to have a material adverse effect on the Company’s results of operations, cash flows or its consolidated financial condition. However, in the event of unexpected subsequent developments and given the inherent unpredictability of these legal and regulatory matters, the Company can provide no assurance that its assessment of any claim, dispute, regulatory examination or investigation or other legal matter will reflect the ultimate outcome and an adverse outcome in certain matters could, from time to time, have a material adverse effect on the Company’s results of operations or cash flows in particular quarterly or annual periods.

Regulatory Matter

As previously disclosed, in December 2014 the SEC announced a settlement with F-Squared Investments (“F-Squared”), an unaffiliated former subadviser, which settled charges that F-Squared had violated the federal securities laws as described in Investment Advisers Act Release No. 3988. The settlement related to F-Squared’s inaccurate performance information for the period of April 2001 through September 2008, including indices that certain Virtus mutual funds tracked beginning in September 2009 and January 2011. As part of the SEC’s non-public, confidential investigation of this matter, the SEC staff informed the Company that it was inquiring into whether the Company had violated securities laws or regulations with respect to F-Squared’s historical performance information. Although the Company has not received a Wells Notice in connection with the investigation, the Company has been in active discussions with the SEC staff and has reached an agreement in principle with the SEC staff to settle this matter. Under the terms of the proposed settlement, the Company would pay a total of $16.5 million, which is consistent with the loss contingency previously recorded and disclosed by the Company. This agreement in principle is subject to review and approval by the Commission.

As referenced above, pursuant to ASC 450 - Loss Contingencies, the Company had previously recorded a total pre-tax loss contingency of $16.5 million and a related potential income tax benefit of $5.5 million for a net impact of $11.0 million related to this matter; however, the Company cannot assure you that the Commission will approve the proposed settlement agreement, that any final settlement will not have different or additional material terms, that any associated loss will not exceed the aggregate loss contingency recorded or that a final resolution of this matter will be reached.

In re Virtus Investment Partners, Inc. Securities Litigation; formerly styled as Tom Cummins v. Virtus Investment Partners Inc. et al

On February 20, 2015, a putative class action complaint alleging violation of the federal securities laws was filed by an individual shareholder against the Company and certain of the Company’s current officers (the “defendants”) in the United States District Court for the Southern District of New York.   On April 21, 2015, three plaintiffs, including the original plaintiff, filed motions to be appointed lead plaintiff. On June 9, 2015, the court entered an order appointing Arkansas Teachers Retirement System lead plaintiff. On August 21, 2015, plaintiff filed a Consolidated Class Action Complaint (the “Consolidated Complaint”) amending the originally filed complaint. The Consolidated Complaint was purportedly filed on behalf of all purchasers of the Company’s common stock between January 25, 2013 and May 11, 2015 (the “Class Period”). The Consolidated Complaint alleges that during the Class Period, the defendants disseminated materially false and misleading statements and concealed material adverse facts relating to certain funds subadvised by F-Squared. The Consolidated Complaint alleges claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5. The plaintiff seeks to recover unspecified damages. The Company believes that the suit is without merit and intends to defend it vigorously. A motion to dismiss the Consolidated Complaint was filed on behalf of the Company and the other defendants on October 21, 2015. The Company believes that there is not a material loss that is probable and reasonably estimable related to this claim.

Mark Youngers v. Virtus Investment Partners, Inc. et al

On May 8, 2015, a putative class action complaint alleging violations of certain provisions of the federal securities laws was filed in the United States District Court for the Central District of California by an individual who alleges he is a former shareholder of one of the Virtus mutual funds formerly subadvised by F-Squared and formerly known as the AlphaSector Funds. The complaint purports to allege claims against the Company, certain of the Company’s officers and affiliates, and certain other parties (the “defendants”). The complaint was purportedly filed on behalf of purchasers of the AlphaSector Funds between May 8, 2010 and December 22, 2014, inclusive (the “Class Period”). The complaint alleges that during the Class Period the defendants disseminated materially false and misleading statements and concealed or omitted material facts necessary to make the statements made not misleading. On June 7, 2015, a group of three individuals, including the original plaintiff, filed a motion to be appointed lead plaintiff. No other motions to be appointed lead plaintiff were filed. On July 27, 2015, the court granted the motion, appointing movants as lead plaintiff. Also, on July 27, 2015, the court issued an order to show cause requiring lead plaintiff to explain no later than July 31, 2015, why his claims should not be transferred and consolidated with the In re Virtus Investment Partners, Inc. Securities Litigation action discussed above. On October 1, 2015, plaintiff filed a First Amended Class Action Complaint which, among other things, added a derivative claim for breach of fiduciary duty on behalf of Virtus Opportunities Trust. On October 19, 2015, The United States District Court for the Central District of California entered an order transferring the action to the Southern District of New York. The Company believes the plaintiff’s claims asserted in the complaint are frivolous and intends to defend it vigorously. The Company believes that there is not a material loss that is probable and reasonably estimable related to this claim.

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Basis of Presentation and Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Basis of Accounting

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the Company’s financial condition and results of operations. Operating results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

Reclassifications

We have reclassified certain amounts in prior-period financial statements to conform to the current period's presentation.

Consolidation

The condensed consolidated financial statements include the accounts of the Company, its subsidiaries and sponsored investment products in which it has a controlling financial interest, referred to as consolidated sponsored investment products or consolidated investment product. The Company is generally considered to have a controlling financial interest when it owns a majority of the voting interest in an entity or otherwise has the power to govern the financial and operating policies of the subsidiary. See Notes 13, 14 and 15 for additional information related to the consolidation of sponsored investment products and the investment product. Intercompany accounts and transactions have been eliminated.

Consolidation, Variable Interest Entities

The Company also evaluates any variable interest entities (“VIEs”) in which the Company has a variable interest for consolidation. A VIE is an entity in which either (a) the equity investment at risk is not sufficient to permit the entity to finance its own activities without additional financial support or (b) where as a group, the holders of the equity investment at risk do not possess: (i) the power to direct the activities that most significantly impact the entity’s performance; (ii) the obligation to absorb expected losses or the right to receive expected residual returns of the entity; or (iii) proportionate voting and economic interests and where substantially all of the entity’s activities either involve or are conducted on behalf of the equity holders. If any entity has any of these characteristics, it is considered a VIE and is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that has both the power to direct the activities that most significantly impact the VIE’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE.

New Accounting Standards

In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU2015-3"), which changes the presentation of debt issuance costs in the balance sheet. The new guidance requires that debt issuance costs be presented as a deduction from the carrying amount of the related debt rather than being presented as an asset. Amortization of debt issuance costs will continue to be reported as interest expense. In August 2015, the FASB issued ASU 2015-15 to amend ASU 2015-03 to address line-of-credit agreements. ASU 2015-15 allows entities to present debt issuance costs related to line-of-credit agreements as an asset and amortize deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings. The new guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015 and requires retrospective application for each prior period presented. Early adoption is permitted for financial statements that have not been previously issued. This standard is not expected to have a material impact on the Company's financial statements.

In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). This standard modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 is effective for fiscal years and interim periods within those years beginning after December 15, 2015 and requires either a retrospective or a modified retrospective approach to adoption. Early adoption is permitted. The Company is currently evaluating the potential impact of this standard on its financial statements, as well as the available transition methods.

In August 2014, the FASB issued ASU No. 2014-13, Measuring the Financial Assets and Financial Liabilities of a Consolidated Collateralized Financing Entity (“CFE”) (“ASU 2014-13”). This new guidance requires reporting entities to use the more observable of the fair value of the financial assets or the financial liabilities to measure the financial assets and the financial liabilities of a CFE when a CFE is initially consolidated. It permits entities to make an accounting policy election to apply this same measurement approach after initial consolidation or to apply other GAAP to account for the consolidated CFE’s financial assets and financial liabilities. It also prohibits all entities from electing to use the fair value option in ASC 825, Financial Instruments, to measure either the financial assets or financial liabilities of a consolidated CFE that is within the scope of this issue. This guidance is effective for fiscal years beginning after December 15, 2015 and interim periods therein. Early adoption is permitted using a modified retrospective transition approach as described in the pronouncement. The Company has not yet adopted ASU 2014-13 and is currently evaluating the impact ASU 2014-13 is expected to have on its consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 provides a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. Companies may use either a full retrospective or a modified retrospective approach. In July 2015, the FASB confirmed a deferral of the effective date by one year, with early adoption on the original effective date permitted. As deferred, ASU 2014-09 is effective for the first interim period within annual reporting periods beginning after December 15, 2017 with early adoption permitted. The Company has not yet adopted ASU 2014-09 and is currently evaluating the impact ASU 2014-09 is expected to have on its consolidated financial statements.

Fair Value Measurements

The following is a discussion of the valuation methodologies used for the Company’s assets measured at fair value.

Cash equivalents represent investments in money market funds. Cash investments in actively traded money market funds are valued using published net asset values and are classified as Level 1.

Sponsored funds represent investments in open-end mutual funds, variable insurance funds and closed-end funds for which the Company acts as the investment manager. The fair value of open-end mutual funds and variable insurance funds is determined based on their published net asset values and are categorized as Level 1. The fair value of closed-end funds is determined based on the official closing price on the exchange they are traded on and are categorized as Level 1.

Equity securities include securities traded on active markets and are valued at the official closing price (typically last sale or bid) on the exchange on which the securities are primarily traded and are categorized as Level 1.

Nonqualified retirement plan assets represent mutual funds within a nonqualified retirement plan whose fair value is determined based on their published net asset value and are categorized as Level 1.

Cash, accounts receivable, accounts payable and accrued liabilities equal or approximate fair value based on the short-term nature of these instruments.

The following is a discussion of the valuation methodologies used for the assets and liabilities of the Company’s consolidated sponsored investment products measured at fair value.

Investments of consolidated sponsored investment products represent the underlying debt, equity and other securities held in sponsored products which are consolidated by the Company. Equity securities are valued at the official closing price on the exchange on which the securities are traded and are categorized within Level 1. Level 2 investments include most debt securities, which are valued based on quotations received from independent pricing services or from dealers who make markets in such securities and certain equity securities, including non-US securities, for which closing prices are not readily available or are deemed to not reflect readily available market prices and are valued using an independent pricing service. Pricing services do not provide pricing for all securities, and therefore indicative bids from dealers are utilized, which are based on pricing models used by market makers in the security and are also included within Level 2. Level 3 investments include debt securities that are not widely traded, are illiquid or are priced by dealers based on pricing models used by market makers in the security.

The following is a discussion of the valuation methodologies used for the assets and liabilities of the Company’s consolidated investment product measured at fair value.

Cash equivalents represent investments in money market funds. Cash investments in actively traded money market funds are valued using published net asset values and are classified as Level 1.

Bank loans represent the underlying debt securities held in the sponsored product which are consolidated by the Company. Bank loan investments include debt securities, which are valued based on quotations received from an independent pricing service.  Pricing services do not provide pricing for all securities, and therefore indicative bids from dealers are utilized, which are based on pricing models used by market makers in the security and are also included within Level 2.

Fair Value Measurements, Transfers

Transfers into and out of levels are reflected when significant inputs used for the fair value measurement, including market inputs or performance attributes, become observable or unobservable or when the Company determines it has the ability, or no longer has the ability, to redeem, in the near term, certain investments that the Company values using a net asset value, or if the book value no longer represents fair value.

Derivatives

The Company has certain consolidated sponsored investment products which include derivative instruments as part of their investment strategies to contribute to the achievement of defined investment objectives. These derivatives may include futures contracts, options contracts and forward contracts. Derivative instruments in an asset position are classified as other assets of consolidated sponsored investment products in the Condensed Consolidated Balance Sheets. Derivative instruments in a liability position are classified as liabilities of consolidated sponsored investment products within the Condensed Consolidated Balance Sheets. The change in fair value of such derivatives is recorded in realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net, in the Condensed Consolidated Statements of Operations. In connection with entering into these derivative contracts, these funds may be required to pledge to the broker an amount of cash equal to the “initial margin” requirements that varies based on the type of derivative. The cash pledged or on deposit is recorded in the Condensed Consolidated Balance Sheets of the Company as Cash pledged or on deposit of consolidated sponsored investment products.

Short Sales

Some of the Company’s consolidated sponsored investment products may engage in short sales, which are transactions in which a security is sold which is not owned or is owned but there is no intention to deliver, in anticipation that the price of the security will decline. Short sales are recorded in the Condensed Consolidated Balance Sheets within other liabilities of consolidated sponsored investment products.

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Earnings per Share - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Number of anti-dilutive instruments excluded from computation of weighted-average shares for diluted earnings per share (in shares)	323,570	0	2,028	0

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Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Cash equivalents	$ 80,950	$ 202,054
Other investments, nonqualified retirement plan assets	4,970	5,063
Total assets measured at fair value	126,056	257,368
Sponsored Funds [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Marketable securities trading	30,538	38,312
Equity Securities [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Marketable securities trading	6,645	8,740
Sponsored Closed-End Funds [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Marketable securities available-for-sale	2,953	3,199
Nonqualified Retirement Plan Assets [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Other investments, nonqualified retirement plan assets	4,970	5,063
Level 1 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Cash equivalents	80,950	202,054
Total assets measured at fair value	126,056	257,368
Level 1 [Member] | Sponsored Funds [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Marketable securities trading	30,538	38,312
Level 1 [Member] | Equity Securities [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Marketable securities trading	6,645	8,740
Level 1 [Member] | Sponsored Closed-End Funds [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Marketable securities available-for-sale	2,953	3,199
Level 1 [Member] | Nonqualified Retirement Plan Assets [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Other investments, nonqualified retirement plan assets	4,970	5,063
Level 2 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Cash equivalents	0	0
Total assets measured at fair value	0	0
Level 2 [Member] | Sponsored Funds [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Marketable securities trading	0	0
Level 2 [Member] | Equity Securities [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Marketable securities trading	0	0
Level 2 [Member] | Sponsored Closed-End Funds [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Marketable securities available-for-sale	0	0
Level 2 [Member] | Nonqualified Retirement Plan Assets [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Other investments, nonqualified retirement plan assets	0	0
Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Cash equivalents	0	0
Total assets measured at fair value	0	0
Level 3 [Member] | Sponsored Funds [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Marketable securities trading	0	0
Level 3 [Member] | Equity Securities [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Marketable securities trading	0	0
Level 3 [Member] | Sponsored Closed-End Funds [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Marketable securities available-for-sale	0	0
Level 3 [Member] | Nonqualified Retirement Plan Assets [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Other investments, nonqualified retirement plan assets	$ 0	$ 0

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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net (Loss) Income	$ (3,703)	$ 36,995	$ 25,034	$ 78,554
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of tax of ($28) and $56 for the three months ended September 30, 2015 and 2014, respectively and $167 and $49 for the nine months ended September 30, 2015 and 2014, respectively	49	(93)	(271)	(80)
Unrealized (loss) gain on available-for-sale securities, net of tax of ($35) and $60 for the three months ended September 30, 2015 and 2014, respectively and $26 and $(55) for the nine months ended September 30, 2015 and 2014, respectively	(290)	(95)	(389)	90
Other comprehensive (loss) income	(241)	(188)	(660)	10
Comprehensive (loss) income	(3,944)	36,807	24,374	78,564
Comprehensive loss attributable to noncontrolling interests	3,054	345	3,436	267
Comprehensive (Loss) Income Attributable to Common Stockholders	$ (890)	$ 37,152	$ 27,810	$ 78,831

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Organization and Business

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Business

Organization and Business

Virtus Investment Partners, Inc. (the “Company,” “we,” “us,” “our” or “Virtus”), a Delaware corporation, operates in the investment management industry through its subsidiaries.

The Company provides investment management and related services to individuals and institutions throughout the United States of America. The Company’s retail investment management services are provided to individuals through products consisting of open-end mutual funds, closed-end funds, variable insurance funds, exchange traded funds (“ETFs”) and separately managed accounts. Institutional investment management services are provided primarily to corporations, multi-employer retirement funds, employee retirement systems, foundations, endowments and subadvisory accounts.

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Consolidated Sponsored Investment Products - Derivatives, Net Gains (Losses) (Details) - Consolidated Sponsored Investment Products [Member] - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses)	$ 878	$ 2,031
Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses)	(217)	(75)
Foreign Exchange Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses)	263	666
Equity Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses)	633	1,414
Commodity Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses)	212	126
Credit Risk Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses)	$ (13)	$ (100)

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Intangible Assets, Net (Tables)

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Intangible Assets, Net

Intangible assets, net are summarized as follows:

	September 30, 2015			December 31, 2014
($ in thousands)
Definite-lived intangible assets:
Investment contracts	$	158,747		$	158,747
Accumulated amortization	(151,891		)	(149,380		)
Definite-lived intangible assets, net	6,856			9,367
Indefinite-lived intangible assets	34,816			32,416
Total intangible assets, net	$	41,672		$	41,783

Schedule of Activity in Intangible Assets, Net

Activity in intangible assets, net is as follows:

	Nine Months Ended September 30,
	2015			2014
($ in thousands)
Intangible assets, net
Balance, beginning of period	$	41,783		$	44,633
Additions	2,400			1,075
Amortization	(2,511		)	(2,998		)
Balance, end of period	$	41,672		$	42,710

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Investments - Summary of Investments (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Investments Schedule [Abstract]
Marketable securities	$ 40,136	$ 50,251
Equity method investments	9,194	7,209
Nonqualified retirement plan assets	4,970	5,063
Other investments	925	925
Total investments	$ 55,225	$ 63,448

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Income Taxes

9 Months Ended

Sep. 30, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

In calculating the provision for income taxes, the Company uses an estimate of the annual effective tax rate based upon the facts and circumstances at each interim period. On a quarterly basis, the estimated annual effective tax rate is adjusted, as appropriate, based upon changes in facts and circumstances, if any, as compared to those forecasted at the beginning of the fiscal year and each interim period thereafter.

The provision for income taxes reflected U.S. federal, state and local taxes at an estimated effective tax rate of 53.1% and 23.6% for the nine months ended September 30, 2015 and 2014, respectively. The year-over-year increase in the estimated effective tax rate was primarily due to changes in the valuation allowance related to the unrealized loss position on the Company’s marketable securities, as well as a tax benefit recognized during the period ended September 30, 2014 related to the settlement of an audit of the Company's 2011 federal corporate income tax return.