Cautious Outlook on Virtus Investment Partners' Acquisition of Keystone National Group: Sell Rating Due to Valuation and Integration RisksWe see deal valuation of ~17x earnings, ~14x EBITDA and 8% of AUM, which is in the range of where we’ve seen other private market properties trade Since inception, Keystone has invested over $6b of capital in more than 750 transactions. Keystone's $2.5b AUM is invested across four core strategies: equipment finance, real estate finance, financial assets, and asset-based corporate loans. Notably, they’re not involved in the sponsor direct lending space which has gotten crowded in recent years. ~$2b or 80% of Keystone's AUM is asset- centric private credit, $400m or ~16% is related to real estate bridge lending, and $100m or ~4% is related to real estate equity. Notably, Keystone engages in their own direct sourcing and origination and that a majority of AUM are sourced from the RIA channel. Keystone has 39 employees including 30 investment professionals.