Virtus Investment Partners’ Acquisition of Sustainable Growth Advisers

Sandler O’Neill & Partners, L.P. acted as financial advisor to Virtus and Morgan, Lewis & Bockius LLP was the legal advisor on the transaction. Broadhaven Capital Partners, LLC acted as financial advisor and Schulte Roth & Zabel LLP was the legal advisor to SGA.

Virtus Investment Partners, Inc. (NASDAQ: VRTS), which operates as a multi-boutique asset manager, has entered into an agreement to acquire a majority interest in Sustainable Growth Advisers (SGA), an investment manager specializing in high-conviction U.S. and global growth equity portfolios. The transaction would expand Virtus’ offerings of investment strategies from its affiliated managers and diversify its client base, particularly among institutional investors and international clients.

Virtus would purchase the equity interest currently held by Estancia Capital Management, a private equity firm, as well as a portion of the equity held by SGA’s partners, including its three co-founders. Key investment professionals will retain the remaining equity in the company, enter into long-term employment agreements, and reinvest a meaningful portion of their after-tax proceeds from the transaction into the company’s investment strategies.

SGA manages $11.6 billion in assets1 in U.S., global and international growth equity strategies using a team-oriented approach and a consistent investment philosophy that is based on fundamental research and investing in equities of sustainable growth companies. SGA primarily manages assets in institutional separate accounts and subadvisory mandates for clients in the U.S., Europe, Middle East, and Asia-Pacific.

As a Virtus affiliated boutique, SGA will retain autonomy over its investment process and maintain its independent structure, culture, brand identity, and control over day-to-day activities. SGA also will benefit from access to Virtus’ distribution and shared business support capabilities.

Schulte advised Sustainable Growth Advisers witha team including Richard Presutti (Picture), Lawrence Natke, Matthew Savoff (M&A), Philippe Benedict and Christine Harlow (Tax).

Involved fees earner: Richard Presutti – Schulte Roth & Zabel; Lawrence Natke – Schulte Roth & Zabel; Matthew Savoff – Schulte Roth & Zabel; Philippe Benedict – Schulte Roth & Zabel; Christine Harlow – Schulte Roth & Zabel;

Law Firms: Schulte Roth & Zabel;

Clients: Sustainable Growth Advisers ;


Author: Ambrogio Visconti