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Virtus Investment Partners to acquire stake in Sustainable Growth Advisers

Virtus Investment Partners Inc. has agreed to acquire a majority interest in Sustainable Growth Advisers LP, an asset management company with $11.6 billion in assets in the U.S.

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 Sustainable Growth's partners, including its three co-founders. Key investment professionals will retain the remaining equity in the company.

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

The transaction is expected to close in mid-2018, subject to customary closing conditions and client approvals. Virtus expects to finance the transaction using balance sheet resources and available capacity on its credit facility, or may seek additional sources of debt financing, depending on market conditions.

Sandler O'Neill & Partners LP acted as financial adviser to Virtus and Morgan Lewis & Bockius LLP was the legal adviser. Broadhaven Capital Partners LLC acted as financial adviser and Schulte Roth & Zabel LLP was the legal adviser to Sustainable Growth.