SAN FRANCISCO, Jan. 24, 2017 /PRNewswire/ -- Marcato Capital
Management LP ("Marcato"), a San Francisco-based investment manager which manages funds that
beneficially own common shares of Virtus Investment Partners, Inc. (NASDAQ: VRTS) ("Virtus" or the "Company"), today released a
detailed presentation recommending that Virtus finance its proposed acquisition of RidgeWorth primarily with cash.
While Marcato supports Virtus' transformational and strategically compelling proposed acquisition of RidgeWorth, it believes
that the transaction can be significantly more accretive to Virtus' earnings per share ("EPS") than the "15%+" guidance currently
provided by management if equity dilution is minimized. Marcato believes that, by maximizing the amount of cash and
available balance sheet capacity used in the transaction, Virtus can achieve EPS accretion of more than 50%.
Shawn Badlani, a Partner at Marcato, said: "As a significant Virtus shareholder, we are
sensitive to the Company's limited disclosure on how it plans to finance the proposed acquisition of RidgeWorth, creating
uncertainty about the magnitude of value creation. We believe management, the Board, and the investment community would
benefit from reviewing our analysis on how Virtus can best maximize value."
The presentation is available by clicking here http://mma.prnewswire.com/media/460120/Marcato_Virtus_Investment_Partners.pdf.
Cautionary Statement Regarding Forward-Looking Statements
The press release and the presentation referred to herein may contain forward-looking statements which reflect Marcato's views
with respect to, among other things, future events and financial performance. Forward-looking statements are subject to various
risks and uncertainties and assumptions. There can be no assurance that any idea or assumption herein or in the presentation is,
or will be proven, correct. If one or more of the risks or uncertainties materialize, or if Marcato's underlying assumptions
prove to be incorrect, the actual results may vary materially from outcomes indicated by these statements. Accordingly,
forward-looking statements should not be regarded as a representation by Marcato that the future plans, estimates or expectations
contemplated will ever be achieved.
Additional Information
The views expressed in this press release and the presentation referred to herein represent the opinions of Marcato and the
investment funds it manages that may be deemed to beneficially own shares in the Company, and are based on publicly available
information with respect to the Company. Marcato recognizes that the Company may possess confidential information that
could lead it to disagree with Marcato's views and/or conclusions. Any estimates, projections, and potential impact of
opportunities identified by Marcato herein are based on assumptions that Marcato believes to be reasonable as of the date of this
press release. Marcato reserves the right to change any of its opinions expressed herein or therein at any time as it deems
appropriate. Information contained in this press release and the presentation, has not been independently verified by Marcato,
and Marcato disclaims any and all liability as to the completeness or accuracy of the information and for any omissions of
material facts. Marcato undertakes no obligation to correct, update or revise this press release or the presentation or to
otherwise provide any additional materials. Neither Marcato nor any of its affiliates makes any representation or warranty,
express or implied, as to the accuracy, fairness or completeness of the information contained herein or therein.
Funds managed by Marcato may be deemed to beneficially own, and/or have an economic interest in, shares of the Company. These
funds are in the business of trading—buying and selling—securities. It is possible, in fact likely, that there will be
developments in the future that cause one or more of such funds to engage in transactions that change their beneficial and/or
economic interest in the Company, including but not limited to selling all or a portion of their holdings in the Company. Marcato
may buy or sell or otherwise change the form or substance of any of the funds' investments in the Company in any manner permitted
by law, including, possibly, without notice to the market, or any other party.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/marcato-comments-on-virtus-proposed-acquisition-of-ridgeworth-300395010.html
SOURCE Marcato Capital Management LP