Virtus Investment Partners has agreed to acquire a majority stake in Keystone National Group, the $2.5bn (£1.9bn) private credit investment firm focused on asset-backed lending.
Under the terms of the deal, Virtus will pay $200m on completion, with up to a further $170m in deferred consideration. The transaction is expected to complete in the first quarter of 2026.
Virtus, the partnership of boutique investment managers, said the acquisition would broaden its private markets offering and strengthen its asset-backed lending capabilities.
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“Partnering with Keystone allows us to offer strategies from 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 Aylward, president and chief executive of Virtus.
Keystone has deployed $6bn across over 750 transactions since inception. Its asset-backed lending strategies span equipment finance, real estate finance, financial assets and asset-backed corporate loans.
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These strategies feed into the firm’s $2bn private income fund, a vehicle for wealth managers, along with two private real estate investment trusts focused on bridge lending and equity.
“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,” said John Earl, co-founder and managing partner of Keystone. “We are proud of our consistent track record over the last two decades as an early pioneer in asset-backed private credit and grateful for the support of our investors, team and partners who have all contributed to our shared success.”
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