Virtus Investment to acquire majority interest in Keystone for $200M

Virtus Investment (VRTS) announced it has entered into a definitive agreement to acquire a majority interest in Keystone National Group. The transaction expands Virtus’ offerings into private markets with the addition of a differentiated asset-backed lending capability. Since inception, Keystone, which managed $2.5B as of October 31, has deployed over $6B of capital in more than 750 transactions. Under the agreement, Virtus would purchase a majority interest in Keystone for consideration of $200M at closing and up to an additional $170M of deferred consideration, including earnout payments subject to the achievement of future revenue targets. Virtus expects to finance the transaction using existing balance sheet resources. Keystone’s management team will retain equity in Keystone and the managing partners will enter into long-term employment agreements. As a Virtus investment manager, Keystone will retain autonomy over its investment process and day-to-day activities. The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions, including approval by the KPIF fund board and fund shareholders, and is expected to be accretive to earnings in 2026.