Angerthal's 'crowning achievement' is $513M RidgeWorth acquisition

PHOTO | Steve Laschever

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By Wendy Pierman Mitzel Special to the Hartford Business Journal

When Mike Angerthal signed on in Sept. 2008 to become chief financial officer of the new Virtus Investment Partners, it just happened to be the beginning of the Great Recession.

Virtus, a Hartford-based asset management company, was about to spin-off from its parent, The Phoenix Cos., and take on an unpredictable market.

“The world got progressively worse and we all did what we had to do to react,” Angerthal said.

The risk paid off. On Dec. 31, 2008, Virtus completed its spin-off and has been on a growth trajectory ever since. Its combined assets under management have grown from $22.6 billion to $90.3 billion today, while its stock price has increased over 1,000 percent since its first trade.

Virtus and its partners offer a variety of products including closed-end funds, managed accounts and insurance funds serving individual and institutional investors.

“Some of the products were well-received in the market and the stock and earnings started to grow,” Angerthal said. “We set up a finance team with the appropriate controls, processes and people, and became involved in the strategic side of the business to ensure the appropriate structure to support the growth and objectives.”

Barry Mandinach, Virtus' executive vice president and head of distribution, said Angerthal is an indispensable partner to the business.

“Some guys look at finance as a necessary evil, but Mike and his team have a great understanding of the financial side, but also great interest and insights into the business in terms of trends, market-related issues, performance and sales,” Mandinach said. “I try not to make too many decisions without checking with the finance department.”

Some of Angerthal's accomplishments in the past 12 months included refinancing the company's revolving credit facility, achieving unsecured (investment-grade) terms and increasing the credit pool to $150 million from $75 million. He also delivered a 146 percent increase in capital returned to shareholders and partnered with the bank loan team at the company's Newfleet Asset Management affiliate on the launch of a $356 million collateralized loan obligation, managed by Newfleet.

But the largest undertaking was Virtus' decision last year to acquire Georgia-based asset manager RidgeWorth Investments for $513 million.

Mandinach calls the acquisition Angerthal's “crowning achievement” and “a fitting testimony to his skill set.”

“Mike is a naturally curious guy,” said Mandinach. “He asks a ton of questions and is a student of the business and the market. He fosters that culture in his own department.”

Angerthal analyzed the financial benefits of the deal and worked directly with lenders to arrange financing. He and his team created a deal financing structure that included existing balance sheet resources, debt and equity offerings.

The merger, which closed June 1, will be “transformative … just short of a merger of equals,” Angerthal said, allowing Virtus to nearly double its assets under management, add three boutique managers and gain access to a larger institutional client base.

Angerthal said he credits his team for assisting in the long hours it took to make the deal happen. “I need a strong team and I'm pleased some of my most trusted professionals have been with me the whole time,” he said.

Still, the time spent at work was less time spent competing in one of his favorite past-times: triathlons.

“I do try to balance (life),” said Angerthal, who grew up in a blue-collar Long Island community and worked his way through business school. “I see it as a marathon not a sprint.”

He still made plenty of time to coach his daughter's third grade basketball team, even taking the players to a UConn Women's basketball game.

“I used to coach my son's team and I felt like I knew every boy in his grade,” said Angerthal, whose son is now in college. “That was a nice connection I had with him and I want to do the same for my daughter.”

He also makes time to support his community of Westport, where he and his wife, Orly, are active members of the Westport Arts Center and Orly is a member of the board of directors.

On his long drive from Westport each day, Angerthal listens to audio books, mostly historical non-fiction focused on American leaders.

In a way, the historical perspectives aid Angerthal in his job, he said.

“You can look at history and see how decisions are made and the importance of relationships,” he said. “It doesn't matter the situation, it's not what occurs but it is about how you handle it. We're never right all the time, but how you handle it goes a long way.”

On the job

Guiding business principle: Managing a business of any size (or a department/function within a company) is a team endeavor, so it's incumbent on the leader to hire and retain the best people whenever possible.

Best way to keep your competitive edge: I find that I can best prepare for each day's business opportunities by rising early and finding time to exercise and read. Spending time with my family in the evening and on weekends allows me to balance the pressures and time commitments of my job.

Judgment calls

Best business decision: Virtus became an independent public company at the beginning of 2009, at the height of the financial crisis, so we immediately focused on creating appropriate capital flexibility for the company. We achieved that goal of capital flexibility, and it has supported the growth objectives of the company.

Missed opportunity: Several times in the period after Virtus became an independent public company, we missed on potential acquisition opportunities, but the lessons we learned prepared us to successfully negotiate the RidgeWorth Investments deal.

Personal side

Favorite way to relax: Reading, walking dogs with my wife

Hobbies: Spending time with family, exercise (including training for an Olympic-distance triathalon), reading

Last vacation: A family vacation at the Grand Canyon

Currently reading: “Sapiens: A Brief History of Humankind,” by Noah Harari

Favorite cause: American Cancer Society; lost my mother-in-law prematurely to cancer

Second choice career: Sports broadcaster

Michael Angerthal | Winner: Public Company

Title: Executive Vice President & CFO

Company: Virtus Investment Partners Inc.

Size of organization: $10.9 billion in sales; 406 employees

Education: MBA, Columbia Business School; Bachelor’s degree, Pace University, New York

Previous job(s): CBRE Realty Finance, GE Corp., and Coopers & Lybrand

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