Core Insights - Alaris Equity Partners reported strong financial results for Q3 2025, showcasing continued strength in its Partner portfolio and steady cash flow generation [1][3][4]. Financial Performance - Record Net Book Value: The net book value reached $25.10 per unit, a record high, reflecting a 10% increase from Q3 2024 and a 6% increase from Q2 2025, driven by quarterly earnings of $1.90 per unit [6][7]. - Revenue & Operating Income Growth: Total revenue and operating income increased by 8% compared to Q3 2024, supported by a $47.9 million net unrealized gain on investments, which is a 45% increase in unrealized gains [6][9]. - Partner Revenue: Total Partner revenue was $58.1 million, 2% above guidance but down 12.3% from Q3 2024, primarily due to variability in common distributions [6][11]. - Net Distributable Cash Flow: Alaris' net distributable cash flow per unit decreased by 26% in Q3 and 14% year-to-date, attributed to variability in common distributions and increased transaction costs [6][11]. - Active Capital Deployment: Alaris deployed an additional $73.8 million in capital since Q2 2025, totaling $228 million year-to-date across new and existing Partners [6][15]. Distribution and Payout - Distribution Growth: The quarterly distribution was increased by 9% to $0.37 per unit, reflecting confidence in the durability of Partner cash flows, with the payout ratio increasing from 54% to approximately 59% [6][14]. - Capital Returned to Unitholders: Alaris repurchased and canceled 112,500 units during the quarter, totaling 465,000 units year-to-date at an average cost of $18.87, contributing approximately $0.06 per unit to overall book value [6][14]. Portfolio Strength - Financial Discipline: Alaris' Partners maintained a weighted average Earnings Coverage Ratio of 1.5x, with 14 out of 21 Partners above this threshold, indicating strong portfolio health [6][15]. - Continued Investment Activity: Alaris invested $45.7 million in new capital during Q3 2025, with total investments for the nine-month period reaching $199.3 million [6][15]. Outlook - Q4 2025 Expectations: Total Partner revenue for Q4 2025 is anticipated to be approximately $43.5 million, consistent with normal seasonal patterns [16].

Group 1 - Alaris Equity Partners Income Trust has declared a trust distribution of $0.34 per trust unit for Q2 2025, which annualizes to $1.36 per unit [1] - The distribution is scheduled to be paid on July 15, 2025, to unitholders of record on June 30, 2025 [1] Group 2 - Alaris invests in a diversified group of private businesses primarily through structured equity, aiming to deliver stable and predictable returns to unitholders [2] - The strategy includes common equity positions to align returns with the founders of Private Company Partners [2]