Virtus Investment Partners has announced a definitive agreement to acquire a majority stake in Keystone National Group, marking a significant expansion of its capabilities into private markets. The deal brings Keystone’s asset-backed lending expertise under the Virtus umbrella, adding a differentiated private credit offering tailored to growing investor demand for alternative income strategies.
Keystone, founded in 2006, has established itself as a leading manager in asset-centric private credit, deploying more than $6 billion across 750-plus transactions since inception. The firm oversees $2.5 billion in assets as of October 31, 2025, with its flagship Keystone Private Income Fund (KPIF) earning strong traction across the wealth channel for its consistent performance and diversified exposure to equipment finance, real estate finance, financial assets, and asset-backed corporate loans. Keystone also manages two private REITs focused on real estate bridge lending and equity investments.
“Partnering with Keystone allows us to offer strategies of an innovative asset-centric private credit manager that has delivered attractive, uncorrelated returns to meet the needs of clients who are increasingly looking for alternative sources of income as well as to diversify their private credit exposure beyond direct lending,” said George R. Aylward, president and chief executive officer of Virtus. “John Earl and Brandon Nielson, Keystone’s co-founders, and their team have built a high quality, client-focused business and we welcome them to our family of investment managers.”
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Under the terms of the agreement, Virtus will acquire the majority interest for $200 million at closing, with up to $170 million in deferred consideration tied to future revenue performance. The transaction will be financed through existing balance sheet resources. Keystone’s leadership team will maintain significant equity ownership and enter long-term employment agreements while preserving its investment autonomy and brand identity.
Keystone co-founder John Earl said the partnership marks a pivotal moment for the firm’s continued growth. “We are excited to be partnering with Virtus, who we view as an ideal strategic partner to support our next stage of growth and evolution for the firm… Virtus’ extensive distribution footprint positions us to further capitalize on the increasing number of investment opportunities that we continue to see in our differentiated asset-backed credit space.”
The acquisition is expected to close in the first quarter of 2026, pending customary approvals, and is projected to be accretive to Virtus’ earnings within the year.
