Virtus Investment Partners Announces Agreement to Acquire Rampart Investment Management
Firm specializes in customized options strategies
HARTFORD, Conn. and BOSTON, Sept. 4, 2012 /PRNewswire/ -- Virtus Investment Partners, Inc. (NASDAQ: VRTS), which operates a multi-manager asset management business, today announced that Rampart Investment Management, a registered investment advisor that specializes in customized options strategies for institutional and high-net-worth clients, will become a wholly owned boutique asset management affiliate of Virtus. Since 1983, Rampart has provided systematic and disciplined options solutions to help their clients generate incremental yield, reduce downside risk and mitigate market volatility.
Rampart, a Boston-based, employee-owned investment manager with $1.4 billion under management, will continue to be led by co-founders Ronald M. Egalka, president and chief investment officer, and David R. Fraley, executive vice president, director of client services. The transaction, which is subject to customary closing conditions, is expected to be completed in the fourth quarter.
As an affiliated partner of Virtus, Rampart will retain its brand, independent investment process, and its proprietary Rampart Options Management System (ROMS®) platform while leveraging Virtus' shared retail distribution and business support services. In addition to focusing on expanding Rampart's current client base, Virtus expects to use Rampart's options overlay capability within existing investment strategies and introduce it in new products.
"We have the highest regard for Ron, Dave and the company they have built, and we are excited about the capabilities that the Rampart team will bring to Virtus as an affiliated partner," said George R. Aylward, Virtus' president and chief executive officer.
Aylward noted that Rampart's client base includes high-net-worth individuals and institutional investors, markets that Virtus currently serves. "Rampart's proprietary ROMS platform offers a significant advantage for individual and institutional clients that require specialized options strategies to provide either incremental income, downside protection, or attractive risk-adjusted total return. Ron, Dave and their team have established Rampart as a leader in this important market niche, and we look forward to partnering with them to serve their existing clients and extend their distinctive strategies to other opportunities," he said.
"The opportunity to maintain our boutique culture, mathematically-driven investment processes and client service functions, combined with the benefits of Virtus' extensive distribution capabilities and business support model, were critical elements we considered when selecting the best long-term partner for Rampart," Egalka said. "Virtus offers distinct advantages for our team, including being a part of a company that shares our commitment to our clients."
Rampart's entire team will remain with the firm upon completion of the transaction, and the firm's senior leaders have entered into employment agreements with Virtus. The company will maintain its offices in Boston's Financial District.
Barrington Partners of Boston represented Rampart in the transaction. Financial terms of the agreement were not disclosed. The addition of Rampart is not expected to have a material impact on Virtus' earnings in the near term.
About Rampart Investment Management
Founded in 1983, Rampart Investment Management is a Boston-based registered investment advisor and a leading asset manager specializing exclusively in option strategies. With $1.4 billion in assets under management as of July 31, 2012, Rampart manages client assets with expertise in domestic and international, listed and over-the-counter, index and equity options. The firm's investment solutions can add value to a broad spectrum of high-net-worth and tax-exempt institutional clients, mutual funds, domestic and international financial service companies, foundations and endowments. The company's team of investment professionals uses an array of analytical tools, including the proprietary technology platform, the Rampart Options Management System (ROMS®), to help investors meet their goals, ranging from cash yield enhancement to risk mitigation. For more information, please visit www.rimco.com.
About Virtus Investment Partners
Virtus Investment Partners (NASDAQ: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. The company provides investment management products and services through its affiliated managers and select subadvisers, each with a distinct investment style, autonomous investment process and individual brand. Virtus Investment Partners offers access to a variety of investment styles across multiple disciplines to meet a wide array of investor needs. Its affiliated managers include Duff & Phelps Investment Management Co., Euclid Advisors LLC, Kayne Anderson Rudnick Investment Management, LLC, Newfleet Asset Management, LLC, and Zweig Advisers LLC. Additional information can be found at www.virtus.com.
This press release contains statements that are, or may be considered to be, forward-looking statements. All statements that are not historical facts, including statements about our beliefs or expectations, are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. These statements may be identified by such forward-looking terminology as "expect," "estimate," "plan," "intend," "believe," "anticipate," "may," "will," "should," "could," "continue," "project," 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, are not guarantees of future results or performance, and involve substantial risks and uncertainty, including assumptions and projections concerning our assets under management, cash inflows and outflows, operating cash flows, and future credit facilities, for all forward periods. All of our forward-looking statements are as of the date of this release only. The company can give no assurance that such expectations or forward-looking statements will prove to be correct. Actual results may differ materially.
Our business and our forward-looking statements involve substantial known and unknown risks and uncertainties, including the following: (a) the effects of changes and volatility in political, economic or industry conditions, the interest rate environment, or financial and capital markets; (b) any poor relative investment performance of our asset management strategies and any resulting outflows of assets; (c) mutual fund sales in any period may be through a limited number of financial intermediaries, from a limited number of investment strategies, and impacted by relative performance and the breadth and type of investment products we offer; (d) any lack of availability of additional and/or replacement financing, as may be needed, on satisfactory terms or at all; (e) any inadequate performance of fourth-party relationships; (f) the withdrawal of assets from under our management; (g) our ability to attract and retain key personnel in a competitive environment; (h) the ability of independent trustees of our mutual funds and closed-end funds, and other clients, to terminate their relationships with us; (i) the possibility that our goodwill or intangible assets could become impaired, requiring a charge to earnings; (j) the competition we face in our business, including competition related to investment products and fees; (k) potential adverse regulatory and legal developments; (l) the difficulty of detecting misconduct by our employees, subadvisers and distribution partners; (m) changes in accounting or regulatory standards or rules, including the impact of proposed rules which may be promulgated relating to Rule 12b-1 fees; (n) the ability to satisfy the financial covenants under existing debt agreements; and (o) certain other risks and uncertainties described in our 2011 Annual Report on Form 10-K or in any of our filings with the Securities and Exchange Commission ("SEC").
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.
The company does 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 release, 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 release, such statements or disclosures will be deemed to modify or supersede such statements in this release.
SOURCE Virtus Investment Partners, Inc.
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