Asset manager Virtus Investment Partners has further solidified its presence in the private markets through a new minority investment. The firm announced on Tuesday the completion of a deal to acquire a 35% stake in Crescent Cove Advisors, a specialist in private capital solutions for middle-market technology companies. Following the news, Virtus shares experienced muted trading activity, closing the session down 1.92%.
A Dual-Pronged Expansion Strategy
This move represents the latest step in Virtus’s concerted push into the private credit arena. It follows closely on the heels of a larger, previously announced transaction. On December 5, 2025, Virtus entered into a definitive agreement to acquire a majority interest in Keystone National Group, a private credit manager. That deal carries an upfront value of $200 million, with potential deferred payments adding up to $170 million, and is slated for completion in the first quarter of 2026.
The investment in Crescent Cove provides Virtus with targeted exposure to the technology lending sector, an area noted for its growth potential. Founded in 2016, Crescent Cove manages approximately $1.0 billion in assets and focuses on providing direct lending to technology firms operating in fields such as defense technology, autonomous vehicles, artificial intelligence, and financial technology.
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Strategic Rationale and Financial Details
George R. Aylward, Chief Executive Officer of Virtus, highlighted the strategic fit of the Crescent Cove investment. “Crescent Cove presents a compelling opportunity for investors to access the venture and growth credit asset class with a risk-conscious approach,” he stated. The financial terms of this specific transaction were not publicly disclosed. Virtus confirmed that the purchase was funded using available corporate capital.
The firm’s strategic focus now shifts to integrating the Crescent Cove partnership and finalizing the Keystone National Group acquisition in spring 2026. These initiatives are designed to establish new revenue streams within the alternative investment segment for Virtus.
Shareholder Returns Amidst Growth Initiatives
Concurrent with its expansion efforts, Virtus Investment Partners continues to return capital to its shareholders. The company’s board has declared a regular quarterly cash dividend of $2.40 per share for the fourth quarter of 2025. This dividend will be payable on February 11, 2026, to shareholders of record as of January 31, 2026.
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