Alaris Announces New Investments And a 9% Distribution Increase

Core Insights - Alaris Equity Partners has completed three investments totaling US$52.7 million, contributing an incremental US$6.6 million or 4.3% growth to its run rate partner distributions [1][2] - The Board of Trustees has approved a 9% increase in the distribution, raising the quarterly distribution to $0.37 per trust unit and the annual distribution to $1.48 [2] - Alaris has a strong track record, having invested over $2.9 billion in 43 portfolio companies since its founding in 2004, generating a 16% IRR from exited investments [3][4] Investment Details - The investments include a US$27.0 million initial investment in McCoy Roofing Holdings LLC, along with follow-on investments in Cresa LLC and Carey Electric Contracting Inc [1][10][11] - Alaris' investment in McCoy consists of US$19.0 million in preferred equity and US$8 million in common equity, with an initial annualized distribution of $2.7 million, yielding 14% [7] - If McCoy meets its growth targets, Alaris may fund an additional US$32.0 million in preferred equity [8] Partner Updates - Cresa received an additional US$20.5 million investment, increasing its annualized distribution by 69% to US$7.1 million [10] - Carey received an additional US$5.2 million investment, increasing its annualized distribution by 16% to US$2.2 million [11] - Ohana Growth Partners acquired a Planet Fitness franchisee, enhancing its competitive position and cash flow [12] Market Position and Future Outlook - Alaris is well-positioned in the $3 trillion North American private equity market, with a diversified portfolio and a strong pipeline of investment opportunities [3][14] - The company aims to continue its growth track record while returning excess cash to unitholders through potential future distribution increases and buybacks [5]