Various embodiments of the present invention are directed to a multi-level virtualizer that is designed to remove much of the intercept-related functionality from the base-level virtualizer (that exists outside of each partition) and, instead, incorporate much of this functionality directly into each partition. For several of the embodiments, certain intercept handling functions are performed by an "external monitor" that runs within a partition and responds to specific intercept events, and the base-level virtualizer installs these external monitors within each partition and thereafter manages the external monitors for both single-partition and cross-partition intercept events. This distributed approach to intercept handling allows for a much less complex virtualizer and moves the intercept functionality up into each partition where each external monitor uses the resources of the corresponding guest operating system in that partition to resolve the intercept event.